Sample Answers to Essay Questions
Completion requirements
- Locate the position of the company you work for on the I/R framework. Students examples will vary. It is important to support the positioning with either industry globalization drivers (market-, cost-, governmental-, and competitive drivers) and reasons for the need for local responsiveness (difference in customer demand, income levels and income distribution. Furthermore, a different structure of the distributive sector, a different competitive situation, protectionism by governments, as well as different labor conditions, or the availability or non-availability of suppliers.
- Use the Annual Report of the company you work for to calculate the ratios for the AAA. What are the limitations of the framework or the resulting recommendations, respectively? Students examples will vary. In general, the model simplifies complex relationships, but its recommendations are not always clear. For example, what if the resulting recommendation is that a company should pursueall three strategies simultaneously? Most companies should select one or two "A"s to focus on building a competitive advantage. While non-market-leading companies can make progress on all three "A"s, organizations should ensure that new strategy elements fit within the company structure. If a strategy entails significant changes, companies should assess how well they align with the organization's other activities. Pursuing more than one of the "A"s requires skill and foresight in thinking about integration mechanisms.