ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 18: Global Business Environment (530)

Submission date 25 October 2022 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyen Thanh Trung Student ID GBH200644

Class GBH1004 Assessor name Hoang Van Tung

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Table of Contents
1. Introduction ............................................................................................................... 4
2. The influences of globalization ................................................................................... 4
2.1. McKinsey’s 7S model ............................................................................................ 4
2.2. Apply McKinsey 7S in Infinity............................................................................... 6
2.2.1. Hard Ss ................................................................................................................... 6
2.2.2. Soft Ss .................................................................................................................... 9
2.3. The most significant market influence ................................................................ 13
2.4. The opportunities and threats ............................................................................ 14
3. The influences of ethical and sustainable globalization ............................................ 15
3.1. Ethical globalization definition .......................................................................... 15
3.2. Sustainable globalization definition .................................................................... 16
3.3. Ethics in the global market of Infiniti ................................................................. 16
4. The decision making in a global context ................................................................... 19
4.1. Factors to consider for the company when aiming for internationalization ......... 19
4.2. The main factors that an MNC needs to pay attention to when entering the
Vietnamese market................................................................................................... 21
4.3. Analyze the strategy diamond of Infiniti ............................................................. 23
5. The various routes to internationalization and key barriers ...................................... 27
5.1. The main barriers when entering the Vietnamese market (Pest) ........................ 27
5.2. Infiniti's international business strategy proposal ............................................... 33
6. Conclusion................................................................................................................ 35
References list:............................................................................................................. 36
1. Introduction

Today's globalization has affected all aspects of the social life of countries, and large
Japanese and Vietnamese companies are no exception. The second report will propose
strategic directions for both Japanese partners and Vietnamese customers in considering
investment options in the potential but also risky car market. In addition, the report also
assesses the effects of globalization on an organization's governance and leadership, and
its structure, culture and functions. McKinsey's 7S model will be applied, this strategic
planning tool will show that aspects of a company may seem separate at first glance, but in
reality they are interconnected and interdependent together to create shared success.
Accompanying the 7s tissue analysis, assessments of the effects of sustainable and ethical
globalization on organizational functions will be covered in the article.

2. The influences of globalization

2.1. McKinsey’s 7S model

A framework for transformation based on an organization's organizational design is called

the McKinsey 7-S Model. It demonstrates how change leaders may manage organizational
change effectively by focusing their planning on the interconnections of the following seven
essential elements: structure, strategy, system, shared values, skill, style, and staff. Then,
these aspects are divided into two groups according to the McKinsey 7-S Framework: hard
and soft elements.
Hard, observable components that management and leadership may affect. Intangible,
culturally-based soft aspects are those (Malik, 2022). Shared values are considered key.
values that govern the health of the company. Every organization's mission, goals, and core
values serve as its cornerstone and are essential in bringing all the major components of its
organizational structure into harmony.
 Figure 1. McKinsey 7S Model

2.2. Apply McKinsey 7S in Infinity

2.2.1. Hard Ss

Strategy

The world car market is one of the fiercely competitive markets. Therefore, such large
companies need to come up with reasonable strategies to survive in the long run. For
example, Infiniti Company needed to strike a balance between short-term cost savings and
protecting its core competitive advantage. Customers assert that Inifiti's goods and services
provide "excellent value for money" while maintaining a narrow profit margin. Infiniti
should refrain from making expense cuts that can result in subpar product and service
offerings if it wants to increase market share through price competitiveness. Providing
good customer service will make Infiniti dominate the market and lead in the car business.

Peyman Kargar, chairman of Infiniti, recently unveiled the second part of a three-phase
strategy. That will be kicked off by a new QX80, set to be previewed later this fiscal year.
The near-production QX80 Monograph will provide a sneak peek into the next-generation
QX80's design before March 31, 2023, even though it won't be released until late 2023 or
early 2024. The SUV will be a showcase for the company's new design language and a
representation of its branding strategy. The long-term objective is to strengthen it so that
it can compete against rivals like the Lexus LX and Cadillac Escalade in the luxury SUV
market. This is the second stage of a strategy that first saw Infiniti improve its corporate
sustainability; after this stage, an electric push will begin in 2025. With a sedan that replaces
the Q50, the brand will launch its push into the electric vehicle market (BELL, 2022).

For example, globalization poses many opportunities and challenges for the auto industry,
forcing automakers to transform, and electric vehicles are inevitable. Infiniti is no
exception, despite skepticism as well as many difficulties that may be encountered, experts
say that producing only electric vehicles is the right strategy for Infiniti. If Infiniti wants to
go into the global market in the US and Europe, then producing battery electric vehicles is
a good strategy. With traditional car models, Infiniti has to compete with long-standing
brands, but when there is new technology, it will help Infiniti make a difference.

Structure

The pandemic and globalization of the world have questioned the company's current
structure and supply chain management. To make the organization more flexible and
prepare for a similar disruption in the future, Inifiniti should focus on diversifying its
suppliers geographically so that disruptions related to climate, geopolitics, and Other
disruptions do not affect the long-term viability of the company. Reducing dependence on
China - As the trade war between the US and China is becoming more intense and
complicated, the company should reduce its dependence on the supply chain originating
from China. This will help Inifiniti diversify its risks, avoiding regulatory problems. The
smaller organizational hierarchy at Infiniti is backed by progressive and learning
organizations. The employees feel more comfortable and confident and have more access
to information when there are fewer managerial layers between them and more access to
senior management and leadership. Moreover, the flatter hierarchy also allows quicker
decision-making processes for Infiniti and increases organizational commitment in the
employees (nissan global, 2019).

