Case Study

Case study

Introduction

The term globalization, means moving your resources outside the national boundary. In this contemporary world, the business operations are exported to different countries in order to exploit the resources which are available outside the national boundary (Hopkins, 2002 pp 17-18). Organization faces many social, cultural, political and technological complexities while shifting their resources outside the national boundary. P & G. KFC, McDonalds', Pepsi, Coca Cola, Toyota, Nokia, Samsung and Honda are regarded as the best examples of globalization. International business is spreading very fast, mainly the business operations are stretched by the developing countries. The major characteristics of globalization are the exploitation of outside resources at its optimal level. This assignment is based on a case study, which reflects the concept of globalization and International business. I assignment will include all the answers which we are supposed to do with context of the case study.

Discussion

Q1. GMAC reasons for entering Chinese market

After going through the theory and case study, I believe that GMAC should enter the Chinese auto financing market. The market of China is regarded as “sleeping giant”, and this giant has provided many evidences in the recent past, that it may exert its economics, largely through exports. China has adept mainly the manufacturing and production industries, which also includes automotive industries. I believe, that China should not only enter the financial market, but they also needs to enter auto financing industry. Here we are talking about globalization finance and marketing; it means that GMAC should exploit the maximum resources. The transformation of GMAC business to Chinese auto financing industry should be handled with ultimate care and security. There is a high competition in the market, GMAC has a competitive edge in the market the thing that has to be taken under consideration is the application of other countries entry. GMAC has to be very cautious, especially in the lights of investment grade ratings. GMAC has to follow flexible approach, in order to carry out its main role of providing financial sale support to GM.

Q2. Entry mode for GMAC

The entry in to Chinese auto finance sector is the gateway for the countries to enter the International arena. Different modes can be used to enter the Chinese market like; export, Internet, Joint ventures, strategic alliance and International distribution.

Internet

Internet is regarded as the new channel for few organizations, and the sole channel for large number of innovative organization. The world is moving with a very rapid pace, due to the advancement of technology. Internet is regarded as the part of technology; E-business is the best source of getting in to International arena. Through the use of internet companies can build their entire business plan. For some companies, Internet is regarded as a conventional and useful method, where as few companies still believes on traditional manual work.

Exports

There are two modes of exports direct and indirect. The direct approach is a simple straight forward method, in which countries made commitments to other nations for providing them with desired ...