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Question 1
(a) As an International Marketing Manager for Felda Global Ventures Bhd., one of your
responsibility is to expand and market the companys product to China. Discuss the
critical factors that you should consider before investing in China.
(20 marks)
Suggested answer:
It is generally accepted that there are a large number of differences between domestic and
international environments, with the latter being substantially more complex.
Five contributing to this complexities:
1. The multinational corporation faces multiple political, economic, legal, social and
cultural environments as well as various rates of change with each of them.
2. Interactions between the national and foreign environments are complex because of
national sovereignty issues and widely differing economic and social condition.
3. Geographical separation, cultural and national differences, and variations in
business practices all tend to make communication between headquarters and
overseas affiliates difficult.
4. Multinationals face extreme competition because of differences in industry
structures.
5. Multinationals are confronted by various international environmentalist
organisations, such as the Green Movement that restrict a firms selection of its
competitive strategies.
The threat under the S.W.O.T (strength, weakness, opportunities and threat should be
the major concern for FGV in setting up business in China.
Threat is external environment to FGV which is not controllable by the company.
Any of the factors of politic, economic, social, technology, legal at the home and host
country could jeopardise the FGV investment in China.
4
Marks
Descriptions
04
Exhibits few/no
explanation with
minimal supportive
elaboration points.
Weak & unclear or
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
59
Exhibits limited
explanation with
minimal
supportive
elaboration
points. Limited/
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
10 15
Exhibits fair
explanation with
supportive
elaboration
points. Fair
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
16 20
Exhibits very
clear
explanation
with
supportive
elaboration
points. Good
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
(b) Explain the possible reasons that attract Felda Global Ventures Bhd. to venture into China.
(20 marks)
Suggested answer:
Marks
Descriptions
04
Exhibits few/no
explanation with
minimal supportive
elaboration points.
Weak & unclear or
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
5 9
Exhibits limited
explanation with
minimal
supportive
elaboration
points. Limited/
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
10-15
Exhibits fair
explanation with
supportive
elaboration
points. Fair
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
16 20
Exhibits very
clear
explanation
with
supportive
elaboration
points. Good
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
5
[Total: 40 marks]
6
SECTION B (60 marks)
Answer any THREE (3) out of four questions.
Question 2
The degree to which an organisation is matching its resources and capabilities with the
opportunities in the external environment is known strategic fit. The matching takes place
through strategy and it is therefore vital that the company has the actual resources and
capabilities to execute and support the strategy. Strategic fit can be used actively to evaluate the
current strategic situation of a company as well as opportunities such as merger and
acquisition, and divestitures of organisational divisions. Illustrate the process of developing the
strategic fit.
[Total: 20 marks]
Suggested answer:
Students are expected to explain the use of strategy model in relationship to SWOT analysis
(strategic fit).
Marks
Descriptions
04
Exhibits few/no
explanation with
minimal supportive
elaboration points.
Weak & unclear or
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
5 9
Exhibits limited
explanation with
minimal
supportive
elaboration
points. Limited/
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
10 15
Exhibits fair
explanation with
supportive
elaboration
points. Fair
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
16 20
Exhibits very
clear
explanation
with
supportive
elaboration
points. Good
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
[Total: 20 marks]
8
Question 3
ABC Berhad is celebrating its 30 th anniversary in 2015. The company is one of Asias bestmanaged multinationals and is involve in hospitality business, entertainment, plantations,
technology, manufacturing and retailing across seven countries. In order to be effective and
efficient, ABC Berhad is currently adopting matrix organisational structures in managing its
international business. Discuss the advantages and disadvantages of matrix organisational
structures.
[Total: 20 marks]
Suggested answer:
International matrix structure same as a regular matrix structure, except that for
MNC the geographic distances for communication are greater and co-ordination is
more complex
The matrix works best when pressure for decision-making balances the interests of both
product standardisation and geographic localisation and when co-ordination to share
resources is important.
