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ECON 5315/ ECON5315 CHAPTER 7 DISCUSSION QUESTIONS
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Chapter 7 Discussion Questions: “Divergent unveils part-3D printed supercar” and “Federal Panel Backs Approval of New Drug to Fight Heart Attacks”
“Divergent…” article
1. What is meant by the term “commitment”? What is Divergent’s commitment, as described in the article?
2. What are the three characteristics distinguish a strategic move as creating a strong commitment? Is Divergent making a strongcommitment?
3. What is meant by the term “direct effect”? So far, what has been the direct effect of this commitment?
4. What is meant by the term “strategic effect”? What are the likely strategic effects of Divergent’s commitment?
5. Is Divergent’s commitment irreversible? What is meant by the term “real option”? What are some of Divergent’s real options?
6. What is different in the pharmaceutical industry from other industries in terms of supply and demand?
7. How will Sanofi, Amen and Pfizer, whose new drugs block the PCSK9 gene, benefit their customers?
8. Given the current strategies of these companies, does a downside exist for any of their customers?
9. How might some of the cardiologists and other physicians respond to the strategies of these companies?
10. Might the presence of the drugs that block the PCSK9 gene set off a price war among established statin producers? Explain why or why not.
ECON 5315/ ECON5315 CHAPTER 8 DISCUSSION QUESTIONS
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Chapter 8 Discussion Questions: “Google hopes all or nothing bet on robot cars will pay off soon” and “Federal Panel Backs Approval of New Drug to Fight Heart Attacks”
“…robot cars…” article:
1. Explain what/who is in each of Porter’s 5 forces that affect Google’s driverless car division. (Who are they?)
2. In the article, explain why one of these 5 forces has considerable power over Google, another has moderate power and yet another has little power. Defend your answer.
3. Using the theory of co-opetition (value net), explain what/who is likely to be in Google’s value net. (Who are they?) How is Google expecting this co-opetition (value net) to improve its profits?
4. Do you believe entering this market is risky for Google? Why or why not?
5. Explain what/who is in each of Porter’s 5 forces that affect Sanofi. (Who are they?)
6. In this article, explain whether/why any one of these 5 forces has considerable power over Sanofi, another has moderate power and yet another has little power. Defend your answer.
7. Using the theory of co-opetition (value net), explain how the Food and Drug Administration and Regeneron Pharmaceuticals are in Sanofi’s value net. Why is the Food and Drug Administration important to Sanofi’s development and marketing of alirocumab? How is Sanofi expecting these forms of co-opetition (value net) to improve its profits?
8. Do you believe that Sanofi’s development and marketing of alirocumab are risky for Sanofi? Why or why not?
ECON 5315/ ECON5315 HOMEWORK7 CH7
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Homework for Chapter 7 (modified end-of-chapter questions, plus additional questions)
(12 points possible)
ECON 5315/ ECON5315 HOMEWORK8 CH8
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Besanko, Chapter 8 Homework, ADAPTED End-of-Chapter Questions
(11.5 points possible)
ECON 5315/ ECON5315 HOMEWORK9 CH9
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ADAPTED Homework, Chapter 9
(10 points possible, 2 points each)
ECON 5315/ ECON5315 HOMEWORK10 CH11
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Adapted Homework, Ch. 11
(11 points possible)