Measuring Globalization

The worlds mosl inlegraled counlries have followed very dilleren poths to globalization As shown Singapore has the highest reloliv composit scar and Slovenia the

lowest SCore Th Iotol score comprises triple weighting on FDI ond double weighting on trode

ECONOMIC INTEGRATION PERSONAL CONTACT POLITICAL ENGAGEMENT Including inlernotionol frode and Including telephone calls IrovI IncludIng foreigo oid treaties foreign direcl investmenl and remillonces organizelions ond peacekeeping

TECHNOLOGICAL CONNECTIVITY

Technological variables and polilicol voriobles are each collapsed inlo ingle equal indicolors

bull bull

Including number of Inlerne users hosts and secure servers

An Open Systems Model

OPERATING ENVIRONMENT

Greatest Risks affecting FDI Decisions As Reported by Global Companies

Government regulation

Country financial risk

Currency risk

political and social disturbances

Absence of rule of low

72

67

63

62

34

Disruption of key supplier customer or portner 33

Corporate governance issues 25

Security threats to employees or assets

Terrorist attacks

Product quolity or safety problems

Thelt of intellectual property

22

21

19

17

IT disruption

Employee fraud or sabotage

Notural disasters

Activist attacks on global or corporatge brands

17

_8

_8

5

0 10 20 30 40 50 60 70 80

Source wwwatkearneycom September 12 2008 Copyright A T Kearney Inc 2007 All

rights reserved Reprinted with permission

An Open Systems Model

OPERATING ENVIRONMENT

Greatest Risks affecting FDI Decisions As Reported by Global Companies

Government regulation

Country financial risk

Currency risk

political and social disturbances

Absence of rule of low

72

67

63

62

34

Disruption of key supplier customer or portner 33

Corporate governance issues 25

Security threats to employees or assets

Terrorist attacks

Product quolity or safety problems

Thelt of intellectual property

22

21

19

17

IT disruption

Employee fraud or sabotage

Notural disasters

Activist attacks on global or corporatge brands

17

_8

_8

5

0 10 20 30 40 50 60 70 80

Source wwwatkearneycom September 12 2008 Copyright A T Kearney Inc 2007 All

rights reserved Reprinted with permission

Greatest Risks affecting FDI Decisions As Reported by Global Companies

Government regulation

Country financial risk

Currency risk

political and social disturbances

Absence of rule of low

72

67

63

62

34

Disruption of key supplier customer or portner 33

Corporate governance issues 25

Security threats to employees or assets

Terrorist attacks

Product quolity or safety problems

Thelt of intellectual property

22

21

19

17

IT disruption

Employee fraud or sabotage

Notural disasters

Activist attacks on global or corporatge brands

17

_8

_8

5

0 10 20 30 40 50 60 70 80

Source wwwatkearneycom September 12 2008 Copyright A T Kearney Inc 2007 All

rights reserved Reprinted with permission

MNE and Host Govrmments

Eoonomic sncl dlVclopmentul policies

bull MNfl~ should onsuh wi1 h guvemmenlu authorities and rmrionlll rmployer and wnrke~ lganlLatioSls to ensure thal their inyenexullenls conform lO the economic and social de-velopll1ent pohcles of die host country (ICC~ OECD ItO UNleTC)

bull MNR~ should nOl1clvcrdy disturb the bdiln(e~of-paymcnlS or currenry exchange rntes oftheetlUl1lrieli in which they openlte They should try inconiultallnn With ihe gov(fOment to res(llve lmlancenf-puyments and t~chunge te ifikullles when possible (ICC OECD UNILfC)

MNE should Ltloperale with governmental Jlolidcs reg~rding local equity paticiption (rCC lJNICTC)

MNEgt should not dominate (he cnpihd mllrket~ of the countries in which Ihey openlle (lCe UNCTC)

bull MNEii should provide the informulinn ne(e_o~ary for cOlTcctly assc~ing luxeS to be pltlid to host guvernment ulhorilles (ICC OECO)

MNEs should not engage in Wmsfer pricing policie~ that modify the taK ba~c on which their entities are assessed (OEC) UNILTC)

MNE-s should give ptdc(cncc 10 local S(ltlrces for compunenlS and raw materials if prices and quality are wmpelltlvc (ICC ILO)

MNEs should reinvest some profits in tIle (otlntries in which they bullbullale (ICC)

Laws And regulations

bull MNEs file subject to tbe laws regulatiuns andjurjooicliou of the countries in which they operalt (JCC OEeD UNeTC)

bull MNr shmltd respect rhe right of every country 10 elcnise cOfltrol over it natural resources and to reguJah Ihe activities ot entitles operating within its territory (JCC~ OEeO UNlere) MNEs should usc f1ppmprillte jnlernationaJ dispUlc HUIIIHent IHeChanislns) including lt1rbitnnion to resolve conllicts with the govemmenls of the COUnirics in which they operotc (ICC OECD)

MNEs should resolve dlspmes arising fmm expropriation by h01U govcl mnCllls tln~I the domestic lnw of the host country (UNICTC)

Political involvement

MNEi should rdriin from improper or Illegal involvement in 11Ieui pnlitical a(livitics (OEeD UNILIC)

bull MNEs lihould not pay bfiDeS or renuer improper benefits to lny puntc erbullbull1 (ORC) UNICTC)

MN13s should nUl interfere in iuttrgovernmcntal clatilllls (uNIC1C)

bull MNEs should muintaln the highest standards of safety n~~l-shyhealth and should provide adequute information about work-related healUl hllJtrd bull (ill)

Humanri~bts

bull MNEs should respect humun righfll and fundamentnl freedoms in the CAlOmrie1i in which they (UNeTC)

MNIi~ and Ule Public

Te(hnology Iransler

bull MNBs should cooperute with governmental auUmrilies ill iJsselti$ing the im~ct of transful of Itthnotogy to developing counlrieo lInd should enhance tlu ttchrnllogical cap4tCitt~s of developlng countries (OECI)~ UNeTC) MNEs should develop and adnpt teclmnlogies ttl the needs and chUfoctcri)ttcs of the countries m which they opcratc (ICC OneD ILO)

bull MNEs shoutd condllct reseilrch and devchlpllltnl activities in developing C()unlries using local resource and personnel to the greatc~t txJent possible (ICC UNICTC)

Envirunmtntal prutteliou

bull MNEs should rCiped lhe hiwll fUld regulations COuccHling ellvironmc-Jttnl protection of the countries in which they opcale (OICD UNICTC)

MN6 should cooperate with host governments and wilh intcrnatioufll organizations in the development of nntiunal ilnd intcrnatlonal envilOllmcntal protcction standolds (ICC UNICTC) MNEs lihould ~uppl) to appropriate hmt governmental authuritjes mformation lomtrnins Ihe cnvlfOnmental

impact of the produtts and PWCCSlCS of Ihcir tntJties (ICC lJNICTC)

MNF and I on

Consumer protection

bull MNEs should resptpoundt the luw and regulati~)ns of tht coulltries in which they npemle with ~gard to CUlISlJIlt1

protection (OECD UNILfC) bull MNEs should pre1lcrve the_safety and henlth of

consumers by disc10liure of appropriate informMion plup1Cr laooling and accurate ndvcftising (UNeTC)

Employment pructk plS)

MNEs sh(gtuld cvupcrutc wilh host ampovcrnments efforl~ 111 crt-lle empnyntCnloppotlunitics in ptlrticular localilies (lCCI

bull MNE shoultl try to imrease employment opportunities and stundurds ill lhe cuuntries in Which they Iemt bull (rLO)

bull MNEs should give HI vance notke or planl c(UiUrCtl nnd tnitigate the resultanudverst erfects (lCC OECOILO)

bull MNE- should provide sraodunlx or empluyment equal 10 or better thlln ihnse 01 comparable employerl ill the COtHltres in which they operale (ICC OEC) ILO)

bull MNE~I) should pay at minimum busk hying wages (lLO)

