Discuss the strategic reasons for globalization of a business and value chain activities.
Today’s environmental scanning is not limited to domestic industry landscape–rather it has
been already a global competition. Please provide your definition of global economic world.
Discuss the strategic reasons for globalization of a business and value chain activities. And do
you agree with the argument, “The World isn’t Flat.”? Why?
2. There are three types of global competitive strategy: Global, Multi-domestic, and Transnational
strategy. Discuss advantages and disadvantages associated with global standardization strategy.
Provide your suggestions on the managerial considerations (e.g., organizational structure,
control systems, coordinating mechanisms, etc.) for successful implementation of the multi-
domestic strategy.
3. Discuss how the need for control over foreign operations varies with the strategy (e.g., global
standardization vs. localization) and distinctive competencies of a company. What are the
implications of this relationship for the choice of entry mode?
4. Why was it profitable for GM and Ford to integrate backward into component-parts
manufacturing in the past, and why are both companies now buying more of their parts from
outside suppliers? What value creation activities should a company outsource to independent
suppliers? What are the risks involved in outsourcing these activities?
5. What steps would you recommend that a company take to build mutually beneficial, long-term,
cooperative relationships with its suppliers?
6. When is a company likely to choose (a) related diversification and (b) unrelated diversification?
7. How can related diversification create a competitive advantage for the firm? What challenges
might firms confront in achieving competitive advantages through related diversification
strategy?
8. What factors make it most likely that (a) acquisitions or (b) internal new venturing will be the
preferred method to enter a new industry?
9. Imagine that Amazon has decided to diversify into the food delivery services. What method
would you recommend that Amazon pursue to enter this industry? Why?
10. What kind of companies stand to gain the most from entering into strategic alliances? Discuss
ways to increase the success rate with the strategic alliances.
11. How might a company configure its corporate governance systems and its strategy-making
processes to reduce the probability that managers will pursue their own self-interest (agency
behavior) at the expense of stockholders?
12. In a public corporation, should the CEO of the company also be allowed to be the chairman of
the board (as allowed for by the current law)? What problems might this present?
13. What is the relationship among organizational structure, control systems, incentives, and
culture? Give some examples of when and under what conditions a mismatch among these
components might arise?
14. How would you design structure, controls, incentives, processes, and culture to encourage
entrepreneurship in a large, established corporation? How might the desire to encourage
entrepreneurship influence your hiring and management strategy
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