Total No. of Questions SEAT No.

:
: 5]
[5860]-403 [Total No. of Pages :
P6901 S.Y. M.B.A. 2
GE - UL - 19 : GLOBAL STRATEGIC MANAGEMENT
(2019 Pattern) (Semester - IV) (405)

Time : 2 Hours] [Max. Marks : 50

Instructions to the candidates:
1) All questions are compulsory.
2) All questions carry equal marks.
3) All questions contain internal options.

Q1) Answer any five out of the following :

a) Define localization.

b) What is market research?

c) Define Innovation.

d) What is sustainability?

e) What is an Alliance?

f) What are capabilities?

g) Define culture.

h) What is an acquisition?

a) Localization

Localization is the process of adapting a product or service to a specific target

audience. This includes translating the product or service into the target audience's
language, as well as adapting the product or service to meet the target audience's
cultural norms and expectations.

For example, a company that sells software in the United States might localize its
software for the Chinese market by translating the software into Chinese, as well as
adapting the software to meet Chinese cultural norms, such as using the metric
system instead of the imperial system.

b) Market research
Market research is the process of gathering information about a market in order to
make informed business decisions. This information can include data about the
market size, the target audience, the competition, and the market trends.

Market research can be used to help companies identify new opportunities, develop
new products or services, and improve their existing products or services.

c) Innovation

Innovation is the process of creating new products, services, or processes.

Innovation can be driven by a number of factors, such as technological advances,
customer needs, or competitive pressure.

Innovation can be a key driver of business growth. Companies that are able to
innovate successfully can gain a competitive advantage and capture new market
share.

d) Sustainability
Sustainability is the ability to meet the needs of the present without compromising
the ability of future generations to meet their own needs. This means that
businesses need to operate in a way that minimizes their environmental impact and
ensures that they are using resources efficiently.

There are a number of ways that businesses can become more sustainable. This
includes using renewable energy sources, reducing their waste output, and
improving their energy efficiency.

e) Alliance

An alliance is a strategic partnership between two or more businesses. Alliances

can be formed for a variety of reasons, such as to share resources, enter new
markets, or develop new products or services.

Alliances can be a valuable way for businesses to grow and expand their
operations. However, it is important to choose partners carefully and to make sure
that the alliance is aligned with the businesses' strategic goals.

f) Capabilities

Capabilities are the skills, knowledge, and resources that a business has. These
capabilities can be used to create products or services, deliver customer value, and
compete in the marketplace.
Capabilities can be developed over time through investment in people, processes,
and technology. It is important for businesses to identify and develop the
capabilities that are critical to their success.

g) Culture

Culture is the shared values, beliefs, and norms of a group of people. Culture can
influence how people think, behave, and interact with each other.

Businesses need to understand the culture of the markets they operate in in order to
be successful. This includes understanding the cultural norms around things like
communication, decision-making, and customer service.

h) Acquisition

An acquisition is the purchase of one company by another company. Acquisitions

can be a way for businesses to grow their operations, enter new markets, or acquire
new capabilities.

Acquisitions can be a complex and risky process. However, they can also be a very
successful way for businesses to grow and expand their operations.

Q2) Answer any two out of the following :

a) What are the factors that push localization?

There are many factors that push localization, but some of the most common
include:

• Globalization: The world is becoming increasingly interconnected, and

businesses are looking to expand into new markets. In order to be successful
in these markets, businesses need to localize their products and services to
meet the needs of local customers.
• Technological advances: Technology has made it easier and more affordable
to localize products and services. This has led to an increase in the number of
businesses that are localizing their offerings.
• Competition: In today's competitive marketplace, businesses need to find
ways to differentiate themselves from their competitors. Localization is one
way to do this, as it allows businesses to tailor their products and services to
the specific needs of local customers.
• Customer expectations: Customers are increasingly demanding that
businesses offer localized products and services. They want to be able to
interact with businesses in their own language and culture, and they want to
 be sure that the products and services they purchase meet their specific
needs.

