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International Strategic Management – Assignment 1 Things to Note When Completing Task 1 • The Assignment 1 briefing slides are intended only as an illustrative example to show: o how data can be compared across 2 countries / cities on a like-for-like basis, using the same sources o how the 2 countries / cities can be scored in terms of their overall attractiveness o so please do not take the example slides literally! Focus • • Remember that while the national macro-environment provides an important wider context for this assignment, you will also need to narrow down to the metropolitan-level o because urban mobility is typically addressed at city level rather than national level, which is why SEAT is considering Manchester or Melbourne to launch the ‘Minimό’ into, rather than the UK or Australia. You must identify those national and metropolitan-level factors that are relevant to your company. o For example, do you really think that a factor such as ‘exposure to unsafe drinking water’ is of direct relevance to SEAT’s deciding in which city to launch the ‘Minimό’? Process • • • • • • Having identified the national and metropolitan-level factors that are relevant to your company, you need to decide on their relative importance in order to assign a weighting to them. o Think carefully about why some factors may be of greater significance to the company than others. Once you have decided upon the relative weightings for a sub-group of factors (e.g. political factors), then enter the data for each country (or city). You are only comparing 2 countries / cities. Therefore, once you have decided which country / city has the more attractive ranking / score / data for a particular factor, award that country / city a score of 2; award a score of 1 for the other country / city for the same factor. o Then multiply the score awarded to each country / city by the weighting multiplier that you have given to that particular factor. Once this process has been completed for a sub-group of factors (e.g. political factors), total up the scores for each country / city. o Repeat the same process again for the next sub-group of factors (e.g. legal factors) until you have scores for all sub-groups of factors. Multiply the Economic (Metropolitan) and Mobility Capability (Metropolitan) total scores for each country / city by a weighting of 1.5. o Remember, urban mobility is typically addressed at city level rather than national level. o Metropolitan-level factors should therefore be given a weighting to reflect their more immediate relevance to the firm than the wider national-level macroenvironmental factors. Finally, add up the scores for all sub-groups of factors for each country / city to arrive at overall scores of attractiveness. Data • Make sure that you are consistent in using the same data source for a country/city’s factor; if you do not do this, then you are not being truly comparative. • As you can see from the tables in the Assignment 1 briefing slides, a lot of data may be in the form of country rankings. o When using country rankings for a factor, make sure that you are clear what the ranking means and provide a brief explanation of this as per the examples in the Assignment 1 briefing slides. ▪ For example, if Country A is ranked as 1/140 for ‘Incidence of Corruption’, does this mean Country A is the most or least corrupt? Being unclear as to what rankings mean can lead to wild results! • As you can see from the tables in the Assignment 1 briefing slides, some data may be in the form of a score (e.g. political / economic / financial risk are each given a score out of 5 by A.M. Best Country Risk Report). o Again, make sure you are clear when obtaining these scores as to whether 1 out of 5 signifies very low or very high risk! • As you can see from the tables in the Assignment 1 briefing slides, other data may be in the form of straightforward numbers such as much of the national and metropolitan economic data. o You need to take care in determining whether this data is attractive or not to your company e.g. a country may have a very large population (potentially attractive) but an equally very large unemployment rate / percentage of the population below the poverty line (generally unattractive unless your company has a strategy such as targeting the so-called ‘bottom of the pyramid’ market). • When using the OECD Metropolitan Area Statistics website, allow yourself some time to navigate around the site (Figure 1). o In the left-hand column of the page are data sets e.g. Population by Age, Economy, etcetera. o In the centre at the top of the data tables is a drop-down menu to select variables for the data you need e.g. if you are looking for population density data, then you need to have clicked onto the ‘Population’ tab in the left-hand column, then click on the variable drop-down menu to select the population density variable. o You will then need to scroll down the page or across to one of the next pages in order to find the 2 cities’ data. • The 2020 Deloitte City Mobility Index takes a holistic view of different cities’ entire mobility landscapes in order to evaluate their existing and future mobility capability. o The index for each city is comprised of 3 themes, each made up of 5 metrics that combine different types of data (Figure 2). o Each city has its own ‘mobility profile report’ where it is scored against each of the 15 metrics in the index. In