MGNT4230- International Management

MGNT4230- International Management
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Assignment

This case describes a real business situation and outlines the events and circumstances for Volkswagen company’s operations in India between 2001-2016. This case involves a variety of industry sectors, companies, and strategic issues that create complex situations and competing agendas. 

You will take the role as a strategic analysis team whose responsibility is to research India business environment regarding the automobile industry. Your report should provide valuable input for VW and Tata Motors to decide whether to form a strategic alliance between them. Your job in conducting a case analysis is to analyze situations and then make appropriate recommendations. It should be noted that the actual outcome of the case is of no concern. What is important is how well you justify and defend your arguments and analyses using the course materials. 

In a case analysis, there is normally not one single right answer. However, some answers are more “right” than others, and there are definitely wrong answers. Wrong answers are those that are not supported by strong evidence or those that are inconsistent with the situation or proven theories. 

Questions

1.Analyze the external environment (global and Indian automobile industry, and the business environment in India). Explain how the external environment affects VW’s market strategy and performance. Use the PESTLE tool (see below). 

2.Assess the benefits, costs, and risks of two foreign market strategies for VW Indian:

a.Continue with the wholly owned subsidiary

b.Form a strategic alliance with Tata Motors 

3.Make a recommendation: should the two companies call off the alliance or sort out their differences and commit to the alliance? Provide justification.