1. Agree or disagree with the following statement - the U.S. has a competitive disadvantage in competing in global markets. Explain and support your answer.
3. Compare and contrast Sony, LG, and Samsung as international conglomerates competing in similar markets - what are their international competitive strategies (surf the net and check out their web sites).
4. What external environmental factors seem to be driving the international marketplace?
5. What influence do you believe shareholders have over a company's board of directors?
5b.What is the reality of stockholders power impact on a firm's strategy/ strategic management?
7. Do you believe that a company's board of directors can change the ethical standards in a business? How can they do it?
8. Would you like to serve on a company's board of directors? What do you think that you could accomplish? What do you believe would be fair compensation to you for your contribution and personal liability?
9. How does agency theory relate when discussing CEO compensation and strategic behavior? How are they linked?
Q.1. Agree or disagree with the following statement - the U.S. has a competitive disadvantage in competing in global markets. Explain and support your answer
The statement "the U.S. has a competitive disadvantage in competing in global markets" is right and according the international market condition of the US. In competing in global markets the increasing health care costs are posing competitive disadvantage to the US companies. The research on health care cost exhibits that employers and workers of US are receiving 23% less value in comparison of the G-5 group and 46% less value in comparison of the BIC (Brazil, India and China) group (Arnst, 2009).
US spend more money on the health care of the employees and workers than the other countries and this is posing competitive disadvantage for the US companies in competing in global marketplace. The expenses of G-% group is 65% of the total US spending on health care while in BIC group it is only 15% of the total spending of US (Minter, 2009). It is causing an increase in the cost, which is facilitating competitive disadvantage for the US companies.
Q.2. Which do you think are the next two "hot" international market for U.S. investment? Justify your answer with economic data.
The next two hot markets for US investment are Iraq and Saudi Arabia. Both the countries are experiencing a growth stage in their economy. The availability of natural resources and developing phase of both the countries provides a good opportunity to US to make its investment in these countries. Iraq is also the potential country for the investment of US as it has emerged from the past conflicts and insecurity. Now it is emerging as the tremendous potential sector or international market for the global companies (Iraq Investment and Reconstruction Task Force, 2008). The investment in natural resources by the US would be beneficial for it to increase its revenue as well as to achieve competitive advantage in international market.
Saudi Arabia is the other country, which is potential international market for the US investment. It is because; the regulations are becoming less strict for the foreign direct investment for the economy growth. The free market economy is also favorable for the US investment. The availability of natural resources such as oil, gas is the some important component, which make it potential country for US investment (Kingdom of Saudi Arabia, 2006).
Q.3 Compare and contrast Sony, LG, and Samsung as international conglomerates competing in similar markets - what are their international competitive strategies?
Samsung and LG are the Korean company in the electronic industry. Sony is a Japanese company, which is also competing these two companies in the international market. In the Asian market these three companies are capturing patents, licenses to increase their market share. They are also bringing some new technologies and products for the customers. But at the same time there is a great difference in the technology and the market segment of these companies in the international market. The international competitive strategy of Sony is to compete on the basis of technology from the other companies. The value adding activities of Sony are the biggest competitive advantage of it. It follows the product differentiation and new market segments in international market (Kikkawa).
The international competitive strategy of LG is based on the development of industry leading technologies. The standardization of its technologies also produces a competitive advantage for the LG in the international market. The continuous development of new products according the customer requirements are also the important part of its international competitive strategy (LG Electronics, 2009). Samsung ...
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