MGMT 2101 - International Business and Multinational Operations Assignment - UNSW

Assignment Task

1. What challenges does Rolls Royce (RR) face from global competitors like GE etc and how did RR overcome these challenges?

• Saturated market, GE
• High competition within the industry
• Less customer base
• Low access to skill labour
• Consumers want more sustainable engines
• Didn’t have a strong network of businesses
• Didn’t have access to the pool of skilled labour
• Running on lost
• How to overcome
• Redesign the whole engine
• Could work most of the aircrafts
• Have more control of both up skilled and low skilled parts) the whole system
• Take the advantage of the globalisation
• Spreading around the globe

2. What ownership advantages does RR enjoy?

• Tacit knowledge
• The importance of the service within the UK
• Unique technology
• The design of the engine
• The engine could be fitted with most of aircrafts
• A unique strategy towards charging consumption
• Good business relationships with other airlines
• Brand image
• Have their own business model, especially for after sales.

3. What location specific advantages did RR take advantage of when it internationalised?

• Germany, the 30% of the costs were covered by the gov
• US, by opening a new factory, have more access to local suppliers
• US, investment for training the skilled labour
• UK, gov support and the funds towards production
• UK, tax advantages and access to the new skilled labour
• Spreading around the globe, the firm could de-risk the operation

4. To what extent is RR’s operations internalised?

• Keep the operation within the firm
• Access to skilled labour and no need for external labour force and skilled labour
• Research and Development
• Access to internal data for better prediction of the operations of their engines
• Keep the consistency
• Keep the C.A. of the firm (knowledge) within the firm and not to lose it to the third party

5. What successful strategy did RR implement for penetrating into international market?

• O: Redesign the whole engine
• L: Access to multiple locations based on the national advantages, access to talented and skilled labours, access to gov support, e.g., Germany and UKDiversify the operations
• Keep the R&D in house, quality control of the operation and after service Mixed the service with products
• Good relationship with multiple airlines
• Take advantage of the globalisation

6. How will you apply the value chain framework in analysing the case?

• Inbound logistics – Music composer, artist
• Operations – editing the music, making CD’s
• Outbound logistics – retailers and other distributors, packing CD’s, online websites for the selling CD’s
• Marketing – Radio station, different promotion online and offline
• Services – after sales consumer service
• Technology development – tech companies
• Procurement – a team to look for an artists
• Firms inf – Warehouse and office, the online website, and their platforms
• Resource management – a team to train a new artist and give comments for better quality of music

7. How does the internet change the value system and structure of the industry?

• Less requirements for the physical store
• Focus more on presenting the music through the internet for the end user
• Work with other firms – including MS and IBM
• Focus more on marketing and after sales
• Change the whole marketing strategy and focus on the social media
• Easier to produce music and less requirement for initial inventory
• Add additional division to take care of illegal downloading
• Reach more market share around the globe
• Less labour requirements (operation) and less space (in terms of operations and logistics)
• Part of out outbound log has changed, due to live music concert via the internet
• Procurement – easier for BMG to have access to new talents,
• The method of procurement has changed
• Easier for the new talents to be seen via different platforms within the international market

8. How should BMG reorganise its distribution strategy and why? Should they integrate digital into existing division or form new digital division or distribute through tech providers?

• Integrate digital into existing division – in terms of learning curve and lack of knowledge towards digitalisation
• More integration for the firm
• The keep the balance between online and offline stores
• Use the existing resources and knowledge
• Reduce the waste in resources
• Keep the business culture
• Be more internalised
• In terms of procurement
• In terms of VC, keep the existing inf and try to leverage the current knowledge
• Form new digital division – More freedom and less controlled by the HQ
• Focussing their resources as a separate division
• To bring the new talents towards digitalisation and fresher mindsets

9. How would these decisions affect intra organisational and inter organisational linkages?

• More towards digitalisation
• Reduces the linkages
• Reduce the staff (inter – organisation)
• Create a new division for online sells (interorganisation)
• Creates new linkages towards efficiency

10. What should be the strategic focus of BMG?

Towards digitalisation

11. Does BMG’s approach towards digital make sense?

Yes, can’t compete with the era of the internet, must find ways to adapt and make an approach towards digitisation.

12.  Examine why do only a few record companies dominate the music industry throughout 20th and 21st century and to what extent does technological change likely to unseat the top leaders in the industry?

Brand recognition and brand equity

• To be seen for the artist point of view
• Big firms own massive saving and inventory for the new artists
• Could easily go for M&A for the artists and IP’s

Resmed

13. What were the factors behind Resmed’s globalisation?

• Massive market demand in US
• The market needs the device for… e.g., US
• More international recognition
• The support from their network
• Access to more advanced technology
• Compete with other competitors in terms of technology and market share
• To protect the technology of the firm in terms of copy right

14. Which global markets did Resmed target initially? What was the strategy of each market

•  Initially was US to expand the market and to create trust tried to partnered with local dr
• Take the advantage of the local distributors, started from US
• Connect with local distributors in part of Asia
• Establishing a network, e.g., Europe

15. How did Farrell balance between global and local operations?

• Avoid over lapping
• Allocate each task for each region
• Use local resources, and hire local staff
• Allocate a trusted person for team around the world
• Once the firm established, acquire the local distributors for creating more trust and local knowledge

16. What did Resmed learn in globalising R&D?

• Be more efficient by taking advantage of around the world
• Consumer preference
• Take the advantage of R&D for their future product development
• Each market is different, and they need to respond differently to them.

17. What advantages did Resmed gain by going global?

• Close relationships with local distributors around the globe.
• Access to better efficiency
• Reduce the cost
• Increase the profit
• Spread the risk towards international market
• Through M&A with local distributors, they could gain more market share
• Access to massive finance markets in US, e.g., IPO
• Gain the knowledge about the procedure of the medical system in each market
• Through connection with other researchers, they could gain more in product development.

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