The learning goal of the Group Project of the MAN 6726 Strategy course is to provide an opportunity for student Groups to learn how to apply the concepts and frameworks of strategic management to recommend the important strategic decision of a real company to make a foreign direct investment (FDI) to acquire or form a joint venture with another company in one of the BRIC (Brazil, Russia, India, and China) countries. In doing so, students will become familiar with the growing importance of the BRIC countries to the twenty first century global economy and also to the long term merger and acquisition opportunities of multinational companies.
The final project paper should be written as a comprehensive paper in the form of a recommendation to the selected client company, for making an international foreign direct investment either denovo, acquisition, joint venture or strategic alliance, into one of the BRIC countries. It should incorporate the work of Part 1, Part 2 and Part 3. The paper should have the following logical structure
The first sentence of your Executive Summary should read as follows:
“Team _____________ recommends that _______________, a major multinational company in the ______________industry, enter the BRIC markets, initially targeting ___________ as the first country, through a foreign direct investment denovo startup, or an acquisition, joint venture or strategic alliance, with _______________ one of the key local companies in the ___________industry.
Final Team Project Paper Outline
International Acquisition, Joint Venture or Strategic Alliance Proposal
Executive Summary
I. Strategic Opportunity Assessment and Analysis
A. Comparative opportunity (market size and market growth)
assessments, showing all the countries.
B. Comparative Cultural Distance assessments, showing all
the countries.
C. Bubble Chart Showing Opportunity vs Cultural Distance
D. Conclusion and Recommendations
II. Strategic Risk Assessment (From Week 6 Part 2)
E. Comparative country risk assessments showing all the
countries.
F. Comparative Risk Scenario Watchlists showing all the
countries.
G. Conclusions and Recommendation
III. Final Strategic Risk vs. Opportunity Assessment and Market Entry Strategy
(Week 7 Part 3)
A. Comparative risk versus opportunity of the BRIC countries.
Create the risk vs opportunity bubble chart
B. Rationale for selecting the target BRIC country for foreign direct
investment.
C. Selection, with rationale of the Market Entry Strategy into the selected BRIC country (i.e, denovo, acquisition, joint venture or strategic alliance). Identify the target local company, if the foreign direct investment is not denovo.
APPENDICES
Appendix 1: BRAZIL REPORT
A. Description of the ________ industry and it’s opportunity in
the country.
B. Opportunity Assessment
C. Risk Assessment
Appendix 2: RUSSIA REPORT
A. Description of the ________ industry and it’s opportunity in
the country.
B. Opportunity Assessment
C. Risk Assessment
Appendix 3: INDIA REPORT
A. Description of the ________ industry and it’s opportunity in
the country.
B. Opportunity Assessment
C. Risk Assessment
Appendix 4: CHINA REPORT
A. Description of the ________ industry and it’s opportunity in
the country.
B. Opportunity Assessment
C. Risk Assessment
Appendix 5: UNITED STATES REPORT
A. Description of the ________ industry and it’s opportunity in
the country.
B. Opportunity Assessment
C. Risk Assessment
PART 3 OF THE PROJECT
How would you tradeoff the degree of country risk versus the opportunity, taking into consideration the market size as expressed by the market size data variable you chose in Week 5 in 2021 and the market growth as expressed by the market size data variable you chose in Week 5, from 2017 to 2021. Summarize your assessment data in the following table.
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COUNTRY
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EIU RISK RATING 2022
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MARKET GROWTH 2022-2026 (%)
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MARKET SIZE 2026
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BRAZIL
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RUSSIA
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INDIA
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CHINA
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UNITED STATES
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Using the above data you will be able to produce a bubble chart which succinctly shows the tradeoff between country risk and opportunity (defined as market size and market growth). Note: in the example bubble chart below, the data variable used was Personal Disposable Income. You will use the data variable for market size and growth that you selected in the Week 5 BRIC Project Part 1.
Example Bubble Chart (You have to put in your own numbers and titles of your selected data variable for market size and growth from Part 1)
As a result of answering the above question, how would you prioritize the BRIC countries in terms of developing a global business strategy?
Market Entry Strategy
For the BRIC country that you have selected you now need to recommend a Market Entry Strategy, after examining the pros and cons of each possible strategy in the table below.
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COUNTRY
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PROS
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CONS
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DENOVO (GO IT ALONE)
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ACQUISITION
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JOINT VENTURE
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STRATEGIC ALLIANCE
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Discuss which market entry strategy you choose and why.
EIU RISK VS OPPORTUNITY (Size of Circle Represents the Personal Disposable Income in 2022 as an Indicator of Market Size)
BRAZIL
RUSSIA
INDIA
CHINA
MEXICO
SOUTH KOREA
UNITED STATES
49 55 47 45 21 1.58 1.74 8.32 6.36 1.98 1143 815 1523 4984 12045
RISK
0=GOOD, 100=BAD
PDI Growth
2022-2026
(%)
