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business
strategy in practice
Global Strategy 2nd Edition Mike W. Peng - Solutions
=+you have been warned by corporate lawyers
=+1. ON ETHICS: As CEO of a US firm, you feel the price war in your industry is killing profits for all firms. However,
=+8. Draw strategic implications for action
=+7. Participate in two leading debates concerning competitive dynamics
=+6. Discuss how local firms fight multinational enterprises (MNEs)
=+5. Identify the drivers for attacks, counterattacks, and signaling
=+4. Outline how antitrust and antidumping laws affect domestic and international competition
=+3. Explain how resources and capabilities influence competitive dynamics
=+2. Understand the industry conditions conducive for cooperation and collusion
=+1. Articulate the “strategy as action” perspective
=+ 4. How does this case inform the debate on alliances versus acquisitions?
=+ 3. In the second JV, have the partners improved their relational capabilities?
=+ 2. In the first JV, did GM and Daewoo have the necessary relational capabilities to make the JV work?
=+1. Are the conditions in the automobile industry facilitating or constraining an alliance strategy?
=+believe that a “learning race” is part and parcel of alliance relationships, especially those with competitors. What do you think?
=+ 3. ON ETHICS: Some argue that engaging in a “learning race” is unethical. Others
=+ 2. ON ETHICS: Firms often do not reveal (and try to hide) their true intentions during courtship and negotiation stages prior to forming strategic alliances and networks. What are the ethical dilemmas here?
=+down their alliance and network activities. Others suggest that this failure rate is not particularly higher than the failure rate of new entrepreneurial start-ups, internal corporate ventures, new products launched by single companies, and M&As. Therefore, such a failure rate is not of grave
=+1. Some argue that at a 30%–70% failure rate (depending on different studies), strategic alliances and networks have a strikingly high failure rate and that firms need to scale
=+7. Draw strategic implications for action
=+6. Participate in three leading debates on alliances and networks
=+5. Identify the drivers behind the performance of alliances and networks
=+4. Gain insights into the evolution of alliances and networks
=+3. Understand the decision processes behind the formation of alliances and networks
=+2. Articulate a comprehensive model of strategic alliances and networks
=+1. Define strategic alliances and networks
=+would be your recommended modes of entry if you were the CEO of Carrefour, Metro, Tesco, or Woolworths?
=+ 4. Assuming a positive answer on Question 3, what
=+ 3. As an Indian government official, would you recommend the full-blown opening of the retail sector?
=+overseas and does better in some countries than in others), does it have what it takes to succeed in India?
=+ 2. Given Wal-Mart’s lack of a strong record overseas(it has various “hits and misses” when expanding
=+1. Why is the Indian retail industry so inviting?
=+a firm’s home country. What are the ethical dilemmas here? What are your recommendations as (1) MNE executives, (2) labor union leaders of your domestic(home country) labor forces, (3) host country officials, and (4) home country officials?
=+ 3. ON ETHICS: Entering foreign markets, by definition, means not investing in
=+MNEs from emerging economies interested in expanding overseas. How can such firms overcome them?
=+ 2. From institution- and resource-based views, identify the obstacles confronting
=+NAFTA membership, and (3) abundant, low-cost, and high-quality labor. None of these has changed much. Yet, by the 15th anniversary of NAFTA (2009), there is a significant movement for MNEs to curtail operations in Mexico and move to China. Why?
=+operations in Mexico, tapping into its location-specific advantages such as (1) proximity to the world’s largest economy, (2) market-opening policies associated with
=+1. During the 1990s, many North American, European, and Asian MNEs set up
=+7. Draw strategic implications for action
=+6. Participate in three leading debates on foreign market entries
=+5. Follow a decision model that outlines specific steps for foreign market entries (how to enter)
=+4. Compare and contrast first and late mover advantages (when to enter)
=+3. Match the quest for location-specific advantages with strategic goals (where to enter)
=+2. Articulate a comprehensive model of foreign market entries
=+1. Understand the necessity to overcome the liability of foreignness
=+ If you have, what are the differences between MySpace/Facebook and Cyworld?
=+ 4. If you are a current MySpace or Facebook user, have you already visited Cyworld’s site?
