Exam

Perederii Tetiana IE-72a.en

Variant 2
1. Analysis of a corporate-level strategy (on the corporate examples).

A corporate-level strategy is a multi-tiered company plan that leaders use to

define, outline and achieve specific business goals. A corporate-level strategy can
be used by a small business to increase its profits over the next fiscal year, whereas
a large corporation might be overseeing the operations of multiple businesses to
achieve more complex goals like selling the company or entering a new market.
A corporate- level strategy can be merger or acquisition strategies.
Horizontal mergers refer to the merger of two companies who are direct
competitors of one another and they serve the same market and sell the same
product. A merger occurring between companies in the same industry. A merger
between Coca-Cola and the Pepsi beverage division, for example, would be
horizontal in nature. The merger or acquisition of new business operations. An
example of horizontal integration would be Apple entering the search-engine
market or a new industry related to laptops and smartphones. Vertical mergers
occur between a company and a supplier. A merger between two companies
producing different goods or services for one specific finished product. Integrating
successive stages in the production and marketing process under the ownership or
control of a single management organization. An example might include a gas-
station company acquiring a oil refinery. An automobile company joining with a
parts supplier would be an example of a vertical merger. Such a deal would allow
the automobile division to obtain better pricing on parts and have better control
over the manufacturing process. The parts division, in turn, would be guaranteed a
steady stream of business. Conglomerations refer to the merger of companies
which don’t sell any related products to any related markets. There are two types of
conglomerate mergers: pure and mixed. A leading manufacturer of athletic shoes,
merges with a soft drink firm. One example of a conglomerate merger was the
merger between the Walt Disney Company and the American Broadcasting
Company. Product-extension mergers are executed among companies that sell
different products of related category. A product-extension merger takes place
between two business organizations that deal in products that are related to each
other and operate in the same market. The product extension merger allows the
merging companies to group together their products and get access to a bigger set
of consumers. The merger of Pizza Hut and PepsiCo was a Product Extension
Merger. Market-extension mergers occur between two companies that sell identical
products in different markets. The main purpose of the market extension merger is
to make sure that the merging companies can get access to a bigger market and that
ensures a bigger client base. A market extension merger occurs, for example, when
financial institutions offering the same services merge in their quest to expand to
larger markets. Another example is when a national company mergers with a
locally based company.
Mergers and acquisitions is an aspect of corporate strategy dealing with the
buying, selling, dividing, and combining of different companies and similar
entities that can help an enterprise grow rapidly in its sector or location, or acquire
new sectors or locations.

2. Multinational companies are facing with the global-local dilemma.

Explain what this means.
Nowadays, companies are becoming more and more global. When a
company decides to go into the international market it has to face what it is known
as the global-local dilemma. The global local dilemma states that companies have
to consider different options when deciding the strategy they are going to use.
They can offer local-responsiveness solutions, this is, adapting their products to the
national culture or using a global integration solution, carrying out businesses in a
similar way throughout the world. The solution of the dilemma will affect many
areas of the company. Companies may choose between four different strategies to
solve the dilemma: multidomestic, regional, transnational and international
 The global- local dilemma that MNCs face is the pressure to respond to local
needs in a market with each region or country. MNCs generally attempt to offer the
services and products that will attract the customers in closely satisfying
expectations and cultural needs. In today’s globalised world, the firms tend to
operate in a global scale. Just by following a particular goal, they have the account
on the confined differences. Now, the conduct of organisations in the foreign
markets has been considered for decades for understanding the factors, which are
influencing choice between the standardized global and local marketing.
The core dilemma of global marketing is the choice between selling the
same product across all boundaries and the implementation of local marketing
strategies in order to respond to regional differences. A global product can also
contain local values to give the product or service a higher grade of recognition. By
referring to the contingency approach, which states that there is no theory or
method for business or marketing strategies that applies to all businesses or
circumstances, the decision of the marketing strategy, whether it is the local or
global approach or a variation between, has to be fundamental. By unifying pro-
ducts, prices distribution channels and promotion and sales programs, the ultimate
form of standardization and thus global marketing is achieved. The assumption of
an overall homogenization of needs throughout the world is the commonest used
justification for global marketing, although by now many firms have learned that
the standardized approach is not as effective as it was believed to be. Indeed,
common needs may be generally valid, but local influences, such as religion,
attitudes, and motivation, vary . The global-local dilemma affects international
businesses in many areas, although marketing may be the most important one.
 3. Advantages and disadvantages of Adize’s approach to the
identification of management and mismanagement styles.
Summing up all information about this approach , it is necessary to
highlight the advantages and disadvantages of Adize’s approach.
Advantages:
1. Preventing conflicts when employees or group members interact in real life.
2. Distribution of roles and tasks in the team.
3. The procedure for monitoring the performance of functions has been
simplified.
4. Through the construction of competencies with the allocation of detailed
indicators, obtaining the most reliable information regarding the attribution
of a person to one type or another.
Disadvantages:
1. In already working teams, consisting of professionals, whose replacement is
impossible, this method is not applicable.
2. It is difficult to select people for the teams that are being created according
to the given criteria and at the same time maintain professional
requirements.
3. Too contrasting division of people according to team roles. There is a
possibility that employees in different situations can change their roles, since
experience, values, attitudes can have an additional impact.
4. There are opinions that such a clear distribution of responsibilities
(functions) can hinder the development of the group. Can lead to the
dominance of personal goals over collective ones.
In conclusion, the functions P, A, E and I are like “vitamins” - they are all
necessary for the health of the organization in the short and long term, or for
building teams. If even one of them is missing, the organization / team is
threatened with a disease with certain symptoms. The model for building
competencies according to Yitzhak Adizes, despite some of its shortcomings, will
help create a mutually complementary team, whose members will adhere to
different approaches, and the tasks of each will be clearly defined.