1. a) What is a best cost provider strategy? Define. Explain how it is different from a cost leadership strategy (2 points).

b) Illustrate both strategies using a publicly-listed company for each strategy (i.e., 1 company for each strategy)within the same industry. Clearly identify the industry and the 2 companies you are discussing and explain how the companies are executing a best cost provider strategy and a cost leadership strategy? (2 points)

2. a) Assume that the Finnish phone manufacturer, Nokia, sells phones produced in Finland to customers in India. All else constant, if the Indian Rupee (INR) appreciates significantly in relation to the Euro, what impact does it have on the sales of Nokia and Indian phone manufacturers? Explain why (2 points).

b) Provide any one suggestion for reducing the potential negative impact of Euro-INR exchange rate fluctuations on Nokia and explain why this is effective (1 point).

3. a) What is vertical integration? How does the scale of a company's operations affect the vertical integration across value chain activities (2 points)?

b) Provide an example of a publicly-listed company that has vertically integrated across several value chain activities and clearly identify what these value chain activities are (1 point).