WARISAN AKADEMI PENDIDIKAN

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PROGRAMME : EXECUTIVE BACHELOR IN BUSINESS MANAGEMENT

STUDENT INTAKE : JUNE 2022

MODULE : INTERNATIONAL BUSINESS FOR

EXECUTIVE BACHELOR (GROUP 3)

DUE DATE : 17/9/2022

DATE CLASSED : 13-14/8/2022

DATE SUBMITTED : 12/9/2022

FACILITATORS NAME : FRANKLIN STYNE IYADURAI

STUDENT NAME : MOHD SYAMIM BIN MD SAAD

STUDENT NUMBER : WBPN222100

IC/NO : 840326-07-5785

CENTRE : WARISAN AKADEMI PENDIDIKAN KLUANG JOHOR

QUESTION MARKS
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TOTAL

FINAL MARKS
 List of Content

Title Pages

Question 1
 Is Globalization good or bad?
 Evaluation base on company 1
aspects of globalization has a positive or negative affect
on company and related industries.

Question 2
 challenges (government policies, competition, market share)
faced by the company that led to the decision. 2-3
 What are your thoughts on this decision and what other options
would you have explored?

Question 3
Kellogg’s entered the Indian market in 1994 with a lot of fanfare and
advertisements but the sales dropped drastically in 1995.
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 Discuss the cultural mistakes that they had made.
 Using the 4Ps (Product, Price, Place, Promotion) explain the
strategy they used to build back the business.
Question 4
Your company is planning an expansion into the Australian and
Vietnamese markets, using the Hofstede cultural dimension theory,
 discuss how your company will adapt to the different cultural 5-8
differences between the two countries.

Question 5
China has the competitive advantage over other countries in the 9-10

manufacture of Lithium-ion batteries used in electric vehicles.

 Explain this phenomenon using Porters Diamond Model.

Question 6
Over the Years, Markets have become global. But now the COVID -
19 Pandemic and the war in Ukraine is disrupting the structure and 11

direction of international business. Elaborate your answer with

relevant examples.

REFERENCE
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Question 1
Is Globalization good or bad
a) Evaluate this statement using YOUR COMPANY as an example,
b) Which aspects of globalization has a positive or negative affect on YOUR
COMPANY OR YOUR INDUSTRY.

Answer Question 1
a) Globalization is a process wherein organizations or businesses build influence
internationally or start their operation in various locations worldwide.by influence globally
the business of the company may growth far beyond .It can mean the merging of national
economies through technology, migration of labor force, the flow of capital, investment,
and trade. It increases the flow and exchange of culture, information, people, money,
services, and goods across geographical borders. This is clearly shown that involving
company business globally is good ,for the business growth ,include human capital
development .

b) There has some aspect that may have a positive and negative effect our company
such as the integration of cultures, information technology, investment, and international
trade ,and regardless of negative of globalization in our company may related to emerging
and developing nations have the tendency to impose their ways, practices, and culture
onto the target nations ,Although ,exposes other languages to more people, it can also
cause some minority languages to disappear. In countries where Islamic culture
dominates and other countries with different practices and beliefs, imposing Western
culture and ideas could be detrimental. In some cases, it can lead to the question of
national identity.

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Question 2
In September 2021, Ford motors announced that it is exiting from the Indian market where
it was operating since 1995 and is shutting down its car manufacturing plants in Gujarat
and Chennai.

a) Discuss the challenges (government policies, competition, market share) faced by the
company that led to the decision.

b) What are your thoughts on this decision and what other options would you have
explored?

Answer Question 2

a) The challenges that Ford Motors has to face after ,announced that it is exiting from the
Indian market where it was operating since 1995 and is shutting down its car
manufacturing plants in Gujarat and Chennai. Base on the government policies, The
government’s high tax regime, which imposes levies as high as 28% on gasoline vehicles,
has also been a major roadblock. The retreat by Ford is a further blow to Prime Minister
Narendra Modi’s Make-in-India program, which encourages companies to manufacture
locally. Tesla Inc. has urged Modi’s administration to allow it to import cars more cheaply
before it commits to setting up a factory in the country. Regarding business ,competition
its difficult to gain a foothold in the value-conscious Indian market dominated by Maruti
Suzuki India Ltd.’s cheap cars. Toyota Motor Corp. last year said it won’t expand further in
India due to high tariffs, while Harley-Davidson Inc. has exited the market. General Motors
Co. pulled out in 2017. Ford India had a market share of just 1.42% in August, compared
with 1.9% a year ago, data from Federation of Automobile Dealers Associations showed.
The market share has pour capital into marginal markets that provide little or no
return.Ford cease more than a century of manufacturing in Brazil and took a $4.1 billion
charge. Farley instead is pushing deeper into China, the world’s largest auto market,
where Ford’s Lincoln luxury line now sells more models than it does in the U.S.
the local units of Japan’s Suzuki Motor Corp. and South Korea’s Hyundai Motor Co.
together control more than 60% of the market.

