Process View on Management
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Process View on Management
Strategy and Internationalisation from a Scandinavian Perspective
Department of Management and Engineering
Course code: 723G17 (7,5 ECTS credits) Spring semester 2011
Written exam Friday 25 February 2010 14-18
Course responsible: Lisa Melander 013-281595
The exam consists of 5 questions with a maximum of 10 points each. It is important that you plan your work well and that you structure your text in a way that makes it easy for the examiner to follow and read. Use the space given for answering the questions. Try to avoid writing on separate sheets of paper. Please also think about your handwriting! We can only give you credit for what is possible to read! English dictionaries are allowed. 50 % is required to pass the exam, final grade depends on total number of points collected from the seminars and the exam. Question 1 (10 points)
1. a) Which are Hofstede’s 5 cultural dimensions: (3p)
1)
2)
3)
4)
5)
b) In the article ”The internationalization process: impact of competition and experience” by Jan-Erik Vahlne& Kjell A. Nordström, they present a matrix model. Explain the steps 1 to 3 according to this model and give example of companies that have taken these steps. (3p) c) Dacia was used to illustrate one step in the model, which? Also, describe Dacia’s situation and what strategy the company could use to succeed in the future. (4p) Question 2 (10 points)
2.
Answer ‘true’ or ‘false’ to the statement. Correct answer = +1, wrong answer = -1, no answer = 0. Minimum score on this question is 0.
Statement True False
1 There exists only one definition for globalization; it is the expansion of the company’s presence abroad.
2 Regulation and national security issues are commercial factors that work against globalization.
3 A regional player has a strong competitive advantage in one of the key regions in the world.
4 The Global Capacity Index represents the distribution of assets or personnel.
5 Green field investments are investments in sustainable products.
6 One of the main advantages with the geographical organization design is its flexibility.
7 The middle class effect is due to the skewed income distribution in the industrialized countries.
8 First mover advantage is a form of competitive advantage that a company earns by being the first to enter a specific market or industry.
9 The beer consumption in Sweden has risen the last 30 years mainly due to the government’s information about the alcohol’s effect on health.
10 In poor countries, the mobile phone has many uses, it can for instance be used to verify if the drug is genuine or a fake. Question 3 (10 points)
3. a) Which are Mintzberg’s five Ps for strategy? Describe them briefly. (5p)
1)
2)
3)
4)
5) b) Porter identified five competitive forces that shape the industry and market. Following are some questions related to the force rivalry. (5p)
1. The concentration ratio (CR) indicates the percentage of market share held by how many of the largest firms? (1p)
______
2. List four competitive moves that the firm can use to pursue a competitive advantage over its rivals. (4p)
1)
2)
3)
4) Question 4 (10 points)
4. a) In M. Porter’s article “The competitive advantage of nations”, the “diamond” is presented. One of the elements is ‘demand conditions’, list three characteristics of demand conditions that are advantageous to a nation that Porter mentions in his article (3p)
1.
2.
3.
b) In M. Porter’s article “Changing patterns of international competition” he gives at least four factors that favours concentrating an activity to one or a few locations, which factors? (4p)
1.
2.
3.
4. c) Calculate the GRI in the following example: (3p)
Distribution of sales Asia Rest of the world Europe North America
Industry 50% 10% 20% 20%
Company A 20% 50% 10% 20%
Cum RX
Cum RX-n
Cum RX + Cum RX-n
Ix* (Cum RX + Cum RX-n)
GRI company A = ______Question 5 (10 points)
5. a) Two of four categories of country risks are ‘operational risks’ and ‘competitive risks’, which are the other two? (2p)
1.
2.
b) List four different operational country risks (4p)
1.
2.
3.
4. c) Explain O’Shaughnesseys’ main critics and reasoning in the article “Michael Porter’s Competitive Advantage revisited” (4p)