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Stmg 543: Global Strategic Management Question Paper
Stmg 543: Global Strategic Management
Course:Master Of Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
KENYA METHODIST UNIVERSITY
SCHOOL OF BUSINESS AND ECONOMICS
END OF SEMESTER EXAMINATION FOR MASTER IN BUSINESS ADMINISTRATION DECEMBER, 2011
SCHOOL : BUSINESS & ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : STMG 543
UNIT TITLE : GLOBAL STRATEGIC MANAGEMENT
TIME : 3 HOURS
Instructions
Question ONE is compulsory
Answer any other THREE Questions
Question One: Case Study (Compulsory)
Mahindra and Mahindra
Mahindra and Mahindra (M&M) is a major player in the tractor and certain segments in the mobile market in India. After an impressive growth for a few years, the tractor market in India has been stagnating during the 1988-1999 to 2000-2001.
M&M has been selling its tractors and utility vehicles in foreign markets including USA. Some of the components for its products have been sourced from abroad. M&M has a 100% subsidiary in USA Mahindra, with a strong network of 100 dealers.
Mahindra has five percent market share in the US market in the 28-30 horse power (HP) range.
As part of the strategy aimed at building a global supply chain, Mahindra USA has a memorandum of understanding (MOU) with the Korean tractor major Tong Yang a part of the $2 billion Tong Yang Mooslam group. According to which Mahindra will source high horse power (Mostly 25-40 hp range) and sell them around the world under the M &Ms brand name. To start with the premium range of tractors to be sold in the US. M&Ms current tractor range is more utility oriented and lacks the aesthetic appeal that Tong Yanga tractors have, a must for a strong presence in the US market.
Required:
Question One
What are the advantages of global sourcing?
(5 Marks)
How will the foreign market expansion help M&M
(6 Marks)
What are the possible risks of the alliance?
(6 Marks)
How can the risks above be overcome or minimized?
(8 Marks)
Question Two
With reference to Michael Porters analysis examine the factors which determine the competitive advantage of nations hence their selection as an investment destination by global
firms. (15 Marks)
In reference to the velo framework as used in internal analysis explain how a firm can gain competitive advantage.
(10 Marks)
Question Three
In choice of country to enter in developing countries the global firm must be aware of FIVE key challenges to encounter in emerging economies. Explain these challenges.
(10 Marks)
A global firm chooses between/both/industrial and geographical diversification in choice of industry to diversify into;
Explain the criteria to use to evaluate the industry to diversify into.
(6 Marks)
What are the barriers to transfer of best practices.
(6 Marks)
(c) What do you understand by the term ’Both global’ firms. (3 Marks)
Question Four
Global firms run a network of subsidiaries located in different countries. What are the roles played by the "corporate parent" in running the network of subsidiaries.
(8 Marks)
A vertically integrated global firm overseas flow of raw materials and finished products globally. Explain the motives for vertical integration by global firms.
(8 Marks)
Explain FOUR macro-globalizing drivers.
(8 Marks)
Question Five
Describe the internationalization process.
(5 Marks)
You have appointed in charge of corporate section in one of the emerging global firms. How would you manage the risks associated with the strategic alliances you are likely to enter into.
(10 Marks)
Human Resource Management policies one among the key areas to be attended to by the global firms. What are the determinants of international staffing policy.
(10 Marks)
Question Six
"As the CEO for an upcoming global firm; the board of directors have recommended the development of control system for the firms operations". Explain the various types of control you will consider in your report.
(20 Marks)
In developing subsidiary level strategies, an organization can choose from porters generic strategies. Explain FOUR generic strategies to consider for competitive advantage.
(5 Marks)
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