Managing International Business

 Module Title: Managing International Business

Introduction

According to Buckley and Lessard (2005, p. 595), international business involves the management of interrelated business operations that span across multiple countries. This type of business typically involves large enterprises that serve customers in more than one country, and it allows companies such as CMR to gain access to specialized knowledge and expertise in the global marketplace. One of the cores IB theories introduced in Week Three of the module is the OLI framework, also known as the Eclectic Paradigm. This framework is used to explain why some firms engage in foreign direct investment (FDI) while others do not. The OLI framework suggests that a firm needs to have ownership advantages, location advantages, and internalization advantages in order to be successful in FDI. In this essay, the OLI framework will be applied to a comparative analysis of CMR Surgical’s prospects for internationalization into two European countries: Germany and France.

Overview of The CMR Surgical

CMR Surgical is a British medical technology company that focuses on making advanced robotic systems and surgical robots. Founded in 2014, the company is headquartered in Cambridge, UK, and has additional offices in Germany, Italy, and the USA. The Versius surgical robot is CMR Surgical's most important product. It is meant to make minimally invasive surgery more efficient and accurate. The robot has four robotic arms that are put into the patient's body through small cuts. The surgeon sits at a console that controls the robot with hand controllers and foot pedals. Versius is meant to be used for many different kinds of surgery, such as gynaecology, urology, and colorectal surgery.

The company wants to expand its Versius robotic surgery system across Europe. To do this, it will divide the continent into sales regions and hire managers for each region. These managers will report to Olivier Wolber, who was just named European General Manager. The company wants to sell and distribute its Versius system faster and better meet the needs of each region. The plan comes after a series D funding round that brought in £425m ($600m) last summer. The funds were meant to speed up the rollout of the system in Europe and beyond, with a focus on getting FDA issuance to start selling the surgical robot in the US.

Eclectic Paradigm and CMR Surgical

Since the corporate world became mainstream, several multinational corporations are facing challenges in effectively managing their global operations (Griffin, 2022). For example, some businesses have come up with special methods and plans to get a competitive edge. When establishing new overseas markets, multinational companies face a number of challenges, such as differences between regions, changing exchange rates, fluctuating commodity prices, and different rules and international diplomacy. An eclectic paradigm method can help professionals understand and deal with these issues.

The three-tiered model used to look at the possible benefits of foreign direct investment, or FDI, is called the eclectic theory. The idea is based on the internationalisation idea, which says that businesses might stop doing business with the public if they find that doing the same thing in-house could be cheaper. This idea is based on the idea of "internalisation," which says that businesses can stop doing business with the public if they find that doing the same work at home can be done for less money. The three layers of the eclectic theory are ways that FDI, or foreign direct investment, can help a business grow. This is so that they can keep giving the same high level of performance while still running in an honest way. Foreign direct investment, or FDI, is a type of business that takes place across borders. 

Using the three-tiered method for figuring out the benefits of foreign direct investment, a company in Europe can decide whether or not it's a good idea to start doing business outside of Europe. This idea says that foreign direct investment (FDI), which can be affected by the use of an eclectic framework concept, manages regulations, patterns of currency conversion, and macroeconomic factors. FDI can help solve these problems by doing this (Tolentino, 2019). CMR Surgical might use this idea because it helps companies find their unique comparative strengths and take advantage of opportunities in a very competitive international market. Managing International Business

Businesses may make the best decisions about how to go global by looking at how the economy and business world is changing. The idea of global trading is right for CMR Surgical because it can help the company figure out and understand the relative advantages that different countries have because of things like commodities and friendly legal systems (Mayer, 2000). The eclectic paradigmatic concept is the main factor that affects the OLI structure in terms of autonomy, internationalisation, and location. Internationalization would help CMR Surgical Ltd. come up with new ideas and make technological advances. So, management, geography, and internationalisation are all focused on making important advancements that would give a good way to evaluate the firm's work environment so that it can do well in the tough Italian market (Bajo-Rubio, 2021).

Because of the different economic and competitive issues that the company would be compelled to comply when it decided to operate locally, CMR Surgical may face a variety of difficulties as a result of its decision to expand into the Italian robotics market. CMR Surgical may need to apply a diverse perspective to identify these issues, allowing them to keep current with the most recent innovations in their industry. Because creativity is increasingly required for globalisation, businesses must be able to adapt to the current advances in order to remain relevant (Buckley, et al., 2017). Managing International Business

To be competitive in today's modern competitive market environment, many organisations focus on bringing creativity to their manufacturing or managerial responsibilities. But still, many organisations face challenges when attempting to promote their unique corporate models on a worldwide basis. Because of innovations in information technology, microelectronics, and other advancements, there are several opportunities for conducting international trade, but there are also some drawbacks (BajoRubio, 2021). For example, many organisations adopt emerging technology slowly, making it difficult to break into developing enterprises or respond to changes in the economic climate. 

