MNC Matrix
The multinational corporation International Phone Inc., has shifted its overall business strategy into investing into emerging markets. The purpose of this report is to give background on International Phone Inc., by creating a matrix to evaluate three emerging market countries that may suit the overall business mission of this organization. I will first describe the type of business International Phone Inc. conducts by describing the products and services it provides. I will then create a matrix that compares three emerging market countries across the following elements: economics, political environment, ethical system, social responsibility indicators and cultural dimensions. I will assign a numeric value between one and five to both quantify and qualify how these three countries match up against one another. I will then interpret the results and make a recommendation which emerging market I believe this company should consider expanding into.
International Phone Inc. is a cellular phone, smart phone, handheld mobile device manufacturer that has gained recent success in the telecommunications industry. The company sells its own phones to different telecommunications outlets who then rebrand the phone to their own specifications. There are currently five manufacturing sites within the United States owned and operated by IPI and the leadership is looking to expand into international territory. International Phone...
employs over 5000 personnel, conduced approximately $250 million in total sales over the last year, and is a minority owned business. International Phone Inc. corporate motto suggests that it is a company that is committed to gaining competitive advantage regardless of the circumstances. Social responsibility and other noneconomic principles are important to this company, however the leadership at International Phone Inc. understands that the competitive arena needs to be exploited all possible opportunities.
The three countries I've chosen to investigate as to whether or not International Phone company should expand to that location are Brazil, Poland and South Africa. While China and India are obvious choices for emerging markets, Palepu (2011) suggested that these markets may be saturated and the opportunities that serve the greatest potential lie in countries that are a few years behind the development of China and India.
It is important to understand each of the elements of the matrix before revealing the numeric value assigned to each country. The economic system is evaluated for obvious reasons. The political environment is important to evaluate in order to understand the different traditions and cultures within that country and how that might apply to making a competitive advantage within that area. Ethical systems are also important as to demonstrate to the whole world what the company stands…
