Posted: June 7th, 2023

BUS310

Faculty of Business Administration

Course Code: BUS310

Final Revision

Week 14 (15/5)

CHAPTER 6

Q1: Firms expand their operations through diversification. This can be achieved via mergers or acquisitions. Explain the difference between the 2 modes including their motives and limitations with relevant examples.

Definition of Mergers & Acquisitions: [SLIDE 22]
Motives [SLIDE 23] & Examples: BOOK NOTES [SLIDE 23]
Limitations [SLIDE 24] + BOOK NOTES SUMMARY

Q2: Discuss the concept of Vertical Integration and list the 5 issues associated with it with a relevant example.

Vertical Integration Definition: BOOK NOTES [SLIDE 10]

5 Issues of Vertical Integration: BOOK NOTES [SLIDE 13]

[Only one example is mentioned in the above notes, you may add your own]

CHAPTER 7

Q1: Compare and contrast between the “Joint Venture”, “Strategic Alliance”, “Licensing” and “Franchising” modes of international expansion.

Joint Venture & Strategic Alliance Definitions: BOOK NOTES [SLIDE 21 – CH.6]
Motives & Examples: BOOK NOTES [SLIDE 28 – CH.6]
Limitations: [SLIDE 29 – CH.6]

Definitions, Advantages, and Disadvantages of Licensing and Franchising: BOOK NOTES [SLIDE 32 – CH.7]

[Add your own research examples on Licensing and Franchising]

Q2: According to Michael Porter, a nations’ competitiveness depends on the capacity of its leading industries. Critically discuss Porter’s diamond of national competitive advantage with supporting examples.

BOOK NOTES [SLIDES 5 to 9] + BOOK NOTES of SLIDE 11

[Examples are included within the above notes]

CHAPTER 8

Q1: List and explain the differences that distinguish entrepreneurs from corporate managers.

BOOK NOTES [SLIDE 14]

Q2: Firms must understand the Competitive Dynamics of the business to increase their growth. Critically discuss the factors competitors should consider when responding to a competitive act.

BOOK NOTES [SLIDE 26] + [SLIDES 29 TO 32]

CHAPTER 9

Q1: Explain the Traditional approach to strategic control and draw its relevant diagram.

[SLIDE 5] + BOOK NOTES [SLIDE 6]

Q2: Why are control models essential for strategy implementation? Draw and discuss the Contemporary approach model.

Control Models Importance: BOOK NOTES [SLIDE 4]

Contemporary Approach: [SLIDE 7] + BOOK NOTES [SLIDE 8] + [SLIDE 9]
Informational Control Features: [SLIDE 12]
Behavioral Control Features: BOOK NOTES [SLIDE 14] + BOOK NOTES [SLIDE 18]

Q3: Define Corporate Governance and mention its mechanisms.

Corporate Governance Definition: BOOK NOTES [SLIDE 25]
Mechanisms: BOOK NOTES [SLIDE 27]

Q4: The Agency Theory is a part of the corporate governance control system. Elaborate.

Corporate Governance Definition: BOOK NOTES [SLIDE 25]
Agency Theory: BOOK NOTES [SLIDE 26]

CHAPTER 11

Q1: Successful leaders recognize 3 interdependent activities that must be continually updated for organizations to succeed. Mention these activities in detail.

Setting a Direction, Designing the organization, and Nurturing an excellent and ethical organizational culture: BOOK NOTES [SLIDES 7 to 9]

Q2: To enhance the long-term viability of organizations, leaders need to build a learning organization. What is meant by a Learning Organization? Mention the 5 key elements of a Learning Organization.

Learning organizations are defined as organizations that create a proactive, creative approach to the unknown. Such an organization can adapt to change, fostering creativity, and succeeding in highly competitive markets by refreshing strategies and rethinking basic assumptions. The learning environment involves organization-wide commitment to change, an action orientation, and applicable tools and methods. All individuals throughout the organization must be reflective thinkers. Successful learning organizations accumulate & share internal knowledge while also analyzing the external environment (for both competitors and customers).

