Key Strategy Elements of German Bionic’s Entry into Australia

 Assume that German Bionic has decided to go ahead with its expansion into Australia. The second assignment/report asks you to analyse the key elements of German Bionic’s host country strategy. The questions to be addressed are:

• Introduction (150)


• Section 1: What entry mode should German Bionic adopt and why? (1000)

-          Early stage: Contractual agreements

-          Later stage: WOS

• Section 2: What value chain activities should occur in Australia? What should German Bionic’s offering(s) be in Australia? And how might the company’s Australian activities and offering(s) differ from those in other host countries? (1000)

-          Product offerings

-          Value chain activities

• Primary activities


• Support activities


• Section 3: How would these strategy choices (your answers to points 1, and 2) address the risks /challenges you identified in your first report? (700)


• Conclusion (150)

Requirements:

1. You might also be issuing dynamic recommendations (e.g. with Assignment 2 you may be recommending the firm initially adopt entry mode X before progressing to entry mode Y within a couple of years, provided certain milestones are met). In short, in your conclusions/recommendations, you can be as nuanced as warranted by your analysis.

Given the consulting-style challenge of both reports/assignments, specific recommendations (for the benefit of German Bionic’s senior management) are desirable. However, do not take your recommendations to a level of specificity that isn’t warranted by the data you identified and your analysis thereof. For instance, let’s assume in your Assignment 2 that you conclude that a strategic alliance with a local partner is the preferred entry mode. If you can credibly support the specific recommendation that German Bionic should team up with local Firm X then by all means make that argument. But if the available data and your analysis do not warrant such specific recommendations then your suggestions may be confined to, a recommendation to identify a local partner with capabilities in A & B.