QCF Syllabus

International Business Case Study

Unit Title
Unit Reference Number
Guided Learning Hours
Level
Number of Credits

International Business Case Study

J/601/2793
210
6
25

Unit purpose and aim(s):

This unit aims to give learners a sound understanding of:
the international business environment
the development, implementation and evaluation of strategic business plans for international organisations
organisational structures for international organisations
leadership, change direction and strategic management for international organisations
macro environmental factors that affect international organisations

Learning Outcome 1
The learner will: Understand the international business environment facing global operators.
Assessment Criteria
The learner can:

Indicative Content

1.1 Identify and describe the key

challenges facing global
businesses and organisations.

1.1.1 The fundamental shift taking place in the world economy and the inexorable move
from a world of nation states to a borderless world.
1.1.2 The independent regional and global economic system with the opportunities
created for businesses to extend their reach, expand their revenues, drive down
costs and accelerate profitability.
1.1.3 The trends in the growth of economic and political regional groupings such as the
EU, NAFTA, ASEAN, MERCOSUR, ECOWAS, and other trade blocs.
1.1.4 The changing balance of world trade with the growth of the BRIC nations (China,
India, Brazil and Russia).
1.1.5 The advantages and benefits conferred by the Information Telecommunication (ITC)
revolution sweeping the business and consumer worlds, and the associated changes
in logistics, distribution and supply chains.
1.1.6 The accelerated flows of foreign direct investment (FDI), leading to the dislocation
between production and consumption, ending the dependence on national
coherence.

1.2 Describe globalisation and

international trade and recognise
the key drivers.

1.2.1 Define globalisation and its implications for regions, countries, markets and
customers:
The pros and cons of globalisation, i.e. prosperity and impoverishment.
The key aim of globalisation: combining high cost reduction pressures and high
pressure for local responsiveness.
1.2.2 The two main components: the globalisation of markets (customers), and the
globalisation of production to deliver best possible value to all markets served by
the organisation.
1.2.3 The key drivers of globalisation and international trade i.e. ICT developments
(internet, mobile phones), multinationals, transnationals, urbanisation, global
consumers, together with the prevailing counter culture as typified by the G20

protests, with the use of the internet (social networks) as responses to globalisation.
1.2.4 The role of international institutions such as the World Trade Organisation (WTO),
World Bank, International
Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD),
the G20 and other facilitating/transitional/policy-making bodies and forums.
1.3 Evaluate the impact of emerging
issues on international activities.

1.3.1 The dynamic international environment as evidenced by the global financial crisis of
2008/09 and the issues associated with global warming.
1.3.2 The increasing impact of microprocessors, telecommunications, transportation
technology and the internet on creating paradigm shifts in production, consumption
and supply chain relationships.
1.3.3 The growing role of nation states and regions in monitoring and challenging the
pace of change for organisations and consumers.
1.3.4 The activities and policies of international environmental organisations and NGOs.
1.3.5 The significance and growing importance of Corporate Social Responsibility (CSR)
globally.

Learning Outcome 2
The learner will: Know how to develop a strategic business plan for an international organisation.
Assessment Criteria
The learner can:

Indicative Content

2.1 Explain the role of strategy in the

international context.

2.1.1 The role of strategy, the issues of strategic choice: defining what is necessary to
achieve the corporate objective(s), e.g. to most business organisations the principal
goal is to be highly profitable, and that profitability comes from adding value and by
lowering costs, i.e. differentiation or low cost strategy (or both).
2.1.2 The concept of Strategic Business Units (SBUs) and the value chain in the context of
international business.
2.1.3 The five key strategic decisions: export strategy, international strategy, multidomestic strategy, global strategy, transnational strategy.

2.2 Identify and analyse strategic

outcomes using the relevant
academic and business models.

2.2.1 The academic and business models used in the development of strategy and their
application to the creation and development of the business plan. Notably these
include:
Porters Generic Strategies, Ansoff Matrix, Boston Consulting Group Matrix(BCG), General
Electric (GE) Matrix, Shell Directional Matrix, Harrell and Keifer (1993) Business
Portfolio and Bowmans Strategy Clock.
2.2.2 The strategic appraisal (audit) of organisations by applying relevant frameworks
such as Porters Five Forces Model, McKinseys 7Ss, Value Chain, SWOT and
Stakeholders Analysis.
2.2.3 The relevant financial metrics and measures of performance such as Kaplan and
Nortons Balanced Scorecard.

2.3 Formulate recommendations

embracing domestic as well as
international strategies.

2.3.1 The strategic options and their importance in implementing international

operations, from exporting through to strategic alliances.
2.3.2 The basis for the stronghold position: cost and quality, innovation, financial
resources, timing and knowledge.
2.3.3 Evaluation of the entry strategies options: simple exporting through indirect and
direct exporting, leading on to overseas production and the establishment of
overseas subsidiaries.
2.3.4 A critical assessment of the applicability of joint ventures, strategic alliances,
mergers and acquisitions.

Learning Outcome 3
The learner will: Understand how to evaluate the implementation of a strategic business plan.
Assessment Criteria
The learner can:

Indicative Content

3.1 Examine the cross functional

issues that affect the
implementation of business
plans.

