8.1 What is racial inequality?

Which effects does it have on those that are affected by

it?
Racial equality occurs when institutions give equal opportunities to people of all races. In other
words, regardless of physical traits such as skin color, institutions are to give individuals legal,
moral, and political equality. In present-day Western society, diversity and integration among
races continues to become normative.

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8.2 How does education contribute to inequalities?

I believe that education plays a fundamental role in changing this state of affairs
and is responsible for the development of both personality and the creation of
ideas which dictate attitudes, actions and perspectives on the world, guiding us
through life and shaping our career choices.
Essentially, power relations, discrimination and the guarantee of equality are defined through
education.

It can be used as a tool to form prejudices that lead to discrimination, or we can teach students to
accept a multicultural and diverse society in which men and women are equal.

School does not just serve to certify knowledge – it is also a fundamental institution for the
promotion of equality.

Education should therefore develop scientific, cultural, social and personal skills that help
increase young people's self-confidence, enhance their capabilities and improve their social and
political participation.

Democratic education should combat stereotypes and discrimination, opposing all theories which
perpetuate the incorrect ideologies and value systems that are subtly engrained into our minds
from a young age.

This is clear from birth: little girls are dressed in pink –the colour of tenderness – while little
boys are dressed in blue – the colour of intelligence.
The idea of women as caregivers and in charge of looking after the household has been accepted
as a norm without question.

8.3 What is gender inequality and how does it impact a society?

Gender equality: refers to the equal rights, responsibilities and opportunities of women and men
and girls and boys.

8.4 Why do we need a diverse workforce? What are the arguments (pros/cons)?
Workforce diversity: (often known as Inclusion and Diversity) is defined as an organization of
employees with differing characteristics, in terms of surface-level and deep-level aspects of
members.
Many successful companies regard Inclusion and Diversity (I&D) as a source of competitive
advantage. For some, it’s a matter of social justice, corporate social responsibility, or even
regulatory compliance. For others, it’s essential to their growth strategy.

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 Win the war for talent. Strengthening human capital for their organizations remains one
of the top challenges for CEOs globally, and it continues to be seen as a key source of
competitive advantage. A diverse and inclusive workplace is central to a company's
ability to attract, develop, and retain the talent it needs to compete. The effects of major
trends – globalization, technology, and demographics – create new growth opportunities
for companies, while disrupting traditional business models and organizational structures.
More diverse organizations have broader talent pools from which to source capability to
compete in this changing world.
 Improve the quality of decision-making. Published research from academia, corporations,
and other organizations supports that diverse and inclusive groups make better quality
decisions, often faster, and in a more fact-based manner, with less cognitive bias or
groupthink.18, 19 Further studies show a positive correlation between better decision
making and business performance
 Increase innovation and customer insight. Similarly, research supports that diverse and
inclusive teams tend to be more creative and innovative than homogenous groups.
Diverse teams bring different experiences, perspectives, and approaches to bear on
solving complex, non-routine problems.21, 22 Diverse teams are also better able to target
and distinctively serve diverse customer markets, such as women, ethnic minorities, and
LGBTQ+ communities which command an increasing share of consumer wealth and
which could represent untapped markets for some companies.
 Increase employee satisfaction. I&D management improves employee satisfaction and
also reduces conflict between groups, improving collaboration and loyalty. This can
create an environment that is more attractive to high performers.
 Improve a company’s global image and license to operate. Even before the current
climate raised the stakes on I&D, companies who were leaders in this space benefitted
from an enhanced reputation extending beyond their employees to their customers,
supply chain, local communities, and wider society. Recent highly publicized issues with
 gender and racial discrimination highlight that, for many companies, this is also a matter
of license to operate.

Dis:

 Conflicts of Communication: 
 Integration of employees from different cultural background and countries in your
workforce increase internal and external communication barrier filters. Heterogeneous
work culture makes communication easier for employees do not strain to overcome
language barriers and cultural issues. However, with people who do not get used to a
multi-cultural environment, it will be a hard time for them to integrate and perform well.
This is one of the reasons why big organization employs interpreters and diverse trainers
to help employees overcome communication challenges of diversity. 
 Cultural Resistance: in the workplace, resistance to change is a general phenomenon.
The growth of organizations and companies changes the nature of the workplace and the
kind of relationship exhibited therein. This change sometimes can be stressful among
employees resulting in the development of negative working relationships, poor morale in
incidences of poor management and planning.
 Discrimination: 
 The companies that hire internationally often have human resource department in place to
manage the diversity that occurs. However, incidences of discrimination may be found in
companies that become slowly diverse without a strategic plan in place between
managers and employees. Since diversity is based on distinguishing workers’ trains, the
presence of a diverse workforce probes opportunities for discrimination. For example, if a
male-dominated workplace is going to hire females, it is going to increase workplace
tension and unwelcome changes.
 Increased Costs: 
Assessments, implementations and development of diverse workforce plans are the steps for the
effective management of a company. →  These approaches have cost association directly or
indirectly. Examples of indirect costs are incurred in training and participating time employed by
the company employees as well as others aspects of implementing diversity.

