Questions and Answers of International Management

4. Which other value-oriented approaches except EVA exist? List their advantages and disadvantages.
3. This case study highlights the usage of economic value added (EVA) as a measure in value-based management. Explain why traditional account ing measures like earnings or earnings growth are
2. The shareholder value is established in Henkel’s vision and values. Which other areas are affected by this approach?
1. Henkel heavily emphasises the shareholder value concept. Compare and discuss the shareholder value approach with the alternative concept known as the “stakeholder approach”.
3. What main international challenges faced by People Operations can you identify?
2. Can you recommend Google any strategies to ensure top talent retention worldwide?
1. What are the challenges Google faces in managing a globally diverse top talent workforce?
4. Nestlé has been subject to several negative campaigns (so-called “shitstorms”) that highlighted unethical behaviour by the company. What strategy did the company apply to deal with these
3. Which pricing strategies are best suited to Nestlé’s global brands? Which are most suitable for their local brands?
2. Discuss the advantages of Nestlé’s combination of local and global brands in its international brand portfolio.
1. Identify the strengths of Nestlé’s “glocal” marketing approach.
3. Compare the R&D structure of Sanofi with that of Novartis and Pfizer.Analyse the main differences
2. Explain the concept of “open innovation” and envisage how it could be applied by Sanofi.
1. Collaboration is increasingly important for the pharma industry. Describe the advantages and disadvantages of collaboration across the pharma industry.
3. Which processes and organisational structures are important for creating new subsidiaries in foreign countries?
2. Does the sequence of ThyssenKrupp’s strategy of international expansion follow the theoretical concept of psychic distance?
1. List the potential advantages and disadvantages of greenfield investments and M&As and evaluate ThyssenKrupp’s current situation.
2. Ultimately the alliance between Danone and Coca-Cola can be seen as a strategic misfit. Illustrate the importance of trust, strategy and cultural fit for such international cooperation.
1. The decision-making process behind the selection of alliances and partners can be complex and challenging. Describe the major risks and opportunities of international alliances using an example
3. Discuss the advantages and disadvantages of the collaboration between Google and Foxconn.
2. Foxconn wants to set up plants in the United States, reversing the offshoring trend of the last 20 years. Does this shift make sense, and what will it mean for Foxconn, its competitors and the
1. Foxconn is the main contract manufacturing firm for many huge companies in the field of consumer electronics. Discuss the advantages and disadvantages outsourcing brings to outsourcing companies,
3. Exporting is usually the first step for foreign operations, and Herrenknecht was no exception. Analyse and describe why nowadays the company not only exports its products from its headquarters in
2. Although the hidden champion concept is attracting increasing attention all over the world, its prevalence in Germany suggests it as a German phenomenon. Describe the hidden champion concept,
1. Herrenknecht uses different methods to sell its products to foreign countries. Describe the different distribution channels and discuss why the specific channels are applied. What are the main
3. Within its business development and brand strategy, AB InBev structures its brands in three categories. Explain the chosen structure and speculate why the selected brands are in these categories.
2. AB InBev enters foreign markets with different operation modes. Try to explain the choice of a specific operation mode based on market conditions and the importance of the market in AB InBev’s
1. Explain the basic types of foreign operation modes that a brewer can choose when pursuing the international expansion of its business operations.
3. How is “Performance based on Sustainability” implemented at the international level by Coop? Provide and explain three examples.
2. Take a closer look at Coop’s various international CSR initiatives. What are the success factors?
1. How can companies generate competitive advantages in international markets by implementing a business strategy which focuses on sustainability and responsibility? Provide reasons for your answer.
3. Due to the unbearable working conditions at Apple’s supplier Foxconn, several Foxconn employees died in 2010. Evaluate the possible image damage Apple may face because of this incident.
2. How important was Steve Jobs to Apple’s success, and how different is the vision of the company under CEO Tim Cook?
1. Explain and illustrate Steve Jobs’ “digital hub” strategy.
3. As a listed, Multinational Corporation in the IT sector, Microsoft is continuously striving to grow. Accordingly, numerous other companies were acquired during the last three decades. Describe the
2. Microsoft’s overall organisational structure is described as a functional one. What are the important advantages and disadvantages for the Microsoft Corporation that result from this shift in
1. Microsoft Corporation fundamentally changed its organisational structure in 2013, from a divisional to a functional structure. What potential problems can accompany organisational changes of this
3. Why do recruiting and personnel management play such a central role in the McKinsey’s management? What is the employee’s role in implementing the formal and informal coordination mechanisms.