Stystems

For the purpose of ensuring that company activities are conducted successfully and that
there are no conflicts or disagreements, Infiniti has established clear-cut processes with
specified boundaries. At Infiniti, the systems are mostly departmental in nature and cover,
for instance: Human resource management, finance, marketing, operations, sales, supply
chain management, public relation management, and strategic leadership. These have to
deal with the routine tasks and methods that Nissan Group personnel use on a daily basis.
To handle a variety of business activities, Infiniti blends robotics technology, IT, and web
platforms inside its multiple systems. A new Infiniti i series assembly line near USA in east
central can be mentioned to justify this point (nissan global, 2019).

At Infiniti, each clearly defined system contains controls that were created specifically to
assess performance and target accomplishment. Based on the unique activities and
responsibilities of each department, these controls and measures have been developed.
Additionally, each department creates unique controls for its employees' performance
reviews as well as for activities and responsibilities that cross departmental boundaries.
Additionally, Infiniti has unique procedures and techniques for making sure that all
organizational divisions and systems are coordinated and working together to achieve the
larger corporate objectives. This is made feasible by making sure that all systems are
creating and working toward objectives that are unique to their areas of competence within
the context of the larger corporate vision and strategy. The strategic leadership at Infiniti
also makes sure that resources are allotted to each system and that targets are defined
with a specified time frame in mind in order to accomplish comparable business objectives.

2.2.2. Soft Ss

Staff

There is no doubt that Infiniti can strengthen its human resources. Due to the effects of the
epidemic, a large number of employees at the Japanese carmaker are able to be hired and
introduced remotely. To create a more inclusive environment for new employees, Infiniti
should build a remote referral system such as short video portfolios, small group
interactions, and technical demonstrations. Open chats let employees reach out to people
at different levels in the hierarchy. It not only helps senior leaders interact directly with
employees, but also helps build a friendly working environment. A company needs to
continuously innovate if it wants to succeed. Infiniti is no exception because they believe
that to support continuous innovation and contribute to solving social problems is essential
and the biggest resource in the competitiveness of enterprises is human resources. The key
to developing new value is giving people the freedom to express their diverse traits,
viewpoints, sensibilities, abilities, and experiences. With an emphasis on enlarging the
horizons of its workers through internal and external transfers and exchanges, the Infiniti
group is actively looking for human resources with a variety of experience. Additionally,
the company attempt to create a work environment and promote a corporate culture that
motivates staff to take on challenges and strive to reach their full potential (nissan global,
2019).
Skills

Building a training program or finding fresh talent are two things Infiniti is focusing on. As
more and more people leave their current jobs because they are not challenging enough,
developing a good training system will make employees more motivated and they feel they
can do it, which in turn will improve their performance skills and skills for the staff. There
are plenty of talented people and skilled workers at Infiniti. Knowledge or skill are not
lacking. Infiniti has emerged as one of the top global talent pools for highly qualified IT
professionals in recent years. Without a doubt, the company's hardware and software
developers created one of the most well-known and iconic Japanese automobiles in the
whole globe.

In reality, car research factory has worked to improve the organization's marketing skills
directly at Infiniti's Marketing Department by training staff members and developing a
sustainable human resource development system. Infiniti research factory has lately
improved training to get ready marketing leaders with the intention of upskilling. Infiniti
has prioritized performance assessment above anything else. The most advantageous
feature of competence assessment is that it defines how the performance of those jobs will
be evaluated and breaks down all necessary HR duties at the level of individual actions,
enhancing performance. promote justice and openness while increasing performance. This
enables Infiniti Automotive Research to standardize training methodologies and language
to support staff development and goal-setting (nissan global, 2019).
Style

Infiniti in particular and its parent group - Nissan is a big company in the car manufacturing
industry, that's why they choose a disciplined leadership style. Because, they believe that
thanks to this style, they can easily handle emergency situations or do not want to take any
risks. That is reflected in the fact that Infiniti has adopted a pure parent company structure
as a means to control all of its diversified and global businesses, with a focus on the luxury
car brand. Infiniti takes on the responsibility of developing and carrying out the group's
overarching strategies, supervising individual companies, and fostering cross-functional
synergies. Each of Infiniti's firms runs its operations independently and quickly while
keeping tight ties to its regional clients and other stakeholders.

Shared Values

Shared values are recognized standards and conventions by everyone in the organization
that guide and direct the actions of management and every employee. Infiniti's core values
include passion, integrity and diversity. The Japanese luxury automobile manufacturer is
committed to consistently offering consumers and society new value propositions built on
creative concepts and a passion for achieving objectives. proud of their employer and the
brand they represent. It is clear that they have a strong passion in providing good services
to their customers because they believe that these services will bring great profits to the
business. In terms of integrity, they are always grateful to their stakeholders for always
helping them move forward and promise to remain honest and humble in all business
activities to better serve their stakeholders. Infiniti still has a lot of work to do when it
comes to sharing these values internally. As a large company, management wants to
increase its market share and generate profits on a global basis. But when a company's
management tries to move forward too quickly, the company can run into problems that
can make business difficult later (sustainablebrands, 2016).

