EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of
specialty.CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN
THIS DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Table of Contents
Question 1 Identify and explain the types of formal and informal institutions in African markets
that affect Bajaj Auto’s operations. Provide ONE example for each type of institution from the
case study. (10) ...................................................................................................................... 4
Question 2 Apply the national competitive advantage theory to assess Bajaj Auto’s competitive
advantage in the African market. Provide one example from the case for each aspect of the
theory. (10) ............................................................................................................................ 6
Question 3 Define the OLI Paradigm and explain the advantages thereof. Then, apply it to Bajaj
Auto’s investment strategy in Africa. Provide two examples from the case for each advantage to
support your answer. (10) ....................................................................................................... 9
Question 4 Examine the economic risk challenge Bajaj Auto faces in Nigeria and other African
markets. Provide three examples of this challenge from the case. Conclude your answer by
recommending strategies to manage these risks effectively. (7) ............................................. 13
Question 5 Explain the cultural dimensions outlined by Hofstede’s framework. Then, explain
how the dimensions might affect Bajaj Auto’s operations in African countries by comparing the
scores for India and Nigeria. (15)........................................................................................... 16
Question 6 Recommend three explicit corporate social and environmental responsibility (CSER)
initiatives that Bajaj Auto can integrate into its African market operations to enhance
stakeholder relations. In addition, indicate how each initiative can benefit Bajaj Auto. (6) ....... 20
Question 7 Using the VRIO framework, identify and evaluate Bajaj Auto’s key resources and
capabilities that provide it with a competitive advantage in the African market. Then briefly
indicate the competitive implication. (YOU ARE NOT REQUIRED TO PROVIDE A TABLE – PLEASE
PROVIDE A DISCUSSION) (10) .............................................................................................. 23
Question 8 Evaluate and discuss three external challenges that Bajaj Auto faced in the African
market. (12) ......................................................................................................................... 26
Reflections .......................................................................................................................... 29
This section focusses on reflections, which gives you an opportunity to critically evaluate your
learning journey throughout the module. It is meant to help you consolidate your understanding
of global business management principles. Reflect on what you have learnt, the challenges you
faced and the skills you gained. (5) ....................................................................................... 29
Reference List ...................................................................................................................... 32
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Question 1 Identify and explain the types of formal and informal institutions in
African markets that affect Bajaj Auto’s operations. Provide ONE example for each
type of institution from the case study. (10)
Institutions are critical in shaping the strategic decisions and overall performance of
multinational enterprises (MNEs) operating in emerging markets. Peng and Meyer (2019)
describe institutions as the “rules of the game” that determine what is legitimate,
acceptable, and feasible within a given context. These structures encompass both formal
institutions, such as laws, regulations, and government policies, and informal institutions,
including societal norms, cultural values, and social practices. The institution-based view
suggests that a firm’s success or failure largely hinges on its ability to navigate and adapt
to these institutional frameworks. For Bajaj Auto (BA), the interplay of formal and informal
institutions across various African markets significantly shapes its strategic approach,
operational choices, and competitive positioning.
1. Formal Institutions in African Markets
1.1 Understanding Formal Institutions
Formal institutions comprise codified laws, regulations, and policies established by
governments and regulatory bodies (North, 1991). They include political, legal, and
economic frameworks that define the boundaries within which firms operate. These
institutions influence foreign market entry strategies, trade practices, tax structures, and
compliance obligations. For Bajaj Auto, operating across multiple African markets
exposes it to a wide range of formal institutional challenges, including regulatory
restrictions and safety laws.
