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1.
Answer
Answers
(a) What was the critical catalyst that led Kodak to start taking the
Japanese marketseriously?
Kodak: The Changing StrategiesBy 2000, Kodak, the company
thatpioneered the imaging industry byinventing easy-to-use cameras
andphotographic film, was in deep crisis. Withthe advent of digital cameras
in the mid1990s, Kodak found its sales declining asconsumers preferred
the new cameras,which did not use films. The growingpopularity of digital
cameras led to a slumpin film sales, which was a major revenuegenerator
for Kodak. Additionally, the newtechnology attracted a lot of
competitionfrom traditional as well as new players. Inorder to maintain its
lead in the industry,Kodak decided to adopt the new technologyand
reinvent itself from a camera and filmmanufacturer to a digital imaging
company. The case discusses the evolution of thedigital camera market
and the shrinkingfilm business. It also highlights the strategies adopted by
Kodak to embrace the newtechnology to sustain its leadershipposition.
(b) From the evidence given in the case do you think Kodaks charges of
unfairtrading practices against Fuji are valid? Support your answer.
On December 5, 1997 the US lost its first major trade dispute in the newly
formedWorld Trade Organization(WTO). The high-profile case pitted
photographic paper and film giants
Questions :
1 Which company is truly Multinational ? Why?
2 List three differences between Company , Multi National company and
Trans Multi National Company ?
Answer
1 Which company is truly Multinational ? Why?
A Truly Multinational Company
The Axel Johnson Institute, the predecessor to Nordic Water, was founded
as early as in the beginning of thesixties in Nynshamn. It was an
exceptional institute, as it was privately owned. From the beginning the
businessconcept was clean water. Here they should develop, design,
manufacture and deliver machines and equipment for water and
achieve it and keep raising the bar to prevent complacency from setting
in.A look back at the history of SFL reveals how Mr Krishna not only set
bigger and bigger targets but moreimportantly, looked at the big picture to
transform SFL into where it is today. Production facilities in three countries
with the fourth likely to commence manufacturing soon in China; an export
market that encompassesover 15 countries and a quality.
We tend to read the following terms and think they refer to any company
doing business in anothercountry.
Multinational
International
Transnational
GlobalAndrew Hines over atBNET has brief and clear definitions of each of
these terms, Get your international business terms right.Each term is
distinct and has a specific meaning which define the scope and degree of
interaction withtheir operations outside of their home country.
International companies
are importers and exporters, they have no investment outside of theirhome
country.
Multinational companies
have investment in other countries, but do not have coordinated
productofferings in each country. More focused on adapting their products
and service to each individual localmarket.
Global companies
have invested and are present in many countries. They market their
productsthrough the use of the same coordinated image/brand in all
markets. Generally one corporate officethat is responsible for global
strategy. Emphasis on volume, cost management and efficiency.
Transnational companies
are much more complex organizations. They have invested in
foreignoperations, have a central corporate facility but give decisionmaking, R&D and marketing powers toeach individual foreign
market.Andrewss advice is if in doubt about the right term to use, try the
generic term
international business
.
A
Multinational Corporation
(MNC)
3.
Questions:
(a) Explain why MNCs have located R & D centres in developing countries?
(b) Mention the areas where R & D activities can easily be decentralised.
Answer
a), Explain why MNCs have located R & D centres in developing
countries?
Theories of the globalisation of innovation assume thatmultinational
corporations (MNCs) distribute their innovationactivities hierarchically, with
advanced technology beingconfined to the advanced industrialised
countries, while moreroutine low-end innovation is decentralised in a few
developingcountries. The emergence of about 40 research
anddevelopment (R&D) centres in Beijing, China, many of whichengage in
basic and advanced applied research, challenges theabove assumption.
