1. Module 1 Readings and Assignments
Complete the following readings early in the module:
· Module 1 Overview
· The following chapters from the required textbook:
· International business law and its environment:
· Introduction to International Business
· International Business Law and the World’s Legal Systems
· The following required articles:
· Anonymous (2006b). The a to z guide to Chinese company
law. International financial law review, p. 1.
· Bennett, J. (2002). Multinational corporations, social
responsibility and conflict. Journal of international
affairs, 55(2), 393-410.
· Chen, Y. R. R. (2004). Effective public affairs in China:
MNC-government bargaining power and corporate strategies fo
influencing foreign business policy formulation. Journal of
communication management, 8(4), 395-413.
· Hu, Y. S. (1992). Global or stateless corporations are national
firms with international operations. California management
review, 34(2), 107.
· Mosoti, V. (2005). Bilateral investment treaties and the
possibility of a multilateral framework on investment at the
WTO: Are poor economies caught in between?Northwestern
journal of international law & business, 26(1), 95-138.
· The following suggested articles:
· Goelzer, D. L. (1998). Designing an FCPA compliance
program: Minimizing the risks of improper foreign
payments. Northwestern journal of international law &

2. business, 18(2), 282-302.
· Roe, M. J., Ramseyer, J. M., & Romano, R. (1993). Some
differences in corporate structure in Germany, Japan, and the
United States; Columbian cartel launches bid for Japanese
firms; A cautionary note on drawing lessons from comparative
corporate law.The Yale law journal, 102(8), 1927-2037.
· The following suggested Web resources :
International business etiquette and manners
< http://www.cyborlink.com/ > [12/16/2015]
Introduction to basic legal citation
< http://www.law.cornell.edu/citation/ > [12/16/2015]
Global ethics
< http://www.ethics.org/resources/articles-global-
ethics.asp > [12/16/2015]
Complete guide to ethics management
< http://www.managementhelp.org/ethics/ethxgde.htm#anchor26
548 > [12/16/2015]
International organization for standards
< http://www.iso.org/iso/home.htm > [12/16/2015]
Foreign corrupt practices
< http://www.usdoj.gov/criminal/fraud/fcpa/ > [12/16/2015]
ICC anti-corruption
< http://www.iccwbo.org/policy/anticorruption/ > [12/16/2015]
A differentiator need not worry about production costs because
premium prices can be charged for its goods and services.
· Cost is a huge factor to determine what customers buy. All
consumers want the the best out of the products but with the
right cost. Some customers have loyalty to the brand but cost

3. remains the most important factor in the product.
2. Pursuing a low-cost and a differentiation strategy generates
higher profits than a single generic strategy
· I would agree with this statement just for the sole reason that
cost is the important factor for generating profits for a
company. The better cost you have the more customers you
attract to your business.
3. The key to being a successful differentiator is having
competencies in research and development.
· Research and devolpment is important but we cannot rely on it
solely. Add quality, customer feedback and efficiency to it and
it would be successful.

4. How important are functional strategies to the companies
discussed in the above cases?
· Functional strategies are important in sustaining and
improving the efficiency and effectiveness of the company.
Quality and innovation as well as customer responsiveness.
How are the 4 generic building blocks of competitive advantage
related to each other?
· With the superior efficiency we are enabling the cost to be
lowered. With quality control and improvement, we are able to
charge a higher price and we can lower the cost of a product.
With innovation we can also use that to increases our prices and
lower costs as well. We can conclude that all the blocks relate
to on another and they all help the company raise more profits.
What role can top management play in helping a company
achieve superior efficiency, quality, innovation, and
responsiveness to customers?
· Top management needs proper leadership to guide their
employees into the right path with minimum errors. They can
enhance the productivity of the organization in order for them
to enhance the 4 generic building blocks.
Over time, will the adoption of Six Sigma quality improvement
processes give a company a competitive advantage, or will it be
required only to achieve parity with competitors?
· The six sigma process will give us or a company a competitive
advantage. Using employees that have successfully completed
the course will allow us to gain competition over other
companies on the same field. This is a long term process in
which it will take 2 years at a time.
From what perspective might innovation be called “the single