MNEs should nnt dicrimin8lc on the bnsis of race colot gtCx religion language ~ociltl utltionalend etimic origin or politicoI or other opinion (UNleTC)

bull MNEs shoukl feRpeCllhe sociaJ and cullUIal objectivt~ vnlues and uJdirions of the coulltrie in which Ihey operne (UNICTC)

International agenc) sounes

OE(O The Orgafllzation for Economic Cooperation and Development Guldetine5 for MultinationOli EnterlJfises

ILO The lntfrnatlonal Labor Office Tripartrte Dedalations of prindpl_li(onlttrning M~)jtinationl Enterpr~s- and SO(lol policy

ICC The International (h3mber of (omrnerte Guid4linegt for InternltJtionallnvestment

UNleTC The United Natjon~ Univer11 n~rI~ratlon of Human Ri9hts

The UN Code of Conduct nn TransnatiOIlQJ Corp~

Potential Benefits and Costs to Host Countries of MNC Operations There42

IB wti en s

-Broader acc~SsmiddottoolitSide ~apital ECoiJofuicgrowtllmiddot 1~FQreign~exch~g~~arti~pg~ bull - Imp()JtsubstitqUpeffeels 8l1~W govermnentsti)save fureignexchange

forp1Orityptoject~

(c)ampts

r bull Risk~apl1g J iJ

0 Incre~coIIipetiijQ~foIj~~sc~cap1tai ~JnC~~~fedit1~rle~u~neS~$~Uplllr~fJ~al

Capltalq~Ctel$eSci lt middotCapitaJs~jc~effectsQfbahlllCe ()fP1Yijl~PtSi c

lt gt ~ _ 1 n _ - _ degPirectcreatlonofneyv jops ~ LimitedsldlldevelopJi)entandpJeationlmiddot (oIntt()ductionofmorehurnaneempl()Ymen~middot Cornp~tiiioQ formiddotsomce ~liUsJ

]-~~~~jtf~Si6jampg~pduSif~an~~~~e~~~1ait~ie~g~~~I~~~~~~al~~js~J~~i(( devel$~ment bull lt Erilpioymetii in~tabUrtYipecaUS~Ofa~l1iij1 i Incornemliltiplieteftects lt to rnbv~ prQiuc46n91i~titi6nsfr(lelY conUrui1itybusinesstooth~tcountrles

Source Adapted from R H Mason and R S Spich Management An International Perspective (202)

(Homewood Il Irwin 1987)

Selected Cultural Dimensions Rankings from the GLOBE Research Project

1

Source Adapted from Mansour Javidan and Robert J House Cultural Acumen for the Global Manager Lessons from Project GLOBE Organizational Dynamics (Spring 2001) 289-305 with permission from Elsevier

Geographic Culture Clusters

Anglo Australia Canodo Englond Ireland New Zealand

Soulh Alnco United Siaies

shy

~loinampb America Argentino Bolivio Brazil Columbia Cosio Rico Ecuodor EI Salvador Gvolemola Mexico Venezuela

~o Letin Europe

Fronce Israel Italy Parlugol Spain Switzerland (French speaking)

bull Eastern Europe

Albania Georgia Greece Hungary Kookhlan Poland Russia Slovenia

bull Germanic Europe

Austria Germany Nelherlands Switzerland (German

i speaking)

-~ordic urope

Denmark Finlood ~Sweden

I

~ Sub-Sahara Africa Arab

Nigeria Eqypl Kuwait

Molawl Zombia

Morocco South Arico Oolar Nomibia Turkey Zimbabwe (Block pats)L--__

Source Data from V Gupta P J Hanes and P Dorfman Journal of World Business 37 no 1 (2002) 13

bull Southern Asia

Indio Indonesia Iron

Philippe Malaysia Thailand

III Confucian Asia

Chino Hong Kong Japan Singopore Taiwan Sauh Korea

Comparison of Negotiation Styles-Japanese North American and latin American 22

Japanese North American Latin American - -

Emotiltgtnalsensitivity highly Emotional sensitivity not Emotional sensiti~ity I valued highly valued Valued

j

iEliding of emotions Dealing straightforwardly EmotionaJ+y passionate 11

or Impersonally

~ubtle power plays Litigation not so much Great poweqjlays ~onciliatLon as conciliation use ofweakness

alty to employer Lack of commitment to Loyalty to eniployer loyer takescare employer breaking of ties (who is often family) mployees by either if necessary

Pace-saving cmcialdecisions Decisions made on acostshy Face~sav~ng crucial in fien on basis of savjng someshy benefit basis face-saving decision making to ~~

lne from embarras9ment does not always matter preserve honor dignity

iDeclsJOl1 makers openly Decision makers influenced Execution-ofspeciltl iilfluencedby special by special interests but interestsofdecision interests often not considered ethical expected ltondoneci

~N6t argulTlentative quiet Argumentativemiddot when right Argumentative when right vhenRight or wrong but impersonal or wrong passionate

IWhat is dowoin writing Greatimportance given to Impatient with ~must be accurate valid documentation as evidential documentation as

proof obstacle to understanding general principles

iJStep-by~stepapproach to Methodically organized Impulsive spontaneous idecision making decisionmaking decision making

Good of group is the Profit motive or good of What is good for group ultimate aim individualis the ultimate aim is good fortllfeindividual

iltcUltiVate it good emotional Decision making impersonal Personalism necessary for isocial setting for decision avoid involvements conflict good de6islon making imaking get to know of interest ~ decislon makers

Selected Cultural Dimensions Rankings from the GLOBE Research Project

1

Source Adapted from Mansour Javidan and Robert J House Cultural Acumen for the Global Manager Lessons from Project GLOBE Organizational Dynamics (Spring 2001) 289-305 with permission from Elsevier

Geographic Culture Clusters

Anglo Australia Canodo Englond Ireland New Zealand

Soulh Alnco United Siaies

shy

~loinampb America Argentino Bolivio Brazil Columbia Cosio Rico Ecuodor EI Salvador Gvolemola Mexico Venezuela

~o Letin Europe

Fronce Israel Italy Parlugol Spain Switzerland (French speaking)

bull Eastern Europe

Albania Georgia Greece Hungary Kookhlan Poland Russia Slovenia

bull Germanic Europe

Austria Germany Nelherlands Switzerland (German

i speaking)

-~ordic urope

Denmark Finlood ~Sweden

I

~ Sub-Sahara Africa Arab

Nigeria Eqypl Kuwait

Molawl Zombia

Morocco South Arico Oolar Nomibia Turkey Zimbabwe (Block pats)L--__

Source Data from V Gupta P J Hanes and P Dorfman Journal of World Business 37 no 1 (2002) 13

bull Southern Asia

Indio Indonesia Iron

Philippe Malaysia Thailand

III Confucian Asia

Chino Hong Kong Japan Singopore Taiwan Sauh Korea

Comparison of Negotiation Styles-Japanese North American and latin American 22

Japanese North American Latin American - -

Emotiltgtnalsensitivity highly Emotional sensitivity not Emotional sensiti~ity I valued highly valued Valued

j

iEliding of emotions Dealing straightforwardly EmotionaJ+y passionate 11

or Impersonally

~ubtle power plays Litigation not so much Great poweqjlays ~onciliatLon as conciliation use ofweakness

alty to employer Lack of commitment to Loyalty to eniployer loyer takescare employer breaking of ties (who is often family) mployees by either if necessary

Pace-saving cmcialdecisions Decisions made on acostshy Face~sav~ng crucial in fien on basis of savjng someshy benefit basis face-saving decision making to ~~

lne from embarras9ment does not always matter preserve honor dignity

iDeclsJOl1 makers openly Decision makers influenced Execution-ofspeciltl iilfluencedby special by special interests but interestsofdecision interests often not considered ethical expected ltondoneci

~N6t argulTlentative quiet Argumentativemiddot when right Argumentative when right vhenRight or wrong but impersonal or wrong passionate

IWhat is dowoin writing Greatimportance given to Impatient with ~must be accurate valid documentation as evidential documentation as

proof obstacle to understanding general principles

iJStep-by~stepapproach to Methodically organized Impulsive spontaneous idecision making decisionmaking decision making

