International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Solution man

This exercise also provides an excellent opportunity to talk about the power of global brand names. The McDonald’s name (and golden arches) is recognized around the world; likewise, Yum businesses (KFC, Pizza Hut, and Taco Bell) are ever-present. It is a challenge for a “new kid on the block” such as Jollibee to compete. This is where adaptation to local taste can make the difference.
Questions and Answers Following this Exercise
Which of these companies seems best positioned in Southeast Asia?
Answer: Opinions will vary. Jollibee has the most extensive menu aimed at this part of the world. It also has an extensive menu that competes with McDonald’s and a seasoned fried chicken menu to compete with KFC. However, customers in Southeast Asia may well be looking for the more “Western” experience in restaurant dining.
What advantages might a “local” brand like Jollibee have over the global companies? What advantages do the global MNCs have?
Answer: Students’ answers will vary. However, a “local” customer base may have or develop a loyalty to Jollibee based on pride or on food preference.
What is your prediction in terms of future growth potential?
Answer: All three companies are seeking to expand their worldwide operations to increase their market share and return on invested capital. Franchising allows the companies to expand their presence at minimal cost, while maintaining quality control. Opinions will vary regarding the success of future growth.
In the International Spotlight: India
The case provides demographic information on India, including population, natural resources, language, and economy.  The case also provides challenges India faces such as poverty and strained relations with neighboring Pakistan.  India has enacted legal and economic reforms with limited success.
In recent years, U.S.-based and European-based companies have largely dominated India’s emerging Internet economy.  In response, India announced plans for a national policy tightening restrictions on foreign firms, giving domestic start-ups an advantage in the marketplace – similar to a similar plan in neighboring China.  This announcement comes on the back of massive investments and major successes by foreign firms.  Amazon, now India’s top online retailer, hopes to continue its growth with a US$5 billion investment, and Walmart spent US$16 billion to acquire Flipkart, India’s largest domestic online shopping firm.
Questions and Suggested Answers
Do you agree with India’s position of promoting domestic firms at the risk of less foreign investment?
Answer: Students’ answers will vary. China has the same type of policy and many MNCs find it very difficult to do business in and with China.  China’s policies favoring domestic companies over foreign ones make China a complicated and high-risk venture.  The same may hold true for India, though their English language does give them a boost.
If you were consulting for Walmart or Amazon, how would you suggest that they deal with new policy?
Answer: Students’ answers will vary. Joint ventures with domestic companies may be an option.
Should Indian consumers care about whether they shop from domestic or foreign companies?
Answer: Students’ answers will vary. Some students may think you should buy from domestic companies rather than foreign companies, while other students will think the opposite.  With the globalization of products, it may be difficult to find a product made by a domestic company.
4.   What benefits could the Indian economy reap by supporting international firms instead of attempting to lessen their economic influence?
Answer:  Again, student answers will vary.  Emerging nations, as a whole, have experienced unprecedented GDP growth in the past decade.  Global trade and investment continue to grow at a healthy rate, outpacing domestic growth in most countries.  Foreign direct investment has slowed somewhat in recent years but India could still tap in to dollars earmarked for foreign investment through arrangement of joint ventures.

 
 
International Management in Action: Tracing the Roots of Modern Globalization
Summary
Globalization is not new. Consider this concept in terms of historical events before reading the article. Think about the Silk Road and other trade routes dating back thousands of years. Then, review the examples in the article.
Middle Eastern Intercontinental Trade: King’s Highway (Royal Road), Silk Road, Arabian caravans
Trans-Saharan Cross-continental Trade: North to West Africa
China as an Ancient Global Trading Initiator: Ocean routes
European Trade Imperative: Greeks and Phoenicians, Roman Empire, British Isles, Silk Road (once again), Christopher Columbus and the New World