MANU2470 - Differences Between the Operation of Domestic and International Firms - Report Writing - Management Assignment Help

Assignment Task

Overview
A manufacturing company is considering opening a facility outside of the home country with the goal to reduce product cost. You are to provide a report with detailed analysis of the impact of this business decision. Specifically, you are expected to capture the essence of the economy of the foreign country the company is moving to, evaluate the advantages and disadvantages of establishing a production operation in that country, and discuss the impact of cultural difference between the home and the foreign country on the business.

Learning Outcomes
 CLO 1 Establish your theory on how globalisation of the world economy and the continually changing nature of international trade affects nearly every aspect of business decision making in technological firms.
 CLO 2 Explain the differences between the operation of domestic and international firms especially in relation to the complex competitive nature of global markets.

Assessment details
Background
Caterpillar is world leader in production of heavy machinery. The Caterpillar components are made in more than a hundred manufacturing plants in the world. In the US alone, there are 51 manufacturing facilities. There are 12 manufacturing facilities in European countries, several in Asia (India, China and Indonesia), South America (Mexico and Brazil), and in South Africa.
The world headquarters of Caterpillar is located in Peoria, Illinois. Most R@D activity is based in Peoria. In 2016 Caterpillar decided to start a major reorganisation that included closing more than 30 facilities in the US to reduce the cost of production, and opening new facilities. Some analysis suggests opening new facilities in Nigeria
for special track-type tractors, track type loaders, and another one in Malaysia for articulated dump trucks.

Tasks
1) Analyse and discuss the development and growth of the company worldwide. Discuss organisation and major challenges that company has faced during its long history. Caterpillar is a well-known, world-leading manufacturer of machinery. A large amount of publications, analytical, research articles and reports are available.
2) Analyse the situation in Malaysia and in Nigeria as the convenient locations for the new facilities. The main part of your analysis should be related to the cultural specificity of these two countries. The analysis must also take into account general geopolitical characteristics of Malaysia and Nigeria. The preferred sources are WordBank data, IMF data, OUN data, OECD data and research articles.
3) Discuss the importance of cultural differences between Malaysia and Nigeria and the risk for the company as a result of cultural differences.

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