Strategy of International Business
You have been appointed as advisor to the Board of Ryanair and have been asked to consider a proposal to expand through an internationalisation programme (based upon its successful “no-frills” positioning strategy/business model) by setting up a new strategic business unit (SBU) in Australia.
You are required to write a report to the Board setting out your recommendations and justifying them.
Your report should include:
• Introduction 10 marks
• Consideration of Porter’s National Double Diamond model (Porter M.E.1990) as adapted by Rugman and D’Cruz (1993,) between Ryanair’s home country (Ireland) and Australia. 20 marks
• An evaluation of the proposal by briefly applying the SAFe Criteria (Suitability, Acceptability and Feasibility criteria from Johnson et al 2014). 20 marks
• An explanation as to how the company’s Human Resource Management (HRM) strategies should be adjusted / changed / developed if the internationalisation programme were to be pursued.
• Conclusion 15 marks
• Recommendations 15 marks
Total 100 marks
The Board has advised you that you can assume that the sources of funds are available and that upon receipt of your report they may then commission a separate financial evaluation which need not be of concern to you.
In this assignment you must:
• Evaluate the features of the international business and the ways in which they affect corporate strategy.
• Demonstrate the nature of international cultural diversity and the implications for formulating corporate strategy.
• Analyse optimum methods of organising management, including control processes and communication systems, for international business.
I will attach a Case Study taken from Johnson et al, Exploring Strategy Texts and Cases, 2014. Whilst this contains information which you may consider relevant, it should not preclude you from your own further reading and undertaking your own research.