2. What role do partners play in coordinating the regional entities of the company?
1. What is the one-firm principle? What are the advantages and disadvantages of this strategy? (Discuss the company’s owner structure and the role of decentralisation in the organisation of the
3. Although the Russian political system has undergone a lot of changes, especially in the balance of power, the Russian population is satisfied as never before with their social, political and
2. Surveys show that foreign companies identify corruption and costs of bureaucracy as the main barriers for business in Russia. How do the Russian culture and mentality influence these barriers and
1. Imagine that the import tariff and ban of imports may lead to a compartmentalisation of the Russian economy, even though Russia is a member of the World Trade Organization. What consequences may
3. Discuss the advantages and disadvantages of cluster location for the participating companies. Reflect on the consequences of a London location for the resident businesses.
2. Describe the influence of clusters on innovation with regard to the different types of organisation and cooperation of clusters.
1. What are the conditions for cluster formation in general? Elaborate in this context on the diamond model of Porter. Analyse the proposal of several researchers (e.g. Dunning 1993;
3. Define different types of market barriers and show their effect on the market entry mode. Explain different strategies a company can use to deal with entry barriers in the context of the
2. Compare the possibility of relocating a production facility to Mexico with the advantages and disadvantages an automotive manufacturer could have shifting its production to the ASEAN region.
1. Mazda and other carmakers use Mexico as a production country. Summarise the advantages that accrued for the Mexican automotive industry through the country’s access to the NAFTA. Except the
3. Think of the roles played by the different Tata Group companies that developed in the home market until 1990. Illustrate the effect of political environment on the company’s history and discuss
2. Why did the internationalisation of the Tata Group take place in the 1990s? How would you describe Tata’s internationalisation processes?What are the advantages and disadvantages of these
1. How has the history of the Tata Group up to the 1990s affected the expansions starting in 1991?
3. How do you evaluate SAP’s desire to move their base of operations to the United States?
2. Do you see any differences between the diverse types of activities that SAP performs in its host countries? Do motives differ by country or region?
1. What are the main motives for internationalisation that you can identify by analysing SAP’s internationalisation strategy?
3. This Chapter described selected role typologies and the general idea behind role typologies was explained. Which dimensions would you consider the most relevant for the categorisation of
2. Considering the product inflows and product outflows of foreign subsidiaries, try to categorise some of Walmart’s subsidiaries in this matrix. Discuss which problems arise when carrying out this
1. Walmart internationalised very quickly over the last two decades. Considering the so-called “psychic distance chain” of the internationalisation process model, would you argue that Walmart
3. Evaluate the strategic I/R-orientation of different multinational consumer goods’ producers. To what degree are activities different to retailers?
2. Compare Louis Vuitton´s strategy with Fressnapf´s strategy, regarding the I/R-framework. What are the main conflicts for retailers using a strict interpretation of the characterised orientations?
1. Describe the main critics of the I/R-framework.
1. The case study reveals the value added for the divisions. Calculate the value added for the whole group for 2009.
3. Reintegration or re-entry describes the ending of a temporary assignment abroad e.g. the return of an expatriate. What kind of problems may appear and how can a company avoid or soften these
2. How could Unilever accompany its employees more intensively? Arrange a plan of the first steps for how you would prepare staff for a temporary employment assignment abroad.
1. What kind of accompanying measures in the context of international resource management are often used in general by internationally-active companies and how can companies support expatriates in
3. A major pillar of a luxury goods manufacturer is the distribution of its produets. Study Montblanc's strategy and discuss benefits and eaveats.
2. Considering the promotional strategy, investigate one of Richemont's Maisons in detail. Discuss eritieally whether a loeal adaptation of advertisements - e.g. eonsidering eolours, fonts,
1. Considering the product and pnemg strategy, investigate two of Richemont's Maisons in detail. Discuss eritieally whether a loeal adaptation of products might be a good strategy for the future,
4. Why has Danone been so successful in recent years even if it invests only a small percentage of its turnover in R&D activities?