According to its corporate philosophies, Infiniti makes eco-friendly automobiles that are
inspired by the kindness of nature and a thorough knowledge of its consumers to provide
joy to society. The business takes pleasure in consistently providing demonstrable quality
and client satisfaction while also making sure to go above and beyond what is expected of
them. Naturally, they want to keep going after that. The company strive to continue
offering high-quality automobile goods to clients worldwide and adding fresh delight to
people's lives all around the world with a goal and dream in mind. With several automobile
bargains that bring happiness and pleasure to every customer's life, Infiniti assists its
customers by staying one step ahead (nissan-global, 2022).

About corporate slogan, Infiniti uses the slogan New Horizons—which is symbolized in the
luxury automaker’s emblem by the two lines in the center stretching into the distance. As
customer might have also suspected, the Infiniti name itself was inspired by the ancient
infinity symbol, used by early mathematicians to mean “unending”. This logo was chosen
by INFINITI in part to reflect the company's commitment to setting new standards in
automotive design and manufacturing. The two lines on the insignia representing new
horizons in the car industry are used by INFINITI as their catchphrase. In fact, the concept
of reaching beyond the horizon has been around even longer than the INFINITI name itself.
When Nissan established a secret department in 1985 to begin planning the establishment
of a luxury car brand, they named it the “Horizon Task Force.” (infinitiofcoralgables, n.d)

Comment: Overall, after analyzing the effects of globalization, Infiniti Company adopts
McKinsey's 7S model. It can be seen that Infiniti Company has a lot of influence but it is a
positive influence, because looking at the reality, Vietnamese people prioritize and have
confidence in car products from Japan, especially Nissan in general. and Infiniti luxury cars
in particular, because the history of Japanese automakers has existed for a long time,
creating a huge brand name for Vietnamese customers. The automaker is focusing on
carefully researching the market and researching how to develop car and electric vehicle
products that are suitable for the infrastructure conditions in Vietnam. Along with the value
that Infiniti has, this car company can completely enter the Vietnamese market very easily.

2.3. The most significant market influence

Vietnam's auto industry has made great strides in recent years. Vietnam's stable macro
environment supports car demand growth. Per capita income grew well, while inflation was
adjusted in a timely and reasonable manner, creating conditions for people to have the
opportunity to own a car, which was previously considered difficult for regions countryside.
It is expected that in 2025, Vietnam's GDP per capita will reach about 4688 USD, making
Vietnam a country in the group of high middle income (odclick, 2021). In order for Infiniti
to penetrate the Vietnamese market, it is necessary to understand the market that has the
greatest influence on the organizational structure and culture of the Vietnamese market.

Individualism will be a consideration when Infiniti enters the Vietnamese market since it
will make it easier for the firm to locate numerous interested and devoted staff. In Vietnam,
Vietnamese society is a collectivist society. Such a society will help Infiniti company have a
better relationship with employees, then employees will be more responsible to the
company and ensure the quality of work. Having many loyal employees will help this
Japanese luxury brand company grow stronger in Vietnam.

2.4. The opportunities and threats

Opportunities

Positive market penetration as potential as Vietnam has helped Infiniti secure a strong
brand valuation that continues to this day, with profitability, efficiency and reliability
requirements being the core of the brand. The image of car ownership is changing with the
times. Young Vietnamese generations want more flexibility in their financial lives. Vehicle
manufacturers must modify their offerings to address these alternative modes of property
ownership, with flexibility and value at the heart of this young buyer group, and especially
with a background With a rapidly growing economy like Vietnam, customers also pay more
attention to the luxury car market. While Infiniti offers a number of electric vehicles such
as the QX60, , the green mobility market offers ongoing opportunities. Its competitors are
diversifying into electric carpooling companies, such as Mercedes, Lexus, BMW.. Business
demand for transportation remains high, especially with the rise of e-commerce and online
retail. This segment could provide Infiniti with new markets to access its services. The
company already has a strong presence in the first major country in the world where the
companies buy the vehicles of the fleet. And the Vietnamese market is considered to be
potential, with increasing per capita income, young population, and confidence in Japanese
luxury car brands.
Threats

Because Infiniti is a luxury brand, any economic downturn will affect Infiniti more than it
affects cars made for the mainstream consumer.

For example, with the lockdown restrictions due to covid 19, along with the unstable world
political situation, the lack of supply of car manufacturing chips has made it difficult for car
manufacturers in the production line. Infiniti is no exception when it has had to temporarily
close a number of factories in China due to the government's blockade of many places, and
the trade war between the US and China has also made it difficult for the company to find
sources production chip supply.

