Table of Contents

1. Executive summary..................................................................................................................7
(i) Integrated logistics..................................................................................................................7
(ii) Customer accommodation.....................................................................................................7
(iii) Procurement and outsourcing...............................................................................................7
(iv) International expansion.........................................................................................................8
2. Provide an introduction of the organisation and describe its business.....................................8
a) Company background...........................................................................................................8
b) Profit and revenue.................................................................................................................8
3. Research into any two (2) areas of integrated logistics..........................................................10
4. Discuss three (3) levels of customer accommodation............................................................10
Customer service.......................................................................................................................11
Customer satisfaction.................................................................................................................13
Customer success.......................................................................................................................15
5a. Discuss any two (2) procurement strategies used by the organisation...............................15
Insourcing or outsourcing..........................................................................................................15
User buy.....................................................................................................................................17
5b. Highlight 2 benefits and 2 risks of outsourcing to the organisation...................................17
Two benefits..............................................................................................................................17
Two risks...................................................................................................................................17
6a. Provide three (3) reasons, with supporting facts, why the organisation pursues
international expansion..................................................................................................................18
6b. Highlight two (2) main forces, with supporting explanation, that affect the organisation’s
ability to pursue international expansion. For each of the force, recommend a strategy to
overcome the challenges................................................................................................................19
Market familiarity......................................................................................................................19
Familiarization of national trade policies..................................................................................19
7. Provide conclusion.................................................................................................................20
Referencing....................................................................................................................................20
 1. Executive summary (8 marks)
Summarise two (2) key points/ findings in each of the following areas;
- integrated logistics,
- customer accommodation,
- procurement and outsourcing and
- international expansion

(i) Integrated logistics:

- The common name used throughout the industry to describe lSPs (Integrated service pro-
viders) is third-party logistics providers. It is concerned with the firm's ability to satisfy
customer requirements by integrating with logistics providers.
- Logistical Integration Objectives included Rapid response, Variance reduction, Inventory
Reduction, Shipment Consolidation, Better quality output, and Life Cycle Support.

(ii) Customer accommodation:

- "Customer accommodation" refers to meeting the demands of customers. Customers'
needs vary since everyone has various wants and needs. As a result, it is the firm's task to
discover the customers' demands and desires. Only when products and services are satis-
fied and positioned from the customer's standpoint can they become meaningful.
- It is clear that customers have many expectations when doing business with a supplier. In
a research on service expectations and service quality, Parasuraman, Zeitharnl, and Berry
identified 10 categories of consumer expectations including reliability, responsiveness,
access, communication, credibility, security, courtesy, competency, tangibles, and know-
ing the customer.

(iii) Procurement and outsourcing:

- Activities related to obtaining products and materials from outside suppliers. Requires
performing resource planning, supply sourcing, negotiation, order placement, inbound
transportation. receiving and inspection. storage and handling, and quality assurance. in-
cludes the responsibility to coordinate with suppliers in such areas as scheduling. supply
continuity, hedging, and speculation, as well as research leading to new sources or pro-
grams. The primary procurement objective is to support manufacturing or rcsale organiz-
ations by providing timely purchasing at the lowest total cost.
- Outsourcing relates to the practice of hiring a party outside of a company to provide ser-
vices or make commodities that were previously conducted in-house by the firm's own
workers. Furthermore, firms nowadays acquire not only raw materials and basic supplies,
but also complicated fabricated components with a high value-added content. They out-
source functions to party providers outside in order to concentrate resources on their key
expertise. This means that more emphasis must be placed on how the organization con-
nects with and controls its supplier base.
(iv) International expansion:
- Firms are also pursuing higher levels of operational efficiency by expanding sourcing
typically far outside their home nation, resulting in larger cost savings. Factory reloca-
tions were a problem in the past due to slower transportation, but with today's faster and
cheaper transportation modes available, more firms are locating factories in many far-
flung third-world countries with labor and operation costs a fraction of what it costs to
produce in developed countries.
- Instead of companies undertaking the whole value chain activities in far-flung countries,
cost pressure leads companies to outsource non-essential services of enterprises, which
might be shipping, maintaining information technology systems, or even manufacturing.