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b) In my opinion by totally shutdown may not resolving the issue cause the manufacturing
operation is already in operation .By re-managing ,structuring in business strategies ,
implement marketing strategies ,financial control ,reducing costing reduction may be best
for temporarily solution . impacting economically by Covid19 ,cause a lot of economically
impulse . the government also need to consider to exchange the Tax exchange regime ,by
giving a reasonable package, this will help the manufacturing company to continue to
control the financial costing at the difficult time ,financial institution also will be really help
by making a temporary holding policies ,give the time to the manufacturing company to
stabilize the business growth .

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Question 3
Kellogg’s entered the Indian market in 1994 with a lot of fanfare and advertisements but
the sales dropped drastically in 1995.
a) Discuss the cultural mistakes that they had made.
b) Using the 4Ps (Product, Price, Place, Promotion) explain the strategy they used to build
back the business.

Answer Question 3

a) The most cultural mistake has been done by Kellogg's during their fanfare and
advertisement in 1995 is Kellogg’s trod on a few toes with marketing campaigns implying
the traditional Indian breakfast was not nutritionally sound. Kellogg’s offered a product that
failed to match local breakfast habits and expectations and at twice the price of local
competitors.the habit of eating more flavoursome foods such as chutneys and pickles with
various morning staples. An Indian consumers accustomed to gut-busting
breakfast staples such as buttery fried parathas or deep fried vadas compered with
breakfast cereals ,future more the unsweetened breakfast flakes with cold milk,they
couldn’t get the sugar they added to dissolve properly.although little appetite for breakfast
cereals in India in the early nineties,may also be a factors of rejection of Kellogg's sales
products .

b) The best strategy that kellogg’s can used base on the 4Ps to re-build back the business
is by ,re-structure their product by producing an Individual packs were especially popular
Messaging was also changed, to reposition the cereals ,as a fun choice rather than just a
nutritious one.Kellogg’s took the decision to locality its flavoring, and chose brand names
to appeal to the Indian public such as ‘shakti' (‘power’) when selling products fortified with
iron. Secondly kellogg’s need to reduce their product pricing ,other than that by localized
its branding and advertising approach to make it more acceptable. More than that by build
up promotion by offer a wider range of product sizes to appeal to different customer.

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Question 4
Your company is planning an expansion into the Australian and Vietnamese markets,
using the Hofstede cultural dimension theory, discuss how your company will adapt to the
different cultural differences between the two countries.

Answer Question 4

By define using the Hofstede cultural dimension theory ,base on bar chart above,
shown that to planning business expansion to country like Australian and Vietnamese
markets,We need to add some cultural respective by adapt to the different cultural
differences between the two countries such as power
distance ,individualism ,masculinity,uncertainly avoidance ,long term orientation ,and
indulgence . base on charts shown that base on the charts shown that power of distance
define that the extent to which the less powerful members of institutions and organization
within a country expect and accept that power is distributed unequally . Malaysia scores
very high on this dimension (score of 100) follows by Vietnam also scores high on this
dimension around (score of 70) which means that people accept a hierarchical order in
which everybody has a place and which needs no further justification.