This article argues that the cheap andabundant highly skilled labour of the
latecomer countries is anessential factor in attracting global R&D activities
but that thisfactor is far from being a sufficient condition for the
presencethere of advanced R&D activities. Through its analysis of
thehistorical transformation of local institutions and of their co-development
with MNCs, this paper identifies four majorknowledge assets that explains
why Beijing could attractadvanced R&D activities. First, Beijing has
developed a strongentrepreneurial culture that creates highly
motivatedengineers who are eager to learn new knowledge from
abroad.Second, the experienced Chinese returnees provide a
criticalbridging role between Western R&D management knowledgeand
local engineer culture. Third, the lack of inter-firm trustand networks makes
the entrance of MNCs into a 'loose' clustermuch easier. Fourth, the large
and dynamic Chinese marketthat desires high-tech products with low prices
shortens theproduct life cycle, forcing MNCs to upgrade their R&D
facilitiesin China. The findings show that the co-development of
localinstitutions with the MNC R&D centres can create locationalwindows of
opportunity for advanced R&D activities to becarried out in unconventional
sites outside the Triad countries. This article concludes with the discussion
on how Dunning'sOwnership, Location and Internalisation (OLI) framework
andMathew's Linkage, Leverage and Learning (LLL) frameworkmight be
useful in explaining this new phenomenon .
(b)Mention the areas where R & D activities can easily be
decentralised.
Decentralized R&D in the contemporary MNE The authors distinguish two
different environments in which R&D labsare performing. The first context is
characterized by the fact that R&D activities workalong with other functions
within the subsidiary in order to develop aparticularproduct which would be
brought on to the market by the subsidiary. In ordertobetter address local
needs, the R&D laboratory uses company-levelknowledgeand develops its
own manufactured goods. The second context reflects a more
contemporary view, implying thatlaboratories shape the companys core
knowledge. The way foreign R&Dcentersmay achieve such a task is by
reaping foreign comparative advantages(technological heritage, scientific
competences) and applying the latterin acompany-wide strategic
research. This can be done by developing keycapabilities and specialize in
a specific field which will make the lab essentialforthe companys growth.
Decentralized R&D labs will specialize in anarea of competence reflecting
the host-country knowledge legacy, andeventuallyenhance the enrichment
of group-wide technology. The key challengeinmanaging decentralized
R&D centers is to maintain and ensure aglobalcoherence and focus of
research.
Purpose
The purpose of this paper is to open up the research and development
(R&D) organisation byseparating product and process innovation and
exploring these activities in terms of the structural variableof centralisation
versus decentralisation.
Design/methodology/approach
Case studies of three multinational firms, representing food andbeverage,
mining and minerals, and pulp and paper industry.
Findings
Dual structures may exist within the R&D organisation, one for product
innovation and one for process innovation. Consequently, it is suggested
that the conventional notion of R&D organisationaldesign, equating R&D
more or less with product innovation, does not present a complete picture
for manyfirms
Research limitations/implications
Opening up the R&D organisation will help further the understandinglink
between the organisational structuring of product and process innovation,
and the efforts of organisations to develop resources and competitive
advantages.
Practical implications
The findings have implications for managing the strategy-organizational
fitconcerning innovation in process industry.
Originality/value
The conventional view regarding R&D as a single entity either
centralised or decentralised does not present a complete picture. This
paper clarifies the link between strategicinnovation determinants and the
organisational configuration of R&D.
4
Answer
VARIABEL COST
FIXED COST
40000
27000
13000
43000
30000
13000
57000
26000
83000
No, I don't think Joan acted responsibly. In spite of receiving verbal and
written warningsnumerous times, Joan just did not put in efforts to make a
backup plan for her baby's care. Joanacted irresponsibly by not finding an
alternate babysitter or daycare center. Added to this, Joan didnot even try
to swap shifts with a co-worker.
3.Should she be fired?
Not yet. I think Joan should be given another opportunity after her 15-day
suspension period. Joancan use this time to make up a good plan for her
baby's care, probably by making an arrangementwith an alternate
babysitter who can step-in when the regular babysitter is unavailable, or
byconsidering a regular, nearby day care center.