Good of group is the Profit motive or good of What is good for group ultimate aim individualis the ultimate aim is good fortllfeindividual

iltcUltiVate it good emotional Decision making impersonal Personalism necessary for isocial setting for decision avoid involvements conflict good de6islon making imaking get to know of interest ~ decislon makers

Geographic Culture Clusters

Anglo Australia Canodo Englond Ireland New Zealand

Soulh Alnco United Siaies

shy

~loinampb America Argentino Bolivio Brazil Columbia Cosio Rico Ecuodor EI Salvador Gvolemola Mexico Venezuela

~o Letin Europe

Fronce Israel Italy Parlugol Spain Switzerland (French speaking)

bull Eastern Europe

Albania Georgia Greece Hungary Kookhlan Poland Russia Slovenia

bull Germanic Europe

Austria Germany Nelherlands Switzerland (German

i speaking)

-~ordic urope

Denmark Finlood ~Sweden

I

~ Sub-Sahara Africa Arab

Nigeria Eqypl Kuwait

Molawl Zombia

Morocco South Arico Oolar Nomibia Turkey Zimbabwe (Block pats)L--__

Source Data from V Gupta P J Hanes and P Dorfman Journal of World Business 37 no 1 (2002) 13

bull Southern Asia

Indio Indonesia Iron

Philippe Malaysia Thailand

III Confucian Asia

Chino Hong Kong Japan Singopore Taiwan Sauh Korea

Comparison of Negotiation Styles-Japanese North American and latin American 22

Japanese North American Latin American - -

Emotiltgtnalsensitivity highly Emotional sensitivity not Emotional sensiti~ity I valued highly valued Valued

j

iEliding of emotions Dealing straightforwardly EmotionaJ+y passionate 11

or Impersonally

~ubtle power plays Litigation not so much Great poweqjlays ~onciliatLon as conciliation use ofweakness

alty to employer Lack of commitment to Loyalty to eniployer loyer takescare employer breaking of ties (who is often family) mployees by either if necessary

Pace-saving cmcialdecisions Decisions made on acostshy Face~sav~ng crucial in fien on basis of savjng someshy benefit basis face-saving decision making to ~~

lne from embarras9ment does not always matter preserve honor dignity

iDeclsJOl1 makers openly Decision makers influenced Execution-ofspeciltl iilfluencedby special by special interests but interestsofdecision interests often not considered ethical expected ltondoneci

~N6t argulTlentative quiet Argumentativemiddot when right Argumentative when right vhenRight or wrong but impersonal or wrong passionate

IWhat is dowoin writing Greatimportance given to Impatient with ~must be accurate valid documentation as evidential documentation as

proof obstacle to understanding general principles

iJStep-by~stepapproach to Methodically organized Impulsive spontaneous idecision making decisionmaking decision making

Good of group is the Profit motive or good of What is good for group ultimate aim individualis the ultimate aim is good fortllfeindividual

iltcUltiVate it good emotional Decision making impersonal Personalism necessary for isocial setting for decision avoid involvements conflict good de6islon making imaking get to know of interest ~ decislon makers

Comparison of Negotiation Styles-Japanese North American and latin American 22

Japanese North American Latin American - -

Emotiltgtnalsensitivity highly Emotional sensitivity not Emotional sensiti~ity I valued highly valued Valued

j

iEliding of emotions Dealing straightforwardly EmotionaJ+y passionate 11

or Impersonally

~ubtle power plays Litigation not so much Great poweqjlays ~onciliatLon as conciliation use ofweakness

alty to employer Lack of commitment to Loyalty to eniployer loyer takescare employer breaking of ties (who is often family) mployees by either if necessary

Pace-saving cmcialdecisions Decisions made on acostshy Face~sav~ng crucial in fien on basis of savjng someshy benefit basis face-saving decision making to ~~

lne from embarras9ment does not always matter preserve honor dignity

iDeclsJOl1 makers openly Decision makers influenced Execution-ofspeciltl iilfluencedby special by special interests but interestsofdecision interests often not considered ethical expected ltondoneci

~N6t argulTlentative quiet Argumentativemiddot when right Argumentative when right vhenRight or wrong but impersonal or wrong passionate

IWhat is dowoin writing Greatimportance given to Impatient with ~must be accurate valid documentation as evidential documentation as

proof obstacle to understanding general principles

iJStep-by~stepapproach to Methodically organized Impulsive spontaneous idecision making decisionmaking decision making

Good of group is the Profit motive or good of What is good for group ultimate aim individualis the ultimate aim is good fortllfeindividual

iltcUltiVate it good emotional Decision making impersonal Personalism necessary for isocial setting for decision avoid involvements conflict good de6islon making imaking get to know of interest ~ decislon makers

Factors Affecting Choice of International Entry Mode123

li~ctorcent~tcentg()rY p-

lD16roatJotuil experience Core competencies Corecapabilities

NaUbl1aloulture ofhome countly bull (otp()(ate cuItue

Finn strategy goalsand rnotivatiOli Ind~strYglobalizatio~

IndusttYgrowthrate gtTe~hnkaf intensity of industry

J3~~tltbfScale and]ocation e~onomies C(j~ntfyrisk

Cll1turtldistance Knowledgebfocalmarket Potentialof local market

Cbntpetition in lOCal market

Vaiueoffirmassets risked inforeign JocatioJ1 bull Extentto wliichknowho-iil1yolved in venture is informal (tacit) Costs ofmiddot maJdngoi eofotcing can ~racts wi th local partners

Stzeofp1annedforeign venture Itltentto conduct research and development withlocal partners

Alternative Modes of Entry

Alternative Modes of Entry

~ o ~ o

~] D

~== o I -tile4j I 0Ou

U 41 Qc- iiIshy41 I 41 ~ E 0shy_0 ot 41 41 410 til 41 o

Champion Internationals paper

exports through independent brokers

100 Exports

8ridgestones acquisition 01

US-based Firestone

Ford-Mazda Genentech-Hoffman

LaRoche

100 local

Exports versus Local Production

Source Anil K Gupta and Vijay Govindarajan Managing Global Expansion A Conceptual Framework Business Horizons MarchApril 2000 45-54

Strategies for Dancing with Gorillas

l)-aditionalM()del~ MN~sEartii~rhig i

witbEacb Other Giv()ij~~)ltrUncenttrY Qfmiddot

acbessandatteDtiClujilie middotdlte~tapprOa~hislilltely

middot to fail sQuseiruitre()t rJ1e~~olac~~rs -

middotUs~lbi81~aili~smiddotgud )1 - - t - -- -_)

~~ ill$titl1~OijS prpttttn ii~PtQgxazP~~middotni~~YQPP~Uc~~qymiddot shy middotmiddotmiddotmiddotCQnvertiTlglow~keYirimiddott~tactioP$i middotmiddotintoc()nc~~te leliitiQn~hlpslt bullbull Ulleth~MNCsrepQtaonali gtstiengt~togs~pportthrollgh wn~enQmmiontantt

middotmiddotmiddotmiddotmiddotii lking~gt~ beltIi$()G~ru sanccloDS -- -

OiY~asytlill1~ttYo( i~Capiti4izeotlpoint8Qf middotres()urq~$ an4lQQ~ternt 7~techljo~ogy lgty lln~actively QbjectiVesthe~6~middot H demonstratingslQusaJid ()cesse~dQritapI)lY8Q i i bull creating opportUnities planjott~eshorrte11l1 BnsurerriodulruOrdiscrete wit1taneyepn 1helcmg( ltknowled~e trahsfetto~nsur~

tangiqle outcomes (ega P()chict prototype) lithe partnershipisprematurelymiddotmiddot terriUmt~d

