Case Study: Bringing External Innovation inside - evidence from Multinational Corporations (MNCs)
Introduction:
This individual assignment will be assessed by means of a 3,000 maximum word report. The assignment has been designed to allow you to develop and use your knowledge and skills in understanding key strategic issues relating to the any Global Industry you are familiar with. You will be required to apply the strategic concepts and analytical techniques studied in this module. All the learning outcomes below will be assessed:
1. Demonstrate critical understanding and application of relevant theories associated with global corporate policies and strategies.
2. Understand the holistic nature of strategy and apply analytical techniques to solve complex problems in real life organizations.
3. Demonstrate knowledge of the strategic decision making process through critical analysis of how strategic decision making enables an organisation to relate to its global business environment.
4. Critically evaluate and monitor the business mission, objectives and policies of international organisations.
5. Use critical reflective skills to reflect on the impact of their understanding on the problem solving process.
Task
Your task is to carry out a critical analysis and evaluation of the strategies adopted by Multinational Corporations (MNCs) operating in an industry and country of your choice, using information available to the public e.g. company annual reports in pdf and other materials researched. You will be expected to select and apply appropriate theories, techniques and models studied during the module whilst having regard to the practical aspects of strategy development.
Your assignment should be presented in a business report format and should be 3,000 words maximum (excluding executive summary/abstract, references and relevant appendices). The report should include a title page and abstract and be fully and consistently referenced, using Harvard Referencing style. You must submit an electronic version of the report Online via the University's Assignment Space - this should be clearly labelled with your name, your course and the name of the case study.
It is recommended that you research information to support your arguments. This may be obtained from a diverse range of sources and you are encouraged to research the issues in whichever way you deem appropriate.
Multinational Corporations & How they Bring External Innovation Inside
Open innovation is about combining internal and external resources and acting on the opportunities this creates. More and more MNCs prove this to be a strong value proposition and cannot afford to lose out on the opportunities created by this combination. Open innovation has the ability to create long term advantages in management or organizational innovation rather than just product or service innovation. Once a MNC gets ahead of its competitors and becomes the preferred partner of choice within its industry, this often turns out to be a longer term advantage. It is hard for competitors to copy and thus neutralize the benefits that open innovation leadership can bring.
Read the Annual Reports of a MNC operating in an industry and country of your choice; and carry out appropriate analyses of the global corporate strategies adopted by the MNC and its closest competitors, in response to the questions below. You are encouraged to use relevant data/information from company websites.
Question One: External Innovation and Competitiveness
Briefly distinguish between ‘Open' and ‘Closed' Innovation. Using information from the most recent Annual Report of the MNC of your choice, critically evaluate the impact of ‘factor endowment', ‘related and supporting industries', ‘demand conditions', ‘strategy, structure, and rivalry', ‘government', and ‘chance' on the MNC's approach to external innovation and competition.
Question Two: Convergence, Diversity and Competitiveness
Critically assess the merits and demerits of adopting a ‘global convergence perspective' or an ‘international diversity perspective'. Which of these two perspectives would you recommend that your chosen MNC should adopt in order to maximise its corporate profitability through low-cost leadership or product differentiation - and why?
Question Three: Corporate Governance, Profitability and Social Responsibility
Using your understanding of ‘corporate governance', ‘corporate profitability' and ‘corporate social responsibility', critically evaluate the ability of the CEO and Senior management team in your chosen MNC's to simultaneously achieve corporate profitability and corporate social responsibility objectives crucial for the MNC's survival and growth.
Question Four: Personal reflections on learning
In 300-350 words reflect on the impact of this assessment on your understanding of the Multinational corporations (MNCs) operating in the industry and country of your choice, highlighting the key benefits and limitations of external innovation, global convergence, international diversity and the role of Senior management and leadership, in creating a culture for sustaining corporate profitability.