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Business operating model

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Imagine that your home country business of factory built modular houses from the previous discussion board has successfully expanded into the international market in two large countries, such as India or China. So far your company has been exporting the modular houses packs by ship and arranging the packs to be delivered by a third party road transport company once the house packs arrive at the destination country port. Furthermore, your company arranges for a local construction company to build the house from the house pack for the client in the destination country.

Your CEO is not sure that this model is sustainable because of the extra burden it is putting on home country staff to manage the third party road transport companies and construction companies across two large countries like India and China. Time differences and language barriers are proving to be an issue.

The CEO has asked you to recommend a better business operating model to adopt for this company.

Discuss: What business operating model you would recommend and provide between two and three reasons why?

The basic business operating models were covered in Week 2, Class 3, however, we have covered many of the topics that influence the different types of risk to MNEs since and you are expected to demonstrate a deeper level of knowledge of reasons to support a particular business model under these circumstances.

You may also want to state whether you think this company should be a cost leader or value differentiator because that will have an influence on the chosen business model

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