In addition to these factors, there are a number of other reasons why businesses
might choose to localize their products and services. These include:

• To increase brand awareness: Localization can help businesses to increase

brand awareness in new markets. When customers see that a business has
taken the time to localize its products and services, they are more likely to be
familiar with the brand and to trust it.
• To improve customer satisfaction: Localization can help businesses to
improve customer satisfaction. When customers are able to interact with
businesses in their own language and culture, they are more likely to be
satisfied with their experience.
• To increase sales: Localization can help businesses to increase sales. When
businesses localize their products and services, they are more likely to be
able to reach a wider audience and to generate more sales.

Overall, there are many factors that push localization. These factors are likely to
continue to grow in importance in the years to come, as businesses look for ways to
reach new markets and to improve customer satisfaction.

b) What are the benefits of globalization?

Globalization has many benefits, both for businesses and for individuals. Some of
the key benefits of globalization include:

• Economic growth: Globalization can lead to economic growth by increasing

trade and investment between countries. This can lead to higher levels of
productivity and innovation, which can benefit businesses and consumers
alike.
• Increased choice: Globalization can lead to increased choice for consumers
by making goods and services from around the world more accessible. This
can lead to lower prices and a wider variety of products and services to
choose from.
• Improved technology: Globalization can lead to the spread of technology and
knowledge around the world. This can help businesses to improve their
operations and can also benefit individuals by giving them access to new
technologies and knowledge.
• Cultural exchange: Globalization can lead to increased cultural exchange
between countries. This can help to break down barriers between cultures
and can lead to a greater understanding of different cultures.
 • Improved living standards: Globalization can lead to improved living
standards for people around the world by increasing economic growth and
reducing poverty.

Of course, globalization also has some challenges, but the benefits of globalization
outweigh the challenges in many cases.

Here are some specific examples of the benefits of globalization:

• The growth of the global economy: The global economy has grown
significantly in recent decades, and this growth has been driven in part by
globalization. For example, the value of global trade has increased more than
tenfold since 1970.
• The reduction of poverty: Globalization has helped to reduce poverty around
the world. For example, the number of people living in extreme poverty has
fallen by more than half since 1990.
• The spread of technology: Globalization has helped to spread technology
around the world. For example, the internet has become accessible to billions
of people around the world, and this has allowed people to access
information and communicate with each other in ways that were not possible
before.
• The growth of new industries: Globalization has led to the growth of new
industries, such as the information technology industry. These industries
have created jobs and helped to boost economic growth.

Overall, globalization has had a positive impact on the world economy and on the
lives of many people around the world. However, it is important to note that
globalization is not without its challenges, and it is important to find ways to
mitigate these challenges in order to ensure that globalization continues to benefit
all people.

c) What are global multinational alliances.

Global multinational alliances are strategic partnerships between two or more
multinational companies. These alliances can be formed for a variety of reasons,
such as to share resources, enter new markets, or develop new products or services.

Global multinational alliances can be a valuable way for businesses to grow and
expand their operations. However, it is important to choose partners carefully and
to make sure that the alliance is aligned with the businesses' strategic goals.

Some of the benefits of global multinational alliances include:

 • Access to new markets: Alliances can help businesses to enter new markets
that they would not be able to access on their own. This can be especially
beneficial for businesses that are trying to expand into new regions or
countries.
• Increased resources: Alliances can help businesses to pool their resources,
which can give them a competitive advantage. For example, two companies
might form an alliance to share research and development costs.
• Reduced risk: Alliances can help businesses to reduce their risk. For
example, if two companies form an alliance to develop a new product, they
will share the risk of the product not being successful.

However, there are also some challenges associated with global multinational
alliances, such as:

• Conflicting interests: The partners in an alliance may have conflicting

interests. This can lead to disagreements and problems.
• Differing cultures: The partners in an alliance may have different cultures.
This can make it difficult to communicate and work together effectively.
• Differing goals: The partners in an alliance may have different goals. This
can lead to problems if the partners are not aligned on their objectives.

Overall, global multinational alliances can be a valuable way for businesses to

grow and expand their operations. However, it is important to carefully consider
the benefits and challenges of alliances before entering into one.

Here are some examples of global multinational alliances:

• Airbus: Airbus is a multinational aircraft manufacturer that was formed by a

consortium of European companies.
• Star Alliance: Star Alliance is an airline alliance that includes over 20
airlines from around the world.
• Samsung-Hyundai: Samsung and Hyundai are two South Korean
multinational companies that have formed a number of alliances in recent
years.
• Apple-Google: Apple and Google are two of the world's largest technology
companies, and they have formed a number of alliances in recent years.

