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business
strategic management concepts and cases

Questions and Answers of Strategic Management Concepts And Cases

Understand the social responsibility of global firms in maintaining appropriate practices with regard to child labor, human rights and labor conditions
Understand the causes and effects of corruption in business and the role that a global company can play in fighting corruption
Understand the many aspects of global citizenship
Understand the role of codes of conduct and of global non-governmental organizations (NGOs)?
1 What options does Jack have in this situation?
2 What do you think that he should do?
1 Imagine you are a socially responsible Shell shareholder. What is your view on the issue?
2 Shell has been criticized over environmental concerns and human rights in Africa, Europe and USA.What can an energy company do to answer such criticisms?
1 What benefits does a global corporation such as Etisalat draw from its philanthropic activities?
2 In financing these philanthropic activities, and in choosing which ones to support, does a global corporation run the risk of being seen as a substitute for the local government? If so, what are
1 What are the main causes of corruption?
2 What corrupt practices involving global firms have you heard of ?
3 What dilemma may a country manager face when confronted by a request to solicit a bribe to obtain a major contract?
4 What policies should a global firm implement to prevent corrupt practices?
5 How can corporate policies be designed to contribute to the protection of the global environment?
6 What should the country managers do if a local supplier in a developing country is employing 12-year-old laborers?
7 Should a global company pull out of, or avoid investing in, a country well known for human rights abuses by its military rulers?
8 Draw a global ethical web for a pharmaceutical company engaged in anti-HIV drug production.
9 What are SRI funds? Select an SRI fund and track its performance as compared to the general evolution of the stock market.
Identify a global strategy by breaking down all its elements
Contribute meaningfully to the formulation of a global strategy
Describe a global business system
Identify the sources of competitive advantages in a given company?
1 The bank defines its businesses as ‘global’. What is your opinion of this definition? Are all the businesses really global? What are the implications for decision making?
2 What is your assessment of HSBC’s strategy of focusing on trade corridors?
1 In 2015 the global distribution of sales in the life insurance industry was the following:Global life insurance Americas Europe Asia and Rest of the World 26% 36% 38%
3 What could be the benefits of positioning oneself as a standardized global niche differentiator (see Table 5.3)? What kind of competitive advantages does it require?
5 What are the ways to sustain competitive advantage?
7 Can you sketch the mapping of the value chain for:a A consulting firm b An airline c A trading firm d A corporate and investment bank?8 For each of the entities in Question 7, can you represent a
Organize a complete assessment of market opportunities and industry structure in a country
Understand and value various types of risks involved in operating in a country
Compare different countries as investment opportunities?
2 What is the ‘middle-class effect’?
3 What determines the quality of demand?
Complete a full analysis of various entry alternatives
Assess the advantages and disadvantages of alternative entry strategies in a real-life situation
Conduct a financial analysis of alternatives
Why does the company want to enter the country?
When is it appropriate to enter?
How can it enter?
1 What is the return for Lubricador in each option?
2 Beyond the return, what are the advantages and disadvantages of each option?
3 Which option would you select and why?
1 Discuss the pros and cons of all three alternatives open to Schneider.
2 Considering the third alternative, what method do you recommend: ally or acquire?
3 Once you have selected one alternative, how do you recommend this be implemented?
2 What is a ‘window of opportunity’?
4 What are the major problems associated with licensing?
6 Why do joint ventures often fail?
Define globalization from a macro environment perspective
Identify the forces pushing towards globalization and the forces pushing for localization
Define what globalization means for firms
Identify the various steps of globalization for firms
Make a distinction between multinational and global firms
Spell out the benefits and pitfalls of globalization
Position an industry or a business on the global/multi-local mapping?
1 Using your knowledge, the data provided and the global/multi-local mapping, can you decide whether mobile telephony is a global industry?
2 Can you do the analysis for each component of the industry?
3 For mobile operators, which activities are global and which are local?
2 In Figure 1.8, why are saving accounts positioned low on global approach and high on local approach while investment banking is high on global approach and low on local approach?
3 In Figure 1.8, food retailing is positioned as a local business, with a very low globalization score.However, in the press, companies like Tesco, Walmart or Carrefour are described as ‘global
5 What are the benefits of having a local approach?
6 When the Otis Elevator Company introduced the change described in Example 1.1 (p. 14), there was a lot of resistance from the various heads of the European subsidiaries. Why? What arguments do you
Understand the characteristics of emerging countries
Identify the market and outsourcing opportunities they offer to global firms
Understand the strategic development of competitors coming from emerging countries
1 How do you account for the success of BYD?
2 Given what you know of the global car industry, do you think that BYD is on course to realize Wang’s dream of becoming the No. 1 global player? What elements are in its favor? What elements may
2 Why does a growing middle class contribute to growth?
Define globalization from a macro environment perspective
Identify the forces pushing towards globalization and the forces pushing for localization
Define what globalization means for firms
Identify the various steps of globalization for firms
Make a distinction between multinational and global firms
Spell out the benefits and pitfalls of globalization
Position an industry or a business on the global/multi-local mapping?
1 Using your knowledge, the data provided and the global/multi-local mapping, can you decide whether mobile telephony is a global industry?
2 Can you do the analysis for each component of the industry?
3 For mobile operators, which activities are global and which are local?Among the enterprises that you know, can you identify one that qualifies as a global company? Why?
2 In Figure 1.8, why are saving accounts positioned low on global approach and high on local approach while investment banking is high on global approach and low on local approach?
3 In Figure 1.8, food retailing is positioned as a local business, with a very low globalization score.However, in the press, companies like Tesco, Walmart or Carrefour are described as ‘global
5 What are the benefits of having a local approach?
6 When the Otis Elevator Company introduced the change described in Example 1.1 (p. 14), there was a lot of resistance from the various heads of the European subsidiaries. Why? What arguments do you
Understand the characteristics of emerging countries
Identify the market and outsourcing opportunities they offer to global firms
Understand the strategic development of competitors coming from emerging countries?
Fiscal discipline: limit budget deficit
Public expenditure priorities should be directed toward fields offering both high economic returns and the potential to improve income distribution, such as primary healthcare, primary education, and
Tax reform: broaden the tax base and adopt lower marginal rates; tax foreign holdings
Interest rate should be market determined
Maintain a competitive exchange rate
Trade liberalization: eliminate quantitative restrictions and replace by low tariffs
Liberalize inflow of foreign direct investment
Privatization of state enterprises
Deregulate to abolish entry barriers or restrictions on competition
Secure property rights
1 How do you account for the success of BYD?
2 Given what you know of the global car industry, do you think that BYD is on course to realize Wang’s dream of becoming the No. 1 global player? What elements are in its favor? What elements may
2 ‘Emerging countries’ describes countries that exhibit:a High economic growth b The increasing development of a middle class c A high degree of infrastructure and educational investment d A
3 Four categories of emerging countries fulfil those requirements:a The emerging giants: Brazil, Russia, India, China, South Africa (BRICS)b The Eastern European ex-communist countries (transition

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