Learning Activity #1Competing in international markets is discussed in Chapter 7 and Michael Porter’

Learning Activity #1Competing in international markets is discussed in Chapter 7 and Michael Porter’

Learning Activity #1Competing in international markets is discussed in Chapter 7 and Michael Porter’s Diamond Model is highlighted. The Diamond Model suggests that there are inherent reasons why some nations, and industries within nations, are more competitive than others on a global scale. The argument is that the national home base of an organization provides organizations with specific factors, which will potentially create competitive advantages on a global scale. By using Porter’s Diamond Model, business leaders can analyze which competitive factors reside in their company’s home country, and which of these factors could be exploited to gain global competitive advantages. Business leaders can also use the Porter’s Diamond Model during a phase of internationalization, in which leaders may use the model to analyze whether or not the home market factors support the process of internationalization, and whether or not the conditions found in the home country are able to create competitive advantages on a global scale.Porter’s Diamond Model states that the likelihood a firm will succeed when it competes in international markets is shaped by four aspects of its domestic market: (1) the home country’s demand conditions;(2) the home country’s factor conditions;(3) related and supporting industries within the home country; and(4) strategy, structure, and rivalry among its domestic competitors.Which of the four elements of the diamond model has the strongest influence on a firm’s fate when it competes in international markets?Automakers in China and India have yet to compete on the world stage. Based on the Diamond Model, would these firms be likely to succeed or fail within the global auto industry?Be sure to support your reasoning.Learning Activity #2Corporate-level strategies are explored in Chapter 8. Mergers and acquisitions are discussed in relation to horizontal integration. This can be an attractive approach, but is often fraught with issues. Your online text states that between 30 – 45 % of mergers and acquisitions later fail. That is a large percentage!Suppose Javier Miyare, the President of UMUC, decided that it was in the best interest of the University to merge with or acquire another school. What Colleges or Universities do you think would be good candidates for this horizontal integration move? Do you think this would be a good idea?Vertical integration strategies are also discussed in Chapter 8. This occurs when a firm gets involved in new portions of the value chain. By entering the domain of a supplier (backward vertical integration) or a buyer (forward vertical integration), managers can reduce or eliminate the leverage that the supplier or buyer has over the firm.Some universities have used vertical integration by creating their own publishing companies. The Harvard Business Press is perhaps the best-known example. Are there other ways that a University might vertically integrate? If so, what benefits might this create?

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