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Long-Term Objectives

Write a long-term objective for your school of business that exhibits the five qualities of long-term objectives described in this chapter.

Market Focus

How does market focus help a business create competitive advantage? What risks accompany such a posture?

Low-Cost Advantage

Which parts of the value chain does Wal-Mart target in order to achieve a low-cost advantage over its rivals?

Low Cost Leadership Status

Discuss how Toyota has been able to achieve its low-cost leadership status in the industry.

Vertical Integration Strategy

What are the disadvantages of a Vertical Integration Strategy?


When are Outsourcing Strategies advantageous? Examples?

Strategy Development

Assume you are in charge of developing the strategy for an international company selling products in 50 different countries around the world. One of the issues you face is whether to employ a multi-domestic strategy, a global strategy, or a transnational strategy.

  1.    If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multi-domestic strategy, a global strategy, or a transnational strategy? Why?
  2.   If your company’s product is dry soup mixes and canned soups, would a multi-domestic strategy seem to be more advisable than a global strategy? Why?
  3.    If your company’s product is large home appliances such as washing machines, ranges, ovens, and refrigerators, would it seem to make more sense to pursue a multi-domestic strategy, a global strategy, or a transnational strategy? Why?
  4.   If your company’s product is apparel and footwear, would a multi-domestic strategy, a global strategy, or a transnational strategy seem to have more appeal? Why?

Walt Disney

The Walt Disney Company is in the following businesses:

  • Theme parks
  • Disney Cruise Line
  • Resort properties
  • Movie, video, and theatrical productions (for both children and adults)
  • Television broadcasting (ABC, Disney Channel, Toon Disney, Classic Sports Network, ESPN and ESPN2, E!, Lifetime, and A&E networks)
  • Radio broadcasting (Disney Radio)
  • Musical recordings and sales of animation art
  • Anaheim Mighty Ducks NHL franchise
  • Anaheim Angels major league baseball franchise (25 percent ownership)
  • Books and magazine publishing
  • Interactive software and Internet sites
  • The Disney Store retail shops


Based on the above listing, would you say that Walt Disney’s business lineup reflects a strategy of related diversification, unrelated diversification, or a combination of related and unrelated diversification? Be prepared to justify and explain your answer in terms of the extent to which the value chains of Disney’s different businesses seem to have competitively valuable cross-business relationships.


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