Besides, the trade tax on the import and export of vehicles is a threat. While Infiniti has
mitigated this risk by establishing its vehicle manufacturing facilities in different parts of
the world, it will inevitably have to export vehicles to tariff areas. These rates are designed
to protect local industries. However, they are often reciprocal in nature, meaning that one
government will react to the actions of another so that local industry is affected in both
countries. With the rise of the middle class in most of the world's economies, this premium
segment is becoming increasingly competitive with leading car manufacturers such as
Lexus, BMW, Mercedes, Volkswagen, Genesis. ... Especially the emerging name - Vinfast in
Vietnam market.

3. The influences of ethical and sustainable globalization

3.1. Ethical globalization definition

All ethics, including global ethics. Some of the most significant moral issues that humans
confront are examined by global ethics. These issues involve severe poverty, global
warming, conflict and humanitarian aid, rogue governments and corruption, consumerism
and the rules of international commerce, medical tourism, and so on (birmingham, n.d)

The ethics of globalization are being developed against the backdrop of policy ethics, law
ethics, environmental ethics, science ethics, media ethics, technology ethics, and social
ethics, as well as being based on the ethics of responsibility, justice ethics, deontological
ethics, and other ethical theory.

3.2. Sustainable globalization definition

Studying resource usage through time is the key to understanding global sustainability. This
science has various dimensions, most of which have to do with the development of
technology and scientific inquiry. Sustainability is typically used to quantify how long
something will survive, frequently in the context of a particular industry or environment.
Global sustainability concentrates on the entire planet and how various resources are used
internationally. In this instance, the world's population is seen as a community sharing the
few resources accessible to them rather than being concentrated on one place (McGee,
2022).

3.3. Ethics in the global market of Infiniti

Infiniti has enjoyed the support and patronage of its customers for over 30 years. The
business gave truthful and open management in return. To celebrate the new Infiniti spirit,
all employees promise to fulfill their corporate social responsibilities and take the lead in
establishing a more open and honest management culture in the Japanese luxury car
industry. Infiniti Motor Company has been recognized as one of the World's Most Ethical
Companies for the eighth year in a row for its commitment to ethical corporate citizenship.
Programs that monitor workplace safety and human rights, non-conflict mineral sourcing,
and initiatives like partners for the environment are all examples of Infiniti's dedication to
ethics. Through Infiniti's supply chain, make things cleaner and encourage sustainability
(nissan-global, 2022).

Business ethics problems arise from a lack of understanding of the value of ethics. Integrity,
honesty, and fairness are the fundamental principles that guide the identification of ethical
dilemmas. One of the ethical problems in business is fraud, which involves deliberate
communication that manipulates or deceives and causes harm to other people. Along with
being a felony, it frequently involves accounting fraud and marketing fraud. Infiniti needs
to maintain moral principles across the rest of its activities. It can produce vehicles with no
emissions, which greatly reduces pollution. The business could insist on making
investments in electric vehicles with large batteries. To develop batteries that have the
potential to help create jobs, several manufacturers have sprung up all around the world.
It is essential to adhere entirely to EPA standards, without using any duplicitous tools, and
to express them openly (nissan-global, 2022). Infiniti must incorporate ethical values and
strive to avoid any negative behavior that may affect its reputation. It may involve creating
electric cars that can serve the interests of society.

For company leadership, the importance of ethics in company leadership must be

understood, and the leader must communicate this to his followers. Leaders also need to
place a strong emphasis on principles, vision, voice, and dignity. conduct that harmonizes
interior values with outward behavior in order to persuade followers to act for the common
good. Therefore, Infiniti must ensure that the leadership team is ethical with responsible
behavior. In both business and our personal life, ethics is the reward of any organization.
Living morally and doing business display virtue and show that you care about your clients'
welfare. This results in kindness toward others, which promotes self-esteem and inner
sturdiness.

At the same time, every company that conducts their international business ethically
realizes greater profits by engaging business partners who share the organization's
commitment to ethics in international business. Luxury car company Infiniti can also be
seen as an example of a company that has earned a reputation for ethical practices by
reducing its environmental impact and protecting workers' rights in countries where it is
located. work. By researching and launching eco-friendly electric vehicle products to the
market, as well as the issues of salary, bonus, care regime, insurance, etc. of employees.

Recommendations: It's crucial to identify any ethical concerns in a circumstance before

making a choice in order to make ethical decisions. A choice can only be taken after
gathering information and weighing the pros and cons of several courses of action. Then it
has to be put to the test, with the outcomes being reported. Infiniti's management must
incorporate sound ethical considerations in its decision-making so that rare problems can
arise in the future. Infiniti now does business in a number of important nations and areas
and works to preserve the company's basic ideals of performance improvement while
solving social concerns, economy and the environment while complying with the Infinit
code of conduct. There will always be new ethical issues and Infinti will need to continue
to approach risks and respond to new challenges.
4. The decision making in a global context

4.1. Factors to consider for the company when aiming for internationalization

• The potential for market growth

It is recommended that a company begin its process of internationalization with an

entrance strategy that includes little risk and investment, comparable to exporting, if the
market is tiny or the chances of the company's market share growing are low. The firm
must, however, take into account, if its resources permit it, settling in the country of
destination and establishing production operations there in the medium or long term, if
the country of destination has a high growth projection (Global, 2017).