These are just a few examples of the many global multinational alliances that exist
today. These alliances play an important role in the global economy, and they help
to facilitate trade and cooperation between businesses from different countries.
Q3. a) Discuss with examples cross border mergers and acquisitions

Cross-border mergers and acquisitions (M&A) are deals in which one company
from one country acquires or merges with another company from another country.
These deals can be complex and involve a variety of factors, such as cultural
differences, regulatory requirements, and tax implications.

There are many reasons why companies might choose to engage in cross-border
M&A. Some of the most common reasons include:

• To expand into new markets: Cross-border M&A can be a way for

companies to expand into new markets that they would not be able to access
on their own. This can be especially beneficial for businesses that are trying
to expand into new regions or countries.
• To acquire new technology or capabilities: Cross-border M&A can be a way
for companies to acquire new technology or capabilities that they do not
have in-house. This can help them to improve their products or services and
compete more effectively in the global marketplace.
• To achieve economies of scale: Cross-border M&A can be a way for
companies to achieve economies of scale by combining their operations.
This can help them to reduce their costs and become more profitable.

There are many examples of cross-border M&A deals that have been successful.
Some of the most notable examples include:

• The acquisition of Chrysler by Daimler-Benz in 1998: This deal was a

merger of equals between two of the world's largest automotive
manufacturers. The deal helped Daimler-Benz to expand its reach into the
North American market, while Chrysler gained access to Daimler-Benz's
technology and engineering expertise.
• The acquisition of Volvo by Geely in 2010: This deal was a landmark
acquisition that saw a Chinese company acquire a major Swedish automaker.
The deal helped Geely to expand its reach into the European market, while
Volvo gained access to Geely's financial resources and manufacturing
expertise.
• The acquisition of Arm by Nvidia in 2022: This deal was a major acquisition
that saw a US company acquire a major British semiconductor company.
The deal helped Nvidia to expand its reach into the mobile and data center
markets, while Arm gained access to Nvidia's technology and resources.

Of course, not all cross-border M&A deals are successful. Some deals have been
unsuccessful due to cultural differences, regulatory challenges, or financial
problems. However, the potential rewards of cross-border M&A can be significant,
and many companies are willing to take the risks involved in these deals.

Here are some of the challenges of cross-border M&A:

• Cultural differences: Companies from different countries may have different

cultures, which can make it difficult to communicate and work together
effectively.
• Regulatory challenges: Cross-border M&A deals can be subject to a variety
of regulatory requirements, which can add complexity and delay to the
process.
• Financial challenges: Cross-border M&A deals can be expensive, and
companies may need to raise a lot of capital to finance these deals.

Despite these challenges, cross-border M&A can be a valuable way for businesses
to grow and expand their operations. However, it is important to carefully consider
the risks and challenges involved before entering into a cross-border M&A deal.

b) Discuss with examples cross border mergers and acquisitions.

Cross-border mergers and acquisitions (M&A) are transactions in which two

companies from different countries merge or one company acquires another
company from another country. These types of deals can be complex and involve a
number of different factors, including legal, regulatory, and cultural considerations.

There are many reasons why companies might choose to engage in cross-border
M&A. Some of the most common reasons include:

• To expand into new markets: Cross-border M&A can be a quick and

efficient way to expand into new markets. By acquiring a company in
another country, a company can instantly gain access to that company's
customers, employees, and distribution channels.
• To gain new capabilities: Cross-border M&A can also be a way to gain new
capabilities or technologies. By acquiring a company with specialized
knowledge or technology, a company can expand its own product offerings
or improve its operations.
• To achieve economies of scale: Cross-border M&A can also be a way to
achieve economies of scale. By combining two companies, a company can
reduce costs and become more efficient.
There are many examples of cross-border M&A deals. Some of the most notable
deals in recent years include:

• In 2016, China's Lenovo acquired IBM's PC business for $2.3 billion. This
deal gave Lenovo a major foothold in the global PC market.
• In 2017, AT&T acquired Time Warner for $85 billion. This deal created a
media giant with a vast portfolio of television, film, and media assets.
• In 2018, SoftBank acquired Arm Holdings for $32 billion. This deal gave
SoftBank control of a leading chip design company with a global customer
base.

