Question

• If you were the CEO of Ford and had automobile factories in Mexico and Canada, how would you address the international strategic political and economic risks?
• Describe the international diversification strategy that you would recommend for LEGO and why you feel it is a good strategy.
• I propose a joint venture between Whole Foods and Sierra Nevada Beer. Whole Foods will establish a pub inside the store. Sierra Nevada Beer will supply the beer and staff the pub. Do you feel this alliance makes sense? Why or why not? What would you recommend to improve this alliance?
• Which business-level cooperative strategy would best help Netflix dominant the marketspace and why?

Answer 1

Ans1- According to Bloomberg Business reported that Mexico became the first developing nation to cut pollution tied to carbon emission 25% by 2030. Manufacturers in Mexico must knew about this regulations.

Mexico is the second largest automobile manufacturing nation in the Western Hemisphere, after United States. In Mexico City “Hoy no circula” (cannot be driven today”) program is implemented. Every vehicle has a color sticker depending on the life lived by vehicle and the pollution rate number is also written on number plate. Ford diversified business in foreign countries through foreign vehicle production. The level of vehicle demand is the primary factor to know about the profitability of the company.

External control of the Canadian economy is based more on political than economical. The Canadian trade is coming more and more to be founded on secondary manufacturing industries rather than primary resource industries. The Canadian government has a fundamental political role to play in the development of industrial strategy.

With this explanation you understand that Mexico is much involved in economic development than Canada because the impact of political environment of Canada is more than Mexico. While manufacturing in Mexico I would like to focus more about how can I do less waste and protect the environment because Mexico’s environmental rule are very strict or rigid than Canada, so I take all the license and do less pollution. In Canada I would follow all the rules which government made and try to know about the political environment of the country.

Ans 2- LEGO is the company that makes brick toys for children. In 2003 company went in losses, it is hard to believe that such a big company is very nearly disappeared. When new CEO, Jorgen Vig Knudstorep, came he took the charges of the company and make some changes in the management of the company and take the company to the high level again. The mantra was “back to basic” means back to core product which is brick building toys for children. And company starts to focus more on the international diversification in the year 2013. This is the good strategy for the business because now these days the competition is cut throat and everyone wants to became the number 1 and the internet make available all the things in the reach of every person, so for LEGO it is important to adopt international diversification strategy and get back to core product production.

Ans 3- Joint venture between Whole foods and sierra Nevada beer is a good idea because it is a multinational supermarket chain and it is known for the exclusively sells products free from hydrogenated fats and artificial colors, flavors, and preservatives. And Sierra Nevada Beer company, it gives different variety of beer and fresh beer. So this joint venture is a good idea health food with a beer is best strategy for the beer lovers. For example if a person wants to go out with family or friends they can go there and have healthy food with beer at one place. And the idea of opening a bar in the whole food market is also good because it attract the young customers because they want to party at these kind of places where food and drinks are available.

Ans 4- Netflix has been one of the leading video streaming services for years and easily attract the larger number of customers and earn good revenue. According to the report published by market research firm eMarketer this month published data showing that Netflix is losing a bit of its overall U.S. viewership market share to Amazon prime and Disney’s Hulu. This year Netflix plans to spend $15 billion on original programming and licensing contents. It should more focus on the exclusive contents and display more relevant and good story line. “Netflix has two major things on its side, which are time and its library of popular original TV shows and films”, says Haggstorm. So Netflix should focus on these two aspects more and show the original content so that customers attract toward it and not change the platform. Netflix is putting a lot of money into original movies and it should continue this strategy if it wants to be the part of competition.