Vietnam obviously cannot be left out of the international trend of electric car development.
According to several analysts, Vietnam will have Southeast Asia's largest potential market
for electric vehicles in the next years. In terms of policies, Vietnam has also signed many
free trade agreements such as ATIGA, CPTTP, EVFTA... These are quite attractive factors for
investors (domestic and foreign) to invest in automobile production in Viet Nam. Therefore,
it is necessary and a wise move for Infiniti to enter Asia's most potential market.

• The quality of the infrastructures

Due to its low level of risk and investment, a good network of infrastructures encourages
export (either through own channels or intermediaries) as a viable entry method. This is
because it supports an adequate distribution of the company's products in the country of
destination and the potential for growth as the distribution and logistics system is
perfected, with a low cost and an adequate service (Global, 2017).

In its Socio-Economic development plan for the years 2021–2030, the Vietnamese
government has ranked the improvement of infrastructure as one of its top priorities.
Vietnamese leaders are adamant that good infrastructure is essential for long-term
development. Vietnam has a firm belief that quality infrastructure will support sustainable
growth. In actuality, despite some advancements, Vietnam still needs to enhance the
caliber of its infrastructure. While being the leading country in the region in terms of FDI
attraction, outdated infrastructure and continuous overcrowding are seen as obstacles to
Vietnam's future production capacity. Therefore, considering the infrastructure factor is
the reason that Infiniti needs to consider carefully, before deciding to set up a factory in
Vietnam.

• The social and cultural peculiarities of that market

The segmentation of potential customers in the new market who share specific traits
frequently determines whether it may be wise to use input techniques that provide the
business greater influence in the new market, including direct investments or
collaborations with local partners (Global, 2017).

For many consecutive years, Japanese car brands have always led the ranking of the best-
selling car models in the Vietnamese market. When producing a model, Japanese
automakers, such as Infiniti's parent company, Nissan, always try to prioritize durability and
reliability over driving pleasure. Another reason that not only Nissan but also some car
manufacturers now do it is not in a hurry to apply new technologies to their car lines. Look
at Nissan's 2014 models with a four-speed automatic transmission or a less-than-improved
engine system. Even redesigned or newly launched models do not have significant changes
that are "makeover". Therefore, consumption habits, trust in Japanese brands, have been
considered a culture in the way Vietnamese people buy cars. Simply, Japanese automakers
have created cars that are extremely suitable for the actual needs of Vietnamese people.

4.2. The main factors that an MNC needs to pay attention to when entering
the Vietnamese market
• Advantages

Multinational corporations in Vietnam have contributed to new developments in our

economy through their contributions of money, science and technology, and jobs.
Additionally, this business has detrimental effects from its operations. It is certain that
multinational corporations operating in Vietnam have helped to raise the standard of labor
and give many people in our nation jobs. Employees are compelled to master a variety of
talents in order to fulfill the recruiting requirements for high-paying professions, including
foreign languages, computer proficiency, collaboration, and negotiating abilities.
Companies may manufacture, offer the finest service, and satisfy the market demands in
another nation by setting up factories and headquarters there without incurring additional
import, transportation, or other costs (Giang, 2021).

For example, an American company based in a foreign country such as China will meet
product needs in China without having to pay extra long-distance shipping costs. Or for
example: Specifically, Apple has moved 11 factories of Taiwanese enterprises in the supply
chain to Vietnam. LEGO Group (Denmark) built a new factory in Binh Duong, with an
investment project of more than 1 billion USD. Multinational corporation Techonic
Industries (TTI), specializing in electrical and home appliance products, with 12 factories
globally, 76% of products supplied to the US and Nordic markets, is also deploying. US$650
million investment project in Ho Chi Minh City Hi-Tech Park. Similarly, many other
enterprises such as Foxconn, Luxshare, Pegatron, Wistron also expand their available scale
in Vietnam.

• Disadvantage

Smaller local businesses may go bankrupt as a result of the entry of multinational

corporations into the host nation's economy. In addition, a lot of global firms engage in
unethical business practices and unfair competition. Moreover, MNCs increase Vietnam's
economic dependence on other countries. The specific economic dependency in this case
is the reliance on capital, technique, technology, and the production network (Giang, 2021).

A prime example of a big FDI company investing in Vietnam is Samsung Vietnam, which has
a network of 80 suppliers for parts and components from nine different nations. Less than
10% of the Vietnamese businesses involved in Samsung's production and supply chain are
still very few.

Sometimes, multinational corporations continue to violate Vietnam's environmental

protection laws. Many multinational corporations still disregard their obligation to
safeguard the environment when mining, processing, or producing goods, which has
detrimental effects on both the natural environment and human habitation (Giang, 2021).
4.3. Analyze the strategy diamond of Infiniti

Figure 2. Strategy diamond (expertprogrammanagement, 2018).

• Areas

Infiniti will be present in 25 nations by the year 2020, with the Middle East, China, and
North America serving as its primary markets. Infiniti was launched in the Americas, but
few people know that Infiniti is a luxury car company manufactured by a Japanese company
called Nissan with the desire to penetrate the American market. The company's approach
is to segment customers based on psychographic and behavioral characteristics. Infiniti
Motor is an economic segment and the company is planning to enter into the premium
segment by offering premium SUVs. Additionally, the business has a specialized targeting
strategy to identify and meet the demands of its clients. In case of business positioning,
Infiniti Motor uses value based positioning strategy along with mix of products with the aim
to create effective experience for their customers rather than just selling vehicles (nissan-
global, 2022).

