• Answer ALL questions in the answer sheet provided.

• Your answer should be prepared based on the case information provided and no further data

  collection is required.

• Reference is not required.

• IMPORTANT: Students must answer in relation to the case provided for each question

Case Study - International Business Expansion Plan

Bodyguard Ltd. was established in Hong Kong in 2020. It produces surgical masks that sold to retailers, like personal stores, in Hong Kong. With its unique Chinese pattern printed on the masks, Bodyguard Ltd. enjoyed a good profit in 2020 and 2021 under the pandemic. However, with the increased number of mask producers in Hong Kong, its sales dropped by 40% in 2022 and leads to an increase in production cost by 20% per mask produced.

In view of the dropped sales and increased production cost, Ronald, the founder of Bodyguard Ltd. is investigating the possibility to sell his masks in Canada. He prefers to export their masks to a local trading company in Canada. He is looking for a trading firm which is capable in providing logistics arrangement in Canada, setting up specialty stores to sell the masks and promoting the masks in Canada effectively. He approached a business consultant for advice. The consultant provided Ronald the following report to be discussed in their coming meeting.

Report - Hofstedes Typology of National Culture

Question 1 Identify and discuss TWO possible factors that encourage Ronald to sell his masks in Canada. Support your answer with examples from the case. (12 marks)

Question 2 What is commercial risk? Identify ONE possible commercial risk that Bodyguard Ltd. may encounter in Canada with example from the case. (4 marks)

Question 3

Which value-chain activities will be carried out by the local trading company in Canada for Bodyguard Ltd.? Identify and explain any TWO with examples from the case. (8 marks)

Question 4 Identify and explain the TWO most important cultural dimensions of Hofstedes typology of national culture that Ronald should aware of with reference to the report provided by the business consultant. Explain the differences between Canadian and Hong Kong people based on the two identified dimensions. How should Ronalds business be conducted differently in Hong Kong and in Canada according to the differences that you identified? Explain. (16 marks)

Canada Hong Kong 80 68 68 57 61 52 48 39 36 il 29 25 17 Power Distance Individualism Masculinity Indulgence Uncertainty Avoidance Long Term Orientation