5. most important building block” of competitive advantage?
· Innovation can be related to better products that will serve our
customer’s need and wants. Improving the quality of all existing
products that will satisfy future orders by customers.
1. What business-level strategy has each adopted? Refer to
current marketing activity to show how the respective strategies
are being expressed.
Telus has adopted is the differentiation. They provide their
customers with a multiple range of services and products ,
which are unique and different than their competitors. Examples
are; Optik, satellite TV and great deals and bundles.
Bel also uses the differentiation strategy. They describe that
their mission is to “delight” their customers with the product or
service that they provide. They provide service innovation.
2. Review and analyze their business strategy in the context
of the industry life cycle. Do they have a strong or weak
competitive position? How is this reflected in their business
level strategies?
The flexibility of the mobility and communications market
makes it more stable, which shows that it’s at the mature stage.
Both Telus and Bell have a strong stance in the market. Their
strategies, resources, and capabilities have led them to their
success and their unique competencies.
3. What other tools discussed to this point in the course could
be used to assess the appropriateness of the strategies that Telus
and Bell have pursued?
Porter’s five forces, the value chain analysis, SWOT analysis,
are the appropriate tools to use for Telus and Bell.
1.Assess and evaluate GM’s business strategy and explain how
it tries to distinguish itself in the marketplace from the other

6. major auto manufacturers.
Operated under price levels
5 different automobiles targeting different markets
Multidivisional structure
2.Is GM’s current financial position in the marketplace a result
of over- or under-differentiation?
Over differentiation
3.Create a Porter’s Five Forces model for the North American
automobile industry. Based on your assessment of the relative
forces affecting the industry and GM in particular, what could
GM do to improve its competitive position
Threat of entrants - Low - There isn’t really much room for new
entrants in this market. Automobiles are one of hardest markets
for new entires even though GM is faced with many challenged,
it is still a successful company new competition may not
survive for long
Intensity of rivalry among competitors – Medium – Limited
growth in the industry
Buyer bargaining power – low to Medium – Buyers can switch
to cheaper cars but GM has a lot of affordable cars for different
target market.
Supplier bargaining power – Medium – one supplier for raw
material – both GM and supplier prices are parallel they both go
up and down
Availability of substitutes – medium to high – (few competitors;
ford, Nissan, Toyota) this will depend on customer preferences.
4.Do you think that GM has been a victim of its past success?
To what extent have cognitive biases and groupthink shaped its
strategy?
Yes I do, wrongful planning and management caused some set
backs to the company but it also has a lot of support from the
government in case they needed a bail out.

7. Abell’s model:
Distinctive competencies – Creating something unique that
would make the competition fail to reach the same standards
and retain customer loyalty with affordable and dependable
functions.
Customer groups – International customers from different
generations and age groups.
Customer needs - An affordable and reliable communications
device.
Porter’s Forces:
· Bargaining power of suppliers = Normal - Companies rely on
suppliers to provide industry standard products
· Bargaining power of buyers is high/Very high - because there
are many competitors, buyers have so many other choices
· Threat of new entrants is high/Very high - Many other
companies have capabilities to start their products within this
industry.
· Threats of new substitutes is high/Very high – Technology is
always updating
· Rivalry is high/Very high, (Apple, Samsung)
Macroeconomic Forces:
Nokia is facing lots of competition nowadays. Technology is
changing very rapidly in this industry, every other brand is

8. competing to be number one . Nokia needs to work on its new
ideas and stability in this case since the other products are
reaching more customers and getting more customer loyalty.
Demographics and economic factors also influences the product
as well as the social forces.
Ethics and Social Responsibility
Kelly Dorin
The Friedman doctrine approach
· This approach takes a shareholder/corporate approach to social
responsibility and ethics.
· This approach views shareholders as the economic heart of the
organization/companies and the only group to which the firm
must be socially and ethically responsible.
· The goal of the firm is to maximize profits and lower costs
and return a portion of those profits to shareholders as
dividends.
· Under this approach, company should have no "social
responsibility" to the public or society because its only mission
is to increase profits for the sole purpose of the company and
for its shareholders and that the shareholders in their “private”
capacity are the ones that have to deal with the social
responsibility.
Utilitarian and Kantian ethics
· Utilitarianism - The view that right actions are those that are
likely to result in the greatest happiness of the greatest
numbers.
· Kantian - Right and wrong are originated on duty.
Rights theories
· In the rights ethical theory the rights set forth by a society are
protected and given the highest priority. Rights are considered
to be ethically correct and valid since a large or ruling
population endorses them.
Justice theories
· The justice ethical principle states that ethical theories should

