production there and close the plant of the acquired company . a.What is the gross margin % of both companies? Antimeat 1000/4000=25% Porkofobe 2000/4000=50% b.What is the Gross Operating Cash Flow (€1000) of both?Antimeat 400 Porkofobe 1000 Verspreiden niet toegestaan | Gedownload door Sybe klaas Kappe ([email protected])lOMoARcPSD|105219
MIBO EXAM VERSION I January 18, 2016 11c.Which company is the most interesting to acquire , given Wessanen’s production strategy? Please motivate your answer Porkofobe has the highest gross margin and therefore, producing at Wessanen’s German plant –where material cost will be equal or maybe lower due to economies of scale in purchasing- will be most beneficial. Moreover , the high personnel cost at Porkofobe can also be saved due to economies of scale. d.Where are cost benefits to be expected? In raw material cost and personnel cost. Verspreiden niet toegestaan | Gedownload door Sybe klaas Kappe ([email protected])lOMoARcPSD|105219
MIBO EXAM VERSION I January 18, 2016 12Essay Question 2 Suppose , Shell is investigating the possibility to enter the renewable energy market in Gerindia and wishes to establish a new subsidiary in that country. You are a consultant , advising Shell’s management . You are requested to investigate to what extentthis new subsidiary can be tightly integrated into Shell’s global organization , or needs a more autonomous , locally responsive position in the organization. Taking into account the theory developed by Luo ( “Determinants of local responsiveness(etc) “), indicate which factors you would need to investigate to answer this question Local responsiveness and therefore subsidiary autonomy has to be higher(+) or lower(-) in case the following factors are at work: 1.Environmental factors: governmental bureaucracy(+), various levels of intervening government , eg local, regional , national (+); Different groups of potential clients with different needs(+) Business practice specificity, unfamiliar business practices common in the host country(+) 2.Industrial structural factors: competition intensity(+),demand heterogenity, that is big differences in demand between regions, customer groups (+), content localization , that is the requirement to use as much as possible locally made raw materials , equipment and parts(+) Verspreiden niet toegestaan | Gedownload door Sybe klaas Kappe ([email protected])lOMoARcPSD|105219
MIBO EXAM VERSION I January 18, 2016 13Essay Question 3 Many MNE’s have experimented, in the course of the last decades, with the matrix organization structure. However, most have reversed after some time to more conventional structures, as it was rarely successful. Explain the key characteristics of the matrix structure, and explain, using Hofstede’s cultural dimensions, in which type of cultures (i.e. high or low on which dimensions), you could expect this structure to function leastwell.
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