MGMT 497 Exam 2 Review Solved





  1. Today’s environmental scanning is not limited to domestic industry landscape–rather it has been already a global competition. Please provide your definition of global economic world. Discuss the strategic reasons for globalization of a business and value chain activities. And do you agree with the argument, “The World isn’t Flat.”? Why?
  2. There are three types of global competitive strategy: Global, Multi-domestic, and Transnational strategy. Discuss advantages and disadvantages associated with multi-domestic strategy. Provide your suggestions on the managerial considerations (e.g., organizational structure, control systems, coordinating mechanisms, etc.) for successful implementation of the multi-domestic strategy.
  3. Discuss how the need for control over foreign operations varies with the strategy (e.g., global standardization vs. localization) and distinctive competencies of a company. What are the implications of this relationship for the choice of entry mode?
  4. Why was it profitable for GM and Ford to integrate backward into component-parts manufacturing in the past, and why are both companies now buying more of their parts from outside suppliers? What value creation activities should a company outsource to independent suppliers? What are the risks involved in outsourcing these activities?
  5. What steps would you recommend that a company take to build mutually beneficial, long-term, cooperative relationships with its suppliers?
  6. When is a company likely to choose (a) related diversification and (b) unrelated diversification?
  7. How can related diversification create a competitive advantage for the firm? What challenges might firms confront in achieving competitive advantages through related diversification strategy?
  8. What factors make it most likely that (a) acquisitions or (b) internal new venturing will be the preferred method to enter a new industry?
  9. Imagine that Amazon has decided to diversify into the food delivery services. What method would you recommend that Amazon pursue to enter this industry? Why?
  10. What kind of companies stand to gain the most from entering into strategic alliances? Discuss ways to increase the success rate with the strategic alliances.
  11. How might a company configure its corporate governance systems and its strategy-making processes to reduce the probability that managers will pursue their own self-interest (agency behavior) at the expense of stockholders?
  12. In a public corporation, should the CEO of the company also be allowed to be the chairman of the board (as allowed for by the current law)? What problems might this present?
  13. What is the relationship among organizational structure, control systems, incentives, and culture? Give some examples of when and under what conditions a mismatch among these components might arise?
  14. How would you design structure, controls, incentives, processes, and culture to encourage entrepreneurship in a large, established corporation? How might the desire to encourage entrepreneurship influence your hiring and management strategy?