9. prescribe actions that are fair to those involved. This means that
ethical decisions should be consistent with the ethical theory
unless extenuating circumstances that can be justified exist in
the case. This also means that cases with extenuating
circumstances must contain a significant and vital difference
from similar cases that justify the inconsistent decision.
Canadian Firms should and must always be socially responsible.
I disagree with the Friedman doctrine, simply because it feels
like it is throwing out responsibilities to another party.
Corporations must be socially and ethically responsible.
Although making a profit is important, it shouldn’t be the only
goal.
· Should companies consider social responsibility issues before
pursuing corporate-level strategies?
Yes, companies should and must consider social responsibility
issues before pursuing corporate-level strategies. It is proven
that Friedman Doctrines approach of letting the shareholders
take the responsibility for social ethics does not really work. .
· How can companies mitigate the impact of their corporate-
level strategies on the general community?
Companies can mitigate the impact of their corporate-level
strategies on the general community by using the local legal
requirements and regulations as a guide and educate their own
employees as well, effective communication and leadership is
vital as well.
· Under what circumstances and conditions might corporate-
level strategies be inconsistent with a company’s social
responsibility obligations?
When the environmental and ethical concerns are ignored just to
achieve profit gain.
· If you were the manager of a firm about to implement
corporate-level strategies, how would you address the impact on
the general community?
Educating and communicating with the employees is a must.

10. Reminders and being the right role model would achieve social
and ethical responsibility.
· Under what conditions might be horizontal integration be
inconsistent with the goal of maximizing profitability?
Horizontal integration may not be inconsistent with maximizing
profits if there are issues when merging companies and
managerial turnover during those mergers, and if managers
overestimate and underestimate the problems during a merger.
· What is the difference between a company’s internal value
chain and the industry’s value chain? What is the relationship
between vertical integration and the industry value chain?
A company’s internal value chain includes the research and
development, production, marketing, sales, and customer
service to add importance to their product for consumers. An
industry’s value chain consists of taking the products from the
raw material stage to the final product stage.
Vertical integration is the process of growing operations to
include all of the inputs to create a company’s products. A
company will vertically integrate by creating its own raw
materials rather than going to third part suppliers. This is a
similar process of the industry value chain by including all of

11. the inputs of the products sold in the market.
· Why was it profitable for GM and Ford to integrate backward
into component-parts manufacturing in the past, and why are
both companies now buying more of their parts from outside
suppliers?
It was more profitable to integrate backward into manufacturing
components in the past because manufacturing costs less than
purchasing the materials from suppliers. It was more proficient
to purchase raw materials, develop them into operational parts,
and use them to create a final product.
· What value-creation activities should a company outsource to
independent suppliers? What are the risks involved in
outsourcing these activities?
Value-creation activities to be outsourced include sourcing
quality resources, manufacturing parts, developing better-
quality production lines for competence and lower-costs.
· What steps would you recommend that a company take to
build mutually beneficial long-term cooperative relationships
with its suppliers?
communication and long term investment with suppliers
creates an understanding between the two parties and that would
benefit the company in the long run.
· What industry is Lockheed Martin engaged in?
Lockheed Martin is engaged in the defense, aerospace, security
and advanced technology industries.
· What “corporate-level” strategy has Lockheed Martin pursued
to improve its competitive position?
Lockheed has persued related diversification to improve its

12. competitive position.
· Explain Lockheed Martin’s strategy in the context of
developments within its industry.
There has been ongoing merging in the local technology sector.
They are implementing this strategy to stay competitive in the
industry.
· To what extent is the macro-environment shaping Lockheed
Martin’s strategy?
Technological forces are surely shaping Lockheed’s strategy.
Obtaining other technology companies will allow them to use
their “expertise in an innovative, creative way, and apply those
same technologies to other government agencies.”
· What position does Lockheed Martin occupy on the industry
life cycle?
Mature stage
-Perform a Porter’s five forces analysis of the industry.
Risk of entry would be low
Bargaining power of suppliers would be moderate because of
the specialization of products being produced.
Rivalry in the industry would be normal as it is merging.
Bargaining power of buyers is normal due to partnership of
competitors.
Threat of substitutes is low.

13. Seagate and Maxtor
1.Evaluate the nature and condition of the hard drive market and
refer to the industry life cycle in your analysis.
The hard drive market is very challenging, fast and innovative
but it is in a mature market. Hard entry to the market because
the top companies are well known, it is very difficult to
compete against these companies
2.Explain the rationale for the acquisition of Maxtor.
Both Seagate and Maxtor are companies to a top brand in the
Hard Drive market.
Maxtor was selling hard drives at a lower price than Seagate,
there were also other companies in the market that were trying
to compete as well, Seagate wanted to be a key company of the
industry and a vertical integration was the most effective way to

14. overcome any comptetion.
3.What generic building blocks are relevant to this case?
Efficiency, quality, R&D and Marketing.
4.What risks does Seagate face as a result of the acquisition,
and how might these risks be mitigated?
The main risk Seagate might have is foreknowing profit
generated from Maxtor’s product sales and using Maxtor’s R&D
to their own benefit. Seagate will have to recognize how
Maxtor’s management used to operate and have good
communication and training with the employees as well.