International Strategy F Globalization drivers – Assess dual pressures: standardization –Global...
-
Upload
irving-cagwin -
Category
Documents
-
view
219 -
download
1
Transcript of International Strategy F Globalization drivers – Assess dual pressures: standardization –Global...
![Page 1: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/1.jpg)
International Strategy
Globalization drivers – Assess dual pressures:– Global efficiency - standardizationstandardization– National/local responsiveness - adaptationadaptation
Location/configuration of value-creating activities
Integration/coordination of value-creating activities
Strategy and entry
![Page 2: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/2.jpg)
“Forced” Standardization
Coca-Cola in Chinese: “bite the wax tadpole”
Coca-Cola 30 liter bottle??
U.S. carmakers’ left-hand drive cars
![Page 3: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/3.jpg)
Effective Standardization
Coca-Cola’s “transnational polar bears”
McDonald’s “Big Mac”
![Page 4: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/4.jpg)
Barbie: The “All-American” Girl Goes Overseas
Barbie is 41 years old Sold in 130 countries National adaptations:
– Physical features– Costumes– Activity sets
Standardized physique:– Scaled to 6’2”, 110 lbs.– 38-18-28
![Page 5: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/5.jpg)
Effective Adaptation McMutton Pie in
Australia Wendy’s shrimp sandwich
in Japan Campbell’s non-
condensed soups in the UK
Coca-Cola’s 175 ml containers in Japan
Cadillac Seville 1997 Asian edition
Right-hand drive, shorter seats, closer pedals, 10” shorter, retractable mirrors
![Page 6: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/6.jpg)
Globalization Drivers
Market Drivers Cost Drivers Government Drivers Competitive Drivers
Low
Multidomestic
High
Global
![Page 7: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/7.jpg)
Strength of Market Drivers
Low High
Baked Goods
Book Publishing
Retail Banking
Toothpaste
Soft Drinks
Automobiles
Computers
Aircraft
Multidomestic Global
![Page 8: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/8.jpg)
Strength of Cost Drivers
Low High
Baked Goods
Retail Banking
Toothpaste
Soft Drinks
Automobiles
Computers
Aircraft
Pharmaceuticals
Multidomestic Global
![Page 9: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/9.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
![Page 10: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/10.jpg)
Value ChainLocation and standardization/adaptation
Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
![Page 11: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/11.jpg)
Value Chain
InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Headquarters
![Page 12: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/12.jpg)
Value Chain
InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Upstream
Headquarters
![Page 13: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/13.jpg)
Value Chain
InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundInboundLogisticsLogistics OperationsOperations
OutboundOutboundLogisticsLogistics MarketingMarketing ServiceService
ProfitMargin
Upstream Downstream
Headquarters
![Page 14: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/14.jpg)
Value Chain Sub-functions (Nestles?)InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundInboundLogisticsLogistics OperationsOperations
OutboundOutboundLogisticsLogistics MarketingMarketing ServiceService
ProfitMargin
Advert. Pricing Distrib. Packaging
![Page 15: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/15.jpg)
Value Chain Configuration
Geographic location of value chain activities – Concentrated/centralized vs.
dispersed/decentralized
– Which entry mode?
![Page 16: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/16.jpg)
Value Chain Coordination
Cross-border linkages between dispersed value-creating units
Coordination = Flows of:– $– Product (finished and intermediate)– Technology– People– Information (market data, strategic direction, etc.)
Highly coordinated vs. only money flows
![Page 17: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/17.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
![Page 18: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/18.jpg)
Export Strategy(same as Export entry mode)
U.S.
Germany
Mexico
Malaysia
![Page 19: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/19.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
![Page 20: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/20.jpg)
Multidomestic Strategy
U.S.
Germany
Mexico
Malaysia
Entry?Entry?
![Page 21: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/21.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
GlobalStrategy
![Page 22: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/22.jpg)
Global Strategy(Textbook Variety)
U.S.
Germany
Mexico
Malaysia
Entry?Entry?
![Page 23: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/23.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
GlobalStrategy
TransnationalStrategy
![Page 24: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/24.jpg)
Transnational Strategy (v.1)
U.S.
Germany
Mexico
Malaysia
Entry?Entry?
![Page 25: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/25.jpg)
Transnational Strategy (v.2)
U.S.
Germany
Mexico
Malaysia
Entry?Entry?
![Page 26: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/26.jpg)
Transnational Strategy (v.3)
U.S.Germany
Mexico
Malaysia
Engines
Final Assembly
Trim, seats,glass
Steel
Entry?Entry?
![Page 27: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/27.jpg)
Entry Mode Decision Matrix
Hi
Lo
HiLo
Str
ateg
ic I
mpo
rtan
ce
Str
ateg
ic I
mpo
rtan
ce
of C
ount
ryof
Cou
ntry
Stand-alone AttractivenessStand-alone Attractivenessof Countryof Country
Lo
Hi
Resource
s,
Resource
s,
Control,
Control,
RiskRisk
![Page 28: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/28.jpg)
Foreign Market Entry ModesExportLicensingJoint VentureWOS
–Acquisition–Greenfield
![Page 29: International Strategy F Globalization drivers – Assess dual pressures: standardization –Global efficiency - standardization adaptation –National/local.](https://reader030.fdocuments.us/reader030/viewer/2022032701/56649c575503460f948fe2ab/html5/thumbnails/29.jpg)
Intl. Strategy and Entry Mode
U.S. H.Q.H.Q.
GermanyJVJV
MexicoWOS-GWOS-G
MalaysiaExportExport