Furthermore, this decision may have a negative impact on a company's ability to compete in a worldwide market. Together with challenges of diversity, the differing rules and processes in other countries create an extra substantial difficulty for firms doing business globally. Before entering a new market, a firm must be informed of all applicable laws and ordinances, as well as any tax implications and trade limitations. Businesses must consider the labour and employment regulations of the country in which they intend to conduct business. This may be essential when determining where to establish a business (Reynolds, 2017).  Managing International Business

Paid parental leave policies vary greatly across Europe, with some countries requiring a minimum of 14 weeks and others having no policy at all. Companies in Italy, on the other hand, are not permitted to provide any parental break at all under local legislation and standards. Employees in international corporations are frequently asked to adhere to differing local social conventions (Mayer, 2019).

When entering a foreign sector, consider the legal and financial context to determine whether it is a safe enterprise. Problems such as inconsistent or ambiguous regulations and standards, as well as fraudulent activities, may be extremely difficult to address in developing sectors (Lundan, 2018). Changes in government may result in changes to laws, rules, and asset values that are damaging to international markets and development. 

Furthermore, due to financial patriotism, the current legislative atmosphere may be more hostile to international firms than ever before. For example, Google, Instagram, and other companies with headquarters in the United Kingdom do not follow the sociological and traditional conventions of their home country's government (Leon, 2020). Political issues may be minimized when conducting global trade by being informed of and tracking governmental trends and developments, as well as appropriately organising foreign operations (Griffin, 2022). 

Coordination of staff from two different countries, as well as the high number of workers involved, would be difficult for this organisation. Language difficulties, ethnic limitations, and other concerns may arise as a result of this (Kolk, 2016). Internationally operating firms are particularly worried about environmental threats such as ecological emergencies, the repercussions of global warming, and environmental degradation. Several countries have enacted regulations and moral standards that corporations must follow in order to maintain their operations ecologically friendly. For example, the Italian government has put rigorous rules on both national and foreign firms to treat their rubbish and reduce its environmental impact. If CMR Surgical is to succeed in Italy, it must adhere to specific environmental rules (Merchant and Gaur, 2008).Managing International Business

CMR Surgical had made the choice to expand its organisation globally, and in order to do so, it must consider the state's external economic picture. Before the organisation may realise its objectives, the corporate climate of the chosen country must be considered. CMR Surgical will be able to recognise and anticipate the effects of external factors on its activities and development by considering concerns including such political, ethnic, economic, moral, environmental, and others that may have an impact on a company (Griffin, 2022). Additionally, it will assist the company in comprehending the situations and advancements in the selected industry so that appropriate strategies can be implemented. 

CMR Surgical must consider the ideological components of the worldwide marketplace where it desires to conduct business in order to understand national regulatory frameworks, shipping tariffs, regulations, degrees of fraud, and other difficulties (Shtal, et al., 2018). Because CMR Surgical intends to expand its business in Italy, the country's governmental and financial integrity will have a significant impact on its operations. France is another promising market for CMR. Managing International Business

The United Kingdom and France share many historical and sociological customs and ideas, which might make them formidable opponents in international commerce (Griffin, 2022). This characteristic may allow CMR Surgical to effectively do procedures in France without being engaged in geopolitical conflict. France does not have any specific restrictions on international marketing or business that might assist CMR Surgical in accessing the French market to launch its worldwide operation. British foreign policy emphasises close coordination with France, the UK's second closest ally, to aid CMR Surgical in effectively entering and developing its firm in France. France is an appealing location for various multinational corporations due to its favourable multinational economic climate and solid government (PérezLópez et al., 2018).

While deciding on a worldwide sector in which to operate as a corporation, it is critical to evaluate the country's financial security. Italy boasts one of the world's most stable economies, and it is home to many worldwide firms. Italy is an excellent choice for businesses because of its stable environment and wide range of industrial opportunities. Substantial developments in international commerce make it more difficult for Italy to accelerate its economic advancement. This is due to the pandemic, which has slowed financial progress in other countries. If Italy does not expedite industrial growth, it may struggle to increase revenue and profitability ratios in the worldwide market. 

Corporations must consider socio-cultural elements in addition to ethnic ones when expanding their operations into a foreign country (Neelankavil, 2015). The United Kingdom and Italy are both European countries, and because they are both members of the same ethnic group, their societal and cultural norms, concepts, and goals are comparable. This is especially important when it comes to environmental and health concerns. Both countries have governments that are concerned with ensuring that their populations live in good circumstances and that the environment is safeguarded. As a consequence, picking the Italian sector may help CMR Surgical operate their business more efficiently because it will be easier for them to understand the socio-cultural characteristics of the country, allowing them to establish better management strategies. 

