Question 4

Case Study :

Many companies invest and build capacity for creating economies of scale. Companies target expansion into new markets by efficiently using their potential and creating additional sustainable income opportunities. In light of this, there are various opportunities both in developed countries, where there is larger demand, and in developing countries where there is increasing demand. Companies need to target and plan their international growth strategy for success

Q.4.1 Discuss the motives for businesses to expand internationally. (10)

Q.4.2 Michael Porter found that the success of nations and their individual business organisations were closely linked. National competitive advantage is determined by a combination of broad attributes, i.e., factor conditions; demand conditions; related and supporting industries; organisation strategy, structure and rivalry; and lastly Porter added government and chance events.By making use of examples, criticise South Africa's competitive advantage as a country in relation to government and chance events.(10)