Hewlett Packard Company In Vietnam Case Summary

On 26 July 1950, President Harry Truman approved a multi-million dollar military assistance package designed to help the French defeat a strong communist movement in French Indochina. The package included $15 million worth of military equipment and a small number of American military advisors assigned to supervise the flow of tanks, plans, artillery, and other equipment.1 By 1954, the United States government had provided 80% of the war supplies used by the French in Indochina which equated to about $3 billion.2 This marked the beginning of the United States involvement in Southeast Asia and the expansion of the military-industrial complex in America. This paper will explore the role the American military-industrial complex played as part

One of the most important “dos” is for countries to pay renewed attention to the market selection which they are competing in. More precisely, these countries should focus on maximizing their opportunities where they can find cultural, administrative/political, geographic, and economic affinities. Companies use three different techniques to compete globally. These techniques are adaptation, aggregation, and arbitrage. According to Ghemaway, companies must be able to “vary products, policies, market positioning, and so on to suit local markets.” However, this method of adaptation is intended for companies which have large success and not those who have marginally. Another, important “do” is for “companies to externalize some of the costs of adaptation via franchising, joint ventures, or other types of partnerships.” Some “don’ts” are not put adaptation above all because it would get rid of competitive advantages and not to over-rely on localization. Relying too much on localization would hinder the value of across borders for a

There were many reasons the U.S. committed itself to Vietnam in 1964. It was all started

conspiracy to incite riots at the 1968 Democratic Convention. During the trial, Federal Judge Julius Hoffman deemed one of the defendants, Black Panther Party Leader Bobby Seale, disruptive and had him bound and gagged on the witness stand. Kunstler stated that he was appalled to be a part of a legal system that would condoned “...putting a black man in chains”(Disturbing the Universe). In another instance, In 1971, Attica Correctional Facility near Buffalo New York was taken over by its inmates and 9 guards were held hostage. The primarily African American inmates demanded cleaner facilities, better educational programs, and generally to be treated more humanely while incarcerated. Kunstler represented them and helped negotiate with authorities.

The disadvantage of parent company franchising is that they don’t get to keep all the profit just the percentage the parent company and franchisee settled upon. Second disadvantage for the parent company is that they don’t have absolute control over all their stores as they are handled and operated by the franchisee

When buying into the company you sign a contract to firstly “buy” into the company, and then you have to pay royalties and a certain percentage of your earnings back to the head company. A positive of franchise agreements is that it allows companies to enter into the foreign market place with out having to put too much money into it. For example, 7- elevens in Australia are all franchises, the fist few franchises in Australia would have been set up as an experiment to see whether the Australian public would embrace the new chain store. The feedback would have been that Australia was pro 7-eleven and now you can walk through the city without seeing one on every corner. Another positive of selling your company as a franchise is that you can earn royalties. Different franchises have different royalty schemes, many expect you to pay a certain fee for the “name” each year and then pay them a percentage of the earnings. 7-eleven was taking 51 cents of every dollar made. This allows the head office to make money on the side while not having to invest more money into a situation where it could

The lesson learned from this is that sometimes it is easier and faster reach a new market via joint venture, even though the profit will be less, but the company can save a lot of money in studying the new market trying to understand the new culture and how they purchase and also it can minimize the risk because there is a national brand supporting the new international brand, which gives confidence and security to the customers.

of the joint venture would benefit both companies if the terms of the agreement were favorable for both parties. It is also noted in the case that Sakari had

While Hurd was considered a decent CEO, a scandal emerged consisting of missing funds and legal issues which ultimately resulted in his resignation. HP brought in Leo Apotheker to replace Hurd as CEO. Unfortunately for the company, Apotheker proved to be an incompetent leader who did not know how to succeed in the market and deal with the press. In August 2011, Apotheker decided to utilize a “surprise press release” to announce that HP was planning to spin off from its PC business. As a result of this unexpected announcement, investor confidence plummeted as did HP’s stock price. After less than a year as CEO, HP’s board of directors fired Apotheker. Meg Whitman, the next CEO who previously ran eBay, unfortunately took control of a company which dropped 50% in corporate value. ("Leo Apotheker Dumped as HP CEO.")

When a company decides to enter in Vietnam has to take into account diverse factors. First of all, the mode of entry ( with an import agent, a representative office, a business cooperation contract, a process contract or a joint venture) with its advantages and disadvantages and, in case of needing a partner, making the right choice.

Introduction. Vietnam is a unique civilization with highly cultured people. It is a country filled with natural beauty, tranquil rural settings, and bustling urban centers. In this period of renovation, Vietnam is emerging as an economic powerhouse in South East Asia. From the bustling commercial center of Ho Chi Minh City to the gracious capital of Ha Noi, local business is flourishing and international companies are lining up to invest in new projects. The nation, strangled by years of war, is now flexing its muscles. To succeed in international business is to understand the uniqueness of the culture you will encounter. The purpose of this report is to inform you of some of the business customs you could encounter in

However, there are several drawback of joint venture which is potential risk. Danone, as a global multinational cooperation, may concerned about the risk of technology transfer and intellectual property management to the local Chinese ambitious company. The merging different management style due to the culture diversity and the priority to the outcome. Indeed, the conflict with each partner of their interest ratio.

The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,

IBM becoming involved is a similar situation, the economy as a whole receives cost savings, which CP receives a portion of, but also competitors can immediately match those savings. When IBM took over the data centers in Sydney, it allowed IBM to import best practices from across the globe and also allowed the full capacity of the data centers to be utilized by serving additional clients. Best practices bring lower costs to an operation and higher capacity usage brings greater revenue, all good things but again CP only gets a portion and IBM receives the rest.

The primary goal of this study is to examine the strategic goals of the Asian-Latin-American firm and it sentry into the European manufacturing sector and its goals in Research and Development and product development focused on becoming one of the top technological leaders in the industry. This firm hopes to use the technological knowledge gained from the investments in Europe to develop products and product processes in their home base and to use this to expand their exports to Europe and the U.S. This telecommunications device-manufacturing firm has an international joint venture with the leading German MNC in this industry. The German MNC is unhappy with the joint venture's performance due to what it holds as theft of intellectual property by it Asian/Latin American partner. Report on International Business Strategy. The industry in which the firm is situated must be identified and all of the primary industry-specific factors that may affect the selection of the Europe country. Institution and cultural factors affecting the selected industry and the industry-specific factors on organizational structure and control strategies must be identified.