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Question: Alibaba is the world’s largest e-


Alibaba is the world’s largest e-commerce platform. How did it achieve that status? How has Alibaba’s differentiation strategy contributed to its success?


> An alternative to using a letter of credit is export credit insurance. What are the advantages and disadvantages of using export credit insurance rather than a letter of credit for exporting (a) a luxury yacht from California to Canada, and (b) machine t

> You are the assistant to the CEO of a small textile firm that manufactures quality, premium-priced, stylish clothing. The CEO has decided to see what the opportunities are for exporting and has asked you for advice as to the steps the company should take

> A firm based in California wants to export a shipload of finished lumber to the Philippines. The would-be importer cannot get sufficient credit from domestic sources to pay for shipment but insists that the finished lumber can quickly be resold in the Ph

> A small Canadian firm that has developed valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Union market. Its choices are given below. The cost of investment in manufacturing facilitie

> Discuss how the need for control over foreign operations varies with firms’ strategies and core competencies. What are the implications of the choice of entry mode?

> Why is Shoprite’s wide product range important to its financial strategy?

> Licensing propriety technology to foreign competitors is the best way to give up a firm's competitive advantage. Discuss.

> Review the Management Focus on Tesco. Then answer the following questions: a. Why did Tesco’s initial international expansion strategy focus on developing nations? b. How does Tesco create value in its international operations? c. In Asia, Tesco has a h

> A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company’s child labor prohibition. He tells the local manager to replace the child and tell her to

> Reread the Management Focus on Lincoln Electric; then answer the following questions: a. To what extent is the organizational culture of Lincoln Electric aligned with the firm’s strategy? b. How was the culture at Lincoln Electric created and nurtured ov

> Reread the Management Focus on Dow Chemical; then answer the following questions: a. Why did Dow first adopt a matrix structure? What were the problems with this structure? Do you think these problems are typical of matrix structures? b. What drove the s

> Reread the Management Focus on Walmart’s International Division and answer the following questions: a. Why did the centralization of decisions at the headquarters of Walmart’s international division create problems for the company’s different national op

> If all government subsidies went away worldwide to electrical cars, will Tesla be as successful in five years as it is now? (Will Tesla even exist in 10 years?)

> Tesla made a remarkable sales growth—from a startup (albeit with great financing) to $7 billion in sales with some $25 billion in assets. Does this mean that the Tesla business model was good and the market reacted positively, government subsidies were g

> Some governments are more likely to subsidize electrical cars (and many other products) than other governments. Denmark took a stand to not subsidize (for now) electrical cars. Should such subsidies be up to each country or region in a country (e.g., Cal

> Should companies like Tesla rely on government subsidies in selling their cars since they are better for the environment than traditional cars based on the old technology of traditional combustion engines? Basically, should the environmental issues be bu

> Gazprom recently formed a strategic alliance with China. Why is China important to the company? What prompted the alliance?

> What do you think about AstraZeneca's efforts to increase employee diversity? How might this benefit the company?

> Do you think the company is doing enough to limit the well-known risks and costs associated with high expatriate failure rates? Is there anything else it might do?

> What staffing policy is AstraZeneca adopting with regard to its subsidiaries in places like China? Is this an appropriate policy?

> Why does AstraZeneca limit this policy to just high-potential employees? Can you see a drawback in doing this?

> What does Marvel Studios gain by having the global branding connections of the characters across a multiple movie franchise?

> Many of Marvel Studios movies are connected to each other—like The Avengers and Iron Man movie franchises. Do you think the film-watching public can keep up with all these intricate connections? Does it even matter if people do keep up with the connectio

> Marvel Comics has drawn from more than 100 characters for its Avengers superheroes since 1963. Collectively, these characters have created a very successful franchise for Marvel Comics and Marvel Studios. What is their global marketing formula and why do

> From a global branding standpoint, why do you think Marvel Studios is a wholly owned subsidiary of the Walt Disney Company instead of just a part of Disney?

> What actions could Indonesia take to improve its economic performance? What impediments might make it difficult for the government to take these actions?

> Since Suharto was removed, Indonesia has grown its economy at a slower pace than two other large developing nations, India and China. Why do you think this has been the case?

> What makes Alibaba attractive to the suppliers and manufacturers that partner with the company?

> Under the leadership of Suharto, the Indonesian economy grew at a steady pace. Why was this ultimately not sustainable?

