Foundations of Business Administration 2024-2025 Past Paper PDF

**Foundations of Business Administration 2024-2025** **Minor in Business Administration -- New Ways of Doing Business** **How to get prepared for the final exam?** The final exam will include 15 MCQs over the content listed below (30%) and three open questions over this same content (70%). One o...

**Foundations of Business Administration 2024-2025** **Minor in Business Administration -- New Ways of Doing Business** **How to get prepared for the final exam?** The final exam will include 15 MCQs over the content listed below (30%) and three open questions over this same content (70%). One of the three open questions will refer to the case studies and be one of the case study-related questions listed below (highlighted in blue). **Week1: Interdependency between organizations and their environment -- from traditional to pioneering perspectives** 1. **A significant development in the study of organizations corresponds to the distinction between the closed perspective of organizations and the open perspective of organizations. Explain clearly and thoroughly the difference between those two perspectives. Select one out of the thinkers/scholars considered in class (Lecture1, 2 or 4), who adopted the closed system perspective and select one out of the thinkers/scholars considered in class, who adopted the open system perspective. For each of those two thinkers/scholars, justify why you consider that they can be associated with either one or the other perspective and explain how each of them contributed to the field of organizational theory.** 2. **In the video attached to the slides of the first lecture, the four main ideas of Adam Smith are explained: specialization, consumer capitalism, vanity of rich people and education of consumers. Explain precisely what those four main ideas are. To what extent are those ideas still inspiring organizations today?** 3. **Why can we say that Adam Smith, through his concept of division of labor, contributed to one of the most significant management practice: "vertical differentiation"? Explain at first what is the concept of division of labor proposed by Adam Smith? List two advantages and two disadvantages of the division of labor. Make then a bridge between the division of labor and the vertical differentiation.** 4. **What is the "risk of alienation" described by Karl Marx?** 5. **Winslow Taylor and Henry Fayol greatly contributed to the organization theory. Do their insights belong to the closed perspective of the organizations or to the open perspective of the organizations? Justify clearly your answer. What are their respective main contributions? From a societal point of view, list two advantages and two disadvantages of implementing their universal principles?** - ***Efficiency \> Higher productivity and cost reduction*** - ***Clear structure \> Clarity in roles and responsibilities*** - ***Dehumanization \> Tasks become mechanical, may lead to alienation of employees*** - ***Rigidity \> Rigid hierarchies reduce flexibility and innovation*** 6. **List three main advantages and three main disadvantages of the bureaucracy concept as developed by Weber. Provide an example of a company, which is currently subtly benefiting from bureaucracy while avoiding its traps. Explain how this company benefits from the advantages of bureaucracy and simultaneously finds ways to circumvent its drawbacks.** - ***Clear tasks / hierarchy \> Clear responsibility and role division*** - ***Snel werken / efficiency \> Consistent outcome*** - ***Lack of costs + promotions on quality and not on relationship \> merit-based*** - ***Boredom / Impersonal nature \> Employees need creativity, it leads to alienation and lack of motivation*** - ***Inflexibility \> Slow to adapt change and limiting innovation*** - ***Red tape \> A lot of paperwork and rules, leading to frustration and delay by employees*** ***Google*** ***Benefits:*** - ***Structured processes for hiring and product development leading to efficiency and merit-based advancement*** - ***Allows them to manage a massive global workforce and maintain consistent quality in their products*** 7. **To what extent do modernism and post-modernism differ? Do the ideas of McDonaldization of Ritzer (1993) correspond to the modernist or the post-modernist perspective? Answering this question requires first to distinguish the modernism and the post-modernism perspective, and second to describe the four main principles behind the McDonaldization principle as developed by Ritzer.** - ***Focusses on rationality and order -- one objective truth and universal principles.*** - ***Organizational theory \> Efficiency, control and hierarchy structure often through bureaucracy methods.*** - ***More than one truth*** - ***Criticizes rigid structures -- advocating for decentralized and flexible approaches*** - ***In organizational theory \> emphasizes innovation and diverse perspectives.