2. Provide an introduction of the organisation and describe its

business.
Your answer should include the following;
a) Company background (employees and outlets)
b) Profit and revenue performance (last 2 years).
c) Product portfolio (Quality of products and the strength of its brand)
d) Services
(8 marks)
a) Company background:
Samsung is a South Korean enterprise that is one of the world's top manufacturers of electrical
equipment. Samsung is a leading manufacturer of consumer and industrial electronics, including
appliances, digital media devices, semiconductors, memory chips, and integrated systems.
Samsung entries to Vietnam in March 2008.

In 2021, Samsung Electronics in Thai Nguyen, Vietnam, had 65 thousand workers. This was
also the Samsung branch with the most employees in the country, followed by its production unit
in Bac Ninh. In total, the Korean technology giant employed approximately 110 thousand people
in Vietnam.

In Vietnam, Samsung has 6 factories, the 2 biggest in Thai Nguyen, Bac Ninh, and a research
and development center in Hanoi. There are 111 Samsung warranty nationwide. By the end of
2021, Samsung Vietnam's total accumulated investment capital is 18 billion USD, reaching
102% of the approved investment in 2020 is 17.7 billion USD.

b) Profit and revenue:

January 19, 2022 – Samsung Vietnam announced its business results for 2021. Despite the
difficulties caused by the COVID-19 epidemic, in 2021, Samsung Vietnam recorded growth in
revenue and exports compared to 2020. Specifically, Samsung Vietnam's revenue reached 74.2
billion USD, up 14% compared to 2020, export turnover reached 65.5 billion USD, up 16%
compared to 2020. In 2020, Samsung's revenue was estimated at about 63.8 billion USD.

c) Product portfolio:
Samsung owns a diverse range of strengths that will enable it to thrive in the major area. I will
use a Samsung SWOT analysis to assist in illustrating their strengths. Some of these advantages
are as follows:

Brand Image:
Samsung Electronics Co. Ltd is a well-known brand all over the world. According to Forbes
Magazine, Samsung will be the eighth most valuable brand in the world in 2020. This high brand
value brings the enterprise closer to its target market and makes it easier to approach them.
Strong domination in the smartphone field:
Samsung has had a lot of success in the smartphone industry. With an 18.5 percent market share
in the first quarter of 2020, the corporation dominated the global market. Samsung's Galaxy
smartphone line is quite popular. As Samsung has a stronghold on the Asian market, particularly
in China and India, the vast populations of these two nations contribute significantly to the
company's income.
Globaled products availability:
There is a very strong likelihood that Samsung products will be accessible in every region of the
world. Despite the global pandemic, Samsung was selling electronic products in 74 countries
through its 230 global bases and over 287 thousand employees.
Research and Development:
Samsung has always prioritized research and development not only for the purpose of the
company's flourishing, but also to provide excellent goods to its customers. According to its
financial statements, it spent more than 17 billion USD on research and development in 2019,
which is exciting and exceptional.
Strategic Collaborations:
Developing strategic alliances with software developers and internet businesses is a constant
potential for Samsung to increase income. As a result, the developers provide the corporation
with additional functions that may be utilized to improve the quality of their electronics. Spotify,
for example, has a non-exclusive deal with Samsung that lets consumers utilize Spotify as a
music streaming service connected with their phone.
Wide range of products:
Though it is famous as an electronics corporation, Samsung also produces and supplies
semiconductor components, LCD panels, memory, and SIM chips to other manufacturers such as
Apple, which is remarkable. As a result, the corporation may continue to grow in new directions.
Furthermore, Samsung is a huge success in every product category it manufactures, from
televisions to smartphones and refrigerators.

d) Services:
As I mentioned that Samsung has 111 warranty nationwide where they serve reparation for
customer's broken. And to shorten waiting time at warranty, one of Samsung's popular services
is the ability to schedule a repair appointment for a customer's damaged items, which is only
available for smartphones and tablets. Following that, I will briefly outline the service that makes
an appointment to repair the process.
First, customer access to the Samsung support website and sign in Samsung account then make a
repair appointment option. Here, we describe a broken item's status through issues chosen such
as screen damage, camera broken, etc... Next we schedule as well as leave an address and a
phone number. The last step, we confirm our chosen schedule, then we bring the damaged item
to Samsung warranty center as an appointment.

