Country Topic: Vietnam (Please use the following newspapers for 3 of
the references The Wall Street Journal, The Economist, and The
Financial Time.
Have an entry strategy
? Cultural Environment: This is about cultural RISK to FDI. Start with a discussion of business-function implications of the risk revealed by
Hofstede?s culture scores (compare your topic country?s scores and US scores). If you use a Hofstede comparison chart, follow the chart example handout. Discussion will only be about business operation issues
relating to business functions including Marketing & Public Relations,
HRM, Negotiation with Government & Business, etc. Write separate
paragraphs for discussions of different functions such as Marketing.
Do not discuss Dr. Hofstede or any generalities concerning definitions of his dimensions or the general culture of the country. This is about the US company?s cultural risk in doing business there, and not specifically about the country?s culture.
Follow up in separate paragraphs with ‘other’ culture issues such as
class, tribal, or other cultural divisions in the country. However, this is NOT a National Geographic travelogue. Do not give us a list of cultural DO?s and DONT?s. Then, in the last sentence state, ?The cultural risk is ____ (Low, Medium, or High)?.
Types of strategies (these aren?t entry):
– Multidomestic Stategy: the MNC attempts to offer products or services that attract customers by closely satisfying their cultural needs and
expectations.
EX: different packages, colors
– Global Stategy: the MNC sells products and uses similar marketing
techniques worldwide. One size fits all.
– Transnational Startegy adopts two priorities:
Seeking location advantages: disperse value chain activities where the
MNC can do it best or cheapest, as required.
Global platform: a country where a firm can best perform some of its
value chain cavtivies, thus gaining a comparative advantage.
Which Foreign Markets?
Timing the Entry
Scale of Entry
Entry Modes
Exporting : the sale of products and services
Licensing : splitting the profits and having official permission or
permit to do, use, or own something.
Franchising : ex is McDonalds, not everything is going to be in
the contract. It?s a method of distributing products or services
involving a franchisor.
Joint Ventures : you have a partner so you can split the risk if you have a problem politically or culturally. Not a symmetrical
relationship. Can be problematic if you don?t understand your
partner.
Wholly Owned Subsidiaries : common stock is 100% owned by
the parent company.
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