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MNB3701 REPORT 2 SEMESTER 1 2024
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MNB3701 REPORT 2 SEMESTER 1 2024
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0717513144 MNB3701 muzavazi47@gmail.comDISCLAIMER
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Table of Contents
Executive summary .................................................................................................... 5
Literature search ........................................................................................................ 6
Background ................................................................................................................ 7
Joint Ventures and Exportation as internationalisation strategy by JAC ................. 8
Institutional based view .............................................................................................. 9
Formal institutions ...................................................................................................... 9
Economic system .................................................................................................. 10
Exchange rate regime ........................................................................................ 10
Interest rates ...................................................................................................... 11
Political ideology ................................................................................................... 11
Corruption .......................................................................................................... 12
Implications to management ................................................................................. 13
Informal institutions .................................................................................................. 14
Culture .................................................................................................................. 14
Ethics .................................................................................................................... 15
Relativism in ethical standards .......................................................................... 16
Implications to management ................................................................................. 16
RESOURCE BASED VIEW ...................................................................................... 16
JAC resource identification ................................................................................... 17
Primary resources ................................................................................................. 17
Tangible assets of JAC ......................................................................................... 17
Financial resources............................................................................................ 17
Physical resources............................................................................................. 18
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Intangible assets of JAC ....................................................................................... 18
Brand reputation ................................................................................................ 18
Technological assets ......................................................................................... 19
Human resources.................................................................................................. 20
JAC capabilities .................................................................................................... 20
Capabilities in logistics and service ................................................................... 20
Capabilities in corporate coordination ................................................................ 21
Evaluation of JAC resources under VRIO Framework .......................................... 21
Value creation .................................................................................................... 21
Rarity ................................................................................................................. 22
Imitability ............................................................................................................ 22
Organisation ...................................................................................................... 23
JAC motors VRIO FRAMEWORK ......................................................................... 23
Managerial implication ......................................................................................... 24
Challenges faced by JAC trading internationally ................................................... 24
Economic problems .............................................................................................. 24
Exchange rates .................................................................................................. 25
Inflation .............................................................................................................. 25
Low incomes ...................................................................................................... 25
Changes in interest rates ................................................................................... 26
Managerial implications ........................................................................................ 26
Foreign Direct Investment (FDI) ............................................................................ 26
Internalisation advantages (OLI paradigm) ........................................................ 27
Locational advantages ....................................................................................... 28
Internalisation advantages ................................................................................. 28
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Conclusion ............................................................................................................ 29
References ............................................................................................................... 31
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