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Business & Marketing
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BASF International Business Strategy

Essay Instructions:

business-BASF SE (Germany) (information of business in file) .Critically analyse the international business strategy of the assigned firm. Support your answers with specific, well-explained, well-analysed, real hard facts, data and examples by consulting various sources of information and data (lecture materials, core textbook, reading lists, company websites, company annual reports, business news, academic journals, etc.). Each question has the same marks.
1) Explain whether or not this firm qualifies as a multinational enterprise (MNE). By reading and analysing the annual reports of the firm for the five-year period (2016-2020), report data on the total revenues/ sales/turnover, domestic revenues/ sales/turnover, foreign revenues/ sales/turnover (in absolute values), and the number of foreign subsidiaries/ affiliates of the firm for each year for the five-year period (2016-2020). Calculate the ratio (in percentage) of foreign revenues/ sales/turnover to total revenues/ sales/turnover (FS/TS), and the ratio (in percentage) of foreign subsidiaries/ affiliates to total subsidiaries/affiliates for each year for the five year period (2016-2020).
2) Present and calculate data revenues/ sales/turnover by regions (in absolute values and in percentage) as reported by the firm. Present and calculate home sales to total sales (HOMES/TS), rest of region sales to total sales (ROR/TS), total regional sales to total sales (RS/TS) and rest of world sales to total sales (ROWS/TS) (in absolute values and in percentage) for each year for the five year period (2016-2020). Identify and explain the strategy of the firm (i.e. whether it pursues a global, bi-region oriented, host-region oriented, or home-region oriented strategy). On the basis of historical data analysis, discuss the strategy that the firm will likely pursue in the next five years.
3) Explicitly state and identify the firm in the relevant cell of the FSAs/CSAs matrix (FSAs: firm-specific advantages; CSAs: country-specific advantages). You will need to discuss the FSAs of the firm with supporting data and evidence, and explain how these FSAs have been developed on the basis of home country CSAs (if applicable).
4) Explicitly state and identify in a diagram whether the firm builds its strategy based upon Porter’s single home country diamond, or whether it uses Rugman & D’Cruz’s double diamond/generalised double diamond approach. Critically analyse all attributes of CSAs based on the theoretical model that you use.
5) Use Dunning’s four foreign direct investment (FDI) motives to make plausible arguments about FDI motives of the firm. Support your answer with specific examples for each motive.
6) Apply appropriate theoretical concept(s) to analyse the type of corporate culture of the firm (not the home country-level national culture). Explain whether or not this corporate culture contributes to the FSAs discussed above in question 3.

Essay Sample Content Preview:
YOUR UNIVERSITY
BASF International Business Strategy
Subtitle
Name
Course name and number
Professor name.
Paper due date
BASF Multinational Enterprise
A multinational company needs to be incorporated in one country and do business in other countries. However, this is not the only criteria used to determine if the corporation is a multinational. For instance, BASF opened up operations in more than a single country or continent. The company opened a bio-acrylamide in Suffolk, Virginia, the United States of America in 2014, a new plant in Bradford, England, in 2016, and another plant in Asia that commenced operation in 2017 CITATION BAS17 \l 1033 (BASF, 2017). The company is operating on three continents at an international level CITATION BAS18 \l 1033 (BASF, 2018). According to the BASF 2018 report, the company operates in more than 90 countries CITATION BAS19 \l 1033 (BASF, 2019) and has over 10 000 employees from across the world CITATION BAS18 \l 1033 (BASF, 2018).
BASF's volume of export and imports demands and requirements to fulfill her clients and customers across the globe can be considered a multinational corporation. The imports and exports of the supplies from one factory situated in one country to another factory in a different country, or from a factory from one country to the consumer in a foreign country are done in bulk; unlike small and medium enterprises which import or export in small quantities CITATION BAS17 \l 1033 (BASF, 2017). The bulkiness of operations and massive volume of raw materials required to produce bio-acrylamide or shipment to the destinations set the company apart from local and national enterprises.
The advancement of technology has opened up a new world for corporations because a multinational corporation enterprise can compete as a small business through its website. The integration of websites into business and is used to market, advertise, and attract new customers no matter where they are located around the globe has become a tool that BASF has made full use to its advantage. However, the business aspect of a corporation cannot be determined only through the number of activities done without money aspect. The company operations in over 90 countries are only viable through precise and timely communication between branch offices, headquarters, and customers to ensure quality service delivery (BASF, 2019). As the calculations below show, the level of revenues generated and net profit gained indicate that the company is a multinational enterprise.
The percentage ratio of foreign revenues/sales to total revenues/sales is given by
2016
Foreign sales ratio = (Foreign sales/revenue÷Total Revenue) × 100
5040857550 × 100 = 87.59%
2017
Foreign sales ratio = (Foreign sales/revenue÷Total Revenue) × 100
56116/64475 × 100 = 87.04%
2018
Foreign sales ratio = (Foreign sales/revenue÷Total Revenue) × 100
55710/62675 × 100 = 88.89%
2019
Foreign sales ratio = (Foreign sales/revenue÷Total Revenue) × 100
53533/60220 × 100 = 88.90%
2020
Foreign sales ratio = (Foreign sales/revenue÷Total Revenue) × 100
= 53639/59149 × 100 = 90.68%
Question 2
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