Exam 2 — MGT 5391 – Spring 2015 Due May 4, 2015 by midnight

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QUESTIONS

1. (30%) Vertical Integration – read the article on page 2 about Apple. Analyze the following vertical integration decisions made by Apple using tools from class lectures or reading material. (maximum 2 pages)

a. Vertically integrating software and hardware (i.e. analyze why do they design both their software and hardware)

b. Not vertically integrating the manufacturing of their hardware

2. (30%) Diversification – In the 1990s, Disney diversified into many different lines of business. In 1992, Disney bought the National Hockey League expansion team The Mighty Ducks of Anaheim. In 1995, Disney acquired ABC which included ESPN. Disney decided to also expand into stores with ESPN stores and Disney stores. They also opened ESPN Zone, a massive sports bar. In 1996, Disney acquired the Major League Anaheim Angels. In 1999, Disney merged its internet assets with Infoseek and formed GO.com which operated Disney.com, ESPN.com and ABCNews.com. They also set up a portal called Go Network (www.go.com) which was similar to ‘Yahoo!’. In 2000, Disney was divided into 5 business lines which can be found on page 3. Analyze Disney’s diversification strategy as of 2000 using tools from class lectures or reading material. (maximum 2 pages)

a. Choose two businesses that you feel should be a part of Disney from the list on page 3 and explain why.

b. Choose one business that should not be a part of Disney or at the least warrants being a part of Disney the least from the list on page 3 and explain why.

3. (40%) Internationalization – BioPharma is a rapidly growing domestic biotechnology firm located in the US that is currently formulating a globalization strategy. BioPharma creates, manufactures, and markets both proprietary and generic pharmaceuticals. BioPharma is considering entering the United Kingdom and India. Using the information provide on pages 4 and 5, provide an analysis of the two options with the requested recommendations. The analysis should include the following. (maximum 3 pages)

a. Should BioPharma enter India and why?

o Assuming India entry, should they produce proprietary drugs, generic drugs, or both?

o Assuming India entry, what mode of entry (i.e., JV, Greenfield, or Alliance)?

b. Should BioPharma enter the United Kingdom and why?

o Assuming UK entry, should they produce proprietary drugs, generic drugs, or both?

o Assuming UK entry, what mode of entry (i.e., JV, Greenfield, or Alliance)?

FORMAT

 MS Word, double spaced, one-inch margins, Times New Roman, 12-point font

 Do not put your name on the exam. Put the last 4 digits of your student ID number in the header. Title the Word Document with the last 4 digits of your student ID number (e.g., 1234.docx)

 The exam should be turned in through Blackboard

 This exam should be answered individually by the student. It is not allowed to answer in teams and doing so will be considered cheating.