Chapter 7 discusses mergers and acquisitions. While most aspects of M&A activity are identical between mergers on the one hand and acquisitions on the other, legal propriety and the operations of due diligence often require us to refer to them differently, so we should take care to avoid calling a particular acquisition a merger and vice versa. The main issues in M&A actions involve: (a) the strategic basis for pursuing them (see Grand Strategy Matrix); (b) transaction cost economics as the underlying explanatory principle; and (c) the noted challenges that occur in the effort to integrate merged entities.Chapter 8 discusses international strategy. The main issue in international strategy concerns modes of entry: (a) exporting; (b) licensing; (c) strategic alliances; (d) acquisitions; and (e) wholly owned subsidiaries. In older textbooks, the lowest level is importing and exporting, but importing has become so simple in the internet age that it no longer merits mention as a mode of entry. Organizational structure is also a key interest in international strategy, as we use distinct nomenclature for three different structural forms, depending on the level of global integration and local responsiveness that makes sense to the industry and to the company’s other strategic choices.Chapter 9 discusses cooperative strategies. Older textbooks will usually refer to cooperative strategies as strategic alliances, which can take a wide range of forms, as subject only to the creativity of the partners and the regulatory constraints under which they must work. The two main types of strategic alliances are: (a) equity (i.e., joint ventures, since equity refers to ownership); and (b) non-equity (purely voluntary cooperation, or else formal arrangements based on contractual agreements). In fact, many companies actively seek out ways to “partner” with other entities, forming new strategic alliances, as you can often immediately detect by a review of their websites.Chapter 10 discusses corporate governance. The main issues in corporate governance are: (a) who should be in charge of the company; (b) how that person or entity should govern; and (c) what the organization’s higher purpose should be. Agency theory, which examines the imperfect motivational linkage between corporate owners (i.e., shareholders) and corporate managers, occupies a large segment of the literature on corporate governance. Chapter 10 also offers a useful overview of the differences in corporate governance systems in Germany, Japan, and China, respectively, showing that corporate governance norms depend heavily on nationala regulatory norms.Chapter 11 discusses the strategy–structure linkage. Structure always forces certain strategic choices on decision makers, so planners must work diligently to adapt the organization’s structure to the intended strategy rather than simply letting the organization configure itself according to whatever natural pressures and forces happen to be at work within it. Chapter 11 also presents valuable insights for matching generic strategies (core business strategies) to basic structural features involving how to manage the value chain. Corporate strategy also plays an important role in determining ideal structures for organizations to adopt.For this week’s commentary, please select just one of the following questions to answer. As before, to respond, cite the question by its number, and then immediately start answering, without restating the question in any way.[Chapter 7 Mini-Case.] Describe the core plan that Cisco has in place to guide the integration of an acquired firm into its operations. What are the strengths of this plan, and what are its potential weaknesses?
[Chapter 8 Mini-Case.] Which corporate international strategy would you classify ABB as using? Explain your answer.
[Chapter 9 Mini-Case.] What does it mean to say that the partners of an alliance have “complementary assets”? What complementary assets do Renault and Nissan share?
[Chapter 10 Mini-Case.] How well do you think the governance system of JPMorgan Chase is working in protecting shareholder interests?
[Chapter 11 Mini-Case.] Why have consumer product companies headquartered in Europe historically used the multidomestic strategy? In your view, is this an effective choice of international strategy for these firms? Why or why not?
{13th edition} [Chapter 7 Mini-Case.] The new CEO, Jan Jenisch, undertook a restructuring strategy. Why do you think the market reacted negatively to his plan?
{13th edition} [Chapter 8 Mini-Case.] What international strategy is being used by the major companies holding these sponsorships? Please explain.
{13th edition} [Chapter 9 Mini-Case.] Should cost minimization or opportunity maximization be the primary goal of a cooperative strategy? Can both be achieved simultaneously? Why or why not?
{13th edition} [Chapter 10 Mini-Case.] Why are many countries adopting “western” governance systems, similar to those found in the United States and the United Kingdom, which are more shareholder-friendly than many national legacy systems?
{13th edition} [Chapter 11 Mini-Case.] What additional organizational structure or process adjustments will Sony need to make to realize its revised strategic objectives?
General Instructions (same as before)In all discussion tasks, endeavor to respond to the question astutely, logically, and piercingly, while adhering to the correct conventions of formal US English. Cite the textbook (no more than three times) and two outside sources. The optimal sources will be peer-reviewed articles in scholarly journals. If you can grow comfortable reading theoretical material, you can be a superb asset for your organization, a rarity, able to apply the most advanced ideas from the theoretical literature to your organization’s strategic discussions. Nevertheless, you must scrutinize each source carefully to make this determination on your own rather than relying on a library database to tell you.When citing sources, strictly use APA style, 7th edition. This style guidance also applies to your treatment of other aspects of grammar and construction, although those features are subtler than in-text citation and reference formatting, which account for most points lost in the formal commentaries. Ultimately, you will manage your business with the same mentality as your writing. If you feel that the task of reading your commentary anew in search of opportunities to correct, formalize, and clarify (i.e., proofreading) is too tedious, you will later treat your business with the same nonchalance. Now is the time to exercise that critical business mind.Once you feel satisfied that you have answered the question, continue to elaborate, such as by adding causal logic (“this effect occurs because of that cause”), hypothetical cases (“what if?”), and anecdotes of personal experience (“in my previous company…”) until you have exceeded the minimum specification of 250 words by a comfortable margin.Note: The length assessment will exclude section headers, quoted passages, parenthetical expressions, bulleted or numbered lists in fragmentary form (i.e., incomplete sentences), tables, images, and extraneous verbiage. Extraneous verbiage includes any dispensable wording, such as sentences that merely tell the reader what question you are about to answer.In addition to posting your formal commentary in the manner just described, be sure also to reply to at least two other students. Unlike the main commentary, formality is optional here, and no in-text citations or reference section is necessary. Each reply requires at least two complete, meaningful sentences, which directly address at least one aspect of the other student’s commentary and add genuine value by advancing new observations, facts, or ideas rather than merely agreeing with the commentator. In replying, it is always good policy to start by lauding the commentator’s astuteness and then offer your value-adding observation.Your main commentary is due Sunday night. Your replies to the other students are due the following Tuesday night (i.e., two additional days, to allow time for people to post their main commentaries). This deadline pattern will remain the same throughout the course.
