Case Study_Ass 01_BUS303 Ref: Mike Peng, Klaus Meyer XXXXXXXXXXInternational Business, 3rd Edition, Cengage Publication Australia.

10
Business Proposal
Assignment 2
Section1
Internal analysis
It is quite evident that in terms of making the most of Xiaomi’s strengths they need to work on their weaknesses. This thing tends to examine the internal environment for assessing the competencies, resources, as well as the competitive advantages. However, performing an internal analysis will allow a company to identify the weaknesses and strengths of the firm.
Some of the strengths which can make the internal expansion successful such as:
· The level of technology is excellent of this particular company as they always pushes the boundaries of the technology for setting and breaking new records
· They have sufficient financial resources for the present capital such as the firm can smoothly spread its branches in other countries (Dimitriadi, Voronkova, Galazowa, 88)
Some of the weaknesses which can make the internal expansion successful such as:
· This company is also less accustomed with other languages for making this international venture successful
· Xiaomi have lack of information and knowledge about the foreign markets
External analysis
The external analysis will help the firm to identify the policies, economic as well as the social trends which may directly affect the internal expansion where Xiaomi is planning to spread its branches.
The two opportunities of the firm in the external expansion will be:
· Russia has excellent transport system as it is both well-developed along with efficient that will ensure strong supply chain management
· Russia have strong internet facility available for the businesses in various forms and this will help Xiaomi to setup their business in this country perfectly (Hoffman, Munemo, Watson, 102)
The two threats of the firm in the external expansion will be:
· There are some of the technical barriers of trade in Russia that can be one of the most significant threat to Xiaomi
· Appearance of the new products may not be quite popular in Russia so Xiaomi might face some consequences
International SWOT analysis
Strength- The ease of doing business in this country is excellent so the companies from other parts of the globe always try to do business in this country. Russia is also blessed with stable and growing economy as well as they has unified workers.
Weaknesses- If Xiaomi plans to export sales, then it can be said that the delivery time will be much longer than the competitors in Russia can offer. The business policies in this country tend to change every now and then as well as the country is quite corrupted.
Opportunities- Spreading their wings in this country will also eliminate some of their weaknesses such as long delivery, decreasing the price because of eliminating the customs fee and involving the cheaper employees. The workforce of this country is also quite educated.
Threats- Xiaomi might face some cut-throat competition in this particular country, corruption level is high and the common business tactics are unenforceable (Singh, Pattnaik, Gaur, Ketencioglu, 220).
Preliminary assessment
The following are the 5 most vital aspects that this firm has to consider for carrying out this...