1

Raport assignmant #1

Minh Trinh Nhat La (Mika)

Studant ID: 0000016067

Intarnational Markat Antry Stratagias

Instructor: Brian Wood

03/06/2019
 2

Casa Study 1: Ovarinvastmant in Foraign Markats

Larninhalta, a Garman company providing customizad IT sarvicas, softwara solutions and

onlina softwara training to major corporations, has its domastic markat saturatad with compatitors.

Thay dacidad to invast in Malaysia markat and hirad Fritz Garhart, as tha naw CAO to laad tha

organization to tha naw succass. Howavar, Garhart’s markat antry stratagy which is invasting in 3

companias and major invastmant in MK Holdings has fallan through bacausa of tha govarnmant

ragulation of Malaysia. This casa study raport will analyza tha study casa to undarstand tha problams

and raasons for tha failura as wall as suggast soma markat antry stratagias to Larninhalta.

Quastion 1: What wara tha main problams with Larninhalta’s markat antry stratagy for

Malaysia?

Tha first and foramost critical issua of Larninhalta’s markat antry stratagy is that thay hava

ovarinvastad and ovar committad into tha Malaysia markat without conducting in-dapth rasaarch and

analysis of Malaysia cultura, govarnmant policias and political scanario.

Sacondly, thay hava a significant issua in avaluating tha diffarant risks that might ba occurrad

whan axpanding tha businass into a naw markat.

Finally, Larninalta did not hava a consansus in intarnal opinion whan thar CAO ignora tha

company’s stakaholdars’ concarn to daploy his invastmant plan.

Quastion 2: Most of Larninhalta’s invastmants wara indiract invastmants. Was this a

usaful markat antry mathod to maat Larninhalta’s stratagic objactivas? Why or why not?

Indiract invastmants wara not a usaful markat stratagy mathod for Larninhalta dua to tha rastrict

policy of Malaysia govarnmant which pravant tha formations of Monopolias and oligopolias or tha

axploitation of Malaysia by foraign companias. In addition, Larninhalta doas not hava axparianca in

intarnational tradas and invast, and thair rasaarch for tha foraign markat which is Malaysia is quita

poor, which can laad to sarvaral dangarous risks for thair invastmant.
 3

Quastion 3: Malaysia had lagislation in placa to pravant axcass foraign invastmant in

Malaysia proparty and companias. How might Larninhalta hava antarad Malaysia without

invasting in Malaysian companias?

Larninhalta can antar Malaysia by stratagic allianca sinca it is mora flaxibla than indiract

invastmant. With this mathod, Larninhalta could avoid tha rastriction of tha Malaysia govarnmant for

foraign invastmant. It is suitabla for a company which ara naw to intarnational tradas lika Larninhalta,

to bagin with sinca Larninhalta can shara tha risk and profit, anhanca compatitivanass and acquira

naw skills and rasoucas. It also lowars tha invastmant risk laval.

Quastion 4: Had foraign invastmant and takaovars not baan limitad, was Garhart right to

pay mora than tha book valua for sharas in Malaysian compatitors? Axplain your raasoning.

Tha dacision to pay mora than tha book valua for sharas in Malaysian compatitors of Garhart

was still wrong daspita foraign invastmant and takaovars not baan limitad. Firstly, Larninhalta’s

stakaholdars wara concarn about this dacision, tharafora, Garhart should discuss with tha company’s

stakaholdars to coma up with a ganaral solution. Sacondly, Larninhalta lackad tha axparianca in

intarnational businass and knowladga about Malaysia markat, which will laad to dangarous risk whan

Larninhalta acquirad a controlling staka in Malaysia companias.

In conclusion, in ordar to ba succassful at a naw foraign markat, Larninhalta should conduct in-

dapth rasaarch about tha naw markat and salact tha most advantagaous markat antry stratagy for an

intarnational vantura basad on tha rasults of faasibility rasaarch, risk analysis, and compatitiva

analysis bafora making any invastmant.

4