*** - ***Focusing on modernism \> Emphasis on rationalization and efficiency* *and control with principles like predictability and calculability. Post-modernism critiques McDonalidization for its dehumanization*** 8. **LEGO case study: By closely using the 5 Forces of Porter framework and the criteria proposed by Porter to assess the threats in an industry (i.e., bargaining power of the buyers, bargaining power of the suppliers, threats of new entry, threats of rivalry among the incumbents, and threats of substitutes), clearly explain *first* the drivers for [each] threat in the toy manufacturing industry in 2004. *Second*, based on your explanation, identify the [two] [main] threats out of Porter's five threats for the toy manufacturing industry. *Finally*, explain how LEGO has been able to reduce the influence of these [two] threats on the company.** 1. ***Substitutes -- Switching from traditional toys to video games*** 2. ***Buyers -- Retailers had enormous power over toy companies, forcing them to offer discounts and concessions*** 1. ***Substitutes -- Diversifying LEGO's portfolio and partnering with entertainment franchises*** 2. ***Buyers -- Improve relationships with retailers and making personalized products and ensuring a better product avaibility.*** **Week2: Interdependency between organizations and their environment - strategic tools and frameworks** 9. **The three theories -- contingency theory, resource dependence theory, and the population ecology -- belong to the same family of "modernist theories". Explain why those three theories are considered as modernist? What arguments do they share?** ***All these theories view the environment as objectively given and understood. Instead symbolism and post-modernism seen the environment as constructed and subjective. They aim to provide structured frameworks to understand complex organizational dynamics within a changing environment. They all focus on rationality, structure, context and empirical basis.\ *** 10. **To what extent does the resource dependence differentiate itself from the contingency theory? List and explain the arguments they share on the one hand, and list and explain the arguments that differentiate them?** ***Shared arguments*** - ***Focus on the environment \> Both emphasize the importance of external environment in shaping organizational behavior and structure.*** - ***Adaption \> Highlighting how organizations must adapt to survive and thrive in chanching contexts*** - ***Rational decision-making \> Rational approaches to decision-making based on environmental factors*** ***Differentiating arguments*** - ***Focus \> RDT studies how organizations handle reliance on external resources, while contingency theory looks at how different factors shape organizational structure*** - ***Relationships \> RDT explores power and inter-organizational dynamics, while contingency theory focuses on internal factors like size and tehcnology*** - ***Perspective \> RDT emphasizes managing external relations strategically, whereas contingency theory highlights aligning structure.*** 11. **Explain the concept of "isomorphism" developed in the lecture2. To what extent do the research and findings of Burns and Stalker contribute to the development of this concept?** ***Isomorphism\ Companies adapt to their environment; in a changing and uncertain environment a more flexible and less formalized structure suits the best. When the environment is stable en secure a fixed and highly formalized set of practices and routines suits the best. Organizations become similar in structure and practices due to external pressure.*** ***There is no best way to organize, the environment dictates the best structure*** ***Burns and Stalker contribute this by making a distinction between mechanistic and organic organizational structures. It highlights how organizations adapt their structures based on environmental uncertainty.*** ***Their findings illustrate how external pressures (market conditions) influence organizational forms, thereby reinforcing the idea of isomorphism within specific contexts.*** 12. **The British sociologists Burns and Stalker were the first to argue that the environment dictates the best form of organization to use. They explain why mechanistic versus organic organizations can be appropriate given the level of environmental uncertainty. First, clearly compare the mechanistic and organic organization based on the following characteristics: differentiation, formalization, centralization, standardization, and communication. Second, explain how AND why the environmental uncertainty plays a key role in the success of the implementation of those two forms of organization.