Givenasy~centbyimd Poa6tivelybuilti netWorlcs middotmiddotthereforedispensl~iUtybf within theMNCandadd value

imall enterprisestherejs bull i (egextendingfrOm bull greatl unpe1tainy visaVl~ ~hl1010gJcalto commercial MNcs ownpl~sfIIld bullbull activ~ties~d f~()m local to

prio1itiess()be1tag~eby rjnternationalbuampin~sS) bull designwithaneyeort theY~Ad6ptanambiguolisapproach

biggerprize iiby designpgrs1e ()bliq~tgoals middotmiddotmiddotmiddotgtw~thout $hoWillg~tcards ii in~tiallyandkeep open

foras t10SSlbLe

Source Shameen Prashantham and Julian Birkinshaw Dancing with Gorillas How Small Companies can Partner Effectively with MNCs California Management Review Fall 2008

Copyright copy2008 by The Regents of the University of California Reprinted from the California Management Review 51 no 1 By permission of The Regents_

Value Creation and Value Capture in Allian(e Portfolios

ValueCleatltiJlt lt VaJllepapture PortfoJioManagement

~~t~a~~i~~f0iSttategies middotmiddotPr~dices 1 bull etne~fitrlfYQoopetiti~n bull Interdependellcies gt

i~Jgtarhier~thatoffermiddotWatcj)6litf()r9Pp(jrt1mistic middotmiddotmiddotConsjderho~eachmiddot~

~I(~~~~)i ~t~~~~Y ~~~ ~~bl(~j ~EfiriC1Ulu~ntS~lltegy pattnersliip bull Separation i~~verageIlyen~wotkmiddot naigai~ibg Strat~gy Set organizationaland

))~tes~Urctsto~e1tt~miYour Seekpart1ier~thathavemiddotmiddot tectino)ogkalbllffer~ middotmiddoti mtt~tQPpOltrii~~smiddotgtM~suuceiny6utj6iht betweeomiddot competlflg

~amp1~~~~~St~s ~iij~~J~~ middotmiddototeate~yneIgiesmiddotmiddot ~iAv9ldpartnersthatcOmpetemiddoti marketOPportunIties

~$amp~i middotmiddotmiddotmiddotmiddotE~poundi=cfmiddotmiddott~~pound1E~~ ~ldlbftid~apbi1ies Allywithrnultiplepartner$ eachpartnir

irlpatticularltld~stries to neutrtUzeeach partners

i baigainiogpower

~ ~ lt

Source reprinted from Dovev Lavie Capturing Value from Alliance Portfolios Organizational Dynamia 38 no 1 (2009) 26-36 copyright Elsevier used with permission of Elsevier wwwelseviercom

Alternative Modes of Entry

Alternative Modes of Entry

~ o ~ o

~] D

~== o I -tile4j I 0Ou

U 41 Qc- iiIshy41 I 41 ~ E 0shy_0 ot 41 41 410 til 41 o

Champion Internationals paper

exports through independent brokers

100 Exports

8ridgestones acquisition 01

US-based Firestone

Ford-Mazda Genentech-Hoffman

LaRoche

100 local

Exports versus Local Production

Source Anil K Gupta and Vijay Govindarajan Managing Global Expansion A Conceptual Framework Business Horizons MarchApril 2000 45-54

Strategies for Dancing with Gorillas

l)-aditionalM()del~ MN~sEartii~rhig i

witbEacb Other Giv()ij~~)ltrUncenttrY Qfmiddot

acbessandatteDtiClujilie middotdlte~tapprOa~hislilltely

middot to fail sQuseiruitre()t rJ1e~~olac~~rs -

middotUs~lbi81~aili~smiddotgud )1 - - t - -- -_)

~~ ill$titl1~OijS prpttttn ii~PtQgxazP~~middotni~~YQPP~Uc~~qymiddot shy middotmiddotmiddotmiddotCQnvertiTlglow~keYirimiddott~tactioP$i middotmiddotintoc()nc~~te leliitiQn~hlpslt bullbull Ulleth~MNCsrepQtaonali gtstiengt~togs~pportthrollgh wn~enQmmiontantt

middotmiddotmiddotmiddotmiddotii lking~gt~ beltIi$()G~ru sanccloDS -- -

OiY~asytlill1~ttYo( i~Capiti4izeotlpoint8Qf middotres()urq~$ an4lQQ~ternt 7~techljo~ogy lgty lln~actively QbjectiVesthe~6~middot H demonstratingslQusaJid ()cesse~dQritapI)lY8Q i i bull creating opportUnities planjott~eshorrte11l1 BnsurerriodulruOrdiscrete wit1taneyepn 1helcmg( ltknowled~e trahsfetto~nsur~

tangiqle outcomes (ega P()chict prototype) lithe partnershipisprematurelymiddotmiddot terriUmt~d

Givenasy~centbyimd Poa6tivelybuilti netWorlcs middotmiddotthereforedispensl~iUtybf within theMNCandadd value

imall enterprisestherejs bull i (egextendingfrOm bull greatl unpe1tainy visaVl~ ~hl1010gJcalto commercial MNcs ownpl~sfIIld bullbull activ~ties~d f~()m local to

prio1itiess()be1tag~eby rjnternationalbuampin~sS) bull designwithaneyeort theY~Ad6ptanambiguolisapproach

biggerprize iiby designpgrs1e ()bliq~tgoals middotmiddotmiddotmiddotgtw~thout $hoWillg~tcards ii in~tiallyandkeep open

foras t10SSlbLe

Source Shameen Prashantham and Julian Birkinshaw Dancing with Gorillas How Small Companies can Partner Effectively with MNCs California Management Review Fall 2008

Copyright copy2008 by The Regents of the University of California Reprinted from the California Management Review 51 no 1 By permission of The Regents_

Value Creation and Value Capture in Allian(e Portfolios

ValueCleatltiJlt lt VaJllepapture PortfoJioManagement

~~t~a~~i~~f0iSttategies middotmiddotPr~dices 1 bull etne~fitrlfYQoopetiti~n bull Interdependellcies gt

i~Jgtarhier~thatoffermiddotWatcj)6litf()r9Pp(jrt1mistic middotmiddotmiddotConsjderho~eachmiddot~

~I(~~~~)i ~t~~~~Y ~~~ ~~bl(~j ~EfiriC1Ulu~ntS~lltegy pattnersliip bull Separation i~~verageIlyen~wotkmiddot naigai~ibg Strat~gy Set organizationaland

))~tes~Urctsto~e1tt~miYour Seekpart1ier~thathavemiddotmiddot tectino)ogkalbllffer~ middotmiddoti mtt~tQPpOltrii~~smiddotgtM~suuceiny6utj6iht betweeomiddot competlflg

~amp1~~~~~St~s ~iij~~J~~ middotmiddototeate~yneIgiesmiddotmiddot ~iAv9ldpartnersthatcOmpetemiddoti marketOPportunIties

~$amp~i middotmiddotmiddotmiddotmiddotE~poundi=cfmiddotmiddott~~pound1E~~ ~ldlbftid~apbi1ies Allywithrnultiplepartner$ eachpartnir

irlpatticularltld~stries to neutrtUzeeach partners

i baigainiogpower

~ ~ lt

Source reprinted from Dovev Lavie Capturing Value from Alliance Portfolios Organizational Dynamia 38 no 1 (2009) 26-36 copyright Elsevier used with permission of Elsevier wwwelseviercom

Strategies for Dancing with Gorillas

l)-aditionalM()del~ MN~sEartii~rhig i

witbEacb Other Giv()ij~~)ltrUncenttrY Qfmiddot

acbessandatteDtiClujilie middotdlte~tapprOa~hislilltely

middot to fail sQuseiruitre()t rJ1e~~olac~~rs -

middotUs~lbi81~aili~smiddotgud )1 - - t - -- -_)

~~ ill$titl1~OijS prpttttn ii~PtQgxazP~~middotni~~YQPP~Uc~~qymiddot shy middotmiddotmiddotmiddotCQnvertiTlglow~keYirimiddott~tactioP$i middotmiddotintoc()nc~~te leliitiQn~hlpslt bullbull Ulleth~MNCsrepQtaonali gtstiengt~togs~pportthrollgh wn~enQmmiontantt

middotmiddotmiddotmiddotmiddotii lking~gt~ beltIi$()G~ru sanccloDS -- -

OiY~asytlill1~ttYo( i~Capiti4izeotlpoint8Qf middotres()urq~$ an4lQQ~ternt 7~techljo~ogy lgty lln~actively QbjectiVesthe~6~middot H demonstratingslQusaJid ()cesse~dQritapI)lY8Q i i bull creating opportUnities planjott~eshorrte11l1 BnsurerriodulruOrdiscrete wit1taneyepn 1helcmg( ltknowled~e trahsfetto~nsur~

tangiqle outcomes (ega P()chict prototype) lithe partnershipisprematurelymiddotmiddot terriUmt~d