3. Research into any two (2) areas of integrated logistics. Discuss, provide an example and
analyse how each of the identified areas affect the firm’s operations.
(12 marks)

To discuss how each of the identified areas affect the firm’s operations in this question, I choose
2 areas of integrated logistics which are transportation and warehousing.

To the first area – Transportation:

Transportation relates to how products move, and the efficiency of moving things is determined
by transportation operations. It includes to all kinds of transportation, including automobiles,
freight trains, cargo shipping, and air travel. Goods would be unable to move from one level of a
supply chain to the next without transportation so it is obvious that transport is a major element
of logistics.

From the logistical system aspect, three critical elements of transportation operations are (I) cost,
(2) speed, and (3) consistency directly impacts firm performance. In this question, I only focus
on one part is a consistency to discuss how transportation plays a critical role in the firm
operation.

The change in time required to carry a specific movement over a number of shipments is referred
to as transportation consistency. The reliability of transportation is shown in its consistency.
Over many years, transportation managers have regarded consistency as the most critical quality
transportation trait. If a shipment between two sites takes three days as usual and 4 days in the
next time as the unanticipated variance might cause serious operating issues. In this case,
inventory safety stocks are necessary to defend against these breakdowns caused by
transportation is inconsistent. Of course, it affects both the seller's and buyer's entire inventory
commitment.

Next area – Warehousing

4. Discuss three (3) levels of customer accommodation with one (1) valid example each to
describe how the organisation satisfies its customers during the transaction phrase.
(12 marks)

The first level: Customer service

In this concept, three elements included availability, operational performance, and service
reliability are said to be identified as customer service.

❖ Availability:

Availability relates to the ability that a firm has the inventory to desired customer' needs. It
should be evident that obtaining high levels of inventory availability needs a significant deal of
preparation in planning. It should be clear that to achieve a high level of inventory availability, a
firm needs to deal with significant preparation in planning. In fact, to achieve these high levels of
availability the firm must select core customers or minimize overall investment in inventory as
well as facilities. The availability is determined by three performance indicators: stockout
frequency, fill rate, and orders shipped complete.

● Stockout frequency:

A stockout happens when a company does not have enough inventory to fulfill customer needs.
The risk that a company will have unavailable inventory to fill a customer's order is referred to as
stockout frequency. A survey of retail supermarkets, for example, indicated that at any moment
throughout the week, it is out of stock of around 8% of the products intended to be on the
shelves. It is important to keep in mind, however, a stockout of a product type does not occur
until a client expresses a want to buy it.

● Fill rate:

The volume or impact of stockouts over time is measured by the fill rate. Until a consumer wants
a product, being out of stock has no effect on service performance. (which I mentioned in
previous). And it is essential to identify why the product is unavailable and the amount of units
that the buyers desired.

● Orders shipped complete:

Orders shipped complete are defined as that everything in customer' orders is fully shipped. As a
result, orders shipped complete are regarded as the most accurate indicator of product availability
performance.

❖ Operational performance:

Operational performance involves the time needed to deliver a customer's order. It is specified in
terms of speed of performance, consistency, flexibility, and malfunction recovery.

● Speed:

The elapsed time from when a customer creates a need to order than when the product is
delivered and ready for consumer usage is referred to as the performance cycle speed. Most
consumers, certainly, prefer quick order cycle performance. Because fast performance cycles cut
customer levels of inventory, speed is a crucial element in many just-in-time and quick-response
logistical techniques. The drawback is that speed of service is often expensive: not all customers
want or desire maximal speed if it involves an increase in total cost. So the only meaningful
context for measuring the value of service speed is the customer's perceived benefits, on the
other word, speed must be found in positive trade-offs.

● Consistency:
The number of real order cycles that meet the intended completion time is determined by order
cycle consistency. While speed of delivery is critical, most logistical managers appreciate
consistency more since it obviously affects a customer's capacity to plan and carry out its own
operations. For instance, if order cycles fluctuate, a customer must keep safety stock on hand to
ensure its own activities if potential delays in delivery, therefore, the degree of lack of
consistency directly leads to safety stock requirements.
To conclude, consistency is vital for effective logistics operations since consumers are
increasingly specifying a desired date and even a delivery appointment when making purchases.

