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Strategic Management: Competitiveness and Globalisation Dallas Hanson, Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson
Question
1. Suppose you are acting as a consultant for a large German corporation. You are responsible for designing a corporate governance system that needs to be aligned with the enhancement of shareholders' value (or competitive advantage). What mechanisms would you consider adopting? Considering the corporate governance mechanism used in a large corporation in Germany, explain why restructuring and takeover are highly difficult in German corporations. Justify your answer.
2. Consider yourself as the CEO of a large company operating in a highly technology-based industry where innovation is the primary source of competitive advantage. The company operates in a hyper-competitive market. What kind of structure, culture and control system would you establish in such an organization? Justify your answer.
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(a) Assuming no trade, what are the prices of Nanton Water in the United States and KJ in Australia?
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