1ST CASE STUDY:

1. Why do you think google and apple is dominating the market

Both apple and android are the dominating company in the market because they are
both have strategies that allow them to focus on the things that are easier for them
to do rather and harder for the competitors. for example, apple products focus more
on the user experience based design in which apple focus the experience that their
customer will receive while using their products. Google android is focus on the
things that apple does not use. The company focus more on the features that they
can offer to the customers.

2. Analyze Google and Apple Strategy

* APPLE

· Constant innovation that is widely consist of integrated array of products and service, also
from current products

· Strong brand image that creates powerful ‘Apple Ecosystem’ vertical integration, which ties
customer to use more Apple products for efficiency and clings on to them

· High switching cost for Apple users who wants to change products

· Have a lot of portfolio of experiments before launching each new products

· Their flagship stores serve perfectly as demonstration points for the customers to try on
the product

· Heavily promoted advertising in all medias possible, such as television network, technology
magazines, billboards, internet and apps.

· Premium pricing strategy and product differentiation

* GOOGLE

4E of Google Strategy : Earn, Entice and Defend, Expand the Pie and Experiment

details :

· Very wide B2B (Business to Business) network

· Non-stop innovation of mostly free (or cheap) utilities that makes user more productive

· Targeting enterprise developers (approach to penetrate the enterprise market)

· Focusing on digital strategy to steal market share from competitors

· Their corporate culture of “great just isn’t good enough”

· Good working environment that attracts skilled workforce

3. Why do the company rush to copy Apple strategy

* Apple is the leading innovator which gain great success

* They have ecosystem lock business model which keep customer loyal to them

2ND CASE STUDY:

1. A. Dennis Kolowski was a good CEO of Tyco International, and he made the company a
corporate giant in terms of growth. He has good leadership skills, At its peak, Tyco had
already emerged with 200 sudsidiary companies in a year under good leadership. This led
Tyco’ value to increase 70-fold thus Kozlowski had to be remembered as the greatest
businessman in the world. But Dennis Kolowski lacks of ethical means while doing business.

Three drivers of unethical strategies and business behavior:

1. Faulty oversight, enabling pursuit of personal gain and self interest.

2. Heavy pressures of company managers to meet short term earning targets

3. Company culture that puts profitability and business performance ahead of ethical
behavior

Dennis Kolowski’s motivation was the first one. He wanted to live a luxurious lifestyle, and
overcome with greed, so he was not genuine to his shareholders and thus left many debts
behind after his fall from the business company as he used the company’s money to fund his
lifestyle. He made illegal transactions and bad managerial misconduct. He also stole and
manipulated purchases of stock, which means he did whatever was necessary to acquire
money and he abused his position as a CEO.

His actions made Tyco suffer costs that are visible, internal, and intangible, and
rehabilitating those costs are both time consuming and costly.

* Visible: Government and legal penalties, costs to shareholders, and civil penalties

* Internal: Legal and investigative costs, costs of ethics training for the employee- because
they’ve already learned that committing business unethically is acceptable in Tyco, cost of
corrective actions, and administrative costs to ensure nothing like the case of Koslowski
happens in the future.
* Intangible: Tyco will lose its reputation, its customers, employee morale will be low, high
employee turnover, difficulty in attracting talented employees, and harsher government
regulations.

2. What do you think leads top managers to engage in accounting manipulations to pad
earnings, as apparently happened to Tyco?

The most common reason employees committed fraud had little to do with opportunity, but
more with motivation — the more dissatisfied the employee, the more likely he or she was
to engage in criminal behavior. If they believe that they are not being fairly treated or
adequately compensated, statistically they are at much higher risk of trying to balance the
scales. Another reason is related to financial pressures. Great majority committed fraud to
meet their financial obligations. Top managers must perceive an opportunity to commit and
conceal their crimes, and be able to rationalize their offenses as something other than
criminal activity. 

The drivers of unethical strategies and business behavior include:  (Textbook pg. 263)

1. Faulty oversight, enabling the unscrupulous pursuit of personal gain and self interest.
2. Heavy pressures on company managers to meet or beat short term performance
targets.
3. A company culture that puts profitability and business performance ahead of ethical
behavior. 
Tyco's former CEO Dennis Koslowski, former CFO Mark Swartz, and former General Counsel
Mark Belnick were accused of giving themselves interest-free or very low interest
loans (sometimes disguised as bonuses) that were never approved by the Tyco board or
repaid. What leads these top managers to engage in accounting manipulations to pad
earnings is the presence of opportunity and greed. They concealed their illegal actions by
keeping them out of the accounting books and away from the eyes of shareholders and
board members.

Code of conduct based on ethical relativism can be ethically dangerous for multinational
companies by creating a maze of conflicting ethical standards. Company managers who rely
upon the principle of ethical relativism to justify conflicting ethical standards for operating in
different countries have little moral basis for establishing or enforcing ethical standards
companywide. Rather, when a company’s ethical standards vary from country to country,
the clear message being sent to employees is that the company has no ethical standards or
convictions of its own and prefers to let its standards of ethically right and wrong be
governed by the customs and practices of the countries in which its operates. Applying
multiple sets of standards without some kind of higher-order moral compass is scarcely a
basis for holding company personnel to high standards of ethical behavior. 

3. Why do you think Kozlowski and Swartz both became successful businessman?
Kozlowski and Swartz both became successful businessmen and able to help Tyco grow into
a multinational company operating in various countries. The main key why they are very
successful is because they diversify.

They know when to diversify which is when:

1. Opportunities when expanding can complement existing business

2. Can leverage its collection of resources and capabilities where they are competitive assets

3. Can open new opportunity to reduce cost (ex: vertical integration)

4. Has powerful brand name that can be transferred to other products

Three ways of diversifying:

1. Through acquisition of existing business: quicker than launching a new one, and they can
easily overcome entry barriers

2. New line of business development: building a new business out of an existing one. This
case is harder, as it has to overcome entry barriers and put in a lot of investment.

