International Business Essay

Q.2 a) Evaluate the different slipway in which Bata has interacted with foreign semipolitical systems in its investments and operations abroad. ANS Multinational enterprises (MNEs) like Bata must shape in countries with different political and legal conditions, so the political regard on the foreign investments is very important. This paper explains this issue based on the Bata case in three actuates. The first part evaluates the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard. In the bet on part, the advantages and disadvantages, which MNEs bring to their troupe and the host- rustic when doing foreign direct investment, are analyzed relating to the Bata case. And the finishing part gives a detailed analysis of the complex political trespass on international business with reference to the political environment in general also supply the way of formulating effective political dodge.* Batas effective governi ngal structure and managing style With activities in 60 countries, Canada-based Bata fit out Organization has much operational experience both in veritable countries and growth countries and raise deal with different political systems. It has an effective organization structure, which consists of Bata Limited located in Toronto, Canada, acts as headquarters of the direct companies. regional offices exist in Toronto, Mexico City, Singapore, Paris, Calcutta and Harare. The International structure a decentralized organization, where operating companies are independent businesses, supported by a global steering team. Private Ownership Bata shoe organization companies subscribe to also entered into a number of joint ventures, retail franchising and brand licensing agreements 1. By and handsome Batas operations are independent units established in each rude where the firm does business. As such, Bata is able to decentralize control of its political strategygiving subsidiaries signifi back endt autonomy in managing relations with their respective government. b) Should pizza pie chantey put more of its efforts in expanding in Brazil or nearwhere in South East Asia? Why? ANS pizza chantey, one of the most popular food chains, opened their 10000Th shops in the Brazilian market in 1994. pizza Huts parent company is PepsiCo. PepsiCo was trying to penetrate in Brazilian market in several(a) ways. However, the path was not as easy as assumed. pizza Hut faced decline in the Brazilian market. Experts said that on that point were dickens probable reasons for this. One is Pizza Huts less prospered introduction of new products and the second is the low price strategy of the competitors.However, Pizza Hut had a high hope to make Brazils their second or third study market because Brazil had many location peculiar(prenominal) advantages like urbanization, size, population, Gross National Product etc. Brazil endured droll political situations since 1964. After a long military dictatorship, a horse barn political reformation was done by the year 1997.Economically Brazil has a mixed history as well. It has a very good economic potential. It has access to several natural resources and well knit infrastructures. However, inflation bear upon the economy very badly. Pizza Hut entered in Brazil in 1988, during the period of high inflation.It followed the practice of corporate franchise. Later, Pizza Hut bought some of the franchises. But still different problems arose like- difference in refinements, cost of maintaining large pool of employees and of course inflation. Gradually, the inflation rate of Brazil normalized. People make more informed decisions and Pizza Hut began to flourish. However, in 1995, sales of Pizza Hut dropped. As a mean of counterattack, Pizza Hut took cardinal different strategies. One was to cut the price by 25% and some other was to announce various sales related decisions by mingling with topical anaesthetic cult ures like Samba dance. But both of the plans failed miserably. In these ways, Pizza Hut struggled to succeed in the Brazilian market.Q.3 a) what factors threaten Indias future agonistical positions in cashew nut outturns? ANS Since the opening of Chinas doors to world trade in the late 90s, it has become an rising super power. Hence, China may be a threat to Indias current competitive position in the cashew nut production because it is also capable to support cashew processing with its abundance of pitying resources, low-wage rates, and possible training in the manual dexterity required in the premium cashew nut production. China is currently engaging in new markets and providing cheap manual labor to other manufacturing.With this, China can see that the increasing profitable cashew nut industry and finalize to enter it because it has the capability to do so. Moreover, the current formulation of the European juncture (EU) provides that its members eliminate trade barriers for imports and exports between each other may be a possible threat to Indias United Kingdom market. Since the UK can virtually import anything from its neighboring countries without any cost, it might affect the guide of cashew whacky the Europeans may divert their attention from cashew nuts to other products popular in its neighboring countries. Indias competitiveness could also be threatened by the increased Research and Development utility that countries worldwide are engaging in nowadays. Brazilians (Indias most large(p) competitor in the cashew nut industry) may possibly square up machinery that can be substituted for the needed hand dexterity for the flavor that Indias cashew nut has.b) Should the United States try to tighten the economic charm on cube? If so, how should it be done? ANS U.S. should not seek to tighten economic grip on Cuba as it is already a weak economy as compared to U.S. due to the political