● Flexibility:
Flexibility refers to a company's capacity to solve unusual situations and customer incurred
requests. For example, shipping a full-trailer to a customer's warehouse may be the normal
pattern for servicing a customer. However, the client may choose whenever to have shipments of
lesser amounts delivered directly to particular retail locations.

Typical logistics activities that require flexible operations include: (1) changes to customer
contract, such as a change in ship-to location; (2) support sales or marketing campaigns; (3) the
launch of a new product; (4) recollect goods; (5) supply breakdown; (6) customisation option of
basic services for special customers or segments; and (7) product novation or customization
carried out in the logistics system, such as price- marking, mixing, or packing and labeling. In
many ways, the capacity to be flexible is the essence of logistical excellence.

● Malfunction recovery:

Mistakes will occur no matter how fine-tuned a company's logistical operations are.
Continuously finishing service commitments on a daily basis is a challenging task, even may be
impossible. So, ideally, logistics managers should prepare beforehand adjustments to prevent or
solve bad consequences. For example, if Mrs. Hanh, who sells meatball banh mi in UTE canteen,
has out of banh mi stock, the banh mi may be immediately supplied from the nearest an banh mi
making facility by some form of expedited transportation. Since transparent recovery is not
always achievable, good customer service programs consider malfunctions and have contingency
plans in place to complete recovery.

❖ Service reliability:

Service reliability is concerned with a company's capacity to conduct all order-related tasks as
well as providing customers with crucial information about logistical operations and status. One
of the most important characteristics of a reliable service program is a company's capacity to
update correct information about operations and order status for customers. With given advance
notice that order being unfinished or delayed delivery, customers may adjust their operation plan.
Customers are increasingly indicating that advanced notification of issues, for example delay
delivery due to traffic congestion, is more important than the complete order itself.

Aside from availability and operational performance, dependability qualities may include:
shipments being damage-free; invoicing being correct and error-free; shipments being sent to the
correct destinations; and the precise amount of merchandise ordered being included in the
shipment.

The following level: Customer satisfaction

Basically, expectancy disconfirmation is a widely and simply accepted method to define
customer satisfaction. Simply stated, the customer will be satisfied if their expectations of the
provider's performance are fulfilled. In contrast, if perceived performance is under what the
customer expected, then they feel unsatisfied. Whereas the concept of customer satisfaction is
simple, but for the logistics aspect, the implications of building are not. The importance of
customer satisfaction in logistics is how to understand the nature of customer expectations, then
fulfill it. So the next questions are what is the customer's expectation? How are these
expectations formed in customers? How do customers form these expectations? Why do so many
businesses fail to make their customers satisfied, and why are so many businesses thought to
provide poor logistics quality? Is it enough, if a company pleases its customers?

It is obvious that customers have a lot of expectations when they do business with a supplier and
many of these expectations revolve around the supplier's basic logistical service platform. It
means that they have expectations in terms of availability, operational performance, and service
reliability. Usually, they have formal programs in place to monitor suppliers' performance in
each of these areas of logistical performance. In addition, Parasuraman, Zeitharnl, and Berry
defined ten types of customer expectations in a study on service expectations and service quality.

● Reliability:

One of the criteria of the basic service platform is reliability. However, in this case, reliability
refers to the supplier's capacity to complete all activities as promised. For example, firm A
accepts an order for 10 banh mi from Mrs. Hanh, it implicitly promises that 100 cases will be
delivered. As well, if the banh mi provider A promises next day ship and delivery takes 2 days, it
is perceived as unreliable. It is clear that Mrs.Hanh expects and is only satisfied with the banh mi
provider A if all I0 banh mi are received on the right day. Customers judge reliability in terms of
all aspects of the basic service platform. Thus, customers have expectations concerning damage,
documentation accuracy, etc.

● Responsiveness:

Responsiveness refers to the willingness and capability of suppliers to offer fast service to
customers' expectations. This goes beyond simple delivery to cover aspects such as prompt
response of inquiries from customers and problem solutions. Responsiveness is clearly a time-
oriented term that customers want providers to handle all interactions in a timely manner, and
respond to all interactions.