These are just a few examples of the many cross-border M&A deals that have
taken place in recent years. These deals show how companies are increasingly
looking to expand their reach and capabilities through cross-border M&A.

Here are some of the challenges that companies face when engaging in cross-
border M&A:

• Legal and regulatory challenges: Cross-border M&A deals can be complex

and involve a number of different legal and regulatory requirements.
Companies need to carefully consider these requirements before entering
into a cross-border M&A deal.
• Cultural challenges: Cross-border M&A deals can also involve cultural
challenges. Companies need to be aware of the cultural differences between
the two countries involved in the deal and how these differences might affect
the deal.
• Financial challenges: Cross-border M&A deals can be expensive. Companies
need to make sure that they have the financial resources to complete the deal.

Despite the challenges, cross-border M&A can be a successful way for companies
to expand their reach and capabilities. Companies that are considering a cross-
border M&A deal need to carefully consider the risks and rewards involved before
making a decision.

Q4. a) Discuss alliance constellation management with industry examples.

An alliance constellation is a group of companies that form strategic alliances with

each other to achieve a common goal. These constellations can be formed in any
industry, but they are most common in industries where there is a high level of
competition or where there are significant technological challenges.
There are many benefits to alliance constellation management. For example,
constellations can help companies to:

• Share resources and expertise: By working together, companies can share

resources and expertise that they would not be able to afford or develop on
their own. This can help them to reduce costs, improve their products and
services, and enter new markets.
• Gain access to new markets: Alliance constellations can help companies to
gain access to new markets that they would not be able to reach on their
own. This is because each company in the constellation brings its own
unique strengths and resources to the table.
• Reduce risk: Alliance constellations can help companies to reduce risk by
spreading the costs and risks of new projects or ventures among multiple
partners. This can make it more likely that these projects or ventures will be
successful.

However, there are also some challenges associated with alliance constellation
management. For example, companies in a constellation need to be able to trust
each other and work together effectively. They also need to be able to agree on
common goals and objectives. If these challenges cannot be overcome, the
constellation may not be successful.

Here are some industry examples of alliance constellations:

• The Star Alliance: The Star Alliance is an airline alliance that was formed in
1997. It is the largest airline alliance in the world, with 26 member airlines.
The alliance allows members to share codes, lounges, and other resources.
This has helped them to increase their market share and to offer better
service to their customers.
• The Linux Foundation: The Linux Foundation is a non-profit organization
that was founded in 2000. It is a collaboration of over 1,000 companies that
are involved in the development of the Linux operating system. The
foundation provides a forum for companies to work together on projects
related to Linux. This has helped to accelerate the development of Linux and
to make it more widely available.
• The OpenStack Foundation: The OpenStack Foundation is a non-profit
organization that was founded in 2011. It is a collaboration of over 100
companies that are involved in the development of the OpenStack cloud
computing platform. The foundation provides a forum for companies to
work together on projects related to OpenStack. This has helped to accelerate
the development of OpenStack and to make it more widely available.
These are just a few examples of alliance constellations in different industries.
These constellations have helped companies to achieve their goals and to compete
more effectively in the marketplace.

b) Explain with examples the typology and framework of strategic alliances.

Sure. A strategic alliance is a formal agreement between two or more businesses to

cooperate on a specific business activity. Strategic alliances can be formed for a
variety of reasons, such as to share resources, enter new markets, or develop new
products or services.

There are many different types of strategic alliances, and they can be classified in a
number of ways. One common way to classify strategic alliances is by the level of
commitment between the partners.

• Joint ventures: Joint ventures are the most common type of strategic alliance.
In a joint venture, two or more companies create a new legal entity that is
jointly owned and operated by the partners.
• Equity strategic alliances: Equity strategic alliances are similar to joint
ventures, but the partners do not create a new legal entity. Instead, one
company invests in the other company, or the two companies cross-invest in
each other.
• Non-equity strategic alliances: Non-equity strategic alliances are less formal
than joint ventures or equity strategic alliances. In a non-equity strategic
alliance, the partners agree to cooperate on a specific business activity, but
they do not create a new legal entity or invest in each other.

