Case Study 3-5

Substitution between Domestic and Foreign Goods

This case talks about the increasing trend seen worldwide in the growing substitution between
domestic and foreign goods/services. With reference to the concept of elasticity, a small price
change can lead to a large and quick shift in sales of a homogenous product like wheat, from
domestic to foreign sources. Same goes for the differentiated products like automobiles.
Furthermore, the case talks about the quality problems of past in US which made automobiles
highly substitutable for Japanese and European automobiles. In the end, case talks about the
distinction between domestic and foreign products which is reducing and there is
interdependence worldwide with the increase in globalisation- interconnectedness of world. The
increased availability of imported goods for consumers creates wide choices for them and
leading to improved lifestyles.
Case Study 9-9
Firm Architecture And Organizational Competitiveness

In this case study results of a survey con ducted by American Management Association on 16
key business issues are discussed. North American corporations believe that they may face these
problems in future. The highest ranking go to customer service,quality,control,acquiring new
technologies ,innovations product development, business partnership and team-based approach.
The lowest raking issues include political lobbying, reliance on consulting services and foreign
language training.
The point which is to be noted is that even the lowest ranking g issues received minimum 5 score
pn a scale from 1-10.According to this case study these results are of North American
Corporations but are similar to corporations from 36 countries.

Case Study: 10-5

Companies strategic mistakes and failures
So, this case study highlights the major reasons of business failures
First reasons is that the Senior executives do not understand the core competency of their
business and drift into lines of business about which it knows little.We can take an example of
kodak, it diversified from core camera b business into pharmaceuticals and consumer health
products during 1990.
The second reason of failure according to this case study is the inability of the top management
to foresee serious problems that the business may face in future .Same was the case with U.S
automakers ,theybelieved that japan would never be able to compete in such a market where

This study source was downloaded by 100000857659851 from CourseHero.com on 11-21-2022 23:44:29 GMT -06:00

https://www.coursehero.com/file/23002699/case-study/
 profits per automobile were was high and American automakers were strong. Later on American
automakers ceded the small-car market to japan because of low profits per car. Another example
is provided by Sears which was unable to understand the kind of change in consumer preferences
and WALMART replaced it as the nation’s top marketeer.
The third reason for business failure is the use of heavy debt.worldcom, one of the world’s
largest telecommunication companies, got bankrupted in 2002
Sometimes the company is unable to respond to new and major competitive challenges. this is
what happened to general motors and IBM.
Lastly a company may fail as a result of strikes and conflicts arising from unhappy workers.

This study source was downloaded by 100000857659851 from CourseHero.com on 11-21-2022 23:44:29 GMT -06:00

https://www.coursehero.com/file/23002699/case-study/
Powered by TCPDF (www.tcpdf.org)