CHAPTER 3

CASE STUDY ESSAY

Question 1

In my opinion, Ronald Ostertag's move that stood the most chance of changing General

Semiconductor's culture was his decision to fire the company's senior management at the

company. By doing this, he stood a better chance of reconstructing the company because he had

started from the top management. Bringing the workers together and forming a "team" was a

simple concept. However, the issue with collaboration and working together under specific

criteria that were put on a card and thrown in front of the workers wasn't such a brilliant idea. It

didn't go as smoothly as intended when he tried to establish a culture of mutual respect.

Therefore trying to transform such a diversified organization into one that follows his beliefs

didn't work well because the cultures all have their values that worked together as one with the

other branches. 

Consequently, the idea of generalizing each culture's environmental ideals and critical

concepts into one main one was much more complicated than expected, and it failed. Only 200

of the 60,000 workers were in the United States, thus forcing the remaining 59,800 to accept

American ideals was not an option.

 
Question 3

According to my, Ostertag's strategy of attempting to change the firm's culture is a

positive start toward effective cross-cultural management, but I do not consider it

comprehensive. His cross-cultural operations management proved ineffective. His primary

values were those of his own culture, which was a problem. Those values were beneficial in the

United States, if not anywhere else. Still, there should've been a better strategy for the other

cultures he had operating at various branches. At the very least, he should've addressed the chiefs

of the other departments and begun to notice how different they are from one another and look

for parallels and profit on them. When it came to the company's fundamental values, all of the

other branches should have had a say and their definitions of what those principles were in their

department. He also neglected to offer his employees the essential training and advice to show

how they should live up to the values set out by his executive team. It was apparent which values

need to be employed in daily operations, but it was likely unclear how to put them into practice.

It wouldn't have been such a tragedy if he had approached them well and allowed each branch

time to discover and grasp their own fundamental beliefs. Each culture has its own set of values

and ways of doing things, and bringing all of those varied values and ideas together and distilling

the key ideas from each branch would have made the shift more understandable and less

challenging.

 
 REVIEW ESSY QUESTIONS

Question 2

Adapting to various parts of a country's institutional systems typically presents

considerable challenges for international enterprises. Therefore, managers must analyze the host

country by examining all aspects of that country's institutional environment. To begin with, the

political-legal institution of a country is significantly essential to pay attention to. Before

engaging in legal contracts, managers must understand the various legal systems used in the

countries they are interested in. They need to assess the local rules and regulations of the nations.

This helps them understand where pans can be made, how their businesses can be protected,

where complaints can be made in case of issues, and where their rights as a business can be

protected. Secondly, technological factors are also crucial to consider as they are vital in

increasing efficiency. Managers need to evaluate the level of technological development in the

country, the speed of technology, sources of technology, and if there is a restriction present in the

country that controls technological advancements. Third, the market scope is also significant for

managers to consider. They must be able to exploit the market and research whether the market

can expand both in the domestic and foreign markets. Understanding this will help them develop

ways of reducing their cost of production before thinking of establishing their businesses. 

 
Question 4

Different entry strategies of international markets have additional benefits and

drawbacks. Some of these market entry strategies include; Licensing, Franchising, Outsourcing,

exporting, joint ventures, among others. First, Licensing occurs when a business transfers the

right to use or sell a product to another. Licensing is often a more profitable option for certain

products and businesses, especially concerning the cost of starting a new enterprise both in terms

of time and money. It also exposes products or services to an already established client base.

However, the business risk losing control of their products, including promotion, packaging, and

selling. Similarly, companies only receive a percentage of their sales profits depending on the

licensing agreement.

Second, exporting involves selling goods and services produced in one country to people

in other countries. It offers some benefits to the business as it provides the ability to expand

markets, reduce the dependency of the individual market, encourages more outstanding

production that leads to more significant economies of scale and netter margins, and. On the

other hand, the disadvantages include: ease in losing sight of the local markets and existing

clients, high costs involved in direct exports, and more considerable risks are involved.
 CHAPTER 4

CASE STUDY ESSAY

Question 1

I think Blockbuster's agreements with TiVo and the major studios don't seem to be very

successful. This agreement is a perfect example of Businesses ignoring their competitors.

Additionally, there is nothing that differentiates Blockbuster's service from its competitors. For

instance, TiVo members who are also Netflix subscribers can view some Netflix movies for free

online. They've also been able to rent and download movies from Amazon, which uses the same

on-demand download concept as Blockbuster. Therefore, Blockbuster needs to think outside the

box a bit if it wants to survive. It simply won't work to follow your competitors on a device

they've already adopted. Instead, it should strive to strike a contract with a business like

Nintendo to develop a unique and innovative way of viewing and renting movies, an invention

that is tough to copy, tough to replace, and capable of generating above-average earnings.

Question 2

Blockbuster, in my opinion, will not be able to avoid bankruptcy and will not be capable

of surviving since they appear to be constantly one step behind other movie rental firms and have

not adapted adequately to new technology. Rather than providing excellent and affordable

entertainment to their customers, as their competitors have done, they prefer to stick to the model
they are familiar with. Consequently, several factors are likely to lead to the company's collapse,

such as a misunderstanding on whether they are retail or entertainment industry. Another factor

is the unwillingness to put their customers first. They tend to rely more on charging late fees,

showing that their primary concern is maximizing their returns. For instance, its recent

agreement with TiVo will not help it much within its financial crisis. Its competitors, like

Netflix, provide customers with online rental movie services for a monthly subscription fee

without any late fees. Many customers will prefer Netflix since it seems more flexible and

affordable than Blockbuster.

 REVIEW ESSAY QUESTIONS

Question 6

The recent advancement in the news media and internet gives the impression that the

business world is witnessing the birth of brand-new technology. Computer and news media are

now widely regarded as critical influences on how international executives comprehend and

collect knowledge about the foreign environment. Through them, even the most regional news

may be found and accessed worldwide. First, computers give businesses a chance to use

technology in new and inventive ways. It has had a significant impact on the International

environment, from internal communication to marketing strategies that target a specific

audience. Through the computers, all you need is an internet connection. Through this, managers

can receive up-to-date information and analysis on hiring and managing employees in the global

business environment.

Similarly, finding information on the best business venture in the country of interest is

also readily available. On the other hand, news media has transformed communications and
research, making environmental analysis more straightforward. News media can quickly learn

about a country's political dynamics, economic state, and technical achievements. The above

makes it much more accessible for international managers to figure out the ideal time to establish

a business in their target countries.