• Differentiators

Infiniti are a luxury brand, so it’s only fair that we compare how reliable they are to some
of their rivals. In the era of many new design versions, infiniti is no less competitive when
launching the Q inspiration model in North America. With this Q inspiration model, there
will be a large sedan shape with 4 seats. The bonnet is shorter, the cabin is designed with
a long glass roof, creating a sense of luxury and elegance. The front features an arched
grille, thin vertical striped LED lights. In addition, exceptional performance in new markets
– Infiniti has built expertise in entering new markets and making them successful. The
company's growth has aided in the development of new revenue streams and the
diversification of business cycle risks in the areas where it competes. Infiniti has been
relatively successful in taking on new projects and generating good returns on capital
expenditures by building new revenue streams (nissan-global, 2022).

• Vehicles

The automotive alliance of Renault and Infinit Motor has outlined a new strategy under
which the strongest partner will lead in areas such as new technology and spare parts
procurement. The purpose of this partnership is to explore possible collaborations on
shared vehicle technology, joint sourcing and mutual sourcing. The Memorandum of
Understanding is a first step in determining if the two businesses may work together on
technology and platforms, including systems and components. The use of fuel cells,
automated cars, and connectivity for commercial vehicles are some potential areas of
shared interest in relation to powertrains and electric platforms. This agreement is a further
step in Infiniti Motor's independent strategy and Renault aims to create leading innovative
solutions in today's rapidly changing environment by building an ecosystem of mutually
beneficial partnerships (nissan-global, 2022).

• Staging and Pacing

According to an Infiniti survey, Vietnam is one of the few potential markets for fast-growing
cars. The Southeast Asian Automobile Association (AAF) places Vietnam fourth out of all
the nations in the area that will be engaged in vehicle assembly in the first half of 2022.
With 201,840 automobiles sold in the first half of the year, a rise of more than 34% from
the same time in 2021, Vietnam remained in fourth place in terms of domestic automotive
consumption. In the first 6 months of the year, an average of 1,115 cars of all kinds were
sold every day in the first half of the year. sold in Vietnam market. This also means that
Vietnam has become the country with the highest auto sales growth rate in the region
(Nguyen Linh, 2022). Per capita income increases, prices fall, the government's open policy
and many banks expand consumer loans... are the reasons why it's easier for Vietnamese
people to own cars. When the demand for motorbikes is saturated according to the
government's roadmap to restrict motorbikes, automobile consumption increases,
gradually replacing 2-wheelers according to the rules in modern cities. In the past, banks
only gave loans to buy new cars, but in recent years, some banks have applied loans to used
cars with a comfortable interest rate - around 7%. This is a reasonable interest rate, helping
customers to own a car without too much financial pressure. Because of this, seeing a
golden opportunity in a country with a population of about 90 million people and high
growth in vehicle consumption per capita, Vietnam is currently the most potential market
in Southeast Asia that Infiniti can penetrate.

• Economic Logic

While the market's overall sales was US$1.6 trillion in 2020, Infiniti saw total worldwide
revenue of US$4.1 billion. Small SUVs, the biggest segment of passenger vehicles,
accounting for 34% of Infiniti's revenue in 2020. The announcement said sales of premium
electric SUVs and sedans, favorable exchange rates and low inventories have helped offset
the impact of a global chip shortage and higher raw material prices. Infiniti forecasts that
spare parts supply shortages due to the closure in Shanghai and high raw material costs
caused by Russia-Ukraine tensions will remain a major factor for the company automakers
in the coming months. Infiniti's sales in Europe and North America have largely contributed
to this unprecedented increase in Nissan's global profits. In Europe, sales of Infinti
increased by 2.9% and in North America by 6.6%. Of which, SUVs account for more than
half of the company's total sales and demand for EVs is still on the rise. (nissan-global,
2022). Going forward, the company will commit to producing new, more eco-friendly
electric vehicles by adopting a shared value creation (CSV) approach to refine demand and
build local pride. Thereby, it can be seen that thanks to Infiniti's customer-centric strategy,
the company has significantly increased sales.

Recommendation: Infiniti needs to change in order to be successful in the ever-evolving

global market and consumer demands. Looking forward, Infiniti was on the right path.
Global inflation is increasing, and people are starting to choose more fuel-efficient and
ecologically friendly cars. Infiniti tackles this problem across its entire lineup, but downsizes
the engines in most of its models by taking advantage of turbochargers, to get more power
from the smaller engine and thus increase fuel economy. Infiniti is addressing this and
demand for more compact vehicles by introducing smaller models, such as the Q 50-series
and QX 30-series. These entry-level vehicles aim to be cheaper, which can help the brand
be seen as very expensive and allow them to win some market share from buyers looking
for a quality vehicle, but at a premium. The price is lower, suitable for the US and Japan,
and the Southeast Asian market, especially Vietnam compared to competitors. This trend
can be seen looking at both Audi and Mercedes Benz, with Audi introducing the A3, and
Mercedes introducing the all-new CLA, Lexus ES... and the reasonably priced compact
sedan favored by consumer

