MoshoLove Limited, a computer manufacturing company operates internationally whereby headquarters and foreign subsidiaries are integrated worldwide and interdependent to a high degree. In 0ctober 2010, MoshoLove Limited acquired SAMMENZ innovations, a domestic Ghanaian firm as part of their international expansion strategy. SAMMENZ innovations is a typical Ghanaian firm that deals in the distribution of Mobile phone accessories. In order to ensure successful business operations after the acquisition, the CEO, Mr Mhan, a Japanese, disclosed at the first general meeting the strategy they intend to roll out. He said, they intend to implement a step by step approach to make the acquired company just like the purchaser, even though they are sensesitive to public perceptions of being a foreign bully. The success story of Mhan today is attributed to this strategy.
Five years down the line, under the regime of the new CEO, Mr John Ali Sanco a Senegalese, the company acquired another firm in France. In order to gain capabilities from the newly acquired company, the company employed a new strategy. The new Sanco strategy was to make the acquired company retain its independence in business operation as is been practiced in Japan. He emphasized that as a Parent Country National and having acquired years of experience in foreign assignments, he holds the view that giving the newly acquired firm cultural autonomy will guarantee successful business operations. Adding that, yes, the computers produced by Hi-Tech Ventures perfectly suits the France market even though it differs from that of the parent company, will yield maximum returns for the firm. Also, this is business as usual, he said. This idea was massively embraced by all managers including the two Polish, Yalo and Bryan popularly known to be cultural chauvinists.
Answer the following questions with specific reference(s) to the scenario above.
Explain the type of international orientation employed by MoshoLove Limited. (5marks)
Briefly discuss five reasons why you think, the Sanco strategy of granting the newly acquired firm, cultural autonomy will ensure business success. (5 marks)