** ***Differentiation*** ***Mechanistic \> High differentiation; Clear division of labor*** ***Organic \> Low differentiation; Roles are more fluid and collaborative*** ***Formalization*** ***Mechanistic \> High formalization; Strict rules and procedures*** ***Organic \> Low formalization; Fewer rules, more flexibility*** ***Centralization*** ***Mechanistic \> High centralization; Decision making is concentrated at the top*** ***Organic \> Low centralization; Decentralized decision-making allows for quicker responses*** ***Standardization*** ***Mechanistic \> High standardization; Uniform processes and outputs*** ***Organic \> Low standardization; Customized processes based on needs*** ***Communication*** ***Mechanistic \> Vertical communication; Top-down information flow*** ***Organic \> Lateral communication; Open and collaborative information exchange*** ***The environmental uncertainty dictates which organizational form is most effective.*** ***Mechanistic \> Stable environment*** ***Organic \> Changing environment*** ***Why it matters:*** ***Succesful implementation of these structures depends on their alignment with the environmental context; Performance of the organization depends on the good match*\ \ ** 13. **What are the main characteristics of the learning organization? Why is this way of organizing activities associated with the organic structure?** 1. ***Supportive learning environments*** 2. ***Concrete learning processes and practices*** 3. ***Reinforces learning*** ***Ezelsbruggetje \> Ruim Creatief Samenwerken\ *** ***Learning organizations match well with organic structures because both focus on being flexible, open, and allowing decisions to be made by teams rather than strict hierarchies.*** ***This setup helps organizations adapt quickly to changes and encourages teamwork and creativity.*\ ** 14. **What are the concepts of "differentiation" and "integration" developed by Lawrence and Lorsch? How do their research and findings contribute to the development of those two concepts?** ***Differentiation*** ***The process by which organizations create specialized roles and functions to adapt to varying environments, leading to distinct departments with specific tasks.*** ***Integration*** ***The coordination and collaboration between these specialized units to ensure they work towards common organizational goals.*** 15. **Why does the concept of "isomorphism" run against the classical theories defended by Taylor and Fayol? Provide two main arguments.** ***Similarity over efficiency \> Organizations become alike due to external pressures, unlike the classical focus on efficiency through distinct structures.*** ***Environmental matters \> It stresses adapting to specific contexts, while classical theories promote universal management principles.*** 16. **Explain (1) the main origin of the resource dependence theory, (2) the basic argument defended by this theory and (3) the three steps to follow to align with the principles of this theory. Why can we consider that engaging in joint ventures enables to follow the principles defended by the resource dependence theory?** ***Origin \> Critique of contingency theory and focus on scarcity of valuable resources*** ***Basic argument \> Organizations depend on each other for resources. By understanding power and dependency relationships, managers can address threats and create mutual dependencies to reduce risks.*** ***Three steps:*** 1. ***Identify resources going in and out of the organization*** 2. ***Trace the resource flow to end-user*** 3. ***Prioritize dependencies based on criticality and scarcity*** ***Engaging in joint ventures allows organizations to share resources and risks, reducing dependency on any single external source and aligning with Resource Dependence Theory Principles.*** 17. **According to the population ecology theory, why do organizations have difficulties to adapt to changes in their environment? Provide a real world example of a company which has not been able to adapt fast enough and properly to environmental changes.** ***Organizations are competing within a population, and the environment selects the one that best meets its needs. lThe theory explains variation, diversity, birth and death rates of organizations, with success depending on environmental factors and changes.*** ***A real-world example is Kodak, which failed to adapt quickly to the rise of digital photography, leading to its decline despite once dominating the film industry.*** 18. **SONY case study: By referring to the framework of Hofstede (i.e., individualism vs. collectivism, uncertainty avoidance, power distance, long-term vs. short term orientation, and masculinity vs. feminity), describe *first* the Japanese culture. *Second*, explain why this culture was positively contributing to SONY's success before and is jeopardizing SONY's success in 2004 and still now. SONY was adopting in 2004 mostly a divisional structure; combining such structure and the Japanese culture was previously a recipe for success but the environmental has changed since then...