Based on the case study “From Asia to Africa: the international expansion of Hon Chuan enterprise East”, answer ALL questions. It is recommended that the answer to each question be approximately 500 -600 words in length. (Introduction and conclusions are not required)
Hon Chuan ‘s international strategy led to it expanding from Taiwan to mainland China and then into Southeast Asia (Indonesia, Thailand and Vietnam) and finally Africa. Conduct an environmental assessment of doing business in Thailand and Africa. How would Hong Chuan mitigate the cultural risk in Africa? (use examples from the case study)
Hong Chuan uses various entry mode strategies in its international expansion. For example, in China and Southeast Asia it established strategic alliances with local beverage manufacturers using the in-house model. In Africa, Hong Chuan went into a joint venture arrangement with Shimada and created Hon Shi Mozambique Lda. Hon Chuan held 60 per cent of the shares and took charge of the operations and management.
Drawing on relevant entry mode theories, discuss the factors influencing Hon Chuan’s preference for joint venture as a choice of entry mode.