Givenasy~centbyimd Poa6tivelybuilti netWorlcs middotmiddotthereforedispensl~iUtybf within theMNCandadd value

imall enterprisestherejs bull i (egextendingfrOm bull greatl unpe1tainy visaVl~ ~hl1010gJcalto commercial MNcs ownpl~sfIIld bullbull activ~ties~d f~()m local to

prio1itiess()be1tag~eby rjnternationalbuampin~sS) bull designwithaneyeort theY~Ad6ptanambiguolisapproach

biggerprize iiby designpgrs1e ()bliq~tgoals middotmiddotmiddotmiddotgtw~thout $hoWillg~tcards ii in~tiallyandkeep open

foras t10SSlbLe

Source Shameen Prashantham and Julian Birkinshaw Dancing with Gorillas How Small Companies can Partner Effectively with MNCs California Management Review Fall 2008

Copyright copy2008 by The Regents of the University of California Reprinted from the California Management Review 51 no 1 By permission of The Regents_

Value Creation and Value Capture in Allian(e Portfolios

ValueCleatltiJlt lt VaJllepapture PortfoJioManagement

~~t~a~~i~~f0iSttategies middotmiddotPr~dices 1 bull etne~fitrlfYQoopetiti~n bull Interdependellcies gt

i~Jgtarhier~thatoffermiddotWatcj)6litf()r9Pp(jrt1mistic middotmiddotmiddotConsjderho~eachmiddot~

~I(~~~~)i ~t~~~~Y ~~~ ~~bl(~j ~EfiriC1Ulu~ntS~lltegy pattnersliip bull Separation i~~verageIlyen~wotkmiddot naigai~ibg Strat~gy Set organizationaland

))~tes~Urctsto~e1tt~miYour Seekpart1ier~thathavemiddotmiddot tectino)ogkalbllffer~ middotmiddoti mtt~tQPpOltrii~~smiddotgtM~suuceiny6utj6iht betweeomiddot competlflg

~amp1~~~~~St~s ~iij~~J~~ middotmiddototeate~yneIgiesmiddotmiddot ~iAv9ldpartnersthatcOmpetemiddoti marketOPportunIties

~$amp~i middotmiddotmiddotmiddotmiddotE~poundi=cfmiddotmiddott~~pound1E~~ ~ldlbftid~apbi1ies Allywithrnultiplepartner$ eachpartnir

irlpatticularltld~stries to neutrtUzeeach partners

i baigainiogpower

~ ~ lt

Source reprinted from Dovev Lavie Capturing Value from Alliance Portfolios Organizational Dynamia 38 no 1 (2009) 26-36 copyright Elsevier used with permission of Elsevier wwwelseviercom

Value Creation and Value Capture in Allian(e Portfolios

ValueCleatltiJlt lt VaJllepapture PortfoJioManagement

~~t~a~~i~~f0iSttategies middotmiddotPr~dices 1 bull etne~fitrlfYQoopetiti~n bull Interdependellcies gt

i~Jgtarhier~thatoffermiddotWatcj)6litf()r9Pp(jrt1mistic middotmiddotmiddotConsjderho~eachmiddot~

~I(~~~~)i ~t~~~~Y ~~~ ~~bl(~j ~EfiriC1Ulu~ntS~lltegy pattnersliip bull Separation i~~verageIlyen~wotkmiddot naigai~ibg Strat~gy Set organizationaland

))~tes~Urctsto~e1tt~miYour Seekpart1ier~thathavemiddotmiddot tectino)ogkalbllffer~ middotmiddoti mtt~tQPpOltrii~~smiddotgtM~suuceiny6utj6iht betweeomiddot competlflg

~amp1~~~~~St~s ~iij~~J~~ middotmiddototeate~yneIgiesmiddotmiddot ~iAv9ldpartnersthatcOmpetemiddoti marketOPportunIties

~$amp~i middotmiddotmiddotmiddotmiddotE~poundi=cfmiddotmiddott~~pound1E~~ ~ldlbftid~apbi1ies Allywithrnultiplepartner$ eachpartnir

irlpatticularltld~stries to neutrtUzeeach partners

i baigainiogpower

~ ~ lt

Source reprinted from Dovev Lavie Capturing Value from Alliance Portfolios Organizational Dynamia 38 no 1 (2009) 26-36 copyright Elsevier used with permission of Elsevier wwwelseviercom

Global Strategy-Structure Relationships39

Multidomestic International Globalization Transnational Strategy Strategy Strategy Strategy

Low IE----------J Need for Coordination IE--------------J High Low Bureaucratic Costs High

~ntralization of Decentralized to Core competencies Centralized at optimal Simultaneously ~thority national unit centralized others global location Centralized and

decentralization to Decentralized national units

Global area International division Global product group Global matrix structure structure structure Structure

Matrix in the Mind Low Medium High Very High

Not important Quite important Important Very important

i

Lows of Decision Making in an International Organization41

Subsidiarylocal unit -------------------------------shy Authority

HQ management HQ management HQ management HQ and local Local managers Local managers local managers makes deci~ion makes decision make~ decision manawers present problem make deci~ion make decision

and inform~ and sells to and recommends consu t on and solution to and sell to ond inform local managers subsidiary 10 local managers decisions HQ for decision HQ HQ

managers

EXHIBIT 9-4 Expatriate Performance Management from MNEs of Five National Origins

Source Adapted from His-An Shih Yun-Hwa Chiang In-Sook Kim Expatriate Performance Management from MNEs of Different National Origins International Journal of Manpower 26 no 2 (2005) 161-62 Reprinted with permission of Emerald Group Publishing Ltd

The Dual Role of Strategic Alliances

C90p~f~~~y~~gt~fi bull CQmpetitive ~ Ecmiddot onQpu~i-~stm~~$C iinMltftap---gfip1eas-middotsetbullmiddotmiddot-- bull middotmiddot~O-pmiddotp~orctll-nT-tyt-o-J~eru-middot-n~n-ew-middot--in-t-a-ng--i~b-le-s-ki-middotl-ls-+M-~ s

(egrplihf~~litpri)etltfr frompartjlel oftelltacit Or orgahizatior middotYX~~ltIImiddot il fbull embedded

ttp~~atxi4iQWn~tr~ailrdivisiQn1qUabOr A~Qelerafemiddotdjffusionof industry standards Atn~igtJatthyenfS- ) gti middotandi1eW technologies to erectbarriers to

lt-_lt ~gtgtltgt(ltlt~ ( ltgt t~ritry - middotmiddotI bull Fil1~utlfW~ettipe(~ithc()tn~ottentsoreridD~nYteqhnoiogi0aJand learninginitiativetb

middotptodu~tsmiddot middot(j~bull~1~upplier~ middot paItJlerYiaoutsourcingmiddot andlong-teim middotmiddoti~

gtjii~tlt )~ middotmiddotsupplyattangemeots Linu~in~ttn~~S~i~l1ttl~~I~rl1gMW bullbullbullbull Bno~cle~istingcompetitors andpreernpt matjC~~()tlIqe1ftij1ttWhJl~lctgiCaIfi~tdsYia thedseof tleWCbmpetitors -lith aUiance

middotmiddotShlit~~~silii~~~fy~middotmiddotmiddotmiddotmiddotJ p3lin~rSiJiproxywars to contro market