● Access:

Customer expectations regarding the supplier's approachability and ease of contact are included
in access. Is it, for example, simple to make orders or acquire information about inventory or
order status?

● Communication:

Proactively keeping customers informed on a regular basis is what communication means.

Customers expect suppliers to notify them of order status, rather than waiting for customer
questions about order status, particularly if there are problems with delivery or availability.
Customers hate being taken by surprise so it is necessary to provide all advance notification.

● Credibility:

Customer expectations of believable and honest communications from the supplier are referred
to as credibility. While it is rare that providers purposefully mislead customers, credibility also
encompasses the concept of completeness in needed communications.

● Security:

Security resolved customers' concerns of risk or mistrust when doing business with a supplier.
Customers arrange their purchases based on their expectations of supplier performance. They
take risks, for example, when they schedule production and do machine and line setups in
preparation of delivery. Their plans must be altered if orders are late or incomplete. Another
issue of security concerns customers' expectations that their transactions with a supplier will be
kept private. This is especially true in supply chain setups where a customer has a unique
operating agreement with a supplier who also does business with competitors.

● Courtesy:

Courtesy involves being polite, kind, and respectful of all staffs who contact with customer. This
can be an especially difficult topic because customers may interact with a variety of persons
within the company, including from sales agents to customer support representatives to truck
drivers. Failure by one person can damage the great efforts of all.

● Competency:

Customers rate competence in every interaction with a provider, and it, like courtesy, can be
troublesome because it is perceived in every interaction. In other words, customers rate the
ability of truck drivers when they make deliveries and warehouse staff when they check orders.
As well as when phone calls are made, customer service representatives are engaged, and so on.
To the end, evaluation from customers about the company depends on every performance of
every staff in all areas. So, failure to demonstrate competence by any individual has an impact on
consumer opinions of the overall company.

● Tangibles:

Customers have expectations about the appearance of infrastructure, equipment, and employees.
Imagine how customers feel when they see their goods on an old, damaged, or in poor condition
delivery truck, for example. Customers use such tangible features as additional indicators of a
company's overall performance.

● Knowing the Customer:

While suppliers may think in terms of groups of customers and market segments. customers
perceive themselves as unique. They have expectations regarding suppliers' understanding of
their uniqueness and supplier willingness to adapt to their specific requirements.

Example

I have one fictional example about a communication topic. Let's imagine that bakery A accepted
order from Mr. Phat that is one birthday cake and commit to ship on January 31. Almost
everything is well prepared to finish the cake before the shipment day. However, due to near Tet
holiday, the delivery price from the third party delivery firm goes up suddenly and obviously the
bakery must increase the price of all orders. So, the solution is the bakery proactively informs to
Mr. Phat about the more charge of his orders with reasonably justifiable reason which is due to
the rising ship fee in Tet holiday.

The last level: Customer success

Clearly, a customer success program requires a comprehensive understanding of particular

customer requirements as well as a commitment to focusing on long-term commercial
partnerships with significant development and profitability. Such a commitment is unlikely to be
offered to all customers. It necessitates close cooperation between companies and customers to
understand needs, internal processes, competitive environment, and anything else is required for
the customer to be successful in its own competitive field

5a. Discuss any two (2) procurement strategies used by the organisation. Support with a valid
example each. (8 marks)

Insourcing or outsourcing strategy:

One of the fundamental considerations of business is whether to undertake a certain work

internally (insourcing), on its own, or by delegating it to a specialist partner (outsourcing).

Now let me take an example to make it easy.

Let’s imagine that I am a lemonade seller. With 20 cups per day, my refrigerator can produce
enough ice cubes.Now I produce ice cubes by myself which means insourcing. But, my
lemonade is very delicious which attracts more and more customers. So my business develops
day to day, sales reach to 50 cups per day. Now I have to buy more ice cubes from Mr. Phat, who
is an ice cubes wholesaler because my refrigerator can not produce enough ice for 50 lemonades
per day. It is called outsourcing.

There are some reasons why the company choose insource option:

1. Because the required quantities are small, no suppliers are interested in conducting business.

2. Quality requirements can be so strict that no supplier can meet them.

3. The acknowledged need to assure delivery and its alignment with demand.
 4. The maintenance and protection of technological secrets.