** ***Japanese culture \> High power distance, uncertainty avoidance, collectivism, masculinity and long-term orientation.*** ***This cultural background contributed positively to SONY's success by fostering loyalty, group harmony and long-term vision, which were vital for innovation and teamwork.*** ***By 2004 this culture became a liability as the market environment changed. SONY's silo mentality, bureaucracy and resistance to change rooted in these cultural dimensions, hindered it ability to adapt to global competition.*** 19. **SONY case study: Adopting a divisional structure brings advantages and disadvantages. List and explain *first* [two] main advantages and [two] main disadvantages experienced by SONY in 2004 while using this organizational structure. *Then,* list and precisely describe [three] main "integrators" implemented by Stringer in 2005 for fostering collaboration and a corporate culture at SONY?** ***Multi-divisional organization → each division manages its operations, while headquarters handles long-term strategy. Divisions are grouped by product, customer type, or region, but coordination challenges and political conflicts may arise.\ \ Advantages:\ Product Focus \> Each division specialized in specific product lines, driving expertise, innovation, and targeted marketing.\ Accountability \> Clear responsibility for results made it easier to track performance and improve where needed.\ \ Disadvantages:\ Silo Mentality \> Divisions worked independently, limiting collaboration and resource sharing.\ Duplication of Efforts \> Separate operations led to overlapping investments, increasing costs.\ \ Changes by Howard Stringer in 2005\ \"Sony United\" Slogan \> Promoted unity and teamwork across divisions.\ Breaking Silos \> Encouraged cross-division collaboration and better communication.\ Reorganization \> Created two groups (Networked Products & Services and New Consumer Products) to speed up innovation and boost revenue.*** **Week3 and Week4: Organizational social structure: traditional and international** 20. **DHL is implementing a 4PL business model. Why does such model ask for some dimensions of bureaucracy and simultaneously require avoiding the possible "traps" of bureaucracy?** ***It requires bureaycracy for standardized processes and coordination, ensuring control and consistency across complex logistic chains. However it must avoid excessive bureaucracy, which can hinder flexibility, responsiveness, and innovation necessary for adapting to clients unique demands.*** 21. **Mintzberg proposes five main types of organizational design. Describe the machine bureaucracy design. List three advantages and three disadvantages of this organizational design. Provide an illustration and justify why you select this company/organization as an illustration. Under which environmental circumstances is this organizational design the most appropriate?** ***The machine organization has a tight vertical structure. Functional lines go all the way to the top, allowing senior managers to maintain centralized control.*** ***Advantages*** - ***Efficiency*** - ***Predictability*** - ***Clear accountability*** ***Disadvantages*** - ***Inflexibility*** - ***Lack of innovation*** - ***Slow decision-making*** ***Mcdonals which uses strict procedures and standardization. This design works best in simple and stable environments with routine tasks.*** 22. **Mintzberg proposes five main types of organizational design. Describe the professional bureaucracy design. List three advantages and three disadvantages of this organizational design. Provide an illustration and justify why you select this company/organization as an illustration. Under which environmental circumstances is this organizational design the most appropriate?** ***Relies on skilled professionals who work independently within a standardized framework. The operating core and standardization of skills dominate the organization.*** ***Advantages*** ***High expertise -- Autonomy -- Adaptability to complex tasks*** ***Disadvantages*** ***Coordination difficulties -- Resistance to change -- Limited central control*** ***Hospitals are a good example of Mintzberg's professional bureaucracy; doctors and nurses work independently based on their expertise. The organization relies on skilled professionals and follows standardized practices to ensure consistency and quality care.*** ***This works well in complex, knowledge-driven environments*\ ** 23. **Describe the matrix organizational structure. Provide an illustration (company/organization) of this structure and justify why you select this company/organization as an illustration. List three main disadvantages of this structure: one compared to the simple organization, one compared to the functional organization, and one compared to the multi-divisional organization. What are the main two disadvantages of the matrix organizational structure, however?