TAKE HOME EXAMINATION

JAN/2023

BDNG 3103

INTRODUCTORY INTERNATIONAL BUSINESS

MOHD SHIRAZI B RAMLY@ UDOH

NO. MATRIKULASI : 750219025855001

NO. KAD PENGENALAN : 750219025855
PART A

QUESTION 1
(a) Evaluate the advantage of a joint-venture company compared of a wholly owned
subsidiary
A joint-venture company is a combination of two or more parties that pursue the
expansion of one enterprise or project for revenue, sharing the menaces associated with its
development. The parties to the joint venture must be at least a combination of two natural
persons or entities.
There are many advantages of having a joint-venture company compared to a wholly owned
subsidiary. Among the advantages are as listed below.
By implementing a joint venture business or project, the parties involved may have multiple
accesses to new markets and spreading networks according to all the available networking
from all or both involved parties.
Apart form that, this type of company may increase the capacity of production or work
done due to huge joined capabilities between the persons or entities involved. Apart from
that, both parties or entities may also share the risks and costs with each other; apart from
sharing profit, liabilities are meant to be shared too. Other advantage with this type of
cooperation is that, it may open to wide access to new knowledge and expertise and also
competent staff from both partners. The best part of joint venture company is that, the
company would have access to greater resources, for instance as for technology, finance and
also expertise.
(b) Evaluate the disadvantages of a joint venture compared to those wholly-owned
subsidiary.
Having a joint venture partnership, it means more than one entities involved in achieving
same target of focus. However it can be say that, its not easy to get both parties to equally
participate or involve in the running of the business or intended project. Its quite difficult to
have hundred percent commitment and cooperation from the involved parties. No matter how
hard each party works to make things equal, it is very unlikely that the distribution of
resources and workload will be equal. Some responsibilities might also be more important to
the success of the joint venture.
Company may also experience the imbalance of expertise with this type of cooperation.
It is because the method of joining two entities becoming a solid company may gather
expertise from both side thus it would make the company,s operation won’t run smoothly.
The other disadvantage with this type og cooperation is that, it may provide an imbalance of
resources, investment, or expertise as both parties may have their own thus can lead to
resentment and have negative consequences if not properly manage.
Clash of culture might also occurred in the joint venture companies as both
have their own disciple or working style but by joining each other, they have to
adopt and adapt to the new discipline and working style
Being in a joint venture company may give a little bit difficulties if one of the
party wish to exit the partnership as there surely contract being sign beforehand.
With this, if one of the partner wanted to venture another field of bussines, the
intended partner must obey to the contract.

QUESTION 3
a) Characteristics of services
Services usually have several distinctive characteristics or features. These are
intangibility, perishability, inconsistency, fluctuation and consumer dependent. A
service is anything which can be offered to the customers in order to satisfy their
need, wants and desire and intangible, inseparable, variable and perishable in
nature. The companies that provide tangible products rely on product marketing,
intangible products use service marketing to attract customers. This type of
marketing showcases and promotes non-physical products to customers, giving
businesses the ability to access a wider and potentially global market.
b) Approaches or strategies to identify opportunity abroad in offering services
There are eight Analysis types to identify market opportunities
Consumer segmentation is the most important element to be taken into
consideration before offering a service. It means that, we need to know our
targeted consumer before marketed the thing or services that we offer. Next point
is that, the purchase situation of the intented countries should be taken into
consideration as, it may contribute to loss of unable to market the service as the
consumer have multiple affordable choices . Direct competitor should be bear in
mind. This is because we have create something different eventhough we market
 almost the same item. Customer love to shares; thus making the implementation
or the company’ is searchable.
The company may also be indirect competitor to others competitors while
Complementary product and service Apart from the selling product, person in
charge should also be friendly and welcoming to any arisen matter Diversification
analysis should be carry out to identify if their need and preferance the other
point
Environmental analysis should also be check thoroughly.

PART B
(1) A make-or-buy decision is an act of choosing between manufacturing a product
in-house or purchasing it from an external supplier. Make-or-buy decisions, like
outsourcing decisions, speak to a comparison of the costs and advantages of
producing in-house versus buying it elsewhere.
This elements are being practiced by two big names in sport field like Nike
and Adidas. Most make-or-buy decisions tend to be cost decisions: Businesses
want to learn which choice presents the most cost advantages with the fewest
downsides. Sometimes suppliers can provide key parts or products at a significant
discount compared to what it costs a business to produce those in-house, saving
the company money with relatively few downsides.
As their companies grow, it may find that the costs of storing parts and
managing that inventory have grown too high, especially if parts have to be stored
for the long term or moved between multiple plants. One solution to this issue is
to work with third-party fulfillment centers and warehouses, but this isn’t an ideal
solution for components that are needed for manufacturing.
Make-or-buy decisions often lead manufacturers to arrange for ongoing
shipments from a reliable supplier rather than deal with the logistics and costs of
creating a particular part themselves. It’s a good idea for Nike and Adidas to
consider the make-or-buy decision periodically, as markets and related costs can
shift over time.

(2) 5S is a five-step methodology for forming a more organized and productive

workspace: There are,Sort which means that we remove unnecessary items from
each area and keep those we really wanted and need to use. Straighten on the other
hand means that all the needed item were place and organized accordingly which
would ease those wanted to use them later on.
Shine can be assume as everything were in clean and clear situation no matter
how. It is because clean and condusive working area may boost
imployees’motivation towards their job scope. Standardize means that all the five
steps were followed and implemented within the company’s production. Sustain
on the other hand means that all the persons keep on following and abiding to the
selected and targeted steps. 5S serves as a foundation for deploying more
advanced lean production tools and processes.