Type
Essay
Pages
4 pages
Word Count
513 words
School
A.T. Still University
Course Code
BBA

Topic Review 4

March 10, 2020
INTERNATIONAL BUSINESS
(BAGB 2023)
TOPIC REVIEW 4
PREPARED BY:
ADRIANA HAIRUL BARIEYAH BINTI EMRAN (CM181007752)
PREPARED FOR:
MRS. VILASINI A/P NARAYANAN
CM181007752
ADRIANA HAIRUL BARIEYAH BINTI EMRAN
INTERNATIONAL BUSINESS
Topic Review 4
Question 1
Briefly discuss the most appropriate international business strategy to be used for
the following products in Malaysia. Justify your choice from the perspective of cost
reduction and localization requirements. (15 marks)
a) South Korean movie Parasite
Parasite have high pressure to reduce costs and local requirements.
Parasite movie was built with US$11 million, which has grossed more than US$236
million, worldwide. Parasite, which are from NEON, is not a big company in the
field of film distribution, such as Disney, Warner Bros., Sony Pictures, and
Universal. The big challenges from competitors make NEON have high pressure
to reduce costs in making this film.
Parasite movie is a foreign-language film, which is achieve a global success.
This movie have high pressure for localization cause of foreign language used
in this movie. To make Parasite movie are adapt by local, the subtitles were add
in the movie. It will ease people to watch and understand the movie.
The most appropriate international business strategy to be used is transnational
strategy.
CM181007752
ADRIANA HAIRUL BARIEYAH BINTI EMRAN
b) Blood collection tubes
Blood collection tubes have high pressure in cost reduction and low pressure in
local adaptation.
Blood collection tubes are globally used and standardize. Since it was standard in
design and used, the company that produce blood collection tube has many
competitors around the world. Consequently of having many competitors, the
company that produce blood collection tube have high pressure to reduce
costs in manufacturing.
Blood tube collection have low pressure in local adaptation because it is a
healthcare product with global standard requirement and there is no cultural
differences related.
The most appropriate international business strategy to be used is global
strategy.
c) Wagyu beef
Wagyu beef have low pressure in cost reduction and low pressure in local
adaptation.
Wagyu beef have low pressure in cost reduction because wagyu beef has low
competitors and it is a high-quality beef with higher prices.
Wagyu beef has low pressure in local adaptation because the higher price of this
meat have its own target market.
The most appropriate international business strategy to be used is international
CM181007752
ADRIANA HAIRUL BARIEYAH BINTI EMRAN
strategy.
Question 4
JW Marriot and Hilton are globally recognized hotel brands. Briefly discuss ONE
(1) possible reason for them to use franchise instead of FDI as an entry strategy and
ONE (1) risk of franchising when expanding internationally. (5 marks)
The possible reason is speed of growth of the franchise network. The recognizable
name brand helps the developers to get investors on board with the project. The
increasing of assets helps the brands to grow faster, especially internationally.
The possible risk of franchising is risk reputation. A new entrant or other location
of business who start the problem, will jeopardize the brand image because the
products and services will become substandard.

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