Management Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Strategic Management (MGT 401)
Due Date: 30/11/2024 @ 23:59
Course Name: Strategic Management

Student’s Name:

Course Code: MGT 401

Student’s ID Number: s

Semester: 1st

CRN: 12149
Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name: Abdulrahman I. Almanie
Students’ Grade: /10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
▪
▪
▪

CLO3-PLO2.2- Explain the contribution of functional, business, and corporate strategies to the competitive advantage of
the organization.
CLO4-PLO2.3-Distinguish between different types and levels of strategy and strategy implementation.
CLO6-PLO3.1-Communicate issues, results, and recommendations coherently, and effectively regarding appropriate
strategies for different situations

Mini project
From real national or international market, choose an example of merger/ acquisition or, any other type of
strategic alliance between two or more firms (mutual consortia, joint venture, licensing, franchising, valuechain partnership, …), and answer the following questions: (2 marks each question).

1. What is the type of strategic alliance between your chosen firms? What are the reasons for this
alliance? Justify your answer.
2. Do you consider that this strategic relationship is successful? why?
3. What are the different benefits (economic, commercial…) for each firm from this alliance?
4. Are the corporate cultures of these firms compatible? Which method is used to manage culture
after this strategic alliance? Argument your answer.
5. What are the main difficulties faced by these firms after their alliance? Suggest recommendations
to improve their competitive advantages.

Answers
Answer 1.

Answer 2.

Answer 3.

Answer 4.

Answer 5.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Strategic Management (MGT 401)
Due Date: 30/11/2024 @ 23:59
Course Name: Strategic Management

Student’s Name: SEU ELITE

Course Code: MGT 401

Student’s ID Number:

Semester: 1st

CRN:
Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:

/10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
▪
▪
▪

CLO3-PLO2.2- Explain the contribution of functional, business, and corporate strategies to the competitive advantage of
the organization.
CLO4-PLO2.3-Distinguish between different types and levels of strategy and strategy implementation.
CLO6-PLO3.1-Communicate issues, results, and recommendations coherently, and effectively regarding appropriate
strategies for different situations

Mini project
From real national or international market, choose an example of merger/ acquisition or, any other type of
strategic alliance between two or more firms (mutual consortia, joint venture, licensing, franchising, valuechain partnership, …), and answer the following questions: (2 marks each question).

1. What is the type of strategic alliance between your chosen firms? What are the reasons for this
alliance? Justify your answer.
2. Do you consider that this strategic relationship is successful? why?
3. What are the different benefits (economic, commercial…) for each firm from this alliance?
4. Are the corporate cultures of these firms compatible? Which method is used to manage culture
after this strategic alliance? Argument your answer.
5. What are the main difficulties faced by these firms after their alliance? Suggest recommendations
to improve their competitive advantages.

Answers

Answer1:

Disney and Pixar worked together on several animated films beginning with Toy Story in 1995,
thus their strategic partnership can thus be classified and or deemed as a joint venture. Every business
brings unique strengths to the table. Pixar contributed and or presented their cutting-edge animation
technology and imaginative storytelling skills, while Disney contributed their marketing and distribution
experience (Wheelen, et al. 2014). This alliance was formed for several reasons. Disney’s desire to acquire
Pixar’s sophisticated animation methods was a major driving force. Thus Disney sought to revive and or
repackage their animated films in the 1990s as traditional animation faced difficulties. By collaborating
with Pixar, they were able to use innovative animation techniques to create films of a higher caliber that
would appeal to a wider audience (Liang, 2024).
Additionally, the collaboration assisted both businesses in reaching new markets and
demographics. Disney, a well-known company, could use Pixar’s innovative narrative to draw in younger
audiences and rekindle interest in animated movies. Disney’s vast global distribution networks and
marketing expertise, on the other hand, helped Pixar make sure their films were seen everywhere (Kumar
& Upadhyay, 2019). The partnership also allowed both businesses to split the financial risks associated
with making movies. By combining their funds, they might invest more in creating novel technologies
and storytelling techniques, raising the caliber of their movies in the long run. Successful partnerships
resulted from the synergistic creative cultures of both businesses. Pixar’s inventiveness and Disney’s strong
brand formed a potent partnership that brought the animated film back to life.

