MNB3701
Principles of Global Business Management
REPORT 2
(UNIQUE NUMBER: 842947)
by
DEPARTMENT BUSINESS MANAGEMENT
,Note that the portfolio or any part thereof will not be marked if this declaration has not
beencompleted.
Declaration of own work
1. I hereby declare that the material which I now submit for this assessment is
entirely my own work and has not been taken from the work of others. Work that
was constructed from other sources has been duly referenced.
2. I know that plagiarism means taking and using the ideas, writings, works or
inventions of another as if they were one’s own. I know that plagiarism not only
includes verbatim copying, but also the extensive use of another person’s ideas
without proper acknowledgement (which includes the proper use of quotation
marks) or any attempt to cheat the plagiarism checking system. I know that
plagiarism covers the use of material found in textual sources and from the
Internet.
3 I acknowledge and understand that plagiarism is wrong.
4 I understand that my assignment must be accurately referenced.
5 This assignment/exam file/portfolio is my own work. I acknowledge that copying
someone else’s work, or part of it, is wrong, and that submitting identical work to
othersconstitutes a form of plagiarism.
6 I have not allowed, nor will I in the future allow, anyone to copy my work with the
intention of passing it off as their own work.
7 I understand that I can be awarded 0% if I have plagiarized. I understand that my
assignment/exam file/portfolio may be submitted automatically to Turnitin.
8 I confirm that I have read and understood the following UNISA policies:
8.1 Policy for Copyright and
Plagiarism -8.2 Policy on Academic Integrity
8.3 Student Disciplinary Code
Name…… …………………………………………. Student No: ....................
Signed ……………………………………………. Date …………….…….
,Table of Contents
Executive Summary ............................................................................................................... 1
Literature Search.................................................................................................................... 2
Background............................................................................................................................. 3
Formal institutional frameworks ............................................................................................ 5
1) Political systems ……………………………………………………………………... 5
2) Economic systems …………………………………………………………………… 6
3) Legal systems ………………………………………………………………………... 7
4) Key implications for Management Action …………………………………………. 8
Informal institutional frameworks .......................................................................................... 9
1) Culture ………………………………………………………………………………… 9
2) Ethics ………………………………………………………………………………….. 10
3) Language ……………………………………………………………………………… 11
4) Key implications for Management Action ………………………………………….. 11
Resource Appraisal ............................................................................................................. 12
Challenges trading internationally ...................................................................................... 17
1) Evaluation of whether Tata Motors (Kenya) Ltd possesses a comparative
advantage in the location ……………………………………………………………. 17
2) Key implications for Management Action ………………………………………….. 18
Foreign Direct Investment (FDI) ......................................................................................... 19
1) Key implications for Management Action …………………………………………… 22
Conclusion ............................................................................................................................ 23
Revisions Feedback ............................................................................................................ 24
Bibliography .......................................................................................................................... 27
Newly added bibliography …………………………………………………………………………… 29
Index of comments ............................................................................................................... 31
, Page 1
Executive Summary
4.1
This report focuses on the analysis of Tata Motors (Kenya) Ltd., an MNE and its
operations in a host country in Kenya, East Africa, and the institutional context it
operates in. The report provides a brief history of Tata Motors' entry into these
markets and its subsequent expansion in East Africa.
The main purpose of this report is to highlight the significance of both the formal and
informal institutional frameworks on business operations, and how these institutions
are the key to success or failure within the MNE in the African context. Additionally,
the report evaluates the comparative advantage of Tata Motors (Kenya) Ltd using
the VRIO framework, the OLI paradigm of ownership, location and
internationalisation, as well as the challenges and opportunities of the Kenyan
market.
The report highlights Kenya's presidential democratic republic and the political
instability of formal institutions affecting the operations of Tata Motors (Kenya) Ltd.
Political instability can have implications for supply chains, and distribution networks
and create an uneven playing field for foreign companies.
The report further discusses Kenya's mixed economy, which is heavily dependent on
agriculture, tourism, and services with significant strides in economic development,
but is still characterized by poverty, inequality, and high unemployment rates.
The report identifies Tata Motors (Kenya) Ltd's strong brand recognition, innovative
technological capabilities, and investment in local manufacturing as key drivers of its
sustainable competitive advantage. However, political instability and Kenya's mixed
economy, pose challenges to the MNE's operations.
Based on the findings of this report, it is recommended that Tata Motors (Kenya) Ltd.
closely monitors the formal institutional frameworks to ensure compliance and
adaptability to changes, focus on sustainable business practices, invest in research
and development to enhance its technological capabilities and localise its operations
to create a positive impact on the local economy
4.2 and society.