5. Obtaining a cheaper price.

6. Total capacity and equipment utilization.

7. Ensuring that a company's operations run smoothly and without too many fluctuations.

8. Avoiding reliance on a single source.

9. Risk reduction.

10. Outsourcing is extremely expensive.

11. Significant distance from the first accessible supplier.

12. A condition that the company meets as a request from a major customer.

13. Expansion of future product/service potential at a fast rate.

Versus with insourcing, the firm have some reasons to outsourcing:

1. The firm may lack managerial or technical experience in the development of specific
products/services.

2. A shortage of manufacturing capacity.

3. A decrease in the desire for risk.

4. The difficulties in preserving long-term technological and economic viability for a non-basic
activity.

5. The difficulty in modifying the initial choice to outsource some activities.

6. The assurance of precision in output quality when conducting certain activities.

7. The availability of a variety of prospective sources and replacements.

8. Low quantity of required units to begin internal production.

9. Future estimates that imply significant technological demand uncertainty, putting the
organization at risk if the activity performance is outsourced.

10. The accessibility of a high-quality provider.

11. Outsourcing can broaden market opportunities for a company's products/services.

12. The ability to bring the product/service to market considerably more quickly.
13. The outcome of a highly important customer's requirement.

User buy

Procurement can leverage its share of a supplier's business by aggregating volumes with a
smaller number of suppliers. Or purchase with more suppliers to instead only one or two to
reduce the dependence on these companies.

Many global health organizations (e.g., UNITAID, the Stop-TB Partnership, GAVI, or The
Global Fund; referred to as "organizations" in the following) have significantly enhanced access
to important medications and healthcare products/services in developing countries. They have
had significant success in cutting purchase prices by consolidating volume and centralizing
purchasing activities through some suppliers. UNICEF, for example, has a specific organization
that purchases a wide range of important healthcare supplies, including vaccinations, malaria
treatment and mosquito nets, cold-chain equipment, medical gadgets, HIV-related drugs and
diagnostics, and more.

5b. Highlight 2 benefits and 2 risks of outsourcing to the organisation. Suggest one strategy
to overcome the risk identified. (14 marks)

Two benefits:

Better focus on core competencies and cost savings in terms of reduced investment:

Assume again that I am an excellent lemonade supplier but I do not know how to make drinking
straws, paper cups, etc… by myself. So no reason for me to spend a huge effort, time and money
(investments) to learn to make cups or straws. Instead, I can buy them at the grocery store. It is
called cost savings in terms of reduced investment. And this outsourcing also helps me have time
to create more and more types of lemonade by mixing lemon with other fruits. It is focused on
core compete advantages.

Two risks:

- Lose competitive advantage if too reliant on outsourced partners

- Difficult to instill quality control

When specialized processes or services are outsourced, managers frequently worry about losing
control over their own process technology and quality standards. The outcomes can be severe.
Quality may worsen, production schedules may be interrupted, or contractual issues may arise
when functions formerly done by business workers are delegated to outsiders over whom the
firm has little or no control. Outsourcers may be inclined to act opportunistically if outsourcing
contracts define job specifications poorly or erroneously. Geographic distance can increase
control problems, especially when the provider is located overseas. Monitoring performance and
productivity may be tough, and coordinating and communicating with offshore providers can be
tricky. The inability to have face-to-face meetings, brainstorm, or investigate the complexities of
hurdles might stymie the flow of a project. Outages in the communication infrastructure between
the vendor and the outsourced agency might also be exacerbated by distance. There may be
significant cultural or language disparities between the outsourcing firm and the vendor,
depending on where the outsourced work is conducted. Such distinctions can have significant
ramifications for customers.

Some strategies I recommend to avoid quality uncontrol when outsourcing:

- Decide ahead of time what management components you want to keep for yourself and
what to delegate when committing a project to an outsourcing company.

- Discuss or collaboratively construct a management plan that will provide you with timely
and accurate project information, such as a timeline for meetings and reports, a
mechanism for addressing urgent issues, and so on.

- Make sure your goals and sub-objectives are well-defined and easily understood by your
remote team. Make sure they don't stray from the path you've set for them (through
reports and project updates).

- Assign a responsible employee (project coordinator) to work with the remote team and
offer him a temporary position with the remote team.

