Case Scenario 1: Norning International

question 141

Essay

Case Scenario 1: Norning International
Norning International (NI)states that both its past successes and future growth strategies are based on an evolving network of wholly owned businesses and joint ventures around its core competency in glass making. Through their alliances and owned divisions they compete in four global business sectors: Specialty Glass and Materials (including materials for HDTV and LCD displays), Consumer Housewares (including microwavable dishware), Laboratory Sciences Products and Services (test tubes, testing equipment, and drug trials testing), and Communications (fiber optics and related technologies). Per the company's annual report, "binding all four sectors together is the glue of a commitment to leading edge glass making technologies, shared resources, and dedication to total quality." Each sector is composed of divisions, subsidiaries, and alliances. However, the central role played by alliances is demonstrated by the fact that the combined revenue of its 30-some alliances is more than double that of NI on its own. Most of the alliances provide NI with access to particular geographic markets, industries, or channels, although an increasing number of alliances involve both market access and technological development.
-(Refer to Case Scenario 1). Norning International (NI)is following a network cooperative strategy. This strategy should work best in linking together geographically disperse markets where no one form serves as the leader of the network.

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Definitions:

Residential Construction

The building and development of living spaces for individuals and families, including houses, apartments, and other dwellings designed for habitation.

Durables

Products or goods with a long life span, such as cars, appliances, and furniture, as opposed to consumables that are used up quickly.

Nondurables

Goods with a short life span and typically consumed in a short period after purchase, such as food, beverages, and paper products.

Services

Activities, benefits, or satisfactions that are offered for sale that are essentially intangible and do not result in the ownership of anything.