Principles of Global Business Management
REPORT 2
(UNIQUE NUMBER: 842947)
by
DEPARTMENT BUSINESS MANAGEMENT
,Note that the portfolio or any part thereof will not be marked if this declaration has not
beencompleted.
Declaration of own work
1. I hereby declare that the material which I now submit for this assessment is
entirely my own work and has not been taken from the work of others. Work that
was constructed from other sources has been duly referenced.
2. I know that plagiarism means taking and using the ideas, writings, works or
inventions of another as if they were one’s own. I know that plagiarism not only
includes verbatim copying, but also the extensive use of another person’s ideas
without proper acknowledgement (which includes the proper use of quotation
marks) or any attempt to cheat the plagiarism checking system. I know that
plagiarism covers the use of material found in textual sources and from the
Internet.
3 I acknowledge and understand that plagiarism is wrong.
4 I understand that my assignment must be accurately referenced.
5 This assignment/exam file/portfolio is my own work. I acknowledge that copying
someone else’s work, or part of it, is wrong, and that submitting identical work to
othersconstitutes a form of plagiarism.
6 I have not allowed, nor will I in the future allow, anyone to copy my work with the
intention of passing it off as their own work.
7 I understand that I can be awarded 0% if I have plagiarized. I understand that my
assignment/exam file/portfolio may be submitted automatically to Turnitin.
8 I confirm that I have read and understood the following UNISA policies:
8.1 Policy for Copyright and
Plagiarism -8.2 Policy on Academic Integrity
8.3 Student Disciplinary Code
Name…… …………………………………………. Student No: ....................
Signed ……………………………………………. Date …………….…….
,Table of Contents
Executive Summary ............................................................................................................... 1
Literature Search.................................................................................................................... 2
Background............................................................................................................................. 3
Formal institutional frameworks ............................................................................................ 5
1) Political systems ……………………………………………………………………... 5
2) Economic systems …………………………………………………………………… 6
3) Legal systems ………………………………………………………………………... 7
4) Key implications for Management Action …………………………………………. 8
Informal institutional frameworks .......................................................................................... 9
1) Culture ………………………………………………………………………………… 9
2) Ethics ………………………………………………………………………………….. 10
3) Language ……………………………………………………………………………… 11
4) Key implications for Management Action ………………………………………….. 11
Resource Appraisal ............................................................................................................. 12
Challenges trading internationally ...................................................................................... 17
1) Evaluation of whether Tata Motors (Kenya) Ltd possesses a comparative
advantage in the location ……………………………………………………………. 17
2) Key implications for Management Action ………………………………………….. 18
Foreign Direct Investment (FDI) ......................................................................................... 19
1) Key implications for Management Action …………………………………………… 22
Conclusion ............................................................................................................................ 23
Revisions Feedback ............................................................................................................ 24
Bibliography .......................................................................................................................... 27
Newly added bibliography …………………………………………………………………………… 29
Index of comments ............................................................................................................... 31
, Page 1
Executive Summary
4.1
This report focuses on the analysis of Tata Motors (Kenya) Ltd., an MNE and its
operations in a host country in Kenya, East Africa, and the institutional context it
operates in. The report provides a brief history of Tata Motors' entry into these
markets and its subsequent expansion in East Africa.
The main purpose of this report is to highlight the significance of both the formal and
informal institutional frameworks on business operations, and how these institutions
are the key to success or failure within the MNE in the African context. Additionally,
the report evaluates the comparative advantage of Tata Motors (Kenya) Ltd using
the VRIO framework, the OLI paradigm of ownership, location and
internationalisation, as well as the challenges and opportunities of the Kenyan
market.
The report highlights Kenya's presidential democratic republic and the political
instability of formal institutions affecting the operations of Tata Motors (Kenya) Ltd.
Political instability can have implications for supply chains, and distribution networks
and create an uneven playing field for foreign companies.
The report further discusses Kenya's mixed economy, which is heavily dependent on
agriculture, tourism, and services with significant strides in economic development,
but is still characterized by poverty, inequality, and high unemployment rates.
The report identifies Tata Motors (Kenya) Ltd's strong brand recognition, innovative
technological capabilities, and investment in local manufacturing as key drivers of its
sustainable competitive advantage. However, political instability and Kenya's mixed
economy, pose challenges to the MNE's operations.
Based on the findings of this report, it is recommended that Tata Motors (Kenya) Ltd.
closely monitors the formal institutional frameworks to ensure compliance and
adaptability to changes, focus on sustainable business practices, invest in research
and development to enhance its technological capabilities and localise its operations
to create a positive impact on the local economy
4.2 and society.