6a. Provide three (3) reasons, with supporting facts, why the organisation pursues
international expansion.
(6 marks)

Both the first and second reason are companies try to achieve economies of scale, as the result is
increase revenue:
Many companies consider global expansion as an opportunity to gain new regions and reach
more of these customers, resulting in increased revenue.
Nike and IBM, for example, have facilities in the Netherlands because it provides direct access
to 170 million Users within a 300-mile range. Indeed, one of the reasons why UPS recently
established a new $150 million facility in Eindhoven, one of the company's greatest investments
in Europe, is because of Holland's connection to European markets.

The last reason is that the companies reduce direct cost:

When expanding a company internationally, the idea of moving certain manufacturing activities
to other regions where labor prices are lower and talent is more readily available might be
considered an attractive decision. Besides, developing markets are excited to attract oversea
business as well international investment. Governments achieve this by providing financial
incentives for company expansion. For example, in India (one of the world's fastest-growing tech
markets), corporation tax was reduced from 30% to 22%. Many companies expand to countries
where the government there deduct operate corporate tax in specific circumstances. In Malaysia,
for example, local businesses pay roughly 19 percent after deductions, whereas international
corporations pay 17 percent. This is nearly half of what firms pay in the United States.

6b. Highlight two (2) main forces, with supporting explanation, that affect the organisation’s
ability to pursue international expansion. For each of the force, recommend a strategy to
overcome the challenges. (10 marks)
 ● Market familiarity
The first force influencing the organization's capacity to pursue globalization I want to discuss is
market familiarity including culture, customers’ preferences… Gaining market familiarity refers
to company performance that caters to the local customer's taste, culture, product strength, and so
on. Vietnam, for example, is a preferred coffee country. However, certain large coffee brands,
such as Caffé Bene and Gloria Jean's Coffee, are not popular in Vietnam since the country is a
significant coffee producer, and many local coffee brands attract customers' tastes more than
international companies.

So one of the challenges in this concept is how to make the local customers familiar with the new
oversea brand. To solve it, I recommend a strategy in understanding the culture of the country
then launching a product or marketing campaign that relates to the local customer’s culture,
behaviors, preference, etc…. To understand it, many surveys and analysis operations are
conducted to get more and more information about behaviors, culture, consumer habits, etc...
Then the firm has a reasonable decision about its own product. For example, in recent years,
Coca-cola always launched advertisements referring to a swallow and family with a party when
Tet holiday is coming. Because they know that swallow is one of the birds which appear in
spring as well as a symbol of Tet in Vietnam culture and families in a dinner implies that the
Vietnamese appreciate a family love and through dinner, they use Coca-cola drinks to have a
happy new year together.

● Familiarization of national trade policies

Familiarization of national trade policies relates to documentation, trade tariffs, etc... Foreign
companies must create a WFOE — a Wholly Foreign Owned Enterprise corporation — in China.
This includes putting up "share capital" equal to around six months' worth of estimated operating
expenses. A tiny three-person office will require roughly $150,000 in share capital to get started,
which must be deposited into a Chinese bank account. Of course, this capital can be utilized in
routine operations, but if reserves fall below the required level, it will result in extra filings and
delays. Setting up a WFOE normally takes six to nine months, with one home-office staff person
riding the application process practically daily. Expanding businesses should also keep in mind
that closing down operations in China might take longer and cost more than establishing up shop.

So, the strategy here is that firm should plan carefully before entrance business in any country. In
detail, before beginning the expansion process, every firm considering expanding into another
nation must perform extensive due diligence to understand the target country's legal, regulatory,
and cultural environments. Without this study and awareness of the target country's particular set
of expenses, the corporation may learn later on that it did not ask the correct questions, exposing
itself to significant financial and reputational problems that could have been avoided.

7. Provide conclusion (highlight 2 key findings) (2 marks)

- In conclusion, through an assignment, I have many findings of integrated logistics,

customer accommodation, procurement, and outsourcing as well as international
expansion. In addition, some real as well fiction examples were given by myself to
make these concepts clearer.
 - Besides, I also have a real finding about a business in background of company,
revenue, product portfolio, and service.

Positive marking (10 marks)

Harvard referencing (10 marks)

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