Globalization and Multinational Enterprises

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2012

International Financial Management 2012

INTERNATIONAL FINANCIAL MANAGEMENT ASSIGNMENT

Topic - Case 1: Porsche Changes Tack
Chapter 1: Globalization and Multinational Enterprise

Lecturer: Dr. Mai Thu Hien Students Group 1:
Dinh Hoang Anh - 0953040003 Le Thuy Anh – 0953040004 - Leader Nguyen Van Anh - 0953040005 Nguyen Mai Anh - 0953040006 Truong Thuy Anh - 0953040106 Le Duc Binh - 0953040008

FOREIGN TRADE UNIVERSITY FACULTY OF BANKING AND FINANCE 0

Hanoi, December 17th, 2012

International Financial Management 2012

TABLE OF CONTENT

I.INTRODUCTION ......................................................................................................... 2 II.PORSCHE CHANGES TACK .................................................................................... 4 1.About Porsche AG ...................................................................................................................... 4 2.Porsche’s Growing Portfolio ....................................................................................................... 5 3.The Most Profitable Automobile Company in the World ............................................................. 8

4.Porsche changes tack.....................................................................................................10 III.ANSWERS TO CASE QUESTIONS ....................................................................... 12 1.Question1 ................................................................................................................................. 12 2.Question 2 ................................................................................................................................ 23 3.Question 3 ................................................................................................................................ 28

IV. ANSWER CHAPTER QUESTIONS ...................................................................... 33 V. REFERENCE ............................................................................................................ 43

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International Financial Management 2012
I. INTRODUCTION A multinational enterprise (MNE) is defined as one that has operating subsidiaries, branches or affiliates located in foreign countries.The ownership of some MNEs is so dispersed internationally that they are known as transnational corporations. The transnationals are usually managed from a global perspective rather than from the perspective of any single country. While multinational business finance emphasizes MNEs, purely domestic firms also often have significant international activities like import & export of products, components and services, licensing of foreign firms to conduct their foreign business, exposure to foreign competition in the domestic market, indirect exposure to international risks through relationships with customers and suppliers. Global business, like any business, is the social science of managing people to organize, maintain and grow the collective productivity toward accomplishing productive goals, typically to generate profit and value for its owners and stakeholders.Reaching that goal requires combining three critical elements: an open marketplace, high quality strategic management, access to capital. About the mini-case of Porsche, we can see that Porsche had always been different. Porsche is a company that prides itself in quality and customer satisfaction. Because of this customers are always considered to be first priority for the company. The only issue with this business method is that the shareholders do not feel valued. Porsche operates more like a family-owned firm instead of focusing mainly on shareholder value. While operating like a family-owned firm may be admired by some, it also has a downside. The company has been somewhat infamous for occasional stubbornness when it comes to disclosure and compliance with reporting requirements. Following these...
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