Due : 21 JUNE 2022
Emerging markets recommended for entry: China
Mode of entry: acquisition
SEE: Some useful discussion from client (at the end of this page)
You are expected to write a management report following the board of directors business
meeting simulation covering these six questions:
1) What strategies would the company use to increase its profitability in the new market?
(e.g. you will have to consider reducing cost or adding value to the existing market). Use
relevant theories and empirical examples to support your answers.
2) What are the company’s global production considerations, and how can its supply chain
management be improved to lower the cost of value creation for better servicing
3) What strategies could the company use to avoid foreign exchange risk considering that
exchange rates have become much more volatile and less predictable in the
international monetary system?
4) What international staffing policy would you recommend for the company that is
consistent with its strategy, and how will this improve its performance and
5) Considering how your company could configure its marketing mix, what are its initial
international marketing entry decisions? Recommend a 2-year post-entry marketing
6) Critically analyse decisions taken in the meeting and reflect on what could have been
done differently by making final recommendations for the company’s foreign market
You must use relevant business theories/models to support your answers.
It has some layout samples provided
The target company already selected
Some useful discussion from client
Unilever can adopt the entry mode of acquisition to push its products into the Chinese market. Unilever has not only better experience but also better control in the face of the ever-changing consumer goods audience. Unilever can not only reduce the investment cost of brand innovation, but also quickly improve the brand portfolio and consolidate the position of the industry.
For Unilever, optimizing and adjusting its brand portfolio is an important way to promote performance growth and adapt to new market trends, and Unilever has a lot of experience and resources in supply chain, marketing and other aspects that can help the entry of new brands reach more consumers.
The disadvantages brought by the acquisition will make it difficult for both sides to share and complement each other's resources, which will lead to the expansion of production scale, but the degree of profit is not as large as that of scale expansion.
There may also be economic losses caused by overestimating the value of the acquiree.
At this time, enterprises need to have a clear strategic goal of acquisition and be able to make a long-term development plan before the acquisition.
Establish a good image of the enterprise and its brand, and strengthen the cooperation consciousness of the enterprise.
At the same time, it is necessary to effectively avoid the risks that the acquisition may bring.
Order to get the answer to this