Explore BrainMass

Explore BrainMass

    Assumptions- load-bearing and vulnerability characteristics

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please answer this question on an individual basis, and post your answer
    within the weekly discussion question conference. More
    and more companies are placing their 'value added' activities in the hands of
    the international market in hopes of improving their cost structure, expanding
    their markets or meeting competition head-to-head. The success of a
    Company's international ventures depend upon a receptive business and market
    environment in the country [ies] they are competing in. As long as these
    assumptions remain intact, international strategies will be effective. Just to
    illustrate one: Successful international strategies are dependent upon the
    continued economic and political stability in the particular country being
    targeted. I would like you to identify two to three basic assumptions about
    the business and consumer environment that must remain valid in the future in
    order for international strategies to thrive. In your selection of
    assumptions, use the following two criteria:

    1) Choose assumptions that absolutely must remain valid. That is, if these
    assumptions don't hold true, international strategy success is in immediate
    danger. These kinds of assumptions are referred to as 'load-bearing'
    assumptions. To use an example from another industry, the U.S. tobacco
    industry continues their operations based on the assumption that commercial
    sales of cigarettes will remain a legal transaction. If that assumption were
    to fail, it would seriously threaten the very existence of at least the
    domestic tobacco industry. So presuming that cigarette sales remain legal is
    truly a 'load bearing' assumption.

    2) In addition to being 'load bearing,' select the assumptions that might be
    most vulnerable to environmental changes. These are assumptions that have a
    reasonably high probability of not holding up [or failing]. Here's an
    example of a 'vulnerable' assumption: When companies such as WalMart decide to
    export their 'business model' of everyday low prices and good values to
    countries all over the world, they are operating under the assumption that the
    'business model' will remain intact and valid, regardless of the country market
    that they enter. However, there is a reasonable chance that the image that
    caught on so well in the U.S. will not succeed in countries where low prices
    may be strongly associated with poor quality merchandise. If this is true,
    WalMart is basing its international expansion on a 'vulnerable' assumption.

    To be clear about this, I'm looking for two to three assumptions that have
    both load-bearing and vulnerability characteristics. I'm not looking for two
    different set of assumptions. As a final step, I would like you to identify
    actions that you take to manage the risk associated with these
    'load-bearing,' 'vulnerable' assumptions. Some actions may be shaping actions
    to prevent the assumption from becoming a reality. Other actions may be
    'hedging' actions that provide you with a contingency plan in the event that
    the assumptions do become a reality.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:57 pm ad1c9bdddf

    Solution Preview

    The two assumptions are as follows:

    1)Laws with respect to outsourcing of jobs to countries like India and China will remain in favor of corporations: With more and more U.S. companies setting up international operations in countries like India and China and shifting most of their jobs to these countries due to the abundant and qualified labor in these countries at extremely low costs, there has been an increasing cry in U.S. senate over the loss of jobs of domestic population due to such shifting of jobs. Few U.S. senators are fighting against outsourcing of jobs. Therefore, in order to justify any new investment and expansion of international operations in these countries by large U.S. corporations, one of the major underlying assumption is that ...

    Solution Summary

    Assumptions that have both load-bearing and vulnerability characteristics.