Assignment 3 – tasks

International Engineering Management (MANU 1398)

Assignment 3 – tasks

Individual

2750 + words

Course Learning Outcomes (CLOs) addressed in the assignment

1. Apply your knowledge in relation to issues affecting international operations of their firm to strategic decision-making and tactical problem solving process.
2. Demonstrate your knowledge and capability in the internationalisation process and be better prepared for personal involvement including the possibility of an overseas posting.
3. Develop proposals and compile recommendation reports on internationalisation issues in different forms including individual work initiatives, market research analysis and presentation. 

The Australian “MTS AG” is the designer and manufacturer of sophisticated solar powered electronic products mainly focussed on the telecommunications industry.

One of its successful products is a miniature mobile phone charger that is solar powered.  This product has been in production for several years and the main customer is a leading Australia telecommunication group.

While the product is selling well the high production costs in Australia mean that the profit margin is small and the firm’s shareholders have requested that management should investigate ways in which the production costs can be reduced.

The management is also very interested in further expansion to the South Asian Market.

Please Select Country of your choice

1. Discuss and explain the various modes of entry in Selected country market which can be used as a strategy for further expansion. For at least three of the most attractive modes analyse benefits and possible problems. However, the products are dedicated for the both Australian market, and for Host country markets.

1. For the most suitable country design a strategy for Human Resource planning, performance management, training & development and for remuneration. Analyse separately three different groups of employees:

1. a) Home Country Nationals
2. b) Host Country Nationals
3. c) Neither Home nor Host Country nationals

Assume That your company will provide equivalent of AUS$ 500,000 per month at current exchange rate. The estimated values of sales growth are given in the Table 1.  

Table 1 Estimated values of sales growth

Year 1	Year 2	Year 3	Year 4	Year 5
10%	20%	30%	20%	10%

The Initial Investment is 10 000 000 Total costs are assumed to 50 % of revenue in the first year and 50% of revenue for subsequent years. Assume that inflation rate is 5% higher as it is  Australia. Calculate NPV. If you need inflation or another you can assume some value or use  official one.

You also can use

Question 1

Short Introduction

The most attractive model for the expansion (Advantages and disadvantages)

Conclusion

Question 2

Short Introduction

Analysis of issues related to the Human Resources management in specific Country.

Recommendations

Conclusion

Question 3

Introduction

Suitable Funding Option

Capital budgeting Evaluations

Conclusion

Please Note

• The country is fictional and similarity with real world company is accidental

• Your report needs to be clearly written, well-structured and well presented. You should acknowledge all sources used and provide references where appropriate.  References must be presented in approved standard form (e.g. Harvard) and the reference list presented alphabetically by author.  Please note that the software program Turnitin may be used in assessing your assignment.