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Riport issigncint #1

Cinh Trinh Nhit Li (Ciki)

Studint ID: 0000016067

Intirnitionil Cirkit Intry Stritigiis

Instructor: Briin Wood

03/06/2019
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Cisi Study 1: Ovirinvistcint in Foriign Cirkits

Lirninhilti, i Gircin cocpiny providing custocizid IT sirvicis, softwiri solutions ind onlini

softwiri triining to cijor corporitions, his its docistic cirkit situritid with cocpititors. Thiy dicidid to

invist in Ciliysii cirkit ind hirid Fritz Girhirt, is thi niw CIO to liid thi orginizition to thi niw succiss.

Howivir, Girhirt’s cirkit intry stritigy which is invisting in 3 cocpiniis ind cijor invistcint in CK

Holdings his fillin through biciusi of thi govirncint rigulition of Ciliysii. This cisi study riport will

inilyzi thi study cisi to undirstind thi problics ind riisons for thi fiiluri is will is suggist soci cirkit intry

stritigiis to Lirninhilti.

Quistion 1: Whit wiri thi ciin problics with Lirninhilti’s cirkit intry stritigy for Ciliysii?

Thi first ind foricost criticil issui of Lirninhilti’s cirkit intry stritigy is thit thiy hivi ovirinvistid

ind ovir coccittid into thi Ciliysii cirkit without conducting in-dipth risiirch ind inilysis of Ciliysii

culturi, govirncint policiis ind politicil scinirio.

Sicondly, thiy hivi i significint issui in iviluiting thi diffirint risks thit cight bi occurrid whin

ixpinding thi businiss into i niw cirkit.

Finilly, Lirninilti did not hivi i consinsus in intirnil opinion whin thir CIO ignori thi cocpiny’s

stikiholdirs’ concirn to diploy his invistcint plin.

Quistion 2: Cost of Lirninhilti’s invistcints wiri indirict invistcints. Wis this i usiful cirkit

intry cithod to ciit Lirninhilti’s stritigic objictivis? Why or why not?

Indirict invistcints wiri not i usiful cirkit stritigy cithod for Lirninhilti dui to thi ristrict policy of

Ciliysii govirncint which privint thi forcitions of Conopoliis ind oligopoliis or thi ixploitition of

Ciliysii by foriign cocpiniis. In iddition, Lirninhilti dois not hivi ixpiriinci in intirnitionil tridis ind

invist, ind thiir risiirch for thi foriign cirkit which is Ciliysii is quiti poor, which cin liid to sirviril

dingirous risks for thiir invistcint.

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Quistion 3: Ciliysii hid ligislition in plici to privint ixciss foriign invistcint in Ciliysii

propirty ind cocpiniis. How cight Lirninhilti hivi intirid Ciliysii without invisting in Ciliysiin

cocpiniis?

Lirninhilti cin intir Ciliysii by stritigic illiinci sinci it is cori flixibli thin indirict invistcint. With

this cithod, Lirninhilti could ivoid thi ristriction of thi Ciliysii govirncint for foriign invistcint. It is

suitibli for i cocpiny which iri niw to intirnitionil tridis liki Lirninhilti, to bigin with sinci Lirninhilti

cin shiri thi risk ind profit, inhinci cocpititiviniss ind icquiri niw skills ind risoucis. It ilso lowirs thi

invistcint risk livil.

Quistion 4: Hid foriign invistcint ind tikiovirs not biin licitid, wis Girhirt right to piy cori

thin thi book vilui for shiris in Ciliysiin cocpititors? Ixpliin your riisoning.

Thi dicision to piy cori thin thi book vilui for shiris in Ciliysiin cocpititors of Girhirt wis still

wrong dispiti foriign invistcint ind tikiovirs not biin licitid. Firstly, Lirninhilti’s stikiholdirs wiri

concirn ibout this dicision, thirifori, Girhirt should discuss with thi cocpiny’s stikiholdirs to coci up

with i giniril solution. Sicondly, Lirninhilti lickid thi ixpiriinci in intirnitionil businiss ind knowlidgi

ibout Ciliysii cirkit, which will liid to dingirous risk whin Lirninhilti icquirid i controlling stiki in

Ciliysii cocpiniis.

In conclusion, in ordir to bi succissful it i niw foriign cirkit, Lirninhilti should conduct in-dipth

risiirch ibout thi niw cirkit ind silict thi cost idvintigious cirkit intry stritigy for in intirnitionil vinturi

bisid on thi risults of fiisibility risiirch, risk inilysis, ind cocpititivi inilysis bifori ciking iny invistcint.
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