=+ 3. What formal or informal institutions may constrain Cyworld’s growth?
=+ 2. What are the unique resources and capabilities that Cyworld can bring to the United States?
=+1. How would you characterize the competition in this industry?
=+which would potentially help millions of patients worldwide who cannot afford the high-priced patented drugs of the Big Pharma (see Chapter 4 Opening Case). How would you respond?
=+products involved are the more affordable generic drugs to combat HIV/AIDS,
=+5. ON ETHICS: Everything is the same as in Question 4, except the “counterfeit”
=+of the equity of the firm. The chances of getting caught are slim. How would you respond to his proposition?
=+He offers you the job of CEO and 10%
=+4. ON ETHICS: Your former high school buddy invites you to join a start-up that specializes in making counterfeit products.
=+If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not?
=+Others argue that foreign markets represent the future for SMEs.
=+ 3. Some suggest that foreign markets are graveyards for entrepreneurial firms to overextend themselves.
=+ Why are (most) governments interested in promoting more start-ups?
=+ 2. Given that most entrepreneurial start-ups fail, why do entrepreneurs found so many new firms?
=+1. Why is entrepreneurship most often associated with SMEs, as opposed to larger firms?
=+6. Draw strategic implications for action
=+5. Participate in three leading debates concerning entrepreneurship
=+4. Differentiate international strategies that enter foreign markets and that stay in domestic markets
=+3. Identify five strategies that characterize a growing entrepreneurial firm
=+2. Articulate a comprehensive model of entrepreneurship
=+1. Define entrepreneurship, entrepreneurs, and entrepreneurial firms
=+ 4. Are some of Siemens employees “bad apples” or is Siemens a “bad barrel”?
=+ In addition to fines, what else can be done?
=+ 3. In your view, how heavy should Siemens be fined?
=+ 2. Is the FCPA unnecessarily harsh or do its provisions dispense the appropriate level of punishment?
=+1. What are the costs and benefits of bribery?
=+vclearing your container through customs and it may last a month. However, if you are willing to pay an “expediting fee” of US$200, he will try to make it happen in one day. What are you going to do?
=+ The customs official informs you that there is a delay in
=+ 3. ON ETHICS: Assume you work for a New Zealand company exporting a container of kiwis to Haiti.
=+They suggest that the intensive use of guanxi in China (and elsewhere) is a reflection of the lack of formal institutional frameworks. Which side of the debate would you join? Why?
=+guanxi, such as blat in Russia, guan he in Vietnam, and “old boys’ network” in the English-speaking world.
=+arguing that every culture has a word or two describing what the Chinese call
=+has now entered the English language and is often used in mainstream media (such as the Wall Street Journal) without explanations provided in brackets when describing relationship-based strategies in China. Others disagree,
=+phenomenon embedded in the Chinese culture. As evidence, they point out that this word, guanxi,
=+ 2. Some argue that guanxi (relationships and connections) is a unique Chinese-only
=+ If you were the CEO of a foreign company operating in Kenya, what would be your course of action?
=+your responses during and after the violent turmoil in 2007–2008 (see Strategy in Action 4.1)?
=+1. If you were the CEO of a leading domestic company in Kenya, what would be
=+how would you respond?
=+ 4. If you were the general manager of a rival hotel,
=+3. How organizationally embedded are its capabilities?
=+ 2. How valuable, rare, and hard-to-imitate are its human resources?
=+1. What is the main source behind the Portman Ritz-Carlton’s performance?
=+Do the benefits outweigh the costs?
=+ethical to provide false information on resources and capabilities on corporate websites?
=+ 4. ON ETHICS: Since firms read information posted on competitors’ websites, is it
=+argue against such activities (assuming you are employed at a firm headquartered in a developed economy).
=+ make a case to either defend your firm’s offshoring activities or
=+3. ON ETHICS: Ethical dilemmas associated with offshoring are plenty. Pick one of these dilemmas,
=+where would you invest precious financial resources to make your school number one among its rivals? Why?
=+If you were the dean with a limited budget,
=+reputation (such as rankings), (2) faculty strength, (3) student quality,(4) administrative efficiency, (5) IT, and (6) building maintenance, relative to the top three rival schools.
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