Global Strategy 1
What is the production process segmented across countries, with firms or countries specializing in specific tasks to add value at each stage, referred to as?
global value chain
This Asian country imports 100% of its crude oil but built world-class export-oriented refineries—home to companies like GS Caltex, S-Oil, and HD Hyundai—making it the single largest supplier of jet fuel to California.
Korea
What is a formal system of task and reporting relationships referred to as?
Organizational structure
True or False: Netflix’s global strategy does not pay attention to local responsiveness at all.
False
What are two sports the professor has recently taken up?
running and tennis
Which concept explains how countries can benefit from trade by specializing in the production and export of goods they are most efficient at making, while importing those they are less efficient at producing?
Comparative advantage
Modes of foreign-market entry, such as joint ventures and equity alliances, represent which level of strategy?
corporate-level strategy
What is the set of shared, taken-for-granted implicit assumptions that a group holds, which determines how it perceives, thinks about, and reacts to its various environments?
Organizational culture
Which company was Netflix’s main competitor in the DVD-by-mail rental industry in the US market?
Blockbuster
What two countries will the professor visit as part of the study trip class he is teaching after the spring semester?
Korea and Mongolia
Through which mode of foreign-market entry did Starbucks adopt when entering the Indian market?
joint venture
Q. Answer both (a) and (b) below. Show your calculations.
(a) If Korea produces 1 unit of Kimchi, how many units of Nattō does it give up?
(b) If Japan produces 1 unit of Nattō, how many units of Kimchi does it give up?
* Korea: Kimchi – 80 hours / Nattō – 90 hours
* Japan: Kimchi – 120 hours / Nattō – 100 hours
(Note: Assume each country can only produce one good at a time. The numbers above represent the hours required to produce one unit.)
(a) 80 ÷ 90 = 8/9 (≈ 0.89) units of Nattō
(b) 100 ÷ 120 = 5/6 (≈ 0.83) units of Kimchi
Google’s 2015 restructuring resulted in which type of organizational structure?
A multidivisional structure
A manager at Netflix is conducting a Five Forces analysis of the online streaming industry. How would the threat of substitutes be characterized in this context?
Other forms of entertainment that can fulfill the same customer need for leisure and content consumption, such as video games, social media, traditional TV, and even live events.
How many years has the professor worked at LMU?
What does the globalization hypothesis propose about consumer needs and preferences?
Consumer needs and preferences around the world are converging and becoming increasingly homogeneous.
Toyota built fully-owned factories in the U.S. This represents which mode of foreign-market entry?
Greenfield investments
P&G operates with industry-based sector business units and regional divisions. This combination leads to which type of organizational structure?
matrix structure
Describe one key challenge Netflix has faced in its international expansion efforts.
Limited infrastructure in emerging markets (Poor internet connectivity and limited broadband access);
Need for localized content and pricing adjustments
What's the professor's baptismal name?
Martino
Two opposing forces in global competition that form the basis of a firm's global strategy?
cost reduction & local responsiveness
Describe one potential negative aspect of a global value chain
• Over-specialization makes countries vulnerable to global price fluctuations, causing economic instability.
• Developing countries are often limited to lower-value activities, while developed nations focus on high-value tasks, reinforcing economic disparities.
• Offshoring and reliance on low-cost labor markets can lead to the exploitation of local workforces in developing countries, often under poor labor conditions.
Explain at least one reason why Google restructured itself in 2015 by creating Alphabet as a parent holding company and establishing separate strategic business units such as Google, Waymo, and Calico.
• Need for clearer accountability across diverse businesses
• Desire to give experimental ventures greater autonomy
• Improved financial transparency across units
• Faster innovation by reducing centralized bottlenecks
Describe the inbound logistics activities performed by Netflix as part of its value chain.
Licensing content from external producers or studios
Producing original programming, such as Netflix Originals
Acquiring exclusive rights to content
Producing localized content
You may recall that the professor is a cancer survivor. What type of cancer was it?
(Hodgkin's) Lymphoma