Expanding an MNC Essay Example | Topics and Well Written Essays - 1000 words

Expanding an MNC - Essay Example The company has a mission to satisfy the requirements of its customers. The cars manufactured by Excellent Motors are mainly light machine vehicles. The company offers cars within a wide range of price, targeting customers from middle income groups to high income groups as well. Excellent Motors have reported revenue growth over the years. In order to increase its business operations, the senior management of the company is considering expansion of the business into emerging markets. Question 2: Comparison Matrix for 3 emerging markets The three emerging markets chosen for expansion of business of Excellent Motors are China, India and Brazil. The comparison matrix for the three emerging markets is given as below: Environment China India Brazil Political The political environment in China is quite stable and has a political consensus for encouraging foreign automakers to invest in the Chinese economy. India has a multi-party political system with several opinions and intervention on t he policies of the government. Thus the political risk for expansion of the business is moderate. The political environment in Brazil is turbulent for the foreign automobile investors to invest in the country. The political risk of Brazil is on a higher side for expansion of the business. ... Due to the diverse set of sophisticated services, the foreign automakers have favored this destination. Legal & Regulatory China's legal and regulatory system has excessive number of clauses to be fulfilled by the foreign automakers which requires high startup cost and compliance cost. The legal and regulatory system of India allows moderate incentives for the foreign automakers to invest in India. There are several regulatory policies and laws on taxation for foreign automakers to invest in Brazil. Technological China is a country that has advanced technologies which would be beneficial for foreign automakers to invest in the country. India has made rapid progress in technological development due to the investments of foreign capitalists. The process for technology transfer required for investment by the foreign automakers in Brazil is relatively cumbersome. Ethical Chinese government has made ethical practices for business as mandatory criteria. The land has specific requirements f or foreign investors on ethical reporting and disclosures. The ethical standards for foreign investors in the automobile markets of India are moderate with requirements of true disclosure of business events. Brazil has also strengthened its requirements on ethical conduct of business by the foreign investors. Social responsibility The social responsibility activities of the foreign investors in China are viewed as positive contribution to the society in which they exist. The social responsibility acts of the foreign investors go a long way in creation of brand value for the companies in India. The social responsibility of the companies has helped the companies to increase their profitability in the long run. Cultural The