Learning Activity 1 In the readings for this week we learned about the Demand Model that was introduced by Professor Michael Porter. According to the model, the ability of the firms in an industry whose origin is in a particular company to be successful in the international arena is shaped by four factors (1) their home country’s demand conditions, (1) their home country’s factor conditions, (3) related and supporting industries within their home country, and (4) strategy, structure, and rivalry among domestic competitors. Learning Activity Respond to the following questions: (1)   Which of the four elements of the diamond model do you believe has the strongest influence on a firm’s fate when it competes in international markets? (2)    Provide an example of a company that demonstrates this ability to compete internationally and how this company demonstrates this ability. (3)   Which of the three types of International Strategies that were discussed in our readings does this company demonstrate?  Provide a justification for your strategy choice. Learning Activity 2 Multinational Organizations 1. International firms or multinational corporations are organizations that conduct business operations across national borders. 2. The strategic-management process is conceptually the same for multinational firms as for purely domestic firms, although the process is more complex for international firms due to more variables and relationships. 3. More time and effort are required to identify and evaluate external trends and events in multinational organizations than in domestic corporations. 4. Multinational corporations face unique and diverse risks, such as expropriation of assets, currency losses through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers. 5. Before entering international markets, firms should scan relevant journals and patent reports, seek the advice of academic and research organizations, participate in international trade fairs, form partnerships, and conduct extensive research to broaden their contacts and diminish the risk of doing business in new markets. The Global Challenge 1. Few companies can afford to ignore the presence of international competition. Firms that seem insulated and comfortable today may be vulnerable tomorrow. a. How to gain and maintain exports to other nations b. How to defend domestic markets against imported goods. 2. America's economy is becoming much less American, as a world economy and monetary system are emerging. More and more countries around the world are welcoming foreign investment and capital. As a result, labor markets have steadily become more international. 3. Many countries became more protectionist during the recent global economic recession. Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor.

1. Learning Activity 1
In the readings for this week we learned about the Demand
Model that was introduced by Professor Michael Porter.
According to the model, the ability of the firms in an industry
whose origin is in a particular company to be successful in the
international arena is shaped by four factors (1) their home
country’s demand conditions, (1) their home country’s factor
conditions, (3) related and supporting industries within their
home country, and (4) strategy, structure, and rivalry among
domestic competitors.
Learning Activity
Respond to the following questions:
(1)
Which of the four elements of the diamond model do you
believe has the strongest influence on a firm’s fate when it
competes in international markets?
(2)
Provide an example of a company that demonstrates this ability
to compete internationally and how this company demonstrates
this ability.
(3)
Which of the three types of International Strategies that were
discussed in our readings does this company demonstrate?
Provide a justification for your strategy choice.
Learning Activity 2
Multinational Organizations
1. International firms or multinational corporations are
organizations that conduct business operations across national
borders.
2. The strategic-management process is conceptually the same

2. for multinational firms as for purely domestic firms, although
the process is more complex for international firms due to more
variables and relationships.
3. More time and effort are required to identify and evaluate
external trends and events in multinational organizations than in
domestic corporations.
4. Multinational corporations face unique and diverse risks,
such as expropriation of assets, currency losses through
exchange rate fluctuations, unfavorable foreign court
interpretations of contracts and agreements, social/political
disturbances, import/export restrictions, tariffs, and trade
barriers.
5. Before entering international markets, firms should scan
relevant journals and patent reports, seek the advice of
academic and research organizations, participate in international
trade fairs, form partnerships, and conduct extensive research to
broaden their contacts and diminish the risk of doing business
in new markets.
The Global Challenge
1. Few companies can afford to ignore the presence of
international competition. Firms that seem insulated and
comfortable today may be vulnerable tomorrow.
a. How to gain and maintain exports to other nations
b. How to defend domestic markets against imported goods.
2. America's economy is becoming much less American, as a
world economy and monetary system are emerging. More and
more countries around the world are welcoming foreign
investment and capital. As a result, labor markets have steadily
become more international.
3. Many countries became more protectionist during the recent
global economic recession. Protectionism refers to countries
imposing tariffs, taxes, and regulations on firms outside the
country to favor their own companies and people.
4. A primary reason why most domestic firms are engaging in
global operations is that growth in demand for goods and
services outside the United States is considerably higher than

3. inside.
5. Shareholders and investors expect sustained growth in
revenues from firms, and satisfactory growth for many firms can
only be achieved by capitalizing on demand outside the United
States.
Source:
David, F. R. (2013).
Strategic Management. A Competitive Advantage Approach
. New Jersey, NJ: Pearson Education Inc.
Learning Activity
Compare Business Cultures Across Countries. This exercise
gives you experience gaining information about business culture
in virtually any country.
Step 1 - Go to the website
http://www.kwintessential.co.uk/resources/country-profiles.html
where you can click on more than 100 countries and obtain a
synopsis of a country’s business culture. Click on any two
countries located on different continents. After clicking on a
country at the website, you may scroll down to reach the section
titled “Business Etiquette and Protocol”.
Step 2 -. With the information that you have obtained in Step 1
compare and contrast the similarities and differences that must
be considered when doing business in these two countries.
Explain how awareness of business culture across countries can
enhance strategy implementation.