1.2 Example from the Case Study: Regulatory Restrictions in Nigeria
A prominent example of a formal institutional constraint affecting Bajaj Auto’s operations
is the ban on commercial motorcycles and three-wheelers by city authorities in
Lagos, Nigeria. This ban was introduced due to safety concerns, as excessive speeding
by motorcycle taxi operators led to numerous fatal accidents. The case study highlights
Education is the most powerful weapon which you can use to change the world
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of
specialty.CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN
THIS DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Table of Contents
Question 1 Identify and explain the types of formal and informal institutions in African markets
that affect Bajaj Auto’s operations. Provide ONE example for each type of institution from the
case study. (10) ...................................................................................................................... 4
Question 2 Apply the national competitive advantage theory to assess Bajaj Auto’s competitive
advantage in the African market. Provide one example from the case for each aspect of the
theory. (10) ............................................................................................................................ 6
Question 3 Define the OLI Paradigm and explain the advantages thereof. Then, apply it to Bajaj
Auto’s investment strategy in Africa. Provide two examples from the case for each advantage to
support your answer. (10) ....................................................................................................... 9
Question 4 Examine the economic risk challenge Bajaj Auto faces in Nigeria and other African
markets. Provide three examples of this challenge from the case. Conclude your answer by
recommending strategies to manage these risks effectively. (7) ............................................. 13
Question 5 Explain the cultural dimensions outlined by Hofstede’s framework. Then, explain
how the dimensions might affect Bajaj Auto’s operations in African countries by comparing the
scores for India and Nigeria. (15)........................................................................................... 16
Question 6 Recommend three explicit corporate social and environmental responsibility (CSER)
initiatives that Bajaj Auto can integrate into its African market operations to enhance
stakeholder relations. In addition, indicate how each initiative can benefit Bajaj Auto. (6) ....... 20
Question 7 Using the VRIO framework, identify and evaluate Bajaj Auto’s key resources and
capabilities that provide it with a competitive advantage in the African market. Then briefly
indicate the competitive implication. (YOU ARE NOT REQUIRED TO PROVIDE A TABLE – PLEASE
PROVIDE A DISCUSSION) (10) .............................................................................................. 23
Question 8 Evaluate and discuss three external challenges that Bajaj Auto faced in the African
market. (12) ......................................................................................................................... 26
Reflections .......................................................................................................................... 29
This section focusses on reflections, which gives you an opportunity to critically evaluate your
learning journey throughout the module. It is meant to help you consolidate your understanding
of global business management principles. Reflect on what you have learnt, the challenges you
faced and the skills you gained. (5) ....................................................................................... 29
Reference List ...................................................................................................................... 32
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Question 1 Identify and explain the types of formal and informal institutions in
African markets that affect Bajaj Auto’s operations. Provide ONE example for each
type of institution from the case study. (10)
Institutions are critical in shaping the strategic decisions and overall performance of
multinational enterprises (MNEs) operating in emerging markets. Peng and Meyer (2019)
describe institutions as the “rules of the game” that determine what is legitimate,
acceptable, and feasible within a given context. These structures encompass both formal
institutions, such as laws, regulations, and government policies, and informal institutions,
including societal norms, cultural values, and social practices. The institution-based view
suggests that a firm’s success or failure largely hinges on its ability to navigate and adapt
to these institutional frameworks. For Bajaj Auto (BA), the interplay of formal and informal
institutions across various African markets significantly shapes its strategic approach,
operational choices, and competitive positioning.
1. Formal Institutions in African Markets
1.1 Understanding Formal Institutions
Formal institutions comprise codified laws, regulations, and policies established by
governments and regulatory bodies (North, 1991). They include political, legal, and
economic frameworks that define the boundaries within which firms operate. These
institutions influence foreign market entry strategies, trade practices, tax structures, and
compliance obligations. For Bajaj Auto, operating across multiple African markets
exposes it to a wide range of formal institutional challenges, including regulatory
restrictions and safety laws.
1.2 Example from the Case Study: Regulatory Restrictions in Nigeria
A prominent example of a formal institutional constraint affecting Bajaj Auto’s operations
is the ban on commercial motorcycles and three-wheelers by city authorities in
Lagos, Nigeria. This ban was introduced due to safety concerns, as excessive speeding
by motorcycle taxi operators led to numerous fatal accidents. The case study highlights
Education is the most powerful weapon which you can use to change the world