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 The case is different with Australia scores low on this dimension (36). Within
Australian organizations, hierarchy is established for convenience, superiors are always
accessible and managers rely on individual employees and teams for their expertise. Both
managers and employees expect to be consulted and information is shared frequently. At
the same time, communication is informal, direct and participation.
As per individualism ,the fundamental issue addressed by this dimension is the
degree of interdependence a society maintains among its members. It has to do with
whether people´s self-image is defined in terms of “I” or “We”.In Individualist societies
people are supposed to look after themselves and their direct family only. In Collectivist
societies people belong to ‘in groups’ that take care of them in exchange for loyalty.
Malaysia,with a score of 26 and Vietnam, with a score of 20 is a collectivism society.
This is manifest in a close long-term commitment to the “member” group, be that a family,
extended family or extended relationships. Loyalty in a collectivist culture is paramount
and overrides most other societal rules and regulations.the case is different with Australia,
with a score of 90 on this dimension, is a highly Individualist culture. This translates into a
loosely-knit society in which the expectation is that people look after themselves and their
immediate families. In the business world, employees are expected to be self-reliant and
display initiative. Also, within the exchange-based world of work, hiring and promotion
decisions are based on merit or evidence of what one has done or can do.
Masculinity A high score (Masculine) on this dimension indicates that the society
will be driven by competition, achievement and success, with success being defined by
the winner/best in field – a value system that starts in school and continues throughout
organizational life.A low score (Feminine) on the dimension means that the dominant
values in society are caring for others and quality of life. A Feminine society is one where
quality of life is the sign of success and standing out from the crowd is not admirable. The
fundamental issue here is what motivates people, wanting to be the best (Masculine) or
liking what you do (Feminine).
Vietnam scores 40 on this dimension and is thus considered a Feminine
society,and Australia scores 61 on this dimension and is considered a “Masculine” society.
Behavior in school, work, and play are based on the shared values that people should
“strive to be the best they can be” and that “the winner takes all”. Australians are proud of
their successes and achievements in life, and it offers a basis for hiring and promotion
decisions in the workplace. Conflicts are resolved at the individual level and the goal is to
win.
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 Australia scores a very intermediate 51 on this dimension.Malaysia and Vietnam
scores 36 and scores 30 on this dimension and thus has a low preference for avoiding
uncertainty. Low UAI societies maintain a more relaxed attitude in which practice counts
more than principles and deviance from the norm is more easily tolerated.
Long term orientation,his dimension describes how every society has to maintain
some links with its own past while dealing with the challenges of the present and future,
and societies priorities these two existential goals differently. Normative societies. which
score low on this dimension, for example, prefer to maintain time-honoured traditions and
norms while viewing societal change with suspicion. Those with a culture which scores
high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts
in modern education as a way to prepare for the future.
Australia and malaysia has scores 21 and 41 on this dimension and therefore has a
normative culture. People in such societies have a strong concern with establishing the
absolute Truth; they are normative in their thinking. They exhibit great respect for
traditions, a relatively small propensity to save for the future, and a focus on achieving
quick results.Vietnam scores 57, making it a pragmatic culture. In societies with a
pragmatic orientation, people believe that truth depends very much on situation, context
and time. They show an ability to adapt traditions easily to changed conditions, a strong
propensity to save and invest. thriftiness and perseverance in achieving results.
Finally indulgence One challenge that confronts humanity, now and in the past, is
the degree to which small children are socialized. Without socialization we do not become
“human”. This dimension is defined as the extent to which people try to control their
desires and impulses, based on the way they were raised. Relatively weak control is
called “Indulgence” and relatively strong control is called “Restraint”. Cultures can,
therefore, be described as Indulgent or Restrained.
Malaysia’s high score of 57 indicates that the culture is one of Indulgence. People
in societies classified by a high score in Indulgence generally exhibit a willingness to
realize their impulses and desires with regard to enjoying life and having fun. They
possess a positive attitude and have a tendency towards optimism. In addition, they place
a higher degree of importance on leisure time, act as they please and spend money as
they wish.With a high score of 71, Australia is an Indulgent country. People in societies
classified by a high score in Indulgence generally exhibit a willingness to realize their
impulses and desires with regard to enjoying life and having fun.

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They possess a positive attitude and have a tendency towards optimism. In addition, they
place a higher degree of importance on leisure time, act as they please and spend money
as they wish.
A low score of 35 on this dimension indicates that the culture of Vietnam is
characteristic as Restrained. Societies with a low score in this dimension have a tendency
to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies
do not put much emphasis on leisure time and control the gratification of their desires.
People with this orientation have the perception that their actions are Restrained by social
norms and feel that indulging themselves is somewhat wrong.
The conclusion that can be made by the company from the above statement is that
the appropriate way to adapt Malaysian culture to the culture of other countries such as
Australia and Vietnam is by understanding the cultural and social holdings of the
community based on that aspect.

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Question 5
China has the competitive advantage over other countries in the manufacture of Lithium-
ion batteries used in electric vehicles. Explain this phenomenon using Porters Diamond
Model.

