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Unformatted text preview: Business 189 Second Mid-Term Exam November 3, 2009
Fall 2009 Dr. Mark Fruin General instructions: You have until 5:45 pm. to send me your mid-term via e—mail. Mid-terms received aﬁer 5:45 will not be accepted Send midterms to: [email protected] When I say “no more than and no longer than,” the limits describe the number of words and the
amount of time spent writing; they do not include thinking time. Obviously, you’re better off thinking long and hard about your answers before you start writing them. Be sure to write answers that are clearly written, well organized and effectively presented with evidence (not opinion) to support your points. Short questions. Pick two of the following questions to answer. Your answers should be no more than 600 words and take no longer than 30 minutes to write. 1. It is generally agreed that there are three different kinds of innovation. What are they?
Deﬁne each and show when (where) each would mostly likely occur in
terms of the Industry Life Cycle model? Incremental or continuous, small product and process innovations: mature stage;
Radical or big deal product & process innovations; growth or early mature stage;
Disruptive or major product & process innovation within existing stage of ILC. 2. Chapter Six argues that diﬁ‘erent strategies are appropriate for diﬂ‘erent industry
environments. By environments, the chapter means different stages of the
industry life cycle (IDC). Pick two strategies (each) that are appropriate for
the growth and mature stages of the ILC; explain why are they appropriate
for that particular stage but not for any others?
(Note: This question asks for four examples of ILC—appropriate strategies; two
for growth and two for mature stages.)
Chapter Six, pp. 192-220; growth and market concentration strategies in growth
stage, and mature strategies include hold and maintain, deter entry & manage rivalry. 3. Choice of entry mode can have a huge impact on the likelihood of success for overseas
ventures. What mode of entry did IBM and Accenture select for entering the
Indian 1T marketplace and why did til—ex choose this mode of entry? Modes of entry: exporting, licensing, franchising, joint ventures & wholly owned
subsidiaries. Wholly owned subsidiaries: tight control of technology, IP & operations. Long Question. Pick one of the following questions and answer in no more than 1100
words and take no longer than 60 minutes to do so. 1. This is a three-part question, requiring a three-part answer. In Case 12, C
179, two different approaches to leveraging global delivery of IT (infomation
technology) services are discussed with IBM and Accenture adopting one model while
TCS, Wipro and Infosys adopt another. First, what are the two different approaches adopted by IBM and Accenture,
on one hand, and TCS, Wipro and Infosys, on the other? Second, are these
companies selling the same services and, if so, what are they? Finally, do
the services represent F-L (functional level) or B-L (business level)
strategies, and why (why one and not the other)?
IBM and Accenture are U.S.-based companies that chose to open overseas subsidiaries
while TCS, Wipro and Infosys are India-based companies that chose to open overseas
W subsidiaries. In other words, they are doing the same thing. Are they selling the same services? Broadly speaking, yes; narrowly speaking, no.
Either could be right depending on how you answered the question, but they can’t both
be right. Broadly speaking, information technology Services help ﬁrms run more
efﬁciently and with higher quality, but there are many diﬁ‘erent sorts of information
services and 'the ﬁrms in question do not all specialize in the same market segments.
Selling information services is a business level strategy. 2. This is a three-part question, requiring a three-part answer. In terms of the Industry Life Cycle model, first, where is Infosys Consulting (ICI)
located/situated in terms of the model’s stages ofdevelopment? Second, is
ICI located in the same place as the other companies mentioned in Case
12, such as IBM, Accenture, TCS and Wipro? Third, do you think that [Cl
is a high-tech company in a high-tech industry and, if so, why? ICI cannot be in the embryonic stage because in this stage there is no market for
products and services. This is a R&D stage of the ILC. So, depending on your logic,
ICI could be in the growth or early mature stages of the ILC. As a late comerto global
IT consulting, [CI is behind IBM and Accenture and at about the same place as TCS
and Mpro. While not all of IT services and consulting can be considered high-tech, at the cutting edge of IT development and deployment, it has to be considered high-tech.
Remember, high-tech means rapid advance in technology coupled with high cost, risk
and complexity. ...
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