3. Joint Venture: The combining of two firms, making one new business together. This is
done when business is too risky to start alone, start up company requires a lot of knowledge
that the company does not possess, and diversification of company that requires to be in a
host country.

Tyco became successful because Dennis Koslowski and Swartz acquired a lot of companies,
and diversified its business into a lot of areas. They did not acquire only successful
companies at a premium price, but they also acquired struggling companies at a bargain
price, and turned it into successful ones, through the knowledge, ideas, and problem solving
skills of the CEO in Tyco company. His strategy is a mix of diversification into both related
and unrelated business.

Benefits of diversification into related business:

1. Can transfer specialized expertise, tech know-how, and other capabilities

2. Lessen cost by combining value chain and be more efficient

3. Exploit a common brand name

4. Share resources that can save cost (ex: basic designs)

Diversification into unrelated business: The parent company has to be able to offer high
level of guidance and oversight. Top executive in the parent company have a lot of
experiences already, so they can help the newly acquired company to solve problems, think
of creative and innovative ways to make it more attractive, etc. The parent company can
also provide the new company generalized knowledge on how to do things, like how to
lower operating costs.

Diversifying into unrelated business demand a lot of managerial requirements, because then
the top executives have to split their attention into fields that they are not experts in.
Unrelated diversification also has limited competitive advantage potential, as it cannot fit
into the strategic structure of the parent company. It only relies on the competitive
advantage each business can generate on its own.

CONCEPTUAL QUESTION:

1. Outsourcing àPartner up with vendors or contractors to perform activities outside the

company with reasons of cost-effectiveness than to do in-house).

Samples of outsourcing activities:

* Goldman Sachs (multinational investment banking firm – global investment banking)

outsource 1,000 banker jobs to Singapore because planning to reduce US$1 billion of cost
expense in the next year.

* Adidas (sport attire; shoes, clothes, accessories, etc.) Outsource contractors and vendors
to make goods in a cheaper price and to save time sending the goods (fulfill worldwide
demand).

* General Electric (American multinational conglomerate corporation from New York)

Offshore outsourced technologists and researchers from Mumbai and Manila, but has a lot
of downsides à lost a lot of technical capabilities. To regain its technical capabilities again,
GE plans to hire 1,100 IT and engineering professionals in Michigan.

* Bank of America (national bank of the U.S.) creates Indian outsourcing subsidiary, wholly-
owned and will process some of the bank’s back-office operations. (1,000+ employees) à to
help the bank remaining competitive in the global market and to grow in the U.S. and
abroad.

* Apple (leading smartphone producing company) outsource from China, because it’s fast,
not only cheap labor. (difference in producing in U.S. and China is only $2 - $3 / iphone).
Apps are also made by third-party programmers. Other than designing, everything else is
made out of the U.S.

2. What is organization structure? / Aligning the firm’s organizational structure with its
strategy (topic di tb pg. 302)

A firm’s organization structure comprises the formal and informal arrangement of tasks,
responsibilities, lines of authority, and reporting relationships by which the firm is
administered. It shows the link of the organization parts such as the reporting relationship,
the flow of the information and the decision making processes. It is a key factor in strategy
implementation because it provides a strong influence in how well managers can coordinate
and control the complex set of activities involved.

A well-designed organizational structure is one in which the organization parts (reporting

relationship, the flow of the information and the decision making processes) are done
according to the strategy. With the right structure, managers can set various aspects of the
implementation process more easily.

3. Relationship among the organization? CH. 10

Relationship in organization is important in good startegy execution. A good strategy

execution need a good management skill in company’s resource and capability. Matching
organizational structure to strategy is one of the ways to good execution. Organization
structure consist of internal and external relationship.

 Deciding which value chain activities to perform internally and which one to
outsource good relationship between member in value chain activity will lead to
startegy executing advantages (lower cost, heightened stategic focus, less internal
bereucracy, speedier decision making andd better arsenal of organization
capabilities)
 Aligning firm’s organizational structure with its strategy  better understanding and
relationship with employee will help organization to organize employee
responsibility and task to them. Efficientcy can lower the operating cost and
bureucracy cost.
o Simple structure  central executive (owner) who handles major ecision
making
o Funtional structure  functional department and department manager who
report to CEO
o Multidivisioal structure  decentralized structure consist of operating
division and headquarter that allocate resource, support an monitor
o Matrix structure combines two or more organizational forms
 Decide how much authority to centralize at the top amd how much to delegeate to
down-the-line managers and employee  good relationship means organization
know well about their employees and they will know who should be the one getting
the authority and and present knowledge in the correct situation
 Facilitates collaborations with external parteners and strategic allies  creating a
network structure outside the company can avoid duplication of effort, recieve help
and strengthen company’s weakness ( Strategic alliences, outsourcing arrengement,
joint venture, cooperative partnership)
4. What are the attitudes ethics of the employee? CH. 9

Business ethis is the applicatio of general ethical principles to the actions and decisions of
business and the conduct of their personel. Ethical attitudes must be implemented in
organization in order to build trust an loyalty in corporate cultuere. Company that practice
business ethics in their company can build a good relationship with their socials and
environments around them can deliver value to employee, customer and stakeholder. This
value can enhance company’s image. Unethical behaviour can arise from faulty oversight
that lead to pursuit of persnal gain, heavy pressure from managers to achive goals in short-
term period, bad company culture. The cost of company’s unethical behaviour is visible cost
(fiens, penalties and lower stock price), internal administrative cost (legal cost and cost of
taking corrective action), intangible cost (customer defection and damage to company’s
reputation)