Case Study 2: Baosteel Europe
Due Week 6 and worth 120 points
Read the case study titled, "Integrative Case 14: Baosteel Europe," located on page 465 of your textbook. Write a two to three (2-3) page paper in which you:
Using Hofstede's five (5) dimensions of culture, compare and contrast the cultures of China and Germany. Examine the major obstacles that Baosteel Europe faced when entering the German market. Provide at least two (2) examples of the critical actions that Baosteel took in order to deal with the aforementioned obstacles (e.g., liability of foreignness).
Analyze the fundamental advantages and disadvantages of Baosteel's Foreign Direct Investment (FDI) strategy versus the other international strategies for expansion. Agree or disagree with Baosteel's decision to found Baosteel Europe GmbH. Provide a rationale for your response.
Based upon the comprehensive model of foreign entry (Figure 6.2, page 159), determine the top driving factor(s) from the industry-, resource-, and institution based-view for Baosteel’s decision to enter Germany. Provide a rationale for your response.