1ltgtgt j~ acce~sectdistdbutiOf and acoeSs to new ltehnoj6gie~middot

s~e~t~~f~~~~~~middotrt~1~arn~1dev~16p Fornvclu~tetsoflean1ing among suppliersbull lleW~~~~~~~s~p~~q~~9~~$tj91 andi~lat~dfirtns to avpi4ot rtduceJoreiin~ sttat~gi~i1)dUs~ell)j middotmiddotdepefde)ce fo(criticaljllPtts and skills )

bullbullbull ~ssiStbull~~~ft~~~~~r~sttu~turi~gsllY middotmiddotmiddotbullmiddotAHianeessetve$eXperietltialmiddotplatfotmstd~ middot10WerlngeX1~barfjit8inmatutePtpecijning dem~tiutmiddotgtatld transfomiexisfing middotf1lahiJemiddotmiddot~ ifidp~tfi~~t(middot~~~ middotmiddotindtlstrJ~svianew componehts 1

~i tecbnojogiesor skillstoenh~ocemiddot the value~ ~ bullj~gt middotoffuturegtowthoptlons

~

Source David lei Offensive and Defensive Uses of Alliances in Heidi Vernon-Wortzel and L H Wortzel Strategic Management in Global Economy 3rd ed (New York John Wiley amp Sons 1997)

Lows of Decision Making in an International Organization41

Subsidiarylocal unit -------------------------------shy Authority

HQ management HQ management HQ management HQ and local Local managers Local managers local managers makes deci~ion makes decision make~ decision manawers present problem make deci~ion make decision

and inform~ and sells to and recommends consu t on and solution to and sell to ond inform local managers subsidiary 10 local managers decisions HQ for decision HQ HQ

managers

EXHIBIT 9-4 Expatriate Performance Management from MNEs of Five National Origins

Source Adapted from His-An Shih Yun-Hwa Chiang In-Sook Kim Expatriate Performance Management from MNEs of Different National Origins International Journal of Manpower 26 no 2 (2005) 161-62 Reprinted with permission of Emerald Group Publishing Ltd

The Dual Role of Strategic Alliances

C90p~f~~~y~~gt~fi bull CQmpetitive ~ Ecmiddot onQpu~i-~stm~~$C iinMltftap---gfip1eas-middotsetbullmiddotmiddot-- bull middotmiddot~O-pmiddotp~orctll-nT-tyt-o-J~eru-middot-n~n-ew-middot--in-t-a-ng--i~b-le-s-ki-middotl-ls-+M-~ s

(egrplihf~~litpri)etltfr frompartjlel oftelltacit Or orgahizatior middotYX~~ltIImiddot il fbull embedded

ttp~~atxi4iQWn~tr~ailrdivisiQn1qUabOr A~Qelerafemiddotdjffusionof industry standards Atn~igtJatthyenfS- ) gti middotandi1eW technologies to erectbarriers to

lt-_lt ~gtgtltgt(ltlt~ ( ltgt t~ritry - middotmiddotI bull Fil1~utlfW~ettipe(~ithc()tn~ottentsoreridD~nYteqhnoiogi0aJand learninginitiativetb

middotptodu~tsmiddot middot(j~bull~1~upplier~ middot paItJlerYiaoutsourcingmiddot andlong-teim middotmiddoti~

gtjii~tlt )~ middotmiddotsupplyattangemeots Linu~in~ttn~~S~i~l1ttl~~I~rl1gMW bullbullbullbull Bno~cle~istingcompetitors andpreernpt matjC~~()tlIqe1ftij1ttWhJl~lctgiCaIfi~tdsYia thedseof tleWCbmpetitors -lith aUiance

middotmiddotShlit~~~silii~~~fy~middotmiddotmiddotmiddotmiddotJ p3lin~rSiJiproxywars to contro market

1ltgtgt j~ acce~sectdistdbutiOf and acoeSs to new ltehnoj6gie~middot

s~e~t~~f~~~~~~middotrt~1~arn~1dev~16p Fornvclu~tetsoflean1ing among suppliersbull lleW~~~~~~~s~p~~q~~9~~$tj91 andi~lat~dfirtns to avpi4ot rtduceJoreiin~ sttat~gi~i1)dUs~ell)j middotmiddotdepefde)ce fo(criticaljllPtts and skills )

bullbullbull ~ssiStbull~~~ft~~~~~r~sttu~turi~gsllY middotmiddotmiddotbullmiddotAHianeessetve$eXperietltialmiddotplatfotmstd~ middot10WerlngeX1~barfjit8inmatutePtpecijning dem~tiutmiddotgtatld transfomiexisfing middotf1lahiJemiddotmiddot~ ifidp~tfi~~t(middot~~~ middotmiddotindtlstrJ~svianew componehts 1

~i tecbnojogiesor skillstoenh~ocemiddot the value~ ~ bullj~gt middotoffuturegtowthoptlons

~

Source David lei Offensive and Defensive Uses of Alliances in Heidi Vernon-Wortzel and L H Wortzel Strategic Management in Global Economy 3rd ed (New York John Wiley amp Sons 1997)

EXHIBIT 9-4 Expatriate Performance Management from MNEs of Five National Origins

Source Adapted from His-An Shih Yun-Hwa Chiang In-Sook Kim Expatriate Performance Management from MNEs of Different National Origins International Journal of Manpower 26 no 2 (2005) 161-62 Reprinted with permission of Emerald Group Publishing Ltd

The Dual Role of Strategic Alliances

C90p~f~~~y~~gt~fi bull CQmpetitive ~ Ecmiddot onQpu~i-~stm~~$C iinMltftap---gfip1eas-middotsetbullmiddotmiddot-- bull middotmiddot~O-pmiddotp~orctll-nT-tyt-o-J~eru-middot-n~n-ew-middot--in-t-a-ng--i~b-le-s-ki-middotl-ls-+M-~ s

(egrplihf~~litpri)etltfr frompartjlel oftelltacit Or orgahizatior middotYX~~ltIImiddot il fbull embedded

ttp~~atxi4iQWn~tr~ailrdivisiQn1qUabOr A~Qelerafemiddotdjffusionof industry standards Atn~igtJatthyenfS- ) gti middotandi1eW technologies to erectbarriers to

lt-_lt ~gtgtltgt(ltlt~ ( ltgt t~ritry - middotmiddotI bull Fil1~utlfW~ettipe(~ithc()tn~ottentsoreridD~nYteqhnoiogi0aJand learninginitiativetb

middotptodu~tsmiddot middot(j~bull~1~upplier~ middot paItJlerYiaoutsourcingmiddot andlong-teim middotmiddoti~

gtjii~tlt )~ middotmiddotsupplyattangemeots Linu~in~ttn~~S~i~l1ttl~~I~rl1gMW bullbullbullbull Bno~cle~istingcompetitors andpreernpt matjC~~()tlIqe1ftij1ttWhJl~lctgiCaIfi~tdsYia thedseof tleWCbmpetitors -lith aUiance

middotmiddotShlit~~~silii~~~fy~middotmiddotmiddotmiddotmiddotJ p3lin~rSiJiproxywars to contro market

1ltgtgt j~ acce~sectdistdbutiOf and acoeSs to new ltehnoj6gie~middot

s~e~t~~f~~~~~~middotrt~1~arn~1dev~16p Fornvclu~tetsoflean1ing among suppliersbull lleW~~~~~~~s~p~~q~~9~~$tj91 andi~lat~dfirtns to avpi4ot rtduceJoreiin~ sttat~gi~i1)dUs~ell)j middotmiddotdepefde)ce fo(criticaljllPtts and skills )

bullbullbull ~ssiStbull~~~ft~~~~~r~sttu~turi~gsllY middotmiddotmiddotbullmiddotAHianeessetve$eXperietltialmiddotplatfotmstd~ middot10WerlngeX1~barfjit8inmatutePtpecijning dem~tiutmiddotgtatld transfomiexisfing middotf1lahiJemiddotmiddot~ ifidp~tfi~~t(middot~~~ middotmiddotindtlstrJ~svianew componehts 1

~i tecbnojogiesor skillstoenh~ocemiddot the value~ ~ bullj~gt middotoffuturegtowthoptlons

~

Source David lei Offensive and Defensive Uses of Alliances in Heidi Vernon-Wortzel and L H Wortzel Strategic Management in Global Economy 3rd ed (New York John Wiley amp Sons 1997)

