Changing Regulatory Environment

Assignment 1: Individual Research and Short Paper—Changing Regulatory Environment

A company’s operating strategy continues to change as the legal and political environment changes. When Argentina’s government assessed a local tax on consumer purchases using credit cards, American Express and other U.S. companies were already facing a highly inflationary market. To make up for lost revenues, American Express began to provide revolving credit products.

In this assignment, you will use the University online library resources and Internet resources to analyze the strategies companies use to deal with a change in regulations.

1. Select an MNC operating in the U.S. and discuss some of the implications of a changing regulatory environment, then address the following questions:
   1. How do companies evaluate market conditions for potential regulatory changes? Can this type of change be anticipated? Why or why not? What resources do companies have when faced with these types of changes?
   2. Do you think companies should withdraw from the marketplace after new legal regulations are put in place? Explain.
   3. What are the considerations companies account for prior to making any decisions?

 

1. Select a U.S. company doing business in a foreign market, then address the following questions:
   1. What legal market conditions did the U.S. Company face and how did it deal with them?
   2. Do you think that operating in foreign markets is similar to operating in domestic markets? Why or why not?
   3. How can companies compete and survive in a marketplace despite the threat of legal restrictions and taxation?

Write a 4-pages essay in Word format. Apply current APA standards for writing to your work.
Use the following file naming convention: LastnameFirstInitial_M5_A1.doc.

By Wednesday, June 5, 2013, submit your assignment to the M5: Assignment 1 Drop box.

 

Assignment 2: Course Project Task 5—Risks of Unstable Economic Conditions (IKEA)

For this part of the project, you will examine the legal and economic implications of the strategies used by companies in unstable economic conditions.

Discuss how each of the following factors impacts your chosen MNC:

1. Issues operating locally
   1. Customers
   2. Legal
   3. Economic
   4. Capital
2. Issues operating in multinational marketplaces
   1. Governmental regulation from home country
   2. Sourcing products
   3. Import export restrictions
   4. Capital

The risks the client company might anticipate when operating in a changing economic and regulatory environment. Analyze the MNC’s strategy in unstable economic conditions and post your comments to.

 

By Wednesday, June 5, 2013

Module 5 Readings

Early in the week, complete the following:

· Read the overview for Module 5

· From the textbook, International business law and its environment, read the following chapters:

· Regulating Import Competition and Unfair Trade

· Imports, Customs and Tariff Law

· The Regulation of Exports

· From the Argosy University online library resources, read:

· Global food regulatory issues impacting dairy foods. (2006). Dairy Foods, 107(10), 24. Retrieved from EBSCO database http://search.ebscohost.com/ login.aspx?direct=true&db=buh&AN=22840712&site=ehost-live

· Mustokoff, T., & Segal, T. P. (2008). Commentary: Advice for taxpayers with undeclared UBS Swiss bank accounts. Rhode Island Lawyers Weekly. Retrieved from EBSCO database http://search.ebscohost.com/ login.aspx?direct=true&db=bwh&AN=L54444801RILW &site=ehost-live

· Simon, E. Y. (2008). Limited-service brands build on global success. Hotel & Motel Management, 223(3), 36–38. Retrieved from EBSCO database http://search.ebscohost.com/ login.aspx?direct=true&db=buh&AN=30065201&site=ehost-live

· Trottman, M., Williamson, E., & Casey, N. (2008). Children’s product industry put in regulatory bind. Wall Street Journal – Eastern Edition, 251(142), A3. Retrieved from ProQuest database http://proquest.umi.com/ pqdweb?did=1496424611&sid=1&Fmt=2& clientId=11123&RQT=309&VName=PQD

· From the Internet, read:

· London, T., & Hart, S. (2004, August). Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Business Studies. Retrieved from http://e4sw.org/papers/JIBS.pdf

·

Module 5 Overview (1 of 2)

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Can and should businesses use a successful strategy for growth across markets? Companies change their operating strategies as the legal and political environment changes. Today companies not only have to pace themselves to keep up with the changing environment, but they also need to “sprint” to stay ahead of the competition.

In 2007, Coca-Cola purchased Glaceau, the producer of Vitamin Water, for $4.1 billion. Coca-Cola purchased the company to boost its declining beverage sales in the U.S. and North American markets. After its rival PepsiCo purchased the Gatorade lineup of Quaker Oats, Coca-Cola was faced with trying to slow the drop-off in its sales. With the acquisition of Glaceau, Coca-Cola expected to increase its share in the noncarbonated drinks market, a market that currently commands double-digit growth. With its foray into the water and energy drink market, Coca-Cola had to ensure compliance with the regulatory requirements governing food and health in international markets. However, the company was already familiar with these regulations because of its other product lines such as Minute Maid Heart Wise. The other issues the company addressed were concerns about the disposable plastic bottles and import and franchise laws.

Module 5 Overview (2 of 2)

 

 

Reinventing Business: Changing Regulatory Environment Organizations at times find it necessary to reestablish their business in existing markets because some markets may no longer be viable because of changes in existing laws and regulations. In this module, we will assess the impact of a changing regulatory environment on organizations. For your assignment, you will compare the impact of legal and governmental regulations on an MNC operating in the U.S. and a U.S. company operating in a foreign market. You will also analyze the strategies companies use to deal with a change in regulations. For your course project, you will investigate the strategies used by companies inunstable economic conditions. You will examine the legal and economic implications of these strategies. You will also investigate issues companies face when operating in multinational marketplaces.

 

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