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When Walmart decided to incorporate grocery stores into some locations and created "supercent-ers," was this a business-level strategy of differen-tiation or a corporate strategy of diversification? Why? Explain your answer.

Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number of company-owned stores. In 2014 Starbucks had over 7,000 company-owned stores in the United States. How do you explain this difference? Is Starbucks bucking the trend of other food-service stores, or is something else going on?

The chapter identifies three governing mecha-nisms for strategic alliances: non-equity, equity, and joint venture. List the benefits and downsides for each of these mechanisms.

An alliance's purpose can affect which gover-nance structure is optimal. Compare a pharma-ceutical R&D alliance with a prescription-drug marketing agreement, and recommend a govern-ing mechanism for each. Provide reasons for your selections.

Professor Pankaj Ghemawat delivered a TED talk titled "Actually, the World Isn't Flat." Do you agree with his assessment that the world is at most semi-globalized, and that we need to be careful not to fall victim to "globalony"?

"Licensing patented technology to a foreign com-petitor is likely to reduce or eliminate the firm's competitive advantage." True or false? Write a paragraph discussing this statement.

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