Answer Question 5
Porters Diamond Model.

Based on the porter diamond model, the phenomenon that shows China's advantage in
the lithium-ion manufacturing sector where it is widely used in the automotive industry is
currently divided into several categories, namely ,as Firm strategy ,structure and
rivalry ,demand condition ,related and supporting industries and factors condition .
As per Firm strategy ,structure and rivalry ,the trends signal that lithium-ion
batteries will increasingly displace lead-acid batteries in the transportation and heavy
equipment sectors. Is it preferable to have the cheapest possible green technologies
China has a major advantage of cheap labor, which has allowed it to dominate many
manufacturing industries. But China also has more lithium reserves and much greater
lithium production than the U.S.

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As per demand condition In 2018, Chinese lithium production was 8,000 metric tons, third
among all countries and nearly ten times U.S. lithium production. Chinese lithium reserves
in 2018 were one million metric tons, nearly 30 times U.S. levels.

Base on the related support industries China is taking the same path that it did
previously with solar panels. While solar cells were invented by American engineer
Russell , today China dominates the global solar panel market. Now China is focused on
controlling the world’s production of lithium ion batteries.
More of that as per factors condition According to an analysis by Bloomberg NEF,
in early 2019 there were 316 gigawatt-hours (GWh) of global lithium cell manufacturing
capacity. China is home to 73% of this capacity, followed by the U.S., far behind in second
place with 12% of global capacity.China has a major advantage of cheap labor, which has
allowed it to dominate many manufacturing industries.
As per conclusion the transition to lithium batteries is opening up many new
challenges and opportunities. But the U.S. needs an effective strategy to avoid ceding yet
another clean energy manufacturing opportunity to China.

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Question 6
“Over the Years, Markets have become global. But now the COVID -19 Pandemic and the
war in Ukraine is disrupting the structure and direction of international business. Elaborate
your answer with relevant examples.

Answer Question 6
The COVID -19 Pandemic and the war in Ukraine is disrupting the structure and
direction of international business ,the ongoing conflict in between Russia and Ukraine
has sent commodity prices around the world soaring amid fears and a sudden reaction to
a possible collapse in supply.
This is because both countries are major producers of, among others, sunflower oil,
wheat and corn.According to the United States Department of Agriculture (USDA), Russia
and Ukraine together account for 78 percent, 29 percent and 19 percent respectively for
sunflower oil, wheat and corn of the 2021/22 global trade estimate.Thus, when war broke
out, it sparked fears of a possible shortage of not only global cooking oil but also
industrially related products such as soap, bio fuels and other food supplies.
As of March 8 2022, sunflower oil prices were between US$2,900-US$3,000 per
ton in the European Union region.Weather conditions and factors related to COVID-19
caused extreme disruption and war broke out as the world seemed to be recovering, with
global vaccinations pushing back to normalcy.
the bombing of a fertilizer processing plant,by the Russian military causing regional
export to the supply of fertilizer has been blocked. Future more therefore the capacity of
fertilizer has been totally destroyed. Russia, Belarus and Ukraine are the main fertilizer
exporters and this will have a big impact in terms of production costs and availability (of
fertilizers) for crops, in the agricultural sector.

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 In addition, the prolonged Moscow-Ky iv conflict could cause an economic
recession and further reduce the global demand for food.The surge in energy and
commodity prices at the moment, with the price of a barrel of oil approaching US$120
adding to the increase in inflation that the world is already facing during the economic
recovery process from the COVID-19 pandemic.In Ukraine, the economic damage so far
has been considerable with infrastructure closed, damaged or destroyed and the country
is expected to require significant recovery and reconstruction costs.The IMF (international
monetary fund) also recorded a significant decrease in asset values as well as the ruble
exchange rate, with the full scope of the effects of sanctions that have never been
implemented before, still too early to assess.

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Reference
 Seldean Smith_https://www.daytranslations.com/blog/is-globalization-good-or-bad/
 https://www.bloomberg.com/news/articles/2021-09-09/ford-will-cease-manufacturing-
in-india-take-2-billion-chargehttps:
 //www.bloomberg.com/authors/AUE-Q208NTw/ragini-saxena
 https://toppandigital.com/translation-blog/how-kelloggs-failed-and-then-won-in-india/
 https://www.bharian.com.my/

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