Understanding and adhering to all regulatory duties is critical when establishing a business in a worldwide marketplace; otherwise, the firm would struggle to function efficiently in a newly global sector (Picciotto and Mayne, 2016). Managing International Business

All businesses operating in France must adhere to a set of regulations and governmental organisations. This includes the corporate environment produced by state rules. Because France admits both foreign and domestic corporations, it is critical for CMR Surgical to be aware of the numerous restrictions that apply to such businesses when operating in France. CMR Surgical, for example, must obey all applicable rules, including those governing information securities, recruiting, and foreign trade, in order to remain out of trouble. The powerful regulatory environment in France may help a company defend its innovative domain interests. Additionally, CMR Surgical must be aware of these elements when doing business in France because it is a morally right marketplace. To conduct business successfully in this country, the organisation must build ethical, dependable, and truthful corporate practises.

Companies work to capitalise on both positive and negative external influences since they might have an impact on multinational corporations. Many strategies are developed to cope with the numerous environmental stimuli. Security, development assistance, and indigenous stock and loan are the three major ways that many foreign firms use to mitigate geopolitical risks. These strategies are based on the firm's understanding of geopolitical issues and the need to control such risks. International firms generally avoid investing in countries with a history of social instability and fraud. This is due to the fact that these countries are typically turbulent and corrupt (Pérez-López et al., 2018). 

Many multinational firms obtain coverage to manage the potential geopolitical risks associated with their international operations. Furthermore, multinational firms usually develop plans to adapt to external factors, including such environmental issues. MNCs modify their products to be more climate-resilient in order to efficiently respond to ecological repercussions. Things that use a lot of fresh water, energy, or even other ecological resources, for example, can be redesigned to be more efficient, eco-friendly, or climate adaptable (Terpstra and Ofstedahl, 2013). Managing International Business

Several worldwide firms produce unique items and activities while taking the feasibility of such marketplaces into account in order to grow their organisation in international industries. In response to the impact of regulatory concerns in their international commercial interactions, businesses develop a range of moral standards and guidelines (Ferraro, 2021).

International firms use a variety of techniques to enter new foreign markets. A strategic collaboration is an effective way to get into a niche market. By a collaborative effort, two firms form a limited partnership enterprise (Shaw, 2015). Businesses that use this strategy can pool all of their resources and expertise. One proprietor must be a local firm under this technique, whereas the second might be a worldwide corporation. Because the corporation can obtain the necessary information about the domestic market and assets to operate the firm effectively in the new overseas market, this approach is advantageous for multinational corporations (Dinu, 2018). Managing International Business

Piggybacking is a low-risk way to enter into a flourishing sector. It entails two companies collaborating to market goods or services from other companies in their home country. Licensing is another effective way to enter into a competitive firm. The proprietor of a company that uses licencing licences his or her internal operations, brand name, products, facilities, and competence in exchange for a licencing fee (Muckersie, 2021). Importing is an effective way to enter a significant international market. Exporting commodities or goods overseas is a cost-effective strategic option since it reduces the need for the company to invest in manufacturing infrastructure in order to sell items elsewhere. All things are manufactured in this manner and then shipped to another country for retail trade (Watson IV, et al., 2018). 

A multinational corporation (MNC) is a company that not only dominates its home market but also has a significant presence in other countries. This is evidenced by the company's activity in several countries, its ability for innovation, and its overall impact on the industry (Stramler, 2017). To be classified as an MNC or multinational corporation, a company must meet a number of criteria. These needs include a substantial amount of capital, asset capacity, managerial capacity, and the firm's potential for commercial development. Companies must also be innovative and adept at promoting their products (CFL, 2022). Companies that meet the globalisation standards are more likely to grow into organizations worldwide. CMR Surgical Ltd. is one such company, a multinational surgery robot manufacturer with thousands of employees distributed around the globe (Tomlinson, 2021).

An investigation of the firm's activities will be used to appreciate its productivity in the global industry. Initially, the European surgical robotics development sector concentrated on providing portable and modular setup. The phrase CMR Surgical is currently connected with the Versius, a mechanical medical system that uses transportable robots and offers little touch operation with enhanced precision and administration for challenging procedures. The company is committed to giving back to the community and the environment while earning a profit (Phillips, Phillips and Pulliam, 2014). Managing International Business

CMR Surgical uses innovation to provide robots that are on par with or better than traditional surgical care. Because of their numerous micro-factories, they are able to change the way procedures are conducted to meet the needs of clients from all over the world. They want to enter the market with very flexible surgical robots in 2022. Furthermore, they want to offer modular Versius onto the European market. This exemplifies how CMR Surgical is utilising innovation to safeguard the environment and improve everyone's level of living (CMR Surgical, 2023). Managing International Business

Conclusion

Based on the OLI framework, CMR Surgical has significant ownership advantages in the form of its proprietary robotic surgical system. The company also has location advantages in both Germany and France, but there are some differences in the two markets that could affect its success. Finally, CMR Surgical has internalization advantages in the form of its experience in manufacturing, supply chain management, and its existing partnerships in both countries. Overall, CMR Surgical has a strong potential for success in both the German and French markets if it can effectively leverage its ownership, location, and internalization advantages. Managing International Business

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