looking at each city’s ‘mobility profile report’, you have different options for considering their mobility capability for Task 1: ▪ A broad approach – this is the approach adopted in the Assignment 1 briefing slides for illustrative purposes. • Attach a weighting multiplier to each of the 3 themes, according to their relative importance to the company. • Total the scores out of 25 for each theme in a city’s ‘mobility profile report’ (Figure 3). • • Next identify whether these scores out of 25 are more or less attractive than those for the other city and award a score of 1 out of 2 or 2 out of 2 accordingly for each theme. • Multiply the score of 1 or 2 by the weighting attached to each respective theme (Table 1). ▪ A more nuanced approach: bear in mind that the primary audiences of the 2020 Deloitte City Mobility Index are city leaders, authorities and regulators. • As such, you may prefer to consider some but not all metrics within the 3 themes, according to their perceived significance to SEAT (e.g. you may view ‘integration and shared mobility’, ‘versatility’ and ‘transit safety’ being highly relevant to carsharing; ‘congestion’ and ‘air quality’ could be relevant in that carsharing is argued to go some way towards mitigating these; other metrics may or may not be of significant relevance). • If you were to adopt this approach, the weighting x score out of 2 for attractiveness (based on the 2 cities’ scores out of 5 for a specific metric) would remain the same as per the process outlined above. Make sure that you identify the source of each piece of data used; failure to do so means that markers cannot verify the accuracy of the data. o The referencing style used in the Assignment 1 briefing slides is arguably the simplest and clearest way of referencing your data sources for Task 1. Figure 1 – OECD Metropolitan Area Statistics website Figure 2 – 2020 Deloitte City Mobility Index Themes & Metrics Figure 3 – 2020 Deloitte City Mobility Index: Weighting & Scoring Themes Table 1 – Weighting & scoring of cities’ mobility capabilities Factor Overall performance & resilience (25/25 = highest performing / most resilient) Overall vision & leadership (25/25 = most developed vision / strongest leadership) Overall service & inclusion (25/25 = most robust service / most inclusive) Mobility Capability Factors – Metropolitan Level Subtotal Mobility Capability Factors – Metropolitan Level City A Ranking / City A Score City B Ranking / Data X Data Weighting Country Score out Multiplier Country Score out of 2 of 2 (2 = most (2 = most attractive) attractive) 16/25 = 2/2 2 x 5 = 10 12/25 = 1/2 Data Source Weighting Multiplier (5 = most important; 1 = least important) H 5 H 5 22/25 = 2/2 2 x 5 = 10 16/25 = 1/2 1×5=5 H 3 16/25 = 1/2 1×3=3 16/25 = 1/2 1×3=3 23 City B Score X Weighting Multiplier 1×5=5 13 Assessment Information/Brief 2020/21 Module title International Strategic Management CRN 2020/21 delivery Level 7 Assessment title Individual Assignment 1 Weighting within module This assessment is worth 50% of the overall module mark. Submission deadline date and time Friday 19/02/2021 @ 16.00 (Week 3 – UoS only) Robert Kennedy College / Pentecost Ghana to enter their own submission deadlines Module Leader (University of Salford): Dr Adrian Monaghan NB – students at Robert Kennedy College / Pentecost Ghana must contact their own module tutors regarding any queries about this assignment or its submission; please do not contact Dr Adrian Monaghan. How to submit: You must submit your report via Turnitin. Assessment task details and instructions You must structure your report in the same order as the weighted assignment tasks set out below. Word count The word count for the report is 2000 words (+ / – 10%); NB Task 1 is not included in the word count. The word count also excludes the following: – cover page – contents page – references – tables – diagrams – appendices Abstracts / executive summaries are not required and will not be marked if included. Assessment Information/Brief 1 BACKGROUND SEAT, S.A. is a Spanish automobile manufacturer with its head office in Martorell (near Barcelona), Spain. The firm has been a wholly-owned subsidiary of Volkswagen Group since 1986. The firm is strategically repositioning itself from a vehicle manufacturer to a provider of mobility services (i.e. where users pay for transportation only when they need it, rather than owning a personal vehicle that is not used most of the time), especially in increasingly crowded urban areas. As stated by Luca De Meo, the firm’s Chairman: “We are convinced that vehicles will become the second largest connected platform after the mobile phone and we will have the chance to integrate them into a rich ecosystem. This transformation forces us to innovate and move beyond the scope of being just a carmaker, stretching our value chain towards new mobility services, platforms and data businesses”. As part of this repositioning, SEAT has identified ‘compact urban mobility’ (short commutes less than 10 kilometres within the city environment, using a small vehicle) as a core area for strategic development. The firm unveiled its ‘Minimό’ concept vehicle at the 2019 Mobile World Congress to demonstrate SEAT’s vision of the ‘compact urban mobility’ of tomorrow. Integrating the fields of electrification, connectivity and shared mobility the ‘Minimό’ is a 2passenger quadricycle primarily intended for

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