The Dual Role of Strategic Alliances

C90p~f~~~y~~gt~fi bull CQmpetitive ~ Ecmiddot onQpu~i-~stm~~$C iinMltftap---gfip1eas-middotsetbullmiddotmiddot-- bull middotmiddot~O-pmiddotp~orctll-nT-tyt-o-J~eru-middot-n~n-ew-middot--in-t-a-ng--i~b-le-s-ki-middotl-ls-+M-~ s

(egrplihf~~litpri)etltfr frompartjlel oftelltacit Or orgahizatior middotYX~~ltIImiddot il fbull embedded

ttp~~atxi4iQWn~tr~ailrdivisiQn1qUabOr A~Qelerafemiddotdjffusionof industry standards Atn~igtJatthyenfS- ) gti middotandi1eW technologies to erectbarriers to

lt-_lt ~gtgtltgt(ltlt~ ( ltgt t~ritry - middotmiddotI bull Fil1~utlfW~ettipe(~ithc()tn~ottentsoreridD~nYteqhnoiogi0aJand learninginitiativetb

middotptodu~tsmiddot middot(j~bull~1~upplier~ middot paItJlerYiaoutsourcingmiddot andlong-teim middotmiddoti~

gtjii~tlt )~ middotmiddotsupplyattangemeots Linu~in~ttn~~S~i~l1ttl~~I~rl1gMW bullbullbullbull Bno~cle~istingcompetitors andpreernpt matjC~~()tlIqe1ftij1ttWhJl~lctgiCaIfi~tdsYia thedseof tleWCbmpetitors -lith aUiance

middotmiddotShlit~~~silii~~~fy~middotmiddotmiddotmiddotmiddotJ p3lin~rSiJiproxywars to contro market

1ltgtgt j~ acce~sectdistdbutiOf and acoeSs to new ltehnoj6gie~middot

s~e~t~~f~~~~~~middotrt~1~arn~1dev~16p Fornvclu~tetsoflean1ing among suppliersbull lleW~~~~~~~s~p~~q~~9~~$tj91 andi~lat~dfirtns to avpi4ot rtduceJoreiin~ sttat~gi~i1)dUs~ell)j middotmiddotdepefde)ce fo(criticaljllPtts and skills )

bullbullbull ~ssiStbull~~~ft~~~~~r~sttu~turi~gsllY middotmiddotmiddotbullmiddotAHianeessetve$eXperietltialmiddotplatfotmstd~ middot10WerlngeX1~barfjit8inmatutePtpecijning dem~tiutmiddotgtatld transfomiexisfing middotf1lahiJemiddotmiddot~ ifidp~tfi~~t(middot~~~ middotmiddotindtlstrJ~svianew componehts 1

~i tecbnojogiesor skillstoenh~ocemiddot the value~ ~ bullj~gt middotoffuturegtowthoptlons

~

Source David lei Offensive and Defensive Uses of Alliances in Heidi Vernon-Wortzel and L H Wortzel Strategic Management in Global Economy 3rd ed (New York John Wiley amp Sons 1997)

When Is Change Needed40

ACharigeinih~ampizeofthC cQrporationrylle tqmiddotgrowthlc6~s9lidatjoporr~~UctiOll bull middot middotA Ghange~~eYindividuhlS~which~ay altelmanagementoojcentCtives i interest~ bull

atldlbilidesllt

middottn~nabWtYtQg~t~ibgsdone0ntj~e

middotM()rhl~pf()bleros

U13ltagetneint bull bull

middot

amptanilatd6pefatifigprocedures

( -- - -

accordanc~with plab$andexpectations

bullthefie14 i

middot middotfustartAe$Whereitlcel1tJalizatiOn1e~ds 1Q a flood IndetSt6~~ilot~prqperl~uSed~y headquarters

bull Ptlpllcati~nof~dm~p1strativep~r$~nl1el and services

middot orgePgf~P~car~a

- An increase( itrliwersefisclStotper setVic~col11plaints

T6~ponsibiLitiesmiddotmiddot

bull bull bull bull -Afai1Uret9middotWee~middotg6i4~i~apitali~~v~~RPorttioi~esfo~lgteihnovative

bullbull bullbull bull bullbullAconsistehtlyqv~9rk~toPlf1n~gementth~Spetlds~cessect~eboursmiddot9Iltnej9b -A1Xlieftltatco~~satfj eXtravaganto~tliatb)1dgetsate n()tbeing met

~le11gthy~~arctllesitl1at inllibitilie~xerciseQf strategiccQntr~l middotPl~nnlngiili4rlUI~beeOmeincreasinglystafpounddriVenandi~thusdivorced from line

InnovatiolTtllatisstifl~ by tQotUuchadrhinisttation and In6nitotingo(details

bull i Unif6qnsolQtion~~atareappliedtGnollunifonn sit~ationslhe e~ tteneoppositeofthls COllcUti011bull Whe~ihingsthatsb9uld(itcent()uldfuncti()nina tqutine manpound1erdo bullriot~snOU]d aIsobebeedMalQwarrling In othel-wordS martagetnentbY exception hasreplaeed bull

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middot -CI asbesamongdivisious su~sidiaries orind1vidualsoverterritoriesorcustomers ill

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bull U~derptili~5ltioti~fqy~r~ea~m~ufacturiryg~rdistqbltionJa6iHUes -t)uplicatiotipfsaJeSmiddotofficesatldspeciaUzedsalesaccountmiddotexeGutives bullbull Prolifetatiortft~1ativelysmaU1egit1iePtitiesioroperati~gunits witbln a BOll ntry

(

Bt~doWl1~ingonmiuniCatiQtlswithin ~ci aqlolg organizations ~ Tinc~line$~fr~portinR anddo~ted~linerelati)l1s111Ps andJU~definedexectltive

bull-

Successful Negotiators Around the World

Following are ~electeltl profiles of whlt1t it takes to he a ~uccessrul negotiator as per(eived hy people in their home countries These arc protiits of American Indian Ar~h Swedish anti ltali~n negotiators according to Pierre CMse and give ~ol11e insight inlo what 10 expect from different egotiator~ and what they expect frol11 othergt2

AMERICAN NEGOTIATORS AcconJing 10 CMoSe a successful AmeritHn negoliator nct as fonows

I Knows when tocompmmise 2 Takes a tirm stand at the heginning of the flcgoliation 3 Refuses tn make concessions bcforehanu 4 Keeps his or her eards clost to his or hcr chest S Accepts compromises only when the negoliation is de~lIocked (i Sets up the general principh and delegMes the deail work to a~~ociales 7 Keeps a m~ximlllll of options open before ngoliation It Operates ill good faith 9 Respects the opponents

HI Slates his or htr position as clearly liS pohle 11 Knows when he or she wishes negotiation to move on 12 I fully briefed about the negotillted isnes 13 Ha a good sense of timing and is consistenl l4 Makes the other pmty reveal his or her posit inn while keping his 111 111 own position

hiuden as long as possible 15 Lets tl other negotiator come forward first and looks for the hest cle1

INDIAN NEGOTIATORS Indians says Cilsse often follow Gandhis Hpprollch In negotiation which Gandhi called xlitYlIJrtlhtJ Iimne~s in n goou calise This appnch cnrnbines strenglh with the love of tmlh The slIccessful Indian neg(ltiator thus act 15 follows

1 Looks for and says the truth 2 Is not afraiu of speaking up and has no fears 3 Exerci$e~ self-control (The wenpons of the sat)ogmiw are within hin) 4 Seeks solutions thllt will please nil Ihe parties involved (SaYlIglaw ais In exalt

both sids) 5 Re~pects the other pnrty (The opponent must he weancel from erlllr by patience I

sympathy WCllned nol crushcd converted not ilnnihillteel) 6 Ncither uses violence nor insults

7 Is ready to dmngc his or her mind and differ with himself or her$lf OIl the risk I heillg Stcn aS illconsistent Hnd ullpredictllble

II Puts things into perspective lind switches easily from the sl11all picture to the big one 9 Is humble and trusts the opponent