** ***The matrix structure combines functional and divisional structures, allowing dual reporting lines. This structure is characterized by a dual authority system, where employees report to both functional managers (head of marketinf) and product or project managers.*** ***An example is Microsoft. Employees at Microsoft often report to both functional and product managers. This allows the company to balance specialization with cross-functional collaboration, enhancing innovation and adaptability.*** ***Disadvantages:*** - ***Simple structure \> More complexity*** - ***Functional \> Less clarity in authority*** - ***Multi-divisional \> Slower decision-making*** ***Main disadvantage \> Conflicting authority and complexity in coordination.\ *** 24. **Describe the holacracy design adopted by Zappos. Is this way of organizing activities suited to any organization? Under which external circumstances would holacracy be more suited? Refer to the article *Beyond the holacracy hype* (Bernstein et al., HBR) for answering.** ***Holacracy decentralizes authority, giving teams more autonomy. It's not suited for all organizations, especially those requiring rigid control. It works best in fast-paced, dynamic environments with a need for flexibility. According to ''Beyond the Holacracy Hype'', it can struggle in highly regulated industries*** 25. **What is the organizational design that suits the most the transnational strategy? Clearly justify your answer by first explaining what the transnational strategy is. Provide then an example.** ***Transnational strategy \> Balances global efficiency with local responsiveness. The matrix structure supports this by allowing employees to report to both global and local managers, ensuring resources are shared while adapting to market needs.*** ***Unilver standardizes production globally but customizes products like ice cream flavors for local tastes, combining global strength with regional relevance.*** 26. **What is the organizational design that suits the most the multi-domestic strategy? Clearly justify your answer by first explaining what the multi-domestic strategy is. Provide then an example.** ***A multi-domestic strategy focuses on adapting products and operations to local markets, with decision-making decentralized to regional divisions.*** ***The divisional structure fits best, as it gives each division autonomy to respond to local needs effectively*** ***Nestle operates independently in each country, tailoring products like flavors and packaging to local preferences while managing operations locally.*\ ** **Week4: Politics, power and control** 27. **Five main ways of obtaining power were exposed and illustrated. First, list three of these ways, precisely explain them and provide a clear illustration for each of them. Second, we learned that the use of power could be positive or negative for organizations. Clearly explain a reason why it can be positive and a reason why it can be negative for the organizations.** 1. ***Coercive power \> Power resulting from the ability to punish others; a football coach who leaves a player on the bench after the player has arrived late*** 2. ***Legitimate power \> Power derived from position; A manager at work who can assign tasks to employees because of their formal role or position within the organization*** 3. ***Expert power \> Most powerful and enduring -- Power resulting from special expertise or technical knowledge; A doctor's authority comes from their specialized knowledge and skills in medicine, which the patient trust*** 4. ***Referent power \> Comes from people looking up to you and wishing to be yo; A influencer promoting a product*** ***Positive \> It can enable strong leadersip, driving efficient decision-making and aligning teams towards common goals.*** ***Negative \> Dysfunctional outcomes when it is used to advance personal agenda's or to suppress dissent. Creation of fear and stifle creativity. When managers abuse their power, they erode trust and damage the organization's cultur.*** 28. **What modernist scholars such as Weber and Fayol considered as illegitimate actions can correspond, according to the two American organizational scholars March and Simon, to legitimate political behaviors. Please clearly explain this assertion above by referring to the underlying assumptions concerning the functioning of decision making in organizations defended by Weber and Fayol, and by March and Simon. Please provide an clear illustration (example) of an action which would correspond to an illegitimate action for Weber and Fayol and to a legitimate political behavior for March and Simon.