Spar & La Mure, 2003 - Unocal and Burma

5 important questions on Spar & La Mure, 2003 - Unocal and Burma

What was the Unocal and Burma case about?

Unocal is an oil and gas company operating in Burma at the time when the country faced an oppressive regime. Due to this regime there was a huge social movement to get  companies to divest from Burma.

What was Unocal's response to the activism?

Unocal kept their operation in Burma and thus did not give into the demands of the activists to leave.

What firm strategy does the 'not giving into the demands' of the activists tie into?

Resistance.
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Which variable belongs to the firm strategy that was applied by Unocal and why does this make sense?

Variable: transaction costs; How costly are the demands. Giving into the demands for Unocal would have been extremely costly as they would have to leave the country where they had set up their operations.

What analysis lies at the core of the variable and the firm strategy that were applied in the Unocal case?

A cost-benefit analysis.

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