International Buisness

(a) What was the critical catalyst that led Kodak to start taking the Japanese market seriously?until early 1980s when Fuji launched an aggressive export drive, attacking Kodak in the north American and European markets. ====================(b) From the evidence given in the case do you think Kodak’s charges of unfair trading practices against Fuji are valid? Support your answer.The charges were very valid.the Japanese government helped to create a ‘ profile sanctuary’ for Fuji in Japan by systematically denying Kodak access to Japanese distribution channels for consumer film and paper. 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 Fuj i uses similar tactics to control 430 wholesale photo furnishing labs in Japan to which it is the exclusive supplier. Moreover Kodak’s petition claims that the Japanese government has actively encourages these practicesWhich company is truly Multinational ? Why?COMPANY A IS Geocentrism ORIENTATION [GLOBAL MULTI ORIENTED]Integrated global outlook More powerful total company throughout Better quality of products and services Worldwide utilization of best reaources Improved local country management Greater commitment to global objectives Higher global profitsCOMPANY B– IS ETHOCENTRIC Ethnocentric Orientation †¢ domestic market extension concept: †¢ Domestic strategies, techniques, and personnel are perceived as superior †¢ International customers, considered secondary †¢ International markets regarded as o outlets for surplus domestic production †¢ International marketing plans o developed in-house by international division 2 List three differences between Company , Multi National company and Trans Multi National Company ? Content of the Four Basic Multinational Strategies a) Explain why MNCs have located R & D centres in developing countries?SOME OF 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.(b) Mention the areas where R & D activities can easily be decentralised.1.INTEGRATED CHIPS/OPTICAL DATA DEVICESFor instance, 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 aud io products and CD-ROM drives, and multimedia and microchip software.2. VIDEO/ DESIGN/DERIVATIVE MODELS 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 RECORDERSIt 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 instance, 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 interfac e design of avionics landing systems and smart GPS sensors for use by the group’s business worldwide.VARIABEL COST 27000 30000 57000FIXED COST 13000 13000 2600040000 43000 830001. The Profit Volume ratio [pvr] pvr=contribution/ sales =sales-variable cost / sales = 95000-57000/95000= 0.40 ====================== 2. Fixed Expenses=======26000 ======================= 3. Break-Even Sales Sales- variable = contribution margin Break even sales= total annual fixed cost ___________________ Contribution margin/total sales =26000/ 0.40 =65000.4. Percentage of margin of safety †¢ Subtract from the projected sales the amount of sales you need to break even. For example, if you anticipate sales of $95,000, but only need $65,000 to break even, subtract $65,000 from $95,000 to get a safety margin of $30,000. †¢ 2Divide the safety margin by the projected sales to find the margin of safety ratio. In this example, divide $30,000 by $95,000 to get 0.315. †¢ †¢ 3 Multiply the margin of safety ratio by 100 to find the margin of safety percentage. In this example, multiply 0.315 by 100 to get an 3.15 percent margin of safety.