III Is able to withdraw lise silence and learn from within II Rdi 011 himself Of herself his or her own resources lind strengths 12 Appeals to the (Jtlier party~ spiritual identity (To communicnte rhe West moves or talks

The East sit$ contcmplatcs slIffers) 13 I lenaious patient lind penistent 14 Learns flOl11 the opponent nd avoids the lise of secrets 15 Goes beyolld logical rea~ol1il1g and tnlsts his or her instinct as well ns Inith

ARAB NEGOTIATORS Many Arab negotiators following IslHll1ic tradition use medial()r 10

seUle disputes A sucltssr1 Arab mediator acts in the following wny

J Protects all the pmties h(lnor self-respect and uignity 2 Avoids direct confronfltltions between opponents 3 Is respeaed and trusted by all 4 Docs 110t put the parties involved in n situMioll where they have 1ltgt show weakness or

ad il it defeat 5 Has the necessnry prestige to be listened 10

6 1$ (rcative enough to come up with honorable solutiol1s fm all parti 7 Is impartial and can ulldershlnd the positions of Ihe various pari ie withfgtl)l leaning towrt

one or the Other 8 Is able to resist any kind of pressure that the opponents could try to exercise on him 9 Uses relerences to people who me highly respected by the opponents to persuade them In

dngc their minds on some issues (Do it for the sake of your fHher) to Can keep ~cercts and ill so doing gains the confidence of the negotiating parties 11 Controls hi~ temper and emotions (or loses it when and whee necessary) 12 Call lise conferences as l1Iediating devices 13 Knows that the opponenl~ will have pwblcll1s in currying out the decisions de dming

Ihe negotiation 14 Is ablt tu upe wilh the Arab disregard for tione 15 UntrslltnuR tlie ipact of Islam on the opponents who believe that they possess the trllth

lllOw lh~ Right Plh nd are going to win because their cause is just

bull-

Successful Negotiators Around the World

Following are ~electeltl profiles of whlt1t it takes to he a ~uccessrul negotiator as per(eived hy people in their home countries These arc protiits of American Indian Ar~h Swedish anti ltali~n negotiators according to Pierre CMse and give ~ol11e insight inlo what 10 expect from different egotiator~ and what they expect frol11 othergt2

AMERICAN NEGOTIATORS AcconJing 10 CMoSe a successful AmeritHn negoliator nct as fonows

I Knows when tocompmmise 2 Takes a tirm stand at the heginning of the flcgoliation 3 Refuses tn make concessions bcforehanu 4 Keeps his or her eards clost to his or hcr chest S Accepts compromises only when the negoliation is de~lIocked (i Sets up the general principh and delegMes the deail work to a~~ociales 7 Keeps a m~ximlllll of options open before ngoliation It Operates ill good faith 9 Respects the opponents

HI Slates his or htr position as clearly liS pohle 11 Knows when he or she wishes negotiation to move on 12 I fully briefed about the negotillted isnes 13 Ha a good sense of timing and is consistenl l4 Makes the other pmty reveal his or her posit inn while keping his 111 111 own position

hiuden as long as possible 15 Lets tl other negotiator come forward first and looks for the hest cle1

INDIAN NEGOTIATORS Indians says Cilsse often follow Gandhis Hpprollch In negotiation which Gandhi called xlitYlIJrtlhtJ Iimne~s in n goou calise This appnch cnrnbines strenglh with the love of tmlh The slIccessful Indian neg(ltiator thus act 15 follows

1 Looks for and says the truth 2 Is not afraiu of speaking up and has no fears 3 Exerci$e~ self-control (The wenpons of the sat)ogmiw are within hin) 4 Seeks solutions thllt will please nil Ihe parties involved (SaYlIglaw ais In exalt

both sids) 5 Re~pects the other pnrty (The opponent must he weancel from erlllr by patience I

sympathy WCllned nol crushcd converted not ilnnihillteel) 6 Ncither uses violence nor insults

7 Is ready to dmngc his or her mind and differ with himself or her$lf OIl the risk I heillg Stcn aS illconsistent Hnd ullpredictllble

II Puts things into perspective lind switches easily from the sl11all picture to the big one 9 Is humble and trusts the opponent

III Is able to withdraw lise silence and learn from within II Rdi 011 himself Of herself his or her own resources lind strengths 12 Appeals to the (Jtlier party~ spiritual identity (To communicnte rhe West moves or talks

The East sit$ contcmplatcs slIffers) 13 I lenaious patient lind penistent 14 Learns flOl11 the opponent nd avoids the lise of secrets 15 Goes beyolld logical rea~ol1il1g and tnlsts his or her instinct as well ns Inith

ARAB NEGOTIATORS Many Arab negotiators following IslHll1ic tradition use medial()r 10

seUle disputes A sucltssr1 Arab mediator acts in the following wny

J Protects all the pmties h(lnor self-respect and uignity 2 Avoids direct confronfltltions between opponents 3 Is respeaed and trusted by all 4 Docs 110t put the parties involved in n situMioll where they have 1ltgt show weakness or

ad il it defeat 5 Has the necessnry prestige to be listened 10

6 1$ (rcative enough to come up with honorable solutiol1s fm all parti 7 Is impartial and can ulldershlnd the positions of Ihe various pari ie withfgtl)l leaning towrt

one or the Other 8 Is able to resist any kind of pressure that the opponents could try to exercise on him 9 Uses relerences to people who me highly respected by the opponents to persuade them In

dngc their minds on some issues (Do it for the sake of your fHher) to Can keep ~cercts and ill so doing gains the confidence of the negotiating parties 11 Controls hi~ temper and emotions (or loses it when and whee necessary) 12 Call lise conferences as l1Iediating devices 13 Knows that the opponenl~ will have pwblcll1s in currying out the decisions de dming

Ihe negotiation 14 Is ablt tu upe wilh the Arab disregard for tione 15 UntrslltnuR tlie ipact of Islam on the opponents who believe that they possess the trllth

lllOw lh~ Right Plh nd are going to win because their cause is just

SWEDISH NEGOTIATORS Swedish negotiators according to Cassc arc

1 Very quiet and thoughtful 2 Punctual (concerned with time) 3 Etrelllely polite 4 Straightforward (they get stmight down to business) 5 Eager to be productive and efficient 6 Heavy going 7 Down to earth and overcautious 8 Rather flexible 9 Able to and quite good at holding emotions and feelings

111 Slow at reacting to new (unexpected) proposals 11 Inrormal and fmlliliar 12 Conceited 13 Perrediolli~t

l4 Ahaid of confrontations lS Very private

ITALIAN NEGOTIATORS italians says Casse yalue a negotiator who acts as follows

1 Has 11 sense of drama (acting is a main part of th~ culture) 2 Does not hide his or her emotions (which are partly sincere ami partly lelgned)

3 Heads facial expressions and gesturcs very well 4 Has a feeling rur history S Does not trust anyhndy 6 Is c()m~rncu aboulthc belaigur(I-the good impression-he or she cun ltrte atllong

those who walch his or her behavior 7 Believ~s in the individuals initiatives not so much in telllnwork II Is good at being obliging and simpatico at all times 9 I always on the qui Ijve-the lookout

HI Never emhraltes uehnite opinions 11 Is ahle to ltome up with new ways to immobilize mel eventually deslrny his or her opponents 12 Handles confrnnlalioM of power with subtlety and tact 13 Has a nair for intrigue 14 Knows how tO lise Ilallery 15 Can involve olher negotiators in complex combinations

COMPARING PROFILES Comparing slILh profiles is useful Indian negotiator for example are humble patient respeltlfol or the other parties and very willing to COml)mmise cornpared with Americans who are lirmer aboul taking stands An important difference between Arab negotiatols and those from most other countries is that the negotiators are mediators not Ihe parties themselves hence direct confrontation is made impossible Successful Swedish negoshytiators arc conservative lind careful dealing with factual and detailed information This profile contfllsts with Italian negotiators who are expressive and eXllbcmnt but less straightforward than their Swedish counterparts