Chapter Discussion Questions

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  1. Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances?
  2. 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?
  3. Discuss the problems inherent in developing a cooperative alliance in order to enhance competitive advantage while incurring the risk of developing a new competitor.
  4. What are the common sources of incompatibility in cross-border alliances? What can be done in order to minimize them?
  5. Explain what is necessary for companies to successfully implement a global sourcing strategy.
  6. 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?
  7. What is involved in strategic implementation? What is meant by “creating a system of fits’ ”with the strategic plan?
  1. Explain how the host government may affect strategic implementation—in an alliance or another form of entry strategy.
  2. How might the variable of national culture affect strategic implementation? Use the Mittal Steel example to highlight some of these factors.
  1. Discuss the importance of knowledge management in IVJs and what can be done to enhance effectiveness of that process.
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