Answer2:

Many people believe that Disney and Pixar’s strategic alliance has been effective and or successful
because of several significant results. When their movies were released, they were great commercial
triumphs. Thus Toy Story, the first fully computer-animated feature film, hence made billions of dollars
worldwide. This pattern was maintained by other successes like Finding Nemo, The Incredibles, and Up,
which improved both businesses’ standing in the animation sector. The partnership also created several
highly regarded movies that won major honors like the Academy Awards for Best Animated Feature
(Sohani & Dake, 2021). Disney and Pixar’s brands were elevated as leaders in high-quality storytelling
and animation thanks to this critical praise. Important advancements in animation technology were also
sparked by the partnership.
Pixar’s cutting-edge methods in fields like character development and graphics improved their
films and had an impact on the whole business. Disney remained competitive throughout the collaboration
thanks to its investment in this cutting-edge technology. Additionally, the films resonated with viewers of
all ages, leaving a lasting cultural impact. Thus Disney and Pixar’s legacy in animation storytelling has
hence been solidified by the legendary status of Pixar characters and stories, which also contribute to
common cultural references. The strategic partnership was further cemented in 2006 when Disney paid
$7.4 billion to acquire Pixar (Carvalho, 2021). This made it possible for both businesses to combine their
operational and creative approaches while maintaining the elements that contributed to their respective
success. Popular and inventive films have been perpetuated by the continuous partnership.

Answer3:

Disney and Pixar have thus benefited from their strategic alliance in several ways, including
creatively, commercially, and economically. Thus financially and or economically speaking, the
partnership has hence boosted earnings thanks to hugely successful movies that brought in billions of
dollars at the box office and from product sales. Pixar films have made a significant contribution to
Disney’s overall earnings. Additionally, by working together on productions, they may split the costs of
marketing, R&D, and production, which lowers costs for each company while allowing for larger-scale
initiatives (Liang, 2024). Commercially speaking, the partnership expanded market reach as Pixar films
were effectively brought to audiences around the world via Disney’s distribution networks. Pixar,
meanwhile, used Disney’s well-known brand to draw in people who might not have been familiar with
their work.
As Pixar icons became best-selling toys, clothing, and other consumer goods, their collaborative
films also gave rise to extremely profitable merchandising lines, greatly increasing revenue. Also,
synergizing one other’s skills was one of the creative advantages; Pixar’s innovative animation and
Disney’s storytelling know-how produced pictures that pushed the envelope (Shaw, 2021). Disney
revamped its brand and stories to appeal to younger audiences by partnering with Pixar. Both businesses
were able to sustain their prominence in the face of competition thanks to their cultural relevance. From a
strategic standpoint, the collaboration made it possible to synchronize long-term goals regarding
animation quality and innovation. This synchronization made it possible to continuously create popular,
award-winning movies. In conclusion, the partnership between Disney and Pixar strengthened both
companies’ positions and guaranteed continued success in the entertainment sector by providing
substantial economic, commercial, artistic, and strategic advantages.

Answer4:

Despite having different corporate cultures, Disney and Pixar have found that they get along well,
which has helped their strategic collaboration succeed. Both businesses place a high value on invention
and creativity, which are essential to Pixar’s inventive storytelling and ground-breaking technology
through an experimental culture. Given its extensive history of animation and entertainment, Disney also
prioritizes inventiveness but combines it with a wide appeal to a wide audience. Collaborative harmony
has been made possible by this shared emphasis on creative quality. Another cultural fit is the dedication
to quality, as Pixar’s careful storytelling and animation techniques complement Disney’s longstanding
reputation for excellence (Zhang, 2023). Supporting one another’s remarkable outcome achievement was
motivated by this shared objective. Following Disney’s 2006 acquisition of Pixar, integration management
techniques were used. Disney preserved Pixar’s creative culture while guaranteeing conformity with
Disney’s overarching goals by appointing important Pixar leaders, such as co-founder Ed Catmull, to
prominent positions. Respect for Pixar’s culture and continuity was shown by keeping its leadership in
place (Edwards, 2024).
In order to successfully integrate the cultures, it has also been essential to emphasize open
communication. Frequent interactions between teams promote cooperation, comprehension, and the
exchange of ideas and best practices while lowering conflict and fostering trust. Disney encouraged some
liberty, which allowed Pixar to maintain its distinct personality (Wheelen, et al. 2014). This crucial tactic
kept Pixar’s inventiveness and creative processes intact. All things considered, successful management
techniques coupled with cultural fit resulted in a successful integration that sustained both businesses’
creative and financial achievements and allowed them to prosper in the face of competition. These positive
results are the result of harmonious relations.