8.5 What is nationalisation? What are the pros/cons of such a policy?

Nationalization is defined as the act of transferring an economic activity from the private sector
to the public sector, in which the government takes control over assets and over a corporation,
usually by acquiring the majority stake or the whole stake in the
corporation. 

8.6 What is privatisation? What are the pros'cons of such a policy?

1. Privatization is defined as a transfer of ownership and control from the public to the
private sector, with particular reference to asset sales.
2. Advantages:
 Efficient use of Resources – The private sector uses resources much more efficiently than
the public sector.
 Healthy Competition – Giving access to the private sector creates equal opportunities for
all and results in healthy competition.
 Reduced Burden on Government – The government losses on loss-making government
enterprises are removed.
 Chances of Monopoly are Eliminated – Privatization removes the chances of government
monopoly in a particular industry.
 Reduced Political Involvement – The political parties tend to misuse the public sector by
utilizing its pressure. The same is not the case with the private sectors.
 Employment Creation – With the private sector entering an industry, job opportunities
are created.
3. Disadvantages:
 Chances of Monopoly – There are high chances of some private players taking in the lead
and creating a monopoly market in their favor.
  Public Interest Sectors – Privatization is not advisable in some sectors which relate to
public interest such as health care, education, etc. The reason is that the service providers
in such sectors need to serve with non-profit motives, which will not be possible in case
of privatization.
 Short-Term Goals of Private Businesses – Private business players, to increase their
immediate profits, may be reluctant to invest in long term projects.
 Industry Fragmentation – The industries which are privatized may become fragmented,
with no person taking responsibility in their hands.

8.7 How does terrorism impact a society and business, particularly international
business?

“Terrorism” within the international Business domain has proven to be a

particularly demanding challenge for researchers and practitioners for two reasons:
its unpredictability and its quasi-intangible yet real indirect impact on business
internationalization and performance. Direct effects primarily encompass damage
or disruption for power, communication, transport and other infrastructure due to
physical damage, injury, trauma and death on human level, and destruction on a
physical level.
The indirect costs of terrorism may be sizable, if terrorism discourages foreign
investments. Foreign investment generates employment opportunities, alleviates
credit constraints, fills shortages of local savings, and brings knowledge and skill
to the country, so it is often heralded as a pathway to economic development.
These opportunities are wasted if terrorist attacks deter international investments.
 
The fear of terrorism also limits investment to drive business growth. The
immediate cost of terrorism is localized, thereby causing a substitution of
economic activities from relatively vulnerable sectors to relatively safer sectors.
This substitution allows large diversified firms to cushion their losses. Consumer
choices are also likely to be affected due to the likelihood of been harmed through
a terror attack.
 
Terrorism also hinders the performance of businesses by raising the cost of doing
business in terms of higher wages and greater expenditure on security. The overall
psychological effect of the risk of a future terror attack and the direct cost of
increased airport security have an adverse economic consequence on business
survival and growth. Other costs (including security and surveillance expenditure,
repairs and replacement of stolen properties) adversely deplete the already scarce
financial resources, which may result in adverse business performance.
8.8 Why is political and economic stability an important investment motivator?
Among them are wars, terrorism, and especially government changes( new government) .
Political risk determines a country's political stability, either internally or externally. For
instance, a recent military coup would increase a nation's internal political risk for businesses as
rules and regulations suddenly shift. Other risks in this category could include war, terrorism,
corruption and excessive bureaucracy (i.e. host government red tape is preventing certain fund
transfers or other transactions).
Political risk can affect a country's attitude to meeting its debt obligations and may cause sudden
changes in the foreign exchange market.

The risks may be economic and financial ( high inflation rates, repayment of loans, labor
condition, labor productivities, laws..) Economic risk encompasses a wide range of potential
issues that could lead a country to renege on its external debts or that may cause other types of
currency crisis (i.e. recession). A major factor here is economic growth – the health of a nation's
GDP and the outlook for its future. For instance, if a country relies on a few key exports and the
prices for these are dropping, this creates a negative outlook and may increase the economic risk
for foreign trading partners.
Acts of government may also impact economic risk, such as intervention in the money market or
policy changes that cause tax instability. One other factor is issues with foreign currency
exchange, for instance a shortage in certain currencies or a devaluation of the exchange rate.