CASE-2 (20 Marks)
You own a cement company, and deal with most the local
contractors for cement, sand, etc. You have
a reputation of high quality products, and for good customer
service with your customers. Your
foreman has just run the standard quality control tests you have
performed regularly on your products.
When the test results are ready, you discover that the new batch
of product is 9% less durable than
your usual material. It is still well above all industry standards and
meets all building codes and
requirements for the purposes for which it is intended, but it is,
nevertheless, not up to your usual
standards. Throwing it away would cost your company many
thousands of dollars.
You decide to sell the cement anyway.
Questions:
1) Should you tell your customers?
YES, YOU SHOULD INFORM THE BUYERS IN AN INFORMAL
WAY.
------------------------------------------
Questions 3
Answer
1) Should Fred be reinstated?
FRED SHOULD NOT BE REINSTATED,
BECAUSE HE had been fired for poor performance and absenteeism
----------------------------------------Should Fred be reinstated?
Yes, Fred should be given another chance. Everybody needs to be given a
second chance, and Ithink Fred should should be given one, especially
since he had gone through a rehabilitationproblem and his treatment
counselor's letter said that Fred's prognosis indicated a clean andsober
lifestyle. Having said that, if Fred repeats his poor attendance and job
performanceissues, he should be permanently relieved of his duties without
any scope for reinstation in thefuture.
meaning he did not ensure that the captains were up to par, all he was
concerned about was his money and the profit at the end of the season
2) Against whom should criminal charges be leveled?
Criminal charges should be leveled against the first mate Mr.Mudd and Mr.
Slosh because their responsibilities were somewhat equal.Mr.Mudd knew
that Mr. Slosh was drinking and heMr.Mudd knew that he could not take
over from Mr. Slosh so therefore he should have ensuredthat Mr. Slosh
didnt drink any alcohol., so therefore he should be the one to get most of
thecharges as well as Mr. Slosh because he was drinking and driving and
because of him drinking,he had to give his first mate to take over and he
did not have clue what to do. Due to all this, itcaused the company millions
of dollars for even the most minimal clean up. If Mr. Slosh was notdrinking,
his first mate Mr. Mudd would not have to take over causing all the
damages. Both parties were acting unethical and so there unethical
behavior would lead to consequences. The justice theory states that when
situations arises, we need to compare and weigh the conflictingclaim and
strike a balance and in this case both parties did not carry out their duty
and so chargesshould be leveled against them both.
3) What should be done, if anything, to punish the corporation itself?
To punish the corporation itself, their license should be taken away
(suspended). Thecompany should also be fined for the damages that were
done, The government shouldensure that they clean up the place, work
with other regulatory bodies to execute a clean upuntil they are finished
they cannot conduct any business. Also to punish the corporation touse the
license, they will have to clean up everywhere before they can operate any
more business. Also to punish the corporation, the captain Mr.Slosh should
be arrested andcharged. Until their ships are up to scratch they should not
conduct any business because itwas stated in the case that the doublehulled tanker, was long due for renovation and, it wassuggested, would not
have cracked up if the hull had been trebly reinforced, as some
currenttankers were.
4) What about the CEO?
The CEO was being very unethical in not ensuring that the captains were
able to sail beforeassigning them to the duty. He was also catering for the
greater good of the company andensuring the majority is happy. According
to the Justice theory, it justifies the actions taken by Mr. Rich, take into
consideration his speech. It was aimed at producing higher amounts of
profit with regards to the shareholder. According to him, his shareholders
and the increase of their profits are his priority. Also he was able to do his
part in helping with the clean-up byselling out 2million. These actions justify
his cause under this view.The action of Mr. Rich however one may view it,
depends solely on his intentions on doingthat action. One must note that
Mr. Richs statement at the end of the case studies. There itmade mention
of his obligation to the shareholders, which was to gain much profit as
possible. From this statement alone, we may be able to conclude that Mr.
Richs intention of donating the 2million to clean up was to gain better
views from the people. Because of thathe may retain the status of his
company, despite the oil-spill scenario.