3. What are the steps taken by Danone to promote innovation?
2. Could Danone organise its R&D activities in a different way? Use the five concepts of international R&D organisation and discuss the advantages and disadvantages of Danone's current research &
1. Have a look at the R&D strategy of Nestle. Are there differences to Danone? How does Nestleorganise its R&D?
3. Describe, compare and try to explain the development patterns of net sales and employees (in % of the total net sales and the total number of employees) in the last decade in the foHowing regions:
2. By relocating production to low-cost countries as well as by reducing the number of plants, the company expects to save production costs, among other advantages. What (short-term and long-term)
1. One objective of Elecirolux's recent restructuring programmes was to decrease the number of plants and to foHow the trend to global platforms . Moreover, Electrolux wanted to foeus on the
3. Compare the expansion strategies of Nestle and Danone and point out which processes and organisational structures are important to create new subsidiaries in foreign countries.
2 Analyse the ice cream market in Canada and illustrate what kind of synergy effects the acquisition of Ault had for Nestle.
1. Differentiate mergers and acquisitions from wholly-owned subsidiaries and illustrate the advantages and disadvantages of these growth strategies.
3. Compare strategie alliances in the airline industry to mergers and acquisitions. What are the different types of M&As and how probable do you estimate the emergence of airline M&As in the future?
2. Airline alliances can be systemised in terms of their degree of integration. Compare the three major airline alliances by pointing out their regional strengths and weaknesses and also by ranking
1. When the first airline alliance, Star Alliance, commenced in May 1997, scepticism was high. How do you evaluate the overall success of alliances in the airline industry? What are the main internal
3. How can Wipro best respond to the four major challenges mentioned in the case study?
2. Imagine you work for an American insurance company that plans to outsource its IT operations. Think of potential problems/challenges that are associated with this decision.
1. Apart from the cost advantage, what makes Indian IT companies, and Wipro in particu1ar, so attractive as an outsourcing partner for IT services?
3. Provide an overview of the tremendous expansion of the Accor business.Furthermore, pay special attention to the accompanying market entry strategies and modes.
2. To implement optimal strategie market entries Accor formulated a new business model for its hotel division whereby the asset-right strategy was the cornerstone. Describe the objectives of the new
1. Explain the basie types of strategie market operation modes a hotel company can pursue when it is considering an international expansion of its business operations.
3. Goodyear is operating in a large number of countries all over the globe. What particular chaIlenges do MNCs face concerning their CSR activities? How does Goodyear accommodate the different
2. Goodyear is headquartered in the USA with Europe as its second largest regional market. How does the understanding of CSR differ between North America and Europe? What impact can these different
1. In September 1970, the New York Times Magazine published an article by the economist Milton Friedman titled, "The Social Responsibility of Business is to Increase its Profits". Discuss Friedman's
5. How does Virgin encourage its staff to work with as much ambition and engagement as they do. Look for microeconomic theory and explain the method. Propose new instruments Virgin could use to
4. Find out more about the several divisions of Virgin. Have businesses failed? Ifso, explain why!
3. Have a look at the human resource management at Virgin. What are the success factors?
2. Explain the organisational structure of the Virgin Group.
1. Show the business activities of the different Virgin companies in detail and discuss how far these activities create synergy effects.
3. Deutsche Post DHL changed its organisational structure frequently from 1998 to 2009. What are potential problems that can accompany organisstional changes of this kind
2. The express division of Deutsche Post DHL is segmented into different regions (Figure 9.10). What are important advantages and disadvantages for Deutsche PostDHLthat result from this
1. With the start of its international expansion in 1997/1998, Deutsche Post DHL faced some crucial questions regarding the integration of the acquired companies and the overall coordination of the
3. The driving force behind the corporate culture of the Würth Group has always been Reinhold Würth. Würth left his operative function in the company in 1994. Discuss critically how the corporate
2. According to Martinez/Jarillo 1989, informal coordination mechanisms are best suited to cope with complex strategies. What are potential disadvantages or risks that are associated with informal

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