Magna International Inc. (Canada)

Description

You are assigned a multinational enterprise to study for this individual assignment. Analyse the international business strategy and financial management the assigned firm. Support your answers with well-explained, well-analysed, specific, relevant, real hard facts, data and examples. Magna International Inc. (Canada) Answer all the following five questions: Read the assigned firm’s annual reports for the five-year period (2015-2019). Present and calculate sales data (also called revenues/turnover) by regions (in absolute values and in percentage of sales of each region over total sales) as reported by the firm for each year for the five-year period (2015-2019). Present and calculate home sales to total sales (HOMES/TS), rest of home region sales to total sales (ROR/TS), total regional sales to total sales (RS/TS) and rest of world sales to total sales (ROWS/TS) (in absolute values and in percentage) for each year for the five-year period (2015-2019). Identify and explain the strategy of the firm (i.e. whether it pursues a global, bi-region oriented, host-region oriented, or home-region oriented strategy). Discuss the strategy that the firm likely pursues in the next five years. Using the relevant theories of the module that you have learned, analyse whether or not the home country is a source of country-specific advantages (CSAs) for the firm. If the home country is not source of CSAs, does the firm rely on the CSAs of other host countries? If so, detail your analysis and explain. Use specific, well-explained and well-analysed examples/ facts/ data to support your analysis. Is the firm’s strategy based on firm-specific advantages (FSAs)? If so, which ones are those FSAs and how are they built and what are the natures of these FSAs? Use the relevant theories of the module to analyse the FSAs and provide two specific, well-explained and well-analysed examples for each type of FSAs that you identify. Which type of Porter’s generic strategies does the firm follow and how does it compare to its most important competitors in the industry? Detail your analysis and explain. Support your answer with two specific, well-explained and well-analysed examples. Critically analyse all the major financing sources of the firm for each year of the five-year period (2015-2019) in absolute values and in percentage of each of these financing sources over total assets. What are the foreign exchange hedging techniques/ foreign exchange management techniques that the firm has used during the five-year period (2015-2019)? Support your answer with specific, well- explained data and examples from the firm’s annual reports.