International Business Management Assignment Example | Topics and Well Written Essays - 4500 words

International Business Management - Assignment Example However, the company remains pressed for resources and cannot afford to make the wrong decision when it comes to entering a new market. It is currently not in a position to bear high political, economic or regulatory risks. To this end, great potential exists in BRIC countries as the growth potential in these nations tends to be higher compared with the U.S. The founder of Genicon must, therefore, decide whether or not to enter the BRIC markets and, if so, which of these markets to enter. This decision must be made vis-a-vis the decision to continue to expand in European regions such as Germany. It is recommended that Genicon enters Brazil owing to low political risks and smooth regulatory environment. 2. Problem statement Genicon faces the problem of whether to enter into developed markets such as Germany or focus on existing markets or enter into BRIC countries. If it chooses to enter the BRIC economies then which economy should Genicon enter for maximizing its profits and growth p otential and minimizing its risks? 3. Analysis Genicon possesses over 10 years of experience in the sale of laparoscopic instruments within and outside U.S (Kupetz, Tindall, & Haberland, 2010). Internationalization may be active or proactive (Wild & Wild, 2012). However, Genicon’s internationalization has been largely proactive to take advantage of favorable business opportunities. Furthermore, the current marketing and distribution environment required firms to sell through GPOs which favored large companies owing to financial structure (Kupetz, Tindall, & Haberland, 2010). Hence, Genicon’s sales in the U.S were declining (Kupetz, Tindall, & Haberland, 2010). Additionally, international markets were providing higher growth rates as far as the market for MIS was concerned. Theory attributes internationalization to the strategic intent of the founder (Wild & Wild, 2012). The case suggests Genicon’s founder- Haberland to have had interest in entering emerging mark ets owing to their high growth rates. However, the biggest concern encompassing Genicon is which BRIC market to enter. It is important to analyze each BRIC economy from the perspective of various factors. Global legal issues such as intellectual property which faces threat of piracy may be important considerations for international businesses (Wild & Wild, 2012). In terms of the legal environment, India offered improvement in terms of shorter product launch times and tighter IP laws. Russia offered weak enforcement laws whereas China offered uncertain, slow and weak regulatory procedures (Kupetz, Tindall, & Haberland, 2010). Brazil, on the other hand, offered â€Å"internationally accepted† regulatory standards with the prospective introduction of the four-tier system (like that in the EU) which was favorable for Genicon. Considering that the role of government intervention is critical factor for startups, the BRIC countries need to be analyzed in terms of this aspect as well . India has been heading towards privatization. Political ideologies may range from being anarchist ( whereby personal and private groups have liberty) to totalitarian (where every aspect of people’s lives is controlled) (Wild & Wild, 2012). Pluralism exists in the middle whereby both public and private groups coexist (Wild & Wild, 2012). China seems to have moved towards pluralism in the wake of globalization with the