Question

drawing on the industry-based and resource-based views, outline the similarities and differences between Chinese and Indian multinational aquirers

Answer 1

Ans: The resource-based vision is focused on the core strengths and weaknesses of an organization. While making strategies and methodologies, the organizations must consider other outside factors such as society and the state.

In China, most of the M&A players are state-owned enterprises; therefore they enjoy privileges such as help and support from the government but the host nation governments dislike this advantage and therefore oppose this kind of support to state-owned enterprises being given to them by the government.

The strategic task of the industries involves analyzing competitive forces influencing the industry and looking out for opportunities as well as the risks. As per the above case, it can be assumed that the industries in China and India are highly competitive in nature.

To enhance their manufacturing operations, Chinese firms have focused on mining, energy and mineral industries whereas the Indian firms have dedicated towards cutting-edge technology and software services to become pioneers in innovation. By adopting, “high road” method and the integration approach after acquisition phases, the weakness of these MNEs such as capabilities and international management is reflected clearly.