9.1 What is international strategy? Definitions and explanations, please.

International strategy is a strategy through which the firm sells its goods or
services outside its domestic market. It focuses on exporting products and
services to foreign markets while maintaining production headquarters at
home. It is concerned with the way firms make choices about acquiring and using
scarce resources in order to achieve their international objectives
This strategy is often followed by small local businesses that are seeking to export
resources to foreign markets. Some good examples are large wine producers from
countries such as France and Italy, …
The goal of international strategy is to achieve and maintain competitive
advantage.
9.2 Please mention the different steps of a Strategic Planning Process.

 Determine your strategic position.

 Prioritize your objectives.
 Develop a strategic plan.
 Execute and manage your plan.
 Review and revise the plan.

9.3 Please mention the steps of the Value Chain, and explain why it is called upward
and downward supply chain.
 Step 1: Identify all value chain activities. ... 
 Step 2: Calculate each value chain activity's cost. ... 
 Step 3: Look at what your customers perceive as value. ... 
 Step 4: Look at your competitors' value chains. ... 
 Step 5: Decide on a competitive advantage.

The upstream portion of the supply chain includes the organization’s suppliers àd the processé
for managing rrelationships with them.
The downstream portion consists of the organizations and processes forr distributing and
delevering products to the final customers

9.4 Please differentiate Global strategy, transnational strategy, international strategy

and multi domestic strategy.

Multidomestic: Low Integration and High Responsiveness

Companies with a multidomestic strategy have as aim to meet the needs and
requirements of the local markets worldwide by customizing and tailoring their
products and services extensively. In addition, they have little pressure for global
integration. Consequently, multidomestic firms often have a very decentralized and
loosely coupled structure where subsidiaries worldwide are operating relatively
autonomously and independent from the headquarter. A great example of a
multidomestic company is Nestlé. Nestlé uses a unique marketing and sales approach
for each of the markets in which it operates. Furthermore, it adapts its products to local
tastes by offering different products in different markets.

Global: High Integration and Low Responsiveness

Global companies are the opposite of multidomestic companies. They offer a
standarized product worldwide and have the goal to maximize efficiencies in order to
recude costs as much as possible. Global companies are highly centralized and
subsidiaries are often very dependent on the HQ. Their main role is to implement the
parent company’s decisions and to act as pipelines of products and strategies. This
model is also known as the hub-and-spoke model. Pharmaceutical companies such as
Pfizer can be considered global companies.

Transnational: High Integration and High Responsiveness

The transnational company has characteristics of both the global and multidomestic
firm. Its aim is to maximize local responsiveness but also to gain benefits from global
integration. Even though this seems impossible, it is actually perfectly doable when
taking the whole value chain into considerations. Transnational companies often try to
create economies of scale more upstream in the value chain and be more flexible and
locally adaptive in downstream activities such as marketing and sales. In terms of
organizational design, a transnational company is characterised by an integrated and
interdependent network of subsidiaries all over the world. These subsidiaries have
strategic roles and act as centres of excellence. Due to efficient knowledge and
expertise exchange between subsidiaries, the company in general is able to meet both
strategic objectives. A great example of a transnational company is Unilever.

International: Low Integration and Low Responsiveness

Bartlett and Ghoshal originally didn’t include this type in their typologies. Other authors
on the other hand have attributed the name to the lower left corner of the matrix. An
international company therefore has little need for local adaption and global
integration. The majority of the value chain activities will be maintained at the
headquarter. This strategy is also often referred to as an exporting strategy. Products
are produced in the company’s home country and send to customers all over the
world. Subsidiaries, if any, are functioning in this case more like local channels through
which the products are being sold to the end-consumer. Large wine producers from
countries such as France and Italy are great examples of international companies.

9.5 What is contingency planning or scenario planning?

Scenario Planning allows executives to explore and prepare for several alternative
futures. It examines the outcomes a company might expect under a variety of operating
strategies and economic conditions.

Contingency Planning assesses what effect sudden market changes or business

disruptions might have on a company and devises strategies to deal with them. Scenario
and contingency plans avoid the dangers of simplistic, one-dimensional or linear
thinking. By raising and testing various “what-if” scenarios, managers can brainstorm
together and challenge their assumptions in a nonthreatening, hypothetical
environment before they decide on a certain course of action. Scenario and Contingency
Planning allows management to pressure-test plans and forecasts, and equips the
company to handle the unexpected.

9.6 Please mention at least seven strategic planning tools and methods.

 1. Balanced Scorecard
 2. Strategy Map
 3. SWOT Analysis
 4. PEST Model
 5. Gap Planning
 6. Blue Ocean Strategy
 7. Porter's Five Forces
 8. VRIO Framework
 9. Baldrige Framework
 10. OKRs (Objectives and Key Results)
 11. Hoshin Planning
 12. Issue-Based Strategic Planning
 13. Goal-Based Strategic Planning
 14. Alignment Strategic Planning Model
 15. Organic Models of Strategic Planning
 16. Real-Time Strategic Planning