Short Answer Questions

AAA. Chapter # Six of the Course Textbook – Strengthening a Company’s
Competitive Position: Strategic Moves, Timing, and Scope of Operations:

1. Refer to illustration Capsule 6.4 on page # 163 of the textbook in which it is described how Kaiser Permanente has made vertical integration a central part of its strategy and answer the following:

(a) What value chain segments has Kaiser Permanente chosen to enter and perform internally?

(b) How has vertical integration aided Kaiser Permanente in building competitive advantage?

(c) How has vertical integration strengthened Kaiser Permanente market position?

2. Out of your chosen company from the two case-studies, pick up one company, either American Express or Ferrari and answer the following:

(i) Has your company relied more on offensive or defensive strategies to achieve your rank in the industry?
(ii) What options for being a first mover does your company have?
(iii) Do any of these first mover options hold competitive advantage potential? Why and why not?
(iv) Is your company vertically integrated? Explain.

BBB Chapter # Seven of the Course Textbook – Strategies for Competing in International Markets:

1. Assume you are in-charge of developing the strategy for an international company selling products to some 50 different countries around the world. One of the issues you have is whether to employ a:
(i) Multi-Domestic Strategy
(ii) A Global Strategy or a
(iii) Transnational Strategy.

(a) If your company’s product is mobile phones, which of the above three strategies you think will make better sense to employ and why?

(b) If your company’s product is dry soup mixes and canned soups, would a multi-domestic strategy seem to be more advisable than a global strategy or a transnational strategy? Why and why not?

(c) If your company’s product is large home appliances such as washing machines, refrigerators and ovens etc. would it seem to make more sense to pursue a multi-domestic strategy, global strategy or transnational strategy? Why and why not?

2. Assume you are the CEO of an on-line retailer looking to expand your services into developing- country markets. Much of the success of your business model depends on the ability to ship items quickly and without delays as well as provide unrivaled customer service.
(i) What concerns might you have entering a developing-country market given your business model?
(ii) What should be the necessary conditions for your business to succeed and why?

CCC Chapter # Eight of the Course Textbook – Corporate Strategy: Diversifications and the Multi-business Company:

1. Refer to illustration Capsule 8.2 on page # 247 of the textbook in which growth through restructuring has been highlighted at Kraft Foods.

(a) How Kraft Foods has been pursuing long-term growth and increased shareholders value by restructuring its operations?
(b) What special circumstances prompted Kraft Foods to restructure its operations? Did it prove to be successful? Why or Why not?
(c) Over the past decade, why has corporate restructuring become a popular strategy at many diversified companies especially those that had diversified broadly into many different industries and lines of business including Kraft Foods? Can you highlight the names of at least three companies in this context beside Kraft Foods?

2. Out of your chosen company from the two case-studies, pick up one company, either American Express or Ferrari and answer the following:
(i) In the event that your company has the opportunity to diversify into other products or businesses of your choosing, would you opt to pursue related diversification, unrelated diversification or a combination of both. Why and Why not?
(ii) What specific resources and capabilities does your company possess that would make diversification into related businesses attractive? Indicate what kinds of strategic fit benefits could be captured by transferring these resources and competitive capabilities to the newly acquired related businesses?
(iii) If your company opted to pursue a strategy of related diversification, what industries or product categories could it diversify into that will allow it to achieve economies of scale? Name at least three such industries or product categories and indicate the specific kinds of cost savings that might accrue from entry into each.
(iv) If your company opted to pursue a strategy of unrelated diversification, what industries or product categories could it diversify into that will allow it to capitalize on using its present brand name and corporate image to good advantage in the newly entered businesses or product categories? Name at least three such industries or product categories and indicate the specific benefits that might be captured by transferring your company’s umbrella brand name to each.