Description
- 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?
- 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.
- 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?
- 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?
- What steps would you recommend that a company take to build mutually beneficial, long-term, cooperative relationships with its suppliers?
- When is a company likely to choose (a) related diversification and (b) unrelated diversification?
- How can related diversification create a competitive advantage for the firm? What challenges might firms confront in achieving competitive advantages through related diversification strategy?
- What factors make it most likely that (a) acquisitions or (b) internal new venturing will be the preferred method to enter a new industry?
- 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?
- 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.
- 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?
- 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?
- 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?
- 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?