1. Read "The Global Branding of Stella Artois" in page 244 to 258, and answer the following questions: a) Develop a 5-forces analysis of the beer industry, noting whether the forces make the industry attractive or unattractive in terms of its potential for profit. b) Does it make sense for Interbrew to develop a global brand? c) Does Stella Artois appear to be the right choice as the company's flagship brand? d) Interbrew's strategy has focused on developing cities as markets rather than on the more traditional view of countries as markets - what are the pros and cons of this approach?
2. You are a management consultant for a European insurance firm considering an acquisition in the United States. The senior management of your firm desires an analysis of the US market from various perspectives. a) Identify six major trends in the U.S.A. (2 each from the economic, political, and cultural perspectives) which you believe will significantly impact international business operations by the year 2010. b) Analyze how each trend will affect business operations and business management, and whether any of these trends could affect your operations elsewhere in the world.
3. a) What is a "strategic group," according to Porter? b) Why is this concept important and how is it used in conjunction with "mobility barriers?" You should cite examples from your readings inside or outside the class. c) Provide a strategic map of any industry, a rationale for the axes, and what they tell you about the structure of industry competition.
4. Contrast the classical concept of comparative advantage with Porter's concept of competitive advantage In what ways do they differently affect industry competition?
5. Assume that you are consulting with an oil-drilling support company that is looking for new international opportunities, and you run across these websites about Chad:
Please use this link for the Chad case.
The Chad Oil and Pipeline Project is a $3.7 billion development project comprising some 300 oil wells, which are expected to extract approximately one billion barrels of oil over twenty-five years. Located in Chad's southwestern region, it is one of Africa's largest public/private development projects. Once extracted, the oil will be transported by a 640 mile underground pipeline, through neighboring Cameroon, to an offshore export loading facility. Construction began in October 2000 and the oil is expected to flow in 2004. Project ownership is comprised of a three-company oil consortium (Exxon/Mobil 40%, Petronas Malaysia 35% and Chevron 25%) and the governments of Chad and Cameroon, which hold a combined 3% stake in the pipeline portion of the project.
It makes you curious about whether Chad, despite its difficulties, might be a place for expansion. You also notice from the news that Chad recently expelled two petroleum giants from the country: Petronas from Malaysia and Chevron from the USA were made to close down and get out. You need to determine whether that represents a threat or an opportunity for your company. a) Develop a country profile of Chad using the Social Process Analysis, b) indicate the positive and negative factors that Chad contains for your industry, c) and make a reasoned recommendation whether or not to pursue this prospective venture. (You may need to consult other net resources to complete your profile; if so, you are required to indicate what they are.)