Part A: CASE STUDY use references to answer the question

Barazzia is an Italian$-$based appliance manufacturer $($e$.$g$.,$ washing machines, refrigerators, air conditioners$).$ The

company has more than $10,000$ employees and has a revenue of $1$ billion US dollars, of which $60\%$ are from

overseas sales. Barazzia is famous for its high$-$quality and reliable products, and the price is$,$ on average, higher

than that of its peers in the global markets. Since $1995,$ Barazzia has incrementally expanded to Spain, France,

Australia, and China, with recent attention being paid to South Asian countries. Barazzia strives to foster strong

connections with its diverse customers across various countries by customizing product designs to align with the

unique demands in each market, even if it means incurring additional costs.

Barazzia operated foreign operations through various entry modes, such as joint venture, export and acquisition.

For example, Barazzia acquired an Australian company in $2000$ to expand this market reach in Asia Pacific areas.

In $2005,$ Barazzia established a joint venture with a Chinese brand, Dafeng. Dafeng is a well$-$known brand in the

local markets, which is good at manufacturing products at a relatively low price. However, the joint venture was

not going as well as planned.

Despite various problems in the internationalization process, Barazzia's top managers constantly sense overseas

opportunities and adapt their internationalization strategies to the ever$-$changing environment.

Based on this background, please answer the following questions:

$1.$ Doing international business abroad is becoming more challenging and uncertain than ever for Barazzia,

especially in the period of rising geopolitical tensions between countries $($e$.$g$.,$ the U$.$S$.$ China, Russia $$ Ukraine$).$

Businesses now see geopolitical tensions as the biggest threat to the global economy. Does this mean

multinational companies should reduce their involvement in overseas businesses? Given that Barazzia has

already entered China under intensive geopolitical tensions between the U$.$S$.$ and China, what strategies can

Barazzia take to mitigate the risks involved? Please justify your response using concepts studied in this subject.

$(10$ marks$)($Maximum word count: $600)$

$2.$ To effectively manage international operations in different countries, you will help Barazzia design a suitable

internationalisation strategy $($using the global integration and local responsiveness matrix$)$ and an organisational

structure using the following information. Please justify your design using concepts studied in this subject. $(8$

marks$)($Maximum word count: $400)$

Internationalisation portfolio: Spain, France, Australia, and China

Departments: Marketing, Production, Finance, Human Resources

Products: washing machines, refrigerators, air conditioners

$21514\_$v$5$ Introduction to International Business $$ Session $2-$ AU $2024$

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$3.$ After so many years of international operations in various countries, Barazzia is now considering entering one

of the two countries in South Asia: India or Bangladesh, for manufacturing purposes. Which country do you think

is more attractive to Barazzia? You need to provide at least $3$ different reasons based on concepts studied in this

subject. Once you decide which country to enter, which entry mode will be the most appropriate? Please justify

your answer based on concepts studied in this subject. $(8$ marks$)($Maximum word count: $400).$

$4.$ Sophia has recently been appointed as the country manager for a new foreign operation in Nigeria. During her

first week working in Nigeria, Sophia was surprised that $50\%$ of the factory$$s workers were students, received

lower wages than adult workers, and had poor working conditions. At a social gathering of managers in the Nigeria

office, Sophia expresses her concerns about hiring students. She suggests that she wants to raise this issue with

the head office in Italy. Imamu, a local colleague, suggested that hiring students is common in Nigeria, and no

one will complain about it if you pay their money on time. What is your opinion on this, and how can the issue be

mitigated? Please justify your answer based on concepts studied in this subject. $(8$ marks$)($Maximum word count:

$400)$

$5.$ Barazzia follows a family culture in the head office. Do you think Barazzia should apply the same culture to the

company they acquired in Australia? Please justify your answer based on concepts studied in this subject. $(6$

marks$)($Maximum word count: $400)$