Its 5 Key Elements: [SLIDE 18]

Q3: Define ethics, organizational ethics, and the ethical orientation.

BOOK NOTES [SLIDES 24 & 25]

_____________________________________________________________

Chapter 6

Q1: Firms expand their operations through diversification. This can be achieved via mergers or acquisitions. Explain the difference between the 2 modes including their motives and limitations with relevant examples.

Mergers: Mergers are the combination of two or more companies into a single company. The new company retains the name of one of the original companies. Mergers can be either horizontal or vertical. Horizontal mergers involve companies that are in the same industry, while vertical mergers involve companies that are at different stages of the production process.
Acquisitions: Acquisitions are the purchase of one company by another company. The acquired company ceases to exist as a separate entity and becomes a subsidiary of the acquiring company. Acquisitions can be either friendly or hostile. Friendly acquisitions are those that are approved by the management of the acquired company. Hostile acquisitions are those that are made against the wishes of the management of the acquired company.
Motives for mergers and acquisitions:

To increase market share: Mergers and acquisitions can be used to increase market share by combining the sales of two or more companies. This can give the merged company a stronger position in the market and make it more difficult for competitors to compete.
To reduce costs: Mergers and acquisitions can be used to reduce costs by eliminating duplication of resources. For example, if two companies merge, they may be able to eliminate one of their headquarters, one of their sales forces, and one of their IT departments.
To gain access to new markets: Mergers and acquisitions can be used to gain access to new markets. For example, if a company is only operating in the United States, it could acquire a company that is operating in Europe. This would give the company a presence in a new market and allow it to sell its products or services to new customers.
To gain access to new technology: Mergers and acquisitions can be used to gain access to new technology. For example, if a company is developing a new product, it could acquire a company that has the technology to produce the product. This would allow the company to bring the product to market more quickly.
Limitations of mergers and acquisitions:

Integration problems: Mergers and acquisitions can be difficult to integrate. This is because the two companies may have different cultures, different ways of doing things, and different management styles. Integration problems can lead to decreased productivity, increased costs, and employee morale problems.
Regulatory hurdles: Mergers and acquisitions may be subject to regulatory hurdles. For example, the U.S. government may block a merger if it believes that the merger would create a monopoly or reduce competition.
Financial risks: Mergers and acquisitions can be financially risky. This is because the acquiring company may overpay for the acquired company or the merger may not achieve the desired results.
Relevant examples:

Merger: In 2015, AT&T acquired DirecTV for $49 billion. This merger was a horizontal merger because AT&T and DirecTV are both in the telecommunications industry. The merger allowed AT&T to expand its reach into the television market and become a major player in the cord-cutting revolution.
Acquisition: In 2016, Microsoft acquired LinkedIn for $26.2 billion. This acquisition was a vertical merger because Microsoft and LinkedIn are at different stages of the business process. Microsoft is a software company, while LinkedIn is a social networking company. The acquisition allowed Microsoft to expand its reach into the business-to-business market and become a major player in the online recruiting market.
Chapter 7

Q1: Compare and contrast between the “Joint Venture”, “Strategic Alliance”, “Licensing” and “Franchising” modes of international expansion.

Joint venture: A joint venture is a business agreement between two or more companies to create a new company. The new company is jointly owned and operated by the participating companies. Joint ventures are often used for international expansion because they allow companies to share the risks and rewards of entering a new market.
Strategic alliance: A strategic alliance is a business agreement between two or more companies to cooperate on a specific project or activity. Strategic alliances are often used for international expansion because they allow companies to share resources and expertise without having to invest in a full-blown joint venture.
Licensing: Licensing is a business arrangement in which one company (the licensor) grants another company (the licensee) the right to use its intellectual property (such as patents, trademarks, or copyrights) in exchange for a fee. Licensing is often used for international expansion because it allows companies to enter new markets without having to make a significant investment.
Franchising: Franchising is a business arrangement in

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