Consider two firms, A and B, that produce super computers. Each can produce the next generation super computer
for math (M) or for chip research (C). However, only one can successfully produce for both markets
simultaneously. Also, if one produces one type, the other might not be able to successfully produce the same type,
because of the limited market. The following payoff matrix illustrates the problem.
**(Firm B should be across the top of the rectangle like this, with the numbers inside)
Firm A: M 2,1 2,2
C 1,1 3,2
Firm B has a dominant strategy - Strategy C. Irrespective of whatever strategy Firm A takes, Firm B would always take strategy C.
Firm A does not have a dominant ...
Nash equilibrium evaluation is performed.
Corporate Strategy Challenges
Using the concept from Chapter 2 and Chapter 4 of Contemporary Strategy Analysis, address Ford's (Case 4) challenge in meeting the needs of shareholders versus stakeholders. (Please refer to attached files)
1. What ethical challenges and dilemmas might this pose?
2. How should a corporate strategy be adjusted to meet those challenges? Provide rationale for your answer.