Chapter Discussion Questions
- Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances?
- Why are there an increasing number of mergers with companies in different industries? Give some examples. What industry do you think will be the next for global consolidation?
- Discuss the problems inherent in developing a cooperative alliance in order to enhance competitive advantage while incurring the risk of developing a new competitor.
- What are the common sources of incompatibility in cross-border alliances? What can be done in order to minimize them?
- Explain what is necessary for companies to successfully implement a global sourcing strategy.
- Discuss the political and economic situation in the Russia Federation with your class. What has changed since this writing? What are the implications for foreign companies to start a joint venture there now?
- What is involved in strategic implementation? What is meant by “creating a system of fits’ ”with the strategic plan?
- Explain how the host government may affect strategic implementation—in an alliance or another form of entry strategy.
- How might the variable of national culture affect strategic implementation? Use the Mittal Steel example to highlight some of these factors.
- Discuss the importance of knowledge management in IVJs and what can be done to enhance effectiveness of that process.