Ch$8$ Review Questions $($Hill$)$

$1.$ Plot the position of the following companies on Figure $8\mathrm{.}3$: Microsoft, Google, Coca$-$Cola, Dow Chemicals, Pfizer, and McDonald$$s$.$ In each case, justify your answer.

$2.$ Are the following global standardization industries, or industries where localization is more important: bulk chemicals, pharmaceuticals, branded food products, moviemaking, television manufacture, personal computers, airline travel, fashion retailing?

$3.$ Discuss how the need for control over foreign operations varies with the strategy and distinctive competencies of a company. What are the implications of this relationship for the choice of entry mode?

$4.$ Licensing proprietary technology to foreign competitors is the best way to give up a company$$s competitive advantage. Discuss.

$5.$ What kind of companies stand to gain the most from entering into strategic alliances with potential competitors? Why?

$6.$ Reread Strategy in Action $8\mathrm{.}1$ on how the iPhone is made, and then answer the following questions:

a$)$ What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the potential costs and risks to Apple?

b$)$ In addition to Apple, who else benefits from Apple$$s decision to outsource assembly to China? Who are the potential losers here?

c$)$ What are the potential ethical problems associated with outsourcing assembly jobs to Foxconn in China? How might Apple deal with these?

d$)$ On balance, do you think that the kind of outsourcing undertaken by Apple is a good thing or a bad thing for the American economy? Explain your reasoning.

e$)$ How can a company like Apple, with a global supply chain, hedge against the risks of significant supply chain disruptions due to the SARS virus that appeared in $2003$ or the COVID$-19$ virus that appeared in $2019?$