anhtrict09
Senior Member
Tình hình là mình đang có bài tập cao học phải làm, môn Global Strategic Management, đang tắt quá, nhờ cái cao nhân xem qua thử, nội dung như bên dưới:
Lubricador SA is an Italian specialist chemical company with a wide range of products serving various industrial applications. The car divi[1]sion of the company specializes in lubricants for brake and air-conditioning systems. In late 2011, the company sent a mission to China to analyze the market and prepare an analysis of various investment alternatives. China had become the second largest car market in the world and was on the way to full recovery after the subprime global financial crisis of 2009. The Chinese car industry was extremely competi[1]tive, with local as well as international players fighting for market share. The study team had concentrated on one particular type of product: brake fluid additive. It estimated that the cur[1]rent domestic market of 8,000 tons a year would grow at a rate of 9% a year over the decade from 2012 to 2022. The competition was made up of two domestic firms which controlled 70% of the market and one Japanese joint venture which controlled 30%. The study team concluded that there were four major alternatives for market entry:
1 What is the return for Lubricador in each option?
2 Beyond the return, what are the advantages and disadvantages of each option?
3 Which option would you select and why?
-Có cao nhân nào có hướng giải bài này ko chỉ mình với, cám ơn anh em rất nhiều
Lubricador SA is an Italian specialist chemical company with a wide range of products serving various industrial applications. The car divi[1]sion of the company specializes in lubricants for brake and air-conditioning systems. In late 2011, the company sent a mission to China to analyze the market and prepare an analysis of various investment alternatives. China had become the second largest car market in the world and was on the way to full recovery after the subprime global financial crisis of 2009. The Chinese car industry was extremely competi[1]tive, with local as well as international players fighting for market share. The study team had concentrated on one particular type of product: brake fluid additive. It estimated that the cur[1]rent domestic market of 8,000 tons a year would grow at a rate of 9% a year over the decade from 2012 to 2022. The competition was made up of two domestic firms which controlled 70% of the market and one Japanese joint venture which controlled 30%. The study team concluded that there were four major alternatives for market entry:
- Set up a greenfield operation and operate as a 100% subsidiary. The minimum economic capacity was 9,000 tons for a total investment of US$20 million. The financing of the invest[1]ment would be done entirely by the mother company and it could expect to repatriate a div[1]idend of 100% of net profit when this became positive. The subsidiary could not expect to capture more than 10% of market share in the first year, growing progressively by 5% a year and stabilizing at 30% after the fifth year of operations. Export output would be around 206 II GLOBAL STRATEGIES 1,000 tons in the first year, increasing by 500 tons per year up to 3,000 tons.
- The second alternative was to buy the Japanese competitors. The acquisition price would be US$25 million but Lubricador could expect to capture the 30% market share right away. The yearly growth and export output, as com[1]pared with the first alternative, would be the same.
- A third option would be to form a joint venture with an existing Chinese firm. The immediate market share would be 30%, rising to 50% in the third year owing to the improved technol[1]ogy of the Italian firm. The total investment cost would be US$30 million. The financing of the joint venture would be 30% equity to be shared 50/50 with the local partner and 70% debts to be serviced over seven years. The maximum exports in that case would only be 2,000 tons per year. All other hypotheticals would remain the same.
- Finally, it was possible to conclude a licensing agreement with a local firm which could use and transform its existing facilities and obtain, at best, a 20% market share. In such a case, Lubricador SA would have to invest US$600,000 over the next three years to trans[1]fer its technology and receive a royalty of 200 yuan/kg.
- Exchange rate: US$1 = 650 yuan (the study considered that the yuan might appreciate against the $ by 20% in 2015)
- Prices/costs: Selling price (domestic) = 3,500 yuan/kg Selling price (export) = 4.5 US$/kg Production costs = Declining function with cumulated volume = 2500−0.025 * 10log (cumulative volume)
- Administrative/marketing costs = 1,200 million yuan, increasing to 1,600 million yuan
- Working capital requirement = 33% of production costs
- Tax rate on profit = 30%
- Weighted average cost of capital (WACC) = 15%
- Domestic loans interest rate: 10% • Net present value (NPV) assumes capital costs = 15%
- Debt servicing: 7 years.
1 What is the return for Lubricador in each option?
2 Beyond the return, what are the advantages and disadvantages of each option?
3 Which option would you select and why?
-Có cao nhân nào có hướng giải bài này ko chỉ mình với, cám ơn anh em rất nhiều
