Assignment Task

Scenario 1: Croad Cycle Company

Questions: Croad Cycle Company (CCC) is a small to medium enterprise (SME) based in Canada, which manufactures high-end mountain bikes (MTBs) for the competition and domestic markets on the west coast of Canada and the USA. Company founder and CEO, Bob Croad, was a pioneer of the Canadian MTB scene in the 1990s and began making his own MTBs in his garage at home in 2001.

Over the last 20 years, CCC has built a strong reputation in North America for innovative bike geometry and designs, and for producing fast, high performance bikes. However, things really began to take off for CCC last year, when two young Canadian riders (both sponsored by the company and riding CCC bikes), placed in the top 10 of the World MTB Championships. The success of these riders provided the company with significant exposure on the global stage, which resulted in a substantial jump in visits to their website from countries such as Australia, Japan and several European countries. CCC has also received several enquiries from cycling retailers in other countries wanting to sell their bikes and they have also had a spike in online orders for their bikes to be shipped abroad.

As the company has grown, CCC shifted out of Bob’s garage and now employs 35 workers in a new factory in Vancouver. This is where they design, engineer and finish (paint and branding) their innovative mountain bike frames, then assemble their bikes using components (wheels, handlebars, seats, gears, suspension, pedals etc.) sourced from a range of global suppliers, and they finally package their bikes for distribution to their retailers or directly to their customers. However, while there is substantial scope to increase production from their factory in Vancouver, the company has struggled to keep up with the recent increase in demand, and its lack of export and logistics experience has meant the international distribution of their bikes is inefficient, slow and expensive.

This has not been an issue for their North America operations, but Bob is concerned this could have a substantial impact on the competitiveness of CCC`s MTBs in international markets. Bob is very interested in capitalising on the interest from overseas and wants to test the European MTB market, but he is unsure of the best strategy to expand CCC into Europe.

To assist Bob to develop the best strategy for CCC’s international expansion, you need to prepare document that explores the following questions:

1. What do you see as being the best global business strategy for CCC? Describe what this strategy would look like if applied by CCC and give reasons for why you see this as being the model that best fits CCC`s needs.
2. Which of the market entry modes would you recommend to Bob? Why? What are the potential benefits and risks for the company adopting this approach?
3. Into which countries would you recommend CCC should enter first? Give reasons for your recommendations.

Scenario 2: Mahindra – Algeria and Lithuania

Mahindra and Mahindra Limited is a transnational automotive corporation headquartered in Mumbai, India, and its subsidiary, Mahindra Tractors, is the world’s highest selling tractor brand (by volume). Ramandeep is a manager at Mahindra Tractor’s Mohali (India) manufacturing plant, and is scheduled to join the company’s finance team on a business trip to visit their manufacturing operations in North Africa and the Baltic region of Europe. This 10 day trip will include a visit to their farm equipment manufacturing subsidiary partners in Algeria and Lithuania.

While Ramandeep has travelled regularly within India to work with Mahindra’s subsidiaries and partners, she will be visiting these parts of the world for the first time and is somewhat apprehensive, as she knows very little about the countries on their itinerary; their people and how they do business.

To assist Ramandeep with her preparation for this business trip, your group is required to use the various cultural comparison tools/resources featured in the course materials to prepare summaries on doing business in each of these countries (i.e. Algeria and Lithuania). These summaries should provide Ramandeep with the essential cross-cultural and business information and advice/recommendations to enable her to engage effectively with the participants in the Mahindra business meetings on this trip.

These summaries should include:

1. An introduction to each country – location, language, currency, cultural diversity, major industries, system of government etc.;
2. Cultural norms and business etiquette – greetings, names, dining etiquette, dos and don’ts, relationship building, meetings, doing business;
3. Specific areas of similarity and difference between Ramandeep’s culture and the countries/cultures she will be visiting, including advice/recommendations about how to proceed with her meetings.

Scenario 3: Multi-national circuit board request

Your consultancy team has been contracted by a multi-national manufacturer of small electric kitchen appliances to identify a suitable international manufacturer to supply a range of electronic circuit boards for their appliances. This company has a strong reputation for quality and reliability, but supply chain disruptions in other countries have prompted your client to explore other options for the supply of their circuit boards.

Your team has conducted a global search of suitable manufacturers and quickly shortlisted several factories (located in Netherlands, Taiwan and Philippines) with capability to supply the circuit boards. Your client is happy with the shortlisted companies, appears to be encouraged by the competitive quotes received and is keen select a preferred supplier and begin contract negotiations. However, with the emergence of customer concerns in some countries relating to ‘ethical electronics’ and the social and environmental impacts of the life cycle of electronic goods, your team recommends further research is required into the social and environmental performance of the short-listed suppliers.

You and your team have scheduled a progress meeting with your client, in which you intend to present this recommendation and seek your client’s approval to undertake this additional research. To prepare for this meeting, you are required to draft a document for discussion. That is, you must prepare a 3-4 page document (to send to your client prior to your meeting) outlining your recommendation and the key points you would like to discuss at your meeting

This document must include:

1. Background - A summary outlining why ‘ethical electronics’ has become an issue for manufacturers and retailers of electrical appliances;
2. Rationale – An explanation of the reasons why you think this additional research is required. This explanation should include discussion of the risks associated with not undertaking this work;
3. Responsible electronics – A description of the types of evidence (relevant to the responsible business issues impacting each country and/or industry) you would require from each of the shortlisted factories to provide assurance that these circuit boards were being produced ethically;
4. Brief research plan – A plan detailing the key steps you would take in conducting this research; what you propose to research, what you would actually do and how you intend to research these issues.