1. A large proportion of major corporations outsource their IT functions to specialist suppliers of IT services such as IBM, EDS (now owned by Hewlett-Packard), Accenture, and Cap Gemini. What transaction costs are incurred by these outsourcing arrangements and why do they arise? What are the offsetting benefits from IT outsourcing?
2. Has McDonald's got the balance right between global standardization and national differentiation (Strategy Capsule 12.3)? Should it offer its franchisees in overseas countries greater initiative in introducing products that meet national preferences or to adapt store layout, operating practices, and marketing?