Matrix Structure is a hybrid organization of overlapping responsibilities it is used by
some firms but has generally fallen into disfavour recently
Communication
Expertise
Flexibility
Coordination
Substantial product and area diversification
Need to be responsive simultaneously to product and area demands
Constraints on resources requiring that they be shared by two or more product, area or
functional divisions
Significant problems created and opportunities lost due to emphasis on only the product
or area dimension
Formulation of corporate strategy requiring the simultaneous consideration of
functional, product, and area concerns
Marks
Descriptions
04
Exhibits few/no
explanation with
5 9
Exhibits limited
explanation with
10 15
Exhibits fair
explanation with
16 20
Exhibits very
clear
9
minimal supportive
elaboration points.
Weak & unclear or
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
minimal
supportive
elaboration
points. Limited/
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
supportive
elaboration
points. Fair
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
explanation
with
supportive
elaboration
points. Good
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
[Total: 20 marks]
Question 4
(a) An organisation structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organisational aim. Some
multinational company adopted international product division organisation structure with
certain condition for the reason of the ability to segregate large sections of the companys
business into semi-autonomous groups. These semi-autonomous groups are mostly selfmanaged and focused upon a narrow aspect of the companys products or services. Discuss.
(10 marks)
Suggested answer:
A high level of product diversity, with the firm manufacturing products that require
different technologies and have dissimilar end users
Little use of common marketing tools and channels of distribution among the various
product divisions
A significant need to globally integrate production, marketing, and research related to the
product
Little need for local product knowledge and product adaptation as the firm expands into
new countries
A product-related need for continuous technical service and inputs and for a high level of
technological capability, requiring close coordination between divisional staff groups and
production centers abroad
Marks
Descriptions
02
Exhibits few/no
explanation with
minimal supportive
elaboration points.
Weak & unclear or
no connection
between the
principles,
illustrations
3 4
Exhibits limited
explanation with
minimal
supportive
elaboration
points. Limited/
no connection
between the
principles,
5 7
Exhibits fair
explanation with
supportive
elaboration
points. Fair
connection
between the
principles,
illustrations
8 10
Exhibits very
clear
explanation
with
supportive
elaboration
points. Good
connection
between the
10
literature
references &
theoretical
concepts with
relevant case.
illustrations
literature
references &
theoretical
concepts with
relevant case.
literature
references &
theoretical
concepts with
relevant case.
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
(10 marks)
(b) A joint venture (JV) is a form of foreign invested enterprise (FIE) that is created through a
partnership between foreign and host country investors and share profits, losses and
management of the JV. Discuss the advantages and disadvantages of formation of an
international joint venture company.
(10 marks)
Suggested answer:
Joint venture (JV) is a corporate form and joint ownership by more than 2 or more
company.
The managing of a joint can be forms share management, one form takes responsibility or
independent managers are hired to manage the JV.
The characteristics of JV compare to other non-JV are that the purpose and scope are
broader and longer duration.
Incompatibility of partners
Access to information
Distribution of earnings
Loss of autonomy
Changing circumstance
Marks
Descriptions
02
Exhibits few/no
explanation with
minimal supportive
elaboration points.
Weak & unclear or
no connection
3 4
Exhibits limited
explanation with
minimal
supportive
elaboration
points. Limited/
5 7
Exhibits fair
explanation with
supportive
elaboration
points. Fair
connection
8 10
Exhibits very
clear
explanation
with
supportive
elaboration
11
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
points. Good
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
(10 marks)
Question 5
(a)
12
02
Exhibits few/no
explanation with
minimal supportive
elaboration points.
Weak & unclear or
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
3 4
Exhibits limited
explanation with
minimal
supportive
elaboration
points. Limited/
no connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
5-7
Exhibits fair
explanation with
supportive
elaboration
points. Fair
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
relevant case.
8 10
Exhibits very
clear
explanation
with
supportive
elaboration
points. Good
connection
between the
principles,
illustrations
literature
references &
theoretical
concepts with
13
relevant case.