3.1.1 The management structures which are appropriate to the four strategic options
(international, multi-domestic, global and transnational).
3.1.2 The structural issues that underpin the effective implementation within the four
basic management approaches (ethnocentric, polycentric, region-centric,
geocentric).
3.1.3 Key HR issues involved with dealing with expatriate managers, such as the training
and development of local managers, performance appraisal, and corporate
acculturation.
3.1.4 International labour relations and the differing employment laws and cultures.

3.2 Explain how international

business plans are monitored,
measured and controlled.

3.2.1 The attitudes towards the concepts of control and control systems on a regional
level.
3.2.2 The identification of Critical Success Factors/Key Performance Indicators.
3.2.3 The use of techniques such as Benchmarking.

3.3 Explain the role of financial

management in international
business.

3.3.1 International investment decisions, global financial markets, political and economic
risk, transactional taxation and transfer pricing.
3.3.2 The different accounting standards globally.
3.3.3 The key financial indicators of performance.

Learning Outcome 4
The learner will: Know how to evaluate and recommend organisational structures for international operations.
Assessment Criteria
The learner can:

Indicative Content

4.1 Assess how cultural values play a

major role in shaping customs
and practice in the organisation.

4.1.1 The body of knowledge on cultural diversity and its effect on organisational
practices and customers, notably Terpstra and Sarathys model of the determinants
of culture, and Hofstedes framework.
4.1.2 The relationship between cultures, the costs of doing business in a country, and the
understanding that a culture is underpinned by a set of values and norms that
should be explained together with the relationship between society and the nation
state.
4.1.3 The extent of the need for cultural adaptation and the level of cultural consistency
across borders and regions.

4.2 Identify and describe the various

methods and approaches to
international organisational
structures and make
recommendations relevant to
the needs of the organisation
and the environment.

4.2.1 The various approaches to international organisational structures.

4.2.2 The role of organisational culture in implementation of the structure.
4.2.3 The impact on key relationships both internally and externally.

4.3 Describe and explain the linkages

between corporate headquarters
and the regional and local
subsidiaries.

4.3.1 The role played by corporate HQ in establishing corporate objectives and strategies
plus the development of the corporate business plan over the longer period.
4.3.2 The impediments to co-ordination with an understanding that formal and informal
mechanisms need to be established.

Learning Outcome 5
The learner will: Understand the importance of leadership, strategic direction and change management within the international
business context.
Assessment Criteria
The learner can:

Indicative Content

5.1 Explain the issues underpinning

motivational change and the
creation of readiness for this
change.

5.1.1 The important role of change management for developing international business.
5.1.2 The basic theories of change: Lewins change model of unfreezing, change and
refreezing; the action research model and its contemporary adaptations.
5.1.3 The different types of planned change depending on the magnitude of the change
and the degree of organisational involvement.
5.1.4 The drivers for change such as the re-defining of traditional boundaries between
industries/markets/product categories e.g. mobile phones are now cameras,
computers.

5.2 Evaluate the strategic role of

leadership in developing
successful international
operations.

5.2.1 The need for leadership in developing internationally, the creation of a vision and
the communication of this to diverse audiences.
5.2.2 The importance of team building as a change agent internationally and its
contribution to sustaining momentum in the implementation of the vision.

5.3 Explain the role played by

planning in the shaping of the
future direction for the
organisation.

5.3.1 The planning cycle and implementation issues.

5.3.2 The merits and pitfalls of top down versus bottom up planning theory.
5.3.3 The methods used to forecast the future such as scenario planning, expert opinion
and the Delphi technique.

Learning Outcome 6
The learner will: Understand the macro environmental factors that affect the international organisation.
Assessment Criteria
The learner can:

Indicative Content

6.1 Evaluate the impacts of the

different political and legal
systems that organisations
operate within.

6.1.1 The impact of different political systems on international operations, from

collectivism, individualism and democracy to authoritarianism.
6.1.2 The influence of different political systems in the shaping of the economic and legal
frameworks with which the global operator must comply, with knowledge of their
origins.
6.1.3 Key elements of different legal systems in terms of protection of employment,
property rights, intellectual capital, product safety, product liability and other
relevant areas of the law/regulation depending on the specific situation.

6.2 Explain how countries are at

different stages of economic
development and how
international business solutions
will reflect these stages.

6.2.1 The measurement of economic development and the categorisation of countries

and regions accordingly.
6.2.2 The diversity of economic development and the structural difficulties within political
and customs unions with the even greater differences between unaffiliated
countries.

6.3 Evaluate the growing importance

of corporate social responsibility
(CSR).

6.3.1 The growing role and significance of corporate social/ethical responsibility and the
impact of consumer movements.
6.3.2 The role of stakeholders from governments through to individual customers in
terms of trust, values, attitude to the environment, human rights and dignity,
transparency and accountability and governance.
6.3.3 The impact on CSR caused by global communications driven by the growing
penetration of the internet leading to immediate flows of information around the
world.

Assessment:
Assessment method: written examination (unless otherwise stated).
Written examinations are of three hours duration.
All learning outcomes will be assessed.

Recommended Reading:
International Business Case Study ABE Study Manual.
Please refer to the Tuition Resources section of the Members Area of the ABE website ( www.abeuk.com) for further
recommended reading.