Part III “International Business Game” (33 %): Please, answer following research questions in an integrative style as a scientific paper: 1

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Part III “International Business Game” (33 %):
Please, answer following research questions in an integrative style as a scientific paper:
1. The Virgin Group is a widely diversified company with many business fields. Of course,
the International Business Game firms cannot diversify analogously, however they have
the opportunity to treat several business fields. Please compare the motives for the diversification of the Virgin Group and the business game companies. Characterize furthermore the product-market-combinations possible in the game regarding their opportunities, threats and sustainability.
2. Please explain what aspects highlights Virgin’s financial management? In which way are
those goals also relevant in the International Business Game and what role does the individual interest rate for long-term debt play in this? Why can this individual interest rate
for long-term debt differ from company to company in the game (and in the reality, of
course) and what does affect this interest rate in the game?
3. Outsourcing plays an important role in the Business Game. What are advantages and
disadvantages of that option in general? Under which concrete conditions is outsourcing
advantageous in the Game. How can you realize synergies in highly diversified companies
like Virgin with outsourcing through the use of transfer prices? Make this clear with the
example of any round in your game.