International business

8 August 2016

In the early 1980s, as Fuji launched an aggressive export drive, Kodak was attacked in the North American & European markets. Fuji was taking over the markets & made Kodak realize that it was time to be alert & more aggressive. This led to the decision of being more defensive & thus Kodak started considering Japanese market more seriously. Answer 2: I strongly believe that the charges were valid. By systematically denying Kodak’s access to Japanese distribution channels for consumer film and paper, the Japanese government helped to create a ‘ profile sanctuary’ for Fuji in Japan which certainly proved to be unfair.

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Kodak claims Fuji has effectively shut Kodak products out of four distributors that have a 70% share of the photo distribution market. Fuji has an equity position in two of the distributors, gives large year –end relates and cash payments to all four distributors as a reward for their loyalty to Fuji, and owns stakes in the banks that finance them. Kodak also claims that Fuji uses similar tactics to control 430 wholesale photo furnishing labs in Japan to which it is the exclusive supplier & most of all that the Japanese government has actively encouraged these practices.

Company A is definitely a multinational company because, Global distribution of products. Manufacturing units in over 17 countries. Well organized objectives for domestic & international projects. R & D in 3 countries Better quality of products and services. Integrated Policy management. Well implemented Product division concept. Answer 2: Company: They have no investment outside of their home country. Do not have branches or subsidiaries out of their country. Will handle business only in the domestic market. Multinational company: have investment in other countries, but do not have coordinated product offerings in each country.

More focused on adapting their products and service to each individual local market. Multinationals have branches in other countries Have a home country & they own or control production or services facilities in one or more countries other than the home country. The senior mgt continues to take a particular nation-state as home territory while others are ‘add ons’ Tran multinational Company: are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.

Trans-multinational companies have subsidiaries world wide. it does not identify itself with one national home. These companies have moved beyond consideration of any single nation as ‘home’, which has become in fact the entire globe Case Study 3: Answer 1: MNCs have located R & D centres in developing countries because the DEVELOPING COUNTRIES OFFER (a) access to highly qualified scientists as shortages of research personnel emerge in certain fields in industrialised countries, (b) Cost differentials in research salaries between developing and industrialised countries, and (c) rationalisation of operations, assigning particular affiliates the responsibility for developing, manufacturing, and marketing particular products worldwide.

Sony Corporation of Japan has around nine R & D units in Asian developing countries. It has three units in Singapore conducting R & D on core components such as optical data shortage devices, integrated chip design for audio products and CD-ROM drives, and multimedia and microchip software.

It has three units in Malaysia working on video design, derivative models and circuit blocks for new TV chases, radio cassettes, discman and hi-fi receiver designs. 3. DESIGN UNIT FOR COMPACT DISCS/RADIO CASSETTES ETC It has one unit in Republic of Korea focusing on the design of compact discs, radio cassettes, tape recorders, and car stereos. 4. DESIGNING/DEVELOPING RECORDERS It has one in Taiwan designing and developing video tape-recorders, minidisk players, video CDs, and duplicator.

Finally, it has one unit in Indonesia focusing on the design of audio products. Such units often work in collaboration with science and technology institutes in the host country. For eg, Daimler Benz has established such a unit in Bangalore, India, in collaboration with the Indian Institute of Science to work on projects related to its vehicles and avionics business. Current work includes interface design of avionics landing systems and smart GPS sensors for use by the group’s business worldwide.

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