Answer5:

Disney and Pixar faced several challenges that might have hampered and or affected their ability to work
together.
Main Challenges:
Cultural Conflicts: Although there was general compatibility, there were issues because of disparities in
company cultures. Pixar’s relaxed, creative atmosphere stood in stark contrast to Disney’s more strict
organizational structure. This disparity occasionally caused miscommunications and conflict between
teams.
Integration Difficulties: It was difficult to integrate personnel, systems, and procedures. It took careful
management to balance Pixar’s creative methods with Disney’s long-standing procedures in order to
preserve operational effectiveness without stifling innovation (Tenzek & Nickels, 2019).
Creative Differences: Occasionally, disagreements regarding creative direction surfaced. Pixar’s ambition
for more intricate stories and concepts occasionally ran counter to Disney’s emphasis on family-friendly
programming. It was crucial to strike a balance between these viewpoints in order to create movies that
both audiences enjoyed.
Market Pressure: The pressure to consistently produce blockbuster hits grew as expectations skyrocketed
after successful releases. This pressure may affect the quality of work and cause creative teams to burn
out.

Recommendations for Improvement:
Encourage Intercultural Cooperation/Collaboration: Regular team-building exercises and workshops
that foster awareness and respect for each company’s culture should be encouraged. This can promote a
more united workplace and help close gaps.

Encourage Innovative Teams: Preserve Pixar’s independence while incorporating Disney’s assets. Give
creative teams the latitude to experiment with new concepts while maintaining the core of Pixar’s narrative
and taking advantage of Disney’s distribution and marketing resources (Wheelen, et al. 2014).
Create Unambiguous Channels of Communication: Establish structures for structured communication that
encourage team members to share ideas and provide feedback. Frequent meetings can facilitate the timely
resolution of issues and the alignment of creative ideals.

References
Liang, X. (2024). An Analysis of the Marketing Strategies Employed by Film Companies of their
Proprietary Intellectual Properties: A Case Study of Walt Disney Company. Highlights in
Business, Economics and Management , 41 , 480-489.
Kumar, R., & Upadhyay, E (2019). Disney’s 100 Years of Magic, Strategic Milestones, and Recipe for
Growth: How Long Will It Last?.
Sohani, M., & Dake, A. (2021). Mergers and Acquisition: A Tool to Grow in the Global Market. Jus
Corpus LJ, 2, 1344.
Zhang, J. (2023). A diagnostic analysis of Disney’s corporate entrepreneurial framework. Academic
Journal of Business & Management, 5(25), 116-121.
Tenzek, K. E., & Nickels, B. M. (2019). End-of-life in Disney and Pixar films: an opportunity for engaging
in difficult conversation. OMEGA-Journal of Death and Dying, 80(1), 49-68.
Carvalho, P. N. A. F. (2021). Shared value and entertainment: the Walt Disney Company case
study (Doctoral dissertation).
Shaw, Z. (2021). Media Ecologies and Composition: The Animated Sequence and Rhetorical Potential of
Media (Doctoral dissertation, University of Florida).
Edwards, M. (2024). Best Story Wins: Storytelling for Business Success. Simon and Schuster.
Wheelen, T. L., Hunger, D., Hoffman, A. N., & Bamford, C. E. (2014). Concepts in strategic management
and business policy (14th ed.). Upper Saddle River, NJ: Prentice Hall. ISBN-13: 9780133126129
(print), 9780133126433 (e-text)

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Strategic Management (MGT 401)
Due Date: 30/11/2024 @ 23:59
Course Name: Strategic Management

Student’s Name: SEU ELITE

Course Code: MGT 401

Student’s ID Number:

Semester: 1st

CRN:
Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:

/10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
▪
▪
▪

CLO3-PLO2.2- Explain the contribution of functional, business, and corporate strategies to the competitive advantage of
the organization.
CLO4-PLO2.3-Distinguish between different types and levels of strategy and strategy implementation.
CLO6-PLO3.1-Communicate issues, results, and recommendations coherently, and effectively regarding appropriate
strategies for different situations

Mini project
From real national or international market, choose an example of merger/ acquisition or, any other type of
strategic alliance between two or more firms (mutual consortia, joint venture, licensing, franchising, valuechain partnership, …), and answer the following questions: (2 marks each question).