> Should Amazon, and companies like it, get into the supply chain and logistics business and start having their own shipping platforms? Do you think operating global supply chains can become one of Amazon’s core competencies, is it already a competency the

> Some people say that the prices for the product associated with Amazon Prime are always higher than if you buy the same product on Amazon or elsewhere without the guaranteed two-day shipping. But, what do you think customers are buying when they use Prim

> Do you think Amazon will become customers’ favorite retail shopping interaction, taking over the retail shopping from companies like Walmart and Target, for example, in the next few years? Will customers buying commodity products such as toothpaste and o

> Embraer imports a lot of these parts into Brazil—a country almost notorious for being difficult to clear its customs. Should Embraer consider developing more of its own parts, either by starting companies or subsidiaries in Brazil that can make these par

> Similar to automobile companies, aircraft manufacturers have a staggering number of suppliers that supply a staggering number of component parts that go into the production of an aircraft. While plane producers will likely need a large number of parts in

> Do you expect a company like Embraer to be able to compete long-term with the top aircraft manufacturers in the world today (Airbus, Boeing) by staying heavily oriented toward producing its products in Brazil?

> With the CEO and driver of the company—Howard Schultz—stepping down as the company’s unquestioned leader, do you expect Starbucks to change its foreign market entry strategy in any way?

> Do you expect that the growth of the number of Starbucks stores worldwide will continue into more countries or do you expect Starbucks to focus on more stores in the foreign markets in which the company already has at least some stores already establishe

> Starbucks has become a phenomenon worldwide with more than 24,000 stores in more than 60 countries. Sales are great even at relatively high prices for its products. This can perhaps be explained in the U.S. (and other wealthy markets) but how can Starbuc

> What does the decline in the value of the ruble against the dollar between 1992 and 1998 teach you about the relationship between inflation rates and currency values?

> Seventeen Sustainable Development Goals is a large set of goals for the world’s 260 countries and territories to achieve. Would it be better to focus on a smaller set of goals, or are the Sustainable Development Goals integrated enough that countries can

> Some would argue that the Sustainable Development Goals is not something that should be mandated on countries to achieve by 2030 or any other year. Countries should be free to set their own sustainability goals. What do you think?

> In the most recent ranking of how countries are doing in implementing the UN’s Sustainable Development Goals, Sweden ranked first in the world, followed by several other countries in Scandinavia. However, even Sweden had only achieved an 85 percent succe

> By consolidating and cutting 100 brands from its consumer portfolio of brands, does P&G run the risk of ultimately losing out on global market opportunities?

> P&G is cutting its marketing and advertising agency roster by 50 percent over the past three years from around 6,000 to 3,000 companies in a bid to increase its marketing productivity, efficiency, and effectiveness. At a $9 billion worldwide spend on adv

> Advertising is important for most companies, especially companies such as P&G that sells mostly to end customers. But, most people already know about P&G products like Charmin bathroom tissue and moist towelettes, Crest toothpaste, and so on. Does P&G re

> Strategically, having more than 1,000 suppliers results in a complex task of managing those suppliers, ensuring the quality of the products, and maintaining the IKEA brand. While we will address global supply chains later on, from a global strategy stand

> IKEA is also very “IKEA-centric.” For example, the IKEA store itself will be laid out as a maze that requires customers to walk through every department before they reach the checkout stations. This forced path can seem constraining to their customers wh

> IKEA is very Sweden-centric; that is, they like doing it the Swedish way, from the names of the furniture to the management of the company. Sweden is a neutral country so maybe this is the way to go for a global company, but, really, is it smart to be to

> Compared with 10 years ago, expatriate employees stay twice as long in Dubai, about 5 years, before they return to their home country or another foreign location. Do you think more expatriates will stay longer in Dubai as the city continues to develop in

> Integrating 160 different nationalities into one corporation, such as The Emirates Group, has challenges and opportunities. What challenges do you see? What opportunities come from this diverse workforce?

> Is it sustainable to think that Emiratis, which make up only about 15 percent of the people in Dubai, can be leading the city as they have for so long?

> Since the IPO was undertaken in New York, does this make Alibaba an American enterprise?

> What were the legal, financial, and strategic advantages to Alibaba of undertaking its IPO in New York?

> Why do you think the management of Alibaba decided against doing the IPO in China's main stock market, Shanghai? Why did they ultimately decide against Hong Kong?

> Why did Jack Ma decide it was time to take Alibaba public?

> What policy stance should the U.S. and EU adopt toward China with regard to how it manages the value of its currency?

> Is there any evidence that the Chinese kept the level of their currency artificially low in the past to boost exports? Are they keeping it artificially low today?

