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1 a Given that Honda is significantly smaller than the largest car makers such as General Motors and Toyota should it be considering acquisitions mergers or joint ventures or can it continue to prosper on its own b Companies are often urged to focus on their core business and to avoid diversification into unrelated areas What lessons can be drawn from the Pilkington Intel and Honda cases about successful and unsuccessful diversification

......One of the most important advantages is improved access to supply chains. The global reach enables MNEs to choose from a large set of suppliers those that optimize their costs, products and other efficiency-related parameters. It is worth mentioning at this point that the wider the global reach is the more complex and costly is to coordinate all interconnected activities. Highly internationalized companies usually resort to complex supply chain management solutions. For instance, Wal-Mart is very famous for its ability to permanently increase its efficiency, while holding tight to its motto: Everyday low prices and its successful supply chain management. The giant retailer was ranked #1 by Fortune 500 in 2006, made over $300 billion in sales and over $11 billion net income and is considered one of the largest employers in the world. The company has over 1,100 discount stores, 1,900 supercenters, 95 neighborhood markets and 575 Sams club locations in USA and it has strategic presence in 13 foreign markets with 2,750 retail units, reaching over 175 million consumers. According to a PBS study (Smith, 2004), Wal-Mart is responsible for imports worth of $15bn from China alone, where the company has roughly 80% of its 6,000 international suppliers.