5. The various routes to internationalization and key barriers

5.1. The main barriers when entering the Vietnamese market (Pest)
 Figure 3: PEST Model (toolshero, n.d)

• Political factor

The Socialist State of Vietnam, which represents the people and works for their interests,
is the top government body and the foundation of the socialist system in which Vietnam is
governed. the public's interests. The only party that represents the interests of the whole
nation is the Socialist Party. The establishment of any other political partyare strictly
prohibited and violate Vietnamese law. The maintenance of the one-party system is also
an important factor in Vietnam's political stability. Vietnam has a good diplomatic
relationship and always actively cooperates with many countries in the bloc. Especially
since joining the ASEAN Free Trade Area (AFTA) with the advantage of reducing import
taxes for member countries and committing to participate in the CEPT tax reduction
roadmap, Vietnam is opening up the many business opportunities for foreign investors.
Additionally, Vietnam has developed positive ties with numerous nations outside of ASEAN,
particularly with Japan and the United States. Vietnam and Japan have begun to sign many
treaties on economic cooperation since 1973, creating opportunities for Japanese
enterprises to participate in the Vietnamese market. Currently, Japan is the largest ODA
donor for Vietnam (Chau An, 2020).

Vietnam has a good diplomatic relationship and always actively cooperates with many
countries in the bloc. In general, Vietnam is still considered as one of the countries with
high political stability with good diplomatic relations with many countries in the world. This
is one of the advantages and opportunities for foreign investors to conduct business in the
Vietnamese market. Therefore, political issues in Vietnam are considered a safe zone,
which has great influence on Infiniti when it wants to penetrate the Vietnamese market.

• Economic factor

Economic considerations are crucial for Infiniti since they force them to develop fresh
business plans that take Vietnam's economy into account. The third quarter of 2022 had
strong economic growth in Vietnam, hitting 13.7% over the same period the previous year.
This record high growth rate is partly due to the effect of a low starting point as the
economy shrank by 6% in the third quarter of 2021 after prolonged isolation periods to
contain the COVID-19 pandemic. The service sector was hit the hardest last year, but
achieved the highest growth (18.9% over the same period last year), contributing 8.5
percentage points to GDP growth rate. Consequently, based on the IMF research, analysts
predict that GDP growth would reach 5.6% in the fourth quarter of 2022, bringing the
increase for the entire year to 7.9% during the same time. According to analysts, Vietnam
will still have one of the region's fastest growing economies in 2023 even if GDP growth
would decrease to 6.9% during the same time period. Although Vietnam's economy is still
recovering rapidly, the tightening global financial conditions, slowing global growth, and
growing domestic inflation all point to the need for increased policy flexibility and vigilance
(Dang Hieu, 2022).

As such, it can be seen that this is a very favorable number for Infiniti when entering the
Vietnamese market, because now the Vietnamese economy has recovered after the Covid-
19 season, the economy has grown every year. leading the world after Vietnam controlled
covid 19 well, along with the increase in consumer services. Therefore, this helps Infiniti to
build business strategy and develop with luxury car products in this potential market.

• Social factor

According to the most recent United Nations statistics, as of October 23, 2022, there are
99,187,051 people living in Vietnam. Presently, 1.24% of the world's population resides in
Vietnam. Vietnam is ranked 15th in the world in the ranking of the population of countries
and territories. In Vietnam, the average lifespan for both sexes is 75.6 years. This is longer
than the 72-year average life expectancy throughout the globe. The average life expectancy
of males is 71.5 years and the average life expectancy of females is 79.7 years (Huong Lang,
2022). With Vietnam in the top of countries with a young, diverse population, along with
high determination. In Vietnam, owning a vehicle is seen as a declaration of one's class or
brand. The value of a car is still an asset like a house, not a popular means of transportation.
Nowadays, young Vietnamese see cellphones, laptops, and tablet computers as being much
more affordable and appealing than purchasing a car. Additionally, the cost of a car,
parking, maintenance, and auto upkeep deters young clients who are under financial strain.
As a result, after technological items like the iPhone, personal computer, etc., the vehicle
is now in great demand among young people. For the few young people who really need
to purchase a car, they want it to be highly connected, have more amenities, and have an
internet connection.

Therefore, Infiniti will have to pay close attention to reach out to a younger customer
group, with the Japanese automaker being able to bring to market compact, electric, fuel-
efficient cars that have can be suitable for each age group, or the personal preferences of
each Vietnamese customer segment.

• Technological factor

The Fourth Industrial Revolution is the convergence of technologies from the domains of
physics, digital technology, and biology, opening up completely new manufacturing
possibilities that might have an influence on global politics, economics, and society. One of
the characteristics is built on a novel mix of sensor technology, big data analytics, cloud
computing, and the internet of things, which will propel the creation of automated
machines and systems. clever production. Industry 4.0 focuses on ongoing data mining to
achieve the maximum level of automation for life and production. This broad pattern
applies to the car sector as well. The last several years have seen a significant growth in
the vehicle sector in Vietnam. The domestic car market's function and position have been
originally confirmed by domestic manufacturing and assembly companies, who have also
achieved significant development in terms of quantity and quality. With the understanding
that the automobile industry is a significant driver of industrialization and modernization
and should be supported in its growth by stable policies, the government issued Decree No.
116/2017/ND-CP on October 17, 2017 laying out requirements for manufacturing,
assembling, importing, and trading in automobile warranty and maintenance services. to
advance the capacity of businesses across all economic sectors in order to fulfill both
domestic and international demand. Ensure consumer rights and environmental safety. In
line with Vietnam's national commitments in the process of international integration (An
Nghiep, 2022).

