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MNE'S (Importance of managers (Ensure sustainability, Have a good…
MNE'S
Importance of managers
Ensure sustainability
Have a good management strategy
To be able to manage the company
Can shine the company
Example of Strabucks
Example of Zara
Before, they were not efficient
They founded their own model
Aim : maximize overall efficiency
Prosperous thanks to the choice of the manager
Excellent performance over the long term
Way to succeed
Differenciation
Cost leadership
Firm as a value chain
Approaches to value creation
Managing the value chain
Strategy used by MNEs
Internal
Multidomestic
Global
Transnationale
What ?
Business that operates in many different countries
Business in more than one country
4 categories
Decentralized corporation with a presence in its home country
A global company that builds on the parent corporation’s
A transnational enterprise that uses all three categories
Centralized corporation that acquires cost advantage where cheap resources are available
Multidomestic
Limits
cost along the value chain
