Question

International Management

Choose a company of your choice, either domestic or foreign, that operates internationally. Discuss the potential types of "collaborative arrangements" (mergers & acquisitions; joint ventures, franchising/licensing etc) you feel would be appropriate for this firm. Are there any particular industries that seem to lend themselves to particular types of collaborative arrangements more readily than others? Be sure to discuss why this might be so.

Answer 1

MG Motors, a wholly owned subsidiary of the USD 118-billion Chinese giant SAIC is launching new cars in India. They can have collaborative arrangements with existing car showrooms for its launch. They can share showrooms to reduce costs initially and pass this on to customers to create better market place for themselves. This strategy was used by Fiat already and was largely successful till competition became fierce and Fiat was unable to launch consumer oriented products in India.

Yes, it is true that automobile industry seem to lend themselves to particular types of collaborative arrangements more readily than others. This happens due to a common type of raw material, competition pressures to reduce costs and differentiated products.

Pharmaceutical industry can also offer this readiness.It is not difficult to have collaborative arrangements in majority types of businesses and business practices.