Teachers` handout: Establishing a subsidiary/branch in Europe (ESE1)
The IBS mission states that the purpose of IBS is to “educate students of different nationalities to become responsible and entrepreneurial international business professionals”.
One way of achieving our goal is to give students the chance to practice the knowledge, skills and attitudes they have gained during their studies at IBS in integrated approaches. In other words, once students possess the right skills they can collect relevant information from various sources independently and thus learn more effectively.
The aim of this module is to have students develop an understanding of the different commercial situations (legal, finance, logistics, HR, etc.) in European countries, by applying the knowledge and skills they have gained from modules on International Law (Law2), Finance (FIN2), Personal Development (PDT5), International Business / Area Studies (IBA1), European Business Environment (EUB1) and English/Business Communication.
The Car-Lock GmbH is located in Hannover/Germany. They manufacture all kinds of car-locks. They have an ISO-certification and are able to supply on demand. Today they are supplying 30% of all car-locks needed by the European factories of the Volkswagen-Group. Car-Lock GmbH and Volkswagen recently signed a new contract which stimulates that as of July 2010 Car-Lock GmbH is going to increase their supply to 40%. At the moment the production capacities of Car-Lock GmbH are fully employed and they are not able to satisfy the additional demand. Therefore they have to build up new capacities. For various reasons this should not be in Germany.
The management of Car-Lock GmbH has entrusted you with the task to analyse the commercial situation (legal, finance, logistics, HR, etc.) in 2 European countries, assess the opportunities and risks in these different environments, evaluate the consequences and give a...
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