Mabe Final

5643 Words Dec 15th, 2014 23 Pages
MABE: Learning to Be a Multinational

Strategic Management
75-498
Section 1
Professor T. Mao

By group 10:

Daniel Sgro 103442079
Elizabeth Oduwole 104078842
Mohammad Rafi Siddique 103606130
Si Shen 103552129
Table of Contents

1. Problem Identification…………………………………………………..…2 a. Key Issue……..………………………………………………………………...…2 2. Situation Analysis………………………………………………………..…2 b. External Analysis……...…………………………………………………………2 i. PESTEL………….……………………………………………………...….……2 ii. Industry………….………………………………………………………….……3 iii. Porter’s 5 Forces…..……….……………………………………………………3 iv. Diamond Model……………………………………………………………….…4 v. 1-2-3 Model………………………………………………………………………4 vi. CAGE
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Prior to the recession in 2008, they joint ventured with a Spanish company hoping to enter the Russian market but failed on the process. The vice president of MABE, Ramiro Perez was highly concerned about the situation and faced a dilemma, fearing for the future of the company.

Key Issue:
Should MABE and its Spanish partner continue focusing their efforts and money on the Russian joint venture with trust that the situation in Russia will become profitable in the future or reduce funding to the Russian joint venture and invest into further emerging markets such as India and China?

Situation Analysis
External Analysis
PESTEL Analysis
Political: There is a huge political unrest in Russia and concerns about corruption and bribery, which affects a country’s decision of doing business with Russia as compared to doing business with China, and other Asian countries. In addition to this, the Russian government has a big influence on business matters and decision-making, therefore political situation may be destructive towards foreign business. Therefore in order to enter the Russian market, it is necessary to understand the risks associated with another government and therefore devising means that incorporates these rules and regulations so as to avoid legal and political issues.
Economic: The economy of Russia was influenced by the world recession in 2008 that affected Russia financially. Economically, Russia may take a longer time for recuperation as a result of

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