1. What is the type of strategic alliance between your chosen firms? What are the reasons for this
alliance? Justify your answer.
2. Do you consider that this strategic relationship is successful? why?
3. What are the different benefits (economic, commercial…) for each firm from this alliance?
4. Are the corporate cultures of these firms compatible? Which method is used to manage culture
after this strategic alliance? Argument your answer.
5. What are the main difficulties faced by these firms after their alliance? Suggest recommendations
to improve their competitive advantages.

Answers

1. Type of Strategic Alliance

The partnership between General Motors (GM) and Lyft is a joint venture, where GM acquired a
9% equity stake in Lyft to create a cooperative entity in the transportation industry. GM aimed to
establish itself in the emerging car-sharing and autonomous vehicle markets by leveraging Lyft’s ridesharing platform. The alliance aligns with strategic aims for mutual benefit: GM sought new avenues for
electric vehicle deployment, and Lyft aimed to expand its vehicle fleet access without incurring full
ownership costs. This collaboration demonstrates the strategic importance of joint ventures for accessing
complementary resources and capabilities, especially in technology-intensive sectors (Wheelen et al.,
2017).

2. Success of the Alliance

The GM-Lyft partnership achieved mixed success initially but fell short of its long-term strategic
potential. While it provided Lyft with necessary capital and GM with a platform for exploring
autonomous technology, diverging objectives later led GM to divest its interest in Lyft. Such outcomes
underscore that success in alliances often requires aligning long-term visions beyond initial goals. Their
experience highlights the importance of maintaining a shared vision to ensure both parties benefit from
joint ventures (Wheelen et al., 2017).

3. Benefits for Each Firm

From this alliance, GM gained valuable insights and a testbed for its autonomous vehicle
technology, helping it navigate the evolving transportation sector. Economically, the collaboration
allowed GM to reduce the high costs associated with vehicle fleet deployment and broaden its brand’s
market presence in urban mobility. Lyft, in turn, benefited from GM’s automotive expertise and
investment, which bolstered its position in the competitive ride-sharing market and reduced the financial
risks associated with fleet expansion. Strategic alliances like this provide complementary strengths,
enabling both companies to grow in an evolving industry without full ownership stakes (Wheelen et al.,
2017)

4. Corporate Culture Compatibility

GM and Lyft encountered challenges aligning their corporate cultures due to differences in
operational approaches. GM’s hierarchical structure contrasted with Lyft’s startup culture, creating
tension in strategic decisions. Post-alliance, assimilation was the primary cultural management
approach, as GM maintained its own values while allowing Lyft autonomy. Successful cultural
integration often requires balancing corporate values and operational practices, as seen in cases where
integration or assimilation enhances cohesion, while separation may be used if the cultures are
significantly divergent (Wheelen et al., 2017).

5. Difficulties and Recommendations

A major challenge faced by GM and Lyft was aligning strategic objectives and maintaining a
cohesive culture. Differing visions, especially in technology deployment and growth, led to GM’s
eventual exit from the alliance. To enhance competitive advantage, future alliances could benefit from
establishing clearer long-term goals and stronger integration of cultural and operational values.
Recommendations include creating a governance structure that encourages joint decision-making and
consistent communication to keep both partners aligned over time. This ensures that strategic alliances
fulfill evolving business needs, thus reducing the likelihood of premature termination (Wheelen et al.,
2017).
By addressing these factors, GM and Lyft’s partnership could serve as a model for future alliances in
balancing independence and synergy for sustained competitive advantage.

Reference:
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic Management and
Business Policy: Globalization, Innovation and Sustainability.
Allum, F. (2017). Ride-sharing and the future of transportation: Lyft, GM, and the new urban mobility.
Journal of Transportation and Innovation, 5(2), 42–57. doi:10.1016/j.jti.2017.04.002
Rao, R., & Miller, L. (2018). Strategic alliances in the automotive sector: Case studies of GM-Lyft and
Ford-Uber. International Journal of Strategic Management, 19(3), 112-125.
doi:10.1504/IJSM.2018.092347

Purchase answer to see full
attachment