environment of the country for the past few decades. For U.S. industries and companies Cuba is a very potential market. Also the manpower is efficient, so there is a possibility of efficient labor at lower cost for U.S. industries. Also, other countries of the world started favoring Cuba and also doubted the rationale of U.S. on imposing the embargo.1. Attitude An spot may be defined as a learned disposition to be puddle in a consistently favourable or unfavourable way with respect to a wedded object (Schiffman and Kanuk, 2000). Stated differently, it positions large number into a frame of mind of lust or disliking things, of moving toward or away from them (Kolter and Armstrong, 2008 p144). It is acknowledged that populate have military capabilitys toward almost everything religion, politics, clothes, music, food (Kotler, 2003).For instance The demand for life indemnity in a country may be affected by the fantastic culture of the country to the extent that it affects the populations risk aversion (Douglas and Wildavski, 1982). Hen derson and Milhouse (1987) argue that an individuals religion can provide an shrewdness into the individuals behaviour and understanding religion is an important element of understanding a nations unique culture. Also, Zelizer (1979) notes that religion historically has provided a strong source of cultural opposition to life indemnity as many religious people believe that a credit on life policy results from a distrust of Gods protecting care. But historically, some form of fond indemnification policy existed in Nigerian and Africa society long before the introduction of the modern insurance in Nigeria (Osoka, 1992).These social schemes evolved through the existence of extended family system and social associations such as age grades, and other unions. The simplest form of the social insurance was practiced by way of life of providing cash donations, materials or sometimes nonionic collective labour to assist members of extended family and members of social or communal ass ociations who suffer a mishap.2. Lack of Knowledge of Insurance Culture In a recent study of quality of life in developing countries with reference to South Africa (Moller, 2004), income and social security (own wages, ability to provide for family, insurance against illness/death and income in old age) have been treated as one of the major indicators of quality of life. This standpoint stresses the significance of insurance to gay life. Ironically, insurance function seem not to have been so recognized enthusiastically in developing countries. The abysmal level of insurance culture in developing economies has attracted relative interests among researchers and practitioners alike. Risk has been identified as a central fact of life in the rural areas of less- real countries (Udry, 1994). Some of the problems associated with this have been marketing. For example, Omar (2005) assesses consumersattitudes towards life insurance patronage in Nigeria and found out that there is depriv ation of trust and confidence in the insurance companies. Other major reason for this attitude is lack of knowledge about life insurance product.3. Low Level of Education Educational spatial relation of Nigerians has significant mould on their attitude towards insurance. Educated people have more arbitrary attitude to insurance than less educated ones. In a recent insurance conducted in Lagos, Nigeria. The choice of Lagos is due to its nature as a metropolitan city where most Nigerian ethnic groups are for the most part represented. Fact shows that respondents with higher education outperformed others even though no statistical significant difference was find with vocational education.4. Unemployment Issue Employees working status has a significance effect on Nigerians attitude towards insurance. Retired and Employed Nigerians with means attitude scores of 28.50 and 28.14 respectively outperformed their competitors. No significant difference was observed between retired, employ ed and Self-employed respondents. On the other hand, self-employed people have significantly higher attitude towards insurance than unemployed, student and part time workers. This result is quite similar to decisions in most developed world.In Conclusion, The findings of this study suggest some major implications for marketing of insurances go in Nigerian businesses environment which is a big market. Given that attitude is strongly linked to behaviour, marketers of insurance services targeting Nigerians are confronted with the challenge of back up people to embrace insurance institution and its associated benefits. Based on the findings, this condition confirms negative attitudes of Nigerians to insurance services further.But apart from this broad finding in respect of the negative attitudes to this line of business, this study suggests some particularised findings based on different demographical factors of the respondents. The findings serve as inputs to marketers of insurance services on how they formulate and implement relevant marketing strategies towards addressing the nonchalant attitude of Nigerians to insurance. For instance, specific marketing strategies are required to encourage the young times below 46 years of age, the divorced/separated, and the less-educated to embrace and appreciate the fictional character of insurance. Since, the basic issue associated with this lack of interest rests mainly in their lack of appreciation of the roles of benefits of insurance services it is recommended that significant marketing communication activities with hour compensation to both marketers be targeted more at this set of people highlighted. This will help to kindle their interest in the business and brings the insurance institution to the highly exalted position it belongs in their perception.