CASE STUDY [30 Marks] Renault is a passenger car and light commercial vehicle company. Until the late 1990s it was essentially a regional player with operations mainly concentrated in Europe. In 1999 Renault acquired a controlling equity stake in Nissan automobiles in Japan, and in 2000 in Samsungs car division in Korea. Prior to those acquisitions Renaults organisational design was based on the global functional design in its two divisions: Renault passenger car division and Renault industrial vehicle division. The three major functions of R&D, manufacturing and marketing were driven from the centre. Local subsidiaries were in charge of operational management in the countries. Although technically local subsidiaries were profit centres, most of the parameters contributing to the profitability were set up centrally. Answer ALL the questions in this section. Question 1 (15 Marks) With reference to literature, discuss how the study of international strategy management contributes towards Renault building relationships in the foreign market? Question 2 (15 Marks) If production were to be globally coordinated, discuss if Renault would face a major problem? Justify your response.