** *Weber and Fayol saw decision-making as a strict, rule-based process within a clear hierarchy, rejecting behaviors like bypassing authority. March and Simon, however, acknowledged that organizations often use informal methods like alliances or personal connections to handle conflicts and uncertainty.* *Example; Favoritism in promotions would be illegitimate for Weber and Fayol but seen as a practical political strategy by March and Simon.* **\ \ ** 29. **List three advantages and three disadvantages of conflicts for organizations. Explain these advantages and disadvantages. Then provide nuances based on the nature of the conflicts: personal, procedural, or substantive.** ***Advantages*** 1. *Innovation \> Conflicts can foster creativity and lead to better solutions by challenging existing ideas* 2. *Improved decision-making \> Procedural conflicts help refine decision-making processes by questioning ineffective practices and promoting more efficient methods* 3. *Increased engagement \> Conflicts encourage involvement, as employees feel their opinions matter, especially in substantive or procedural disagreements.* ***Disadvantages*** 1. *Reduced productivity \> Personal conflicts often lead to distractions, reducing focus and slowing down operations* 2. *Lower morale \> Ongoing conflicts can create a toxic work environment, harming team morale* 3. *Resource drain \> Managing conflicts, especially procedural ones, requires time and effort, diverting resources from core tasks* ***Nuances based on conflict types*** - *Personal conflicts \> Usually negative, leading to emotional tension and hindering team cooperation* - *Procedural conflicts \> Can be positive when they lead to more effective ways of working, but they may also slow progress if they become too frequent* - *Substantive conflicts \> Can improve innovation and decision quality but may escalate if not managed constructively* 30. **What are the four main organizational characteristics explaining the tendency in organizations to opt for political models of behavior rather than rational models of behavior? Provide illustrations.** ***Goals conflict** between departmens* ***Differentiation** in cognitive and emotional orientations among managers in different departments* ***Task interdependence** between departments* *Competition for **limited resources** (money & human resources) among departments* 31. **GOOGLE case study: Explain *first* with clear illustrations and examples the extent to which the physical structure of GOOGLE (i.e., geographical locations, layouts of the buildings and offices, colors, designs, facilities, etc.) enable GOOGLE to reach its mission. Second, do you believe that this physical structure adopted by GOOGLE would be partly, fully, or not appropriate for the School of Business Economics of the Vrije Universiteit Amsterdam? Please provide a detailed and nuanced answer based on the different components of the physical structure of GOOGLE.** ***Google\'s global presence and innovative office designs reflect its mission to \"organize the world\'s information and make it universally accessible.\" Its worldwide offices attract diverse talent and serve local needs, while creative layouts, open spaces, and amenities like free meals and fitness centers foster collaboration, innovation, and employee well-being. For example, the Googleplex in California promotes teamwork with vibrant designs and shared spaces, supporting a dynamic and inspiring work environment.\ \ Adopting aspects of Google\'s physical structure at the School of Business Economics, Vrije Universiteit Amsterdam, could motivate collaboration and creativity through open, interactive spaces. However, extensive perks and vibrant designs may not suit a formal academic setting or align with budget and cultural expectations. A practical adaptation, such as modern study areas and group rooms, could balance innovation with the school\'s educational mission.*** 32. **GOOGLE case study: *First*, recall based on Greiner's organizational lifecycle, the difficulties met by growing companies in the leadership crisis, in the autonomy crisis, in the control crisis and in the red-tap crisis respectively. *Then*, identify whether the divisional structure adopted by GOOGLE, called now Alphabet, responds to a need to face the delegation phase or the formalization phase? Please develop your answer.** ***Leadership crisis \>Arises when the organisation grows and needs more structure and leadership. Founders may struggle with the new management requirements\ Autonomy crisis \> As the organisation grows larger, problems with autonomy and control arise. Founders have to delegate to middle management which can lead to friction.\ Control crisis \> in this phase, problems arise from too much decentralisation and lack of control. There is a need for standardisation and more formal structures.\ Red-tape crisis \> The organisation can become overly bureaucratic, hindering flexibility and innovation. This leads to a need for change.