Weekly Review Quiz As of 2009-02-26 s3

Weekly Review Quiz as of 2009-07-16 Strategic Management

China Sees Opel as Global Step Stone by Norihiko Shirouzu 07/13/2009 http://online.wsj.com/article/SB124740585448328201.html

1. Beijing Automotive's strategic interest in acquiring Opel can, according to the article, best be summed up as

* a) go global to survive domestic consolidation. b) acquire the plum before a rival does. c) get into Europe while getting in is cheap. d) attack rivals in their home markets. e) raise the stakes in the global bidding wars.

2. Opel's owner GM as well as the Opel unions currently prefer a bid by a Russian-backed group led by Canadian auto-parts supplier Magna International because of a) greater cultural similarities. b) the Magna group's willingness to pay mainly in cash. c) the Magna group's credibility to invest in the business. * d) lesser fears involving technology transfer. e) lesser fears involving antitrust issues.

3. Although GM wants to sell a stake in Opel without creating new competition, Beijing Auto might nonetheless be an attractive partner for GM because a) Beijing Auto is technologically much weaker than other Chinese car manufacturers. b) Beijing Auto is already a major competitor anyway. * c) rivals such as Volkswagen and Toyota have two big Chinese auto partners whereas GM only has one. d) Chinese demand for Opel cars could spur demand for GM cars. e) Beijing Auto could be transformed into a major low-cost parts supplier for GM and other GM- owned companies.

A Chinese Upstart Goes After Detroit by Norihiko Shirouzu 07/15/2009 http://online.wsj.com/article/SB124761586630042303.html

4. The interest of Geely in Volvo illustrates that making international acquisitions can be an important strategy for

* a) learning new skills. b) exporting to Europe. c) gaining brand notoriety. d) dispelling prejudices about companies from developing countries. e) dispelling notions that Chinese firms are parochial. 5. Geely's proposed post-merger integration strategy is to a) merge the firms but keep the brands separate. b) merge the firms but move the firm's headquarters to Sweden. c) keep the firms entirely separate for the medium term. d) keep the firms separate but merge the supply chains and vehicle platforms. * e) keep the firms separate but supply some lower-cost labor to Volvo.