> What are the benefits that China might gain by allowing the yuan to float freely against other major currencies such as the U.S. dollar and the euro? What are the risks? What do you think they should do?

> Why did the Chinese move to a managed float system in 2005?

> What other steps could be taken in the long run to reduce the probability that producers in China and elsewhere will dump their excess production at a loss on world markets?

> Why do you think that the Chinese historically pegged the value of the yuan to the U.S. dollar?

> How would a fall in the value of the US dollar against other major currencies impact Apple?

> Under what conditions do you think the U.S. dollar might weaken against other major currencies (e.g. the euro, yen and yuan)?

> Why was the US dollar so strong during the 2014‒2016 period? Was the strength in the dollar a rational response to economic fundamentals?

> Why did Apple not fully hedge its foreign exchange exposure to avoid a hit on earnings?

> Why did the strong U.S. dollar during 2015 have a negative impact on Apple's earnings?

> Is the RECP a threat to American economic interests?

> Why do you think that Donald Trump is so adamantly opposed to the TPP?

> Can you think of any drawbacks to the TTP?

> What are the benefits of the TTP?

> Some companies do not hedge their foreign exchange exposure. Do you think Apple is correct to hedge? Why?

> What is the opportunity cost to the United States of withdrawing from the TPP?

> In addition to its BMW brand, the BMW Group owns two iconic British brands, Rolls-Royce and MINI. Discuss the importance of these brands to BMW.

> Reflect on the changing dynamics of the global marketplace and the implications of those changes for BMW.

> Discuss the role of innovation as a key to BMW’s success. How does this focus help position BMW for the future?

> What needs to happen for Zimbabwe to get back on track economically? How can investor confidence in Zimbabwe be restored?

> How would you characterize the political system in Zimbabwe?

> What will African countries need to do to make the TFTA a success? What are the likely impediments to doing this?

> Discuss the economic crisis in Zimbabwe. What factors have contributed to the country’s economic collapse?

> In addition to its commitment to providing the lowest prices to customers across all of its markets, Shoprite also donates large amounts of food to those in need. Discuss how Shoprite’s philanthropy complements its overall strategy and the relationship b

> Do you see any disadvantages to having company-wide diversity priorities?

> What are the benefits of Sodexo’s commitment to a global diverse workforce?

> How does Sodexo define a globally diverse workforce? Explain how Sodexo demonstrates its commitment to building a global diverse workforce.

> Based on the information in the case, do you think firms can succeed selling globally standardized products?

> One way of improving customer satisfaction is by developing market-specific products. What are the drawbacks of this strategy?

> Research shows that managers of multinational companies typically fail to fully understand their customers. Why do you think this is the case? How should multinationals address this situation?

> Discuss the availability of microfinance in Bangladesh. How can the availability of small loans help the country move to a higher level of economic development and continue to reduce poverty levels?

> Alibaba has set itself a goal of reaching $1 billion in product sales annually. How does the e-commerce giant plan on reaching that goal?

> Why do you think free trade areas established so far in Africa have not lived up to their expectations?

> Discuss the challenges still facing Bangladesh. How can continued political reform help the country?

> In the space of just a few decades, Bangladesh has transitioned from being one of the world’s poorest nations to a country with a thriving textile industry and a microfinance movement that is paving the way for entrepreneurship. What contributed to the t

> What is Tata Motors strategy going forward? What role will exporting play in expanding the company’s global presence?

> Why do you think Tata Motors has chosen to expand into foreign markets using exports rather than local manufacturing as a main mechanism of getting its product to new markets?

> Discuss the importance of exports to Tata Motors. Why has the company chosen to export?

> Why do you think IKEA’s expansion into Europe went so well? Why did the company subsequently stumble in North America? What lessons did IKEA learn from this experience? How is the company now applying these lessons?

> By the early 1970s IKEA had established itself as the largest furniture retailer in Sweden. What was the source of its competitive advantage at that time?

> What are the strategic advantages to IBM of its globally integrated enterprise strategy? What kind of organizational changes do you think had to be made at IBM to make this strategy a reality?

> By the 1990s the classic multinational strategic orientation was no longer working well for IBM. Why not?

> In the 1970s and 1980s Palmisano states that IBM was organized as a classic multinational enterprise. What does this mean? Why do you think IBM was organized that way? What were the advantages of this kind of strategic orientation?

> What are the likely gains from trade to be had from TFTA if it is fully implemented as a common market?

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