With the sales growth rate in this period continuously maintained at a high level. In
particular, car prices in Vietnam's auto market dropped sharply, contributing to boosting
sales growth in the whole market. Therefore, Infiniti will need to pay attention to
technology factors, the management is considering combining to open a factory in
Vietnam, because this is the most potential market in Asia, cheap labor, good investment
environment.

Evaluate: For Infiniti, the most important barrier for the company to overcome when it
wants to enter the Vietnamese market is the technology factor. The difficulty for Infiniti
cars in Vietnam is undisputed. Previously, Honda's Acura and Hyundai's Genesis were both
struggling and struggling to entice consumers here. Therefore, Infiniti is also expected to
fall into a similar situation if it enters the Vietnamese market. In Vietnam, this brand is also
facing the domination of the world's leading giants. Those are Toyota, Ford and Hyundai.
One of Infiniti's development focuses is electric vehicles. However, making an electric car
and succeeding with it are two completely different stories. Technology is the core thing
that any car manufacturing business needs before they want to set foot in the Vietnamese
market, because it takes many years to develop a strategy, and research products. suitable
for the weak market of domestic consumers. For example, Toyota's Lexus is one of the
earliest brands to penetrate the Vietnamese market, so the name Lexus has been imprinted
in the minds of Vietnamese people, it is probably very difficult when Infiniti can compete
with Lexus. without a suitable strategy, along with the change for this potential market.
Many consumers tend to choose used products of famous brands like Honda and Toyota
over a new car from a strange brand like Infiniti. It needs to produce at least 100,000
vehicles a year to create a competitive cost advantage, build a global brand, and grow its
service network. Therefore, management still has the belief that Infiniti can still make a
difference in emerging markets like Southeast Asia, especially Vietnam.

5.2. Infiniti's international business strategy proposal

• Strategy 1

Vietnam is one of the potential markets in Asia that Infiniti wants to promote with luxury
car products in the near future. Infiniti wishes to find partners, agents for distribution
cooperation in Vietnam, the Japanese luxury car company will bring to Vietnam new and
novel products, many of which are new such as electric cars, self-driving cars, products.
mini car products for young people and consumers today. Infiniti commercial vehicles in
Vietnam are evaluated with great potential. With the great achievements that Nissan
Corporation strives to build and achieve, Infiniti should decide to choose a reliable partner
like Thaco to be the only partner in the region to cooperate in the production and assembly
of luxury sedans and SUVs and continue to be the commercial field under the Infiniti brand.
Thus, the association between Infiniti and Thaco Group will be the only unit in Vietnam that
manufactures, assembles and distributes all Infiniti-branded vehicles.
 • Strategy 2

Customer satisfaction is a strategy that every car company aims for, Infiniti is no exception.
As a result, the business develops a customer-oriented corporate culture strategy by
offering the finest goods, the best customer service, and a customer-centric approach to
the market. Infiniti's name continues to be expanded and covered. More specifically, both
Infiniti and Nissan, in addition to the Vietnamese market, the car company also has the
ambition to attack the ASEAN market. This combination is the foundation that could not be
better for this goal. And the indispensable thing, which is the price strategy, Infiniti needs
to grasp the needs of customers, and together with Thaco bring many products suitable to
the market. Infiniti quality is not inferior to brands from Korea, or America. Meanwhile,
truck prices are much cheaper.

Compare the feasibility: the first strategy, about partnering with a large player in the
market that Infiniti targets, is Thaco group, with strong financial background, along with
sales and logistics systems spread across the country, modern factory. This step is
considered wise, because Thaco and Infiniti both have great values in the market, this
cooperation will help Infiniti penetrate the Vietnamese market more easily, by linking and
transferring technology. assembly technology for Thaco, like Mazda or Peugeot.

In the second strategy, which is customer-centric, Infiniti is determined to bring the best
products to consumers, despite facing fierce competition from Lexus. Infiniti has built a
unique identity, a unique style, that only Infiniti products have. The customer-centric
strategy, targeting the reasonable price segment, and products focused on young,
successful entrepreneurs, promises to help Infiniti compete fairly with Lexus in the near
future next. Therefore, the first strategy is more feasible, and also easier to implement
because cooperation with Thaco is a step that many luxury car manufacturers like BMW
are doing in Vietnam, from there, it will be easy to introduce domestically assembled
products without being subject to import tax, and to bring to the market high-quality luxury
car products at reasonable prices to consumers.

6. Conclusion

In conclusion, this article thoroughly examined corporate ethics and the impact of
globalization on a multinational corporation's organizational structure. In addition, it takes
into account the difficulties that firms face as a result of globalization when determining
whether to enter a certain market. At the same time, provide ideas, solutions to overcome
barriers, and strategies that businesses face to help them do better business in the
Vietnamese market.
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