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Case Study 2: Baosteel Europe
Due Week 6 and worth 120 points
Read the case study titled, “Integrative Case 14: Baosteel Europe,” located on page 465 of your textbook.
Write a two to three (2-3) page paper in which you:
Using Hofstede’s five (5) dimensions of culture, compare and contrast the cultures of China and Germany. Examine the major obstacles that Baosteel Europe faced when entering the German market. Provide at least two (2) examples of the critical actions that Baosteel took in order to deal with the aforementioned obstacles (e.g., liability of foreignness).
Analyze the fundamental advantages and disadvantages of Baosteel’s Foreign Direct Investment (FDI) strategy versus the other international strategies for expansion. Agree or disagree with Baosteel’s decision to found Baosteel Europe GmbH. Provide a rationale for your response.
Based upon the comprehensive model of foreign entry (Figure 6.2, page 159), determine the top driving factor(s) from the industry-, resource-, and institution based-view for Baosteel’s decision to enter Germany. Provide a rationale for your response.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Assess the impact and influences of global institutions, culture, and ethics in international strategic management.
Formulate, implement and evaluate effective strategies to enter foreign markets based on an analysis of global operating environments, market dynamics, and internal capabilities.
Use technology and information resources to research issues in global strategy.
Write clearly and concisely about global strategy using proper writing mechanics.
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