\ \ Alphabet\'s divisional structure was adopted to address the challenges of managing diverse business units during the delegation phase. This structure decentralizes decision-making, giving each division. This setup increases flexibility, independence, and agility while maintaining strategic oversight, helping Alphabet handle complexity and drive innovation effectively.*** **Week5: Technology and physical structure of organizations** 33. **Recall the main findings of Woodward and explain based on them the association between organizational structure and types of technology (i.e., unit and small batch, large batch and mass production, and continuous production)** ***Woodward found that the best-performing organizations align their structure with their technology type:*** - ***Unit / Small bath \>** Flexible, organic strucctures fit best due to unique custom work* - ***Large batch / Mass production \>** Mechanistic structures work better for efficiency in standardizzed processes* - ***Continuous production \>** Organic structures are ideal for managing complex, automated workflows* *Matching structure to technology improves performance* **\ ** 34. **How does Perrow associate the levels of task variability and task analyzability with the types of organizational model for these tasks?** *Perrow expanded on Woodward\'s research by focusing on two task dimensions:* - ***Task variability**: How often unexpected situations occur. High variability needs flexible, organic structures; low variability needs standardized, mechanistic structures.* - ***Task analyzability**: Whether there are established solutions for tasks. High analyzability suits mechanistic structures, while low analyzability needs organic structures.* *Perrow\'s framework links task characteristics to organizational structure:* - *complex tasks (high variability, low analyzability) need flexible, organic structures;* - *routine tasks (low variability, high analyzability) need standardized, mechanistic structures.* - *Medium complexity tasks need a balance of both.* 35. **What are the principles of mass customization?** ***Mass customization uses mass-production technology to create personalized products at low cost. Key aspects include:*** - ***Customer-Centric Design \> Customers can customize products to their preferences.*** - ***Flexible Manufacturing \> Technology enables quick changes in production without losing efficiency.*** - ***Build-to-Order Production \> Products are made only after an order is received, reducing inventory costs.*** - ***Direct Sales Models \> Companies sell directly to customers, reducing distribution costs and improving relationships.*** - ***Supply Chain Efficiency \> Coordinated supply chains ensure timely availability of materials.*** - ***Online Configuration Tools \> Customers can personalize products online, seeing visual results.*** 36. **NORA-SAKARI case study: To increase the chances of success of a joint venture, there is a need for a strategic and organizational fit. *First*, define what we call a strategic fit and an organizational fit. *Then*, explain and justify whether the Malaysian company and the European company considered in the case study were strategically and organizationally fitting.** ***Strategic Fit \> Refers to how well the goals and resources of two partners align for a joint venture, ensuring they work towards common objectives.*** ***Organizational Fit \> Involves how well the companies can work together, considering their structures, cultures, and management styles.\ \ Strategic and Organizational Fit in the Nora-Sakari Case:\ Strategic Fit \> Nora wanted advanced telecom tech for Malaysian projects, and Sakari aimed to expand in Southeast Asia. Their goals aligned for the region\'s market.\ Organizational Fit \> The fit was poor due to cultural and structural differences. Nora was centralized and controlled, while Sakari was decentralized, leading to misunderstandings in negotiations.*** 37. **NORA SAKARI case study: *First*, recall the three main pitfalls met in joint ventures. *Then*, explain the extent to which the Malaysian company and the European company considered in the case study faced these pitfalls.** ***Adverse Selection \> This happens when one partner lies about its abilities or resources before the coallition. There was no clear evidence of this in the Nora-Sakari case.\ \ Moral Hazard \> This occurs when one partner benefits from the other\'s efforts without contributing equally. In the case, there were issues with technology transfer and Sakari\'s role in development vs. construction.\ \ Hold-Up Problem \> This happens when one partner takes advantage of the other\'s relief on specific assets. In this case, Nora wanted a larger share of the shareholding, which could have been seen as trying to gain leverage after the JV was formed.***