Another way to classify strategic alliances is by the level of interaction between the
partners.

• Closely integrated alliances: Closely integrated alliances are characterized by

a high level of interaction between the partners. The partners share
information and resources, and they work together closely to achieve their
goals.
• Loosely coupled alliances: Loosely coupled alliances are characterized by a
lower level of interaction between the partners. The partners may share some
information and resources, but they do not work together as closely as in
closely integrated alliances.

The typology and framework of strategic alliances can be summarized as follows:

• Types of strategic alliances:

 o Joint ventures
o Equity strategic alliances
o Non-equity strategic alliances
• Levels of commitment:
o Closely integrated alliances

o Loosely coupled alliances

Here are some examples of strategic alliances:

• The Boeing-Airbus alliance: Boeing and Airbus are two of the world's
leading aircraft manufacturers. They have formed an alliance to share
technology and resources, and to cooperate on the development of new
aircraft.
• The Star Alliance: Star Alliance is an airline alliance that includes over 20
airlines from around the world. The alliance allows members to share
frequent flyer miles, lounges, and other amenities.
• The Google-Apple alliance: Google and Apple are two of the world's largest
technology companies. They have formed an alliance to develop new
technologies, such as self-driving cars and augmented reality.

These are just a few examples of the many strategic alliances that exist today.
Strategic alliances can be a valuable way for businesses to grow and expand their
operations. However, it is important to carefully consider the risks and challenges
involved before entering into a strategic alliance.

Q5. a) Elaborate with examples the challenges to global strategic management in

the present era

Sure. Here are some of the challenges to global strategic management in the
present era, with examples:

• Geopolitical tensions: Geopolitical tensions can create uncertainty and

instability in the global marketplace. This can make it difficult for businesses
to plan for the future and to make strategic decisions. For example, the recent
conflict between Russia and Ukraine has had a significant impact on the
global economy.
• Economic volatility: Economic volatility can make it difficult for businesses
to manage their finances and to make strategic decisions. For example, the
COVID-19 pandemic caused a significant economic downturn, which led to
many businesses closing or laying off employees.
 • Technological change: Technological change can make it difficult for
businesses to keep up with the latest trends and to compete in the global
marketplace. For example, the rise of e-commerce has led to the decline of
traditional brick-and-mortar stores.
• Cultural differences: Cultural differences can make it difficult for businesses
to communicate and collaborate with partners in other countries. For
example, different cultures have different norms and expectations around
things like communication, decision-making, and customer service.
• Regulatory challenges: Regulatory challenges can make it difficult for
businesses to operate in different countries. For example, different countries
have different laws and regulations around things like product safety, labor
standards, and environmental protection.

These are just some of the challenges to global strategic management in the present
era. Businesses that are able to overcome these challenges will be well-positioned
to succeed in the global marketplace.

Here are some specific examples of how these challenges have affected businesses:

• In 2014, the Russian government imposed economic sanctions on the United

States and other countries in response to the annexation of Crimea. This led
to a decline in trade between Russia and these countries, which had a
negative impact on businesses that were operating in both markets.
• In 2020, the COVID-19 pandemic caused a global economic downturn. This
led to many businesses closing or laying off employees, and it also disrupted
supply chains. Businesses that were unable to adapt to the changing
economic conditions faced significant challenges.
• The rise of e-commerce has led to the decline of traditional brick-and-mortar
stores. This has had a significant impact on businesses that rely on physical
stores to generate sales. For example, the Gap, Toys "R" Us, and Sears have
all filed for bankruptcy in recent years.
• Cultural differences can make it difficult for businesses to communicate and
collaborate with partners in other countries. This can lead to
misunderstandings and problems. For example, in 2015, Pepsi was forced to
apologize after it released an ad in China that was seen as offensive to
Chinese consumers.
• Regulatory challenges can make it difficult for businesses to operate in
different countries. This can lead to delays, increased costs, and even legal
problems. For example, in 2017, Volkswagen was fined $2.8 billion by the
United States government for violating emissions regulations.
These are just some examples of how the challenges to global strategic
management have affected businesses. Businesses that are able to overcome these
challenges will be well-positioned to succeed in the global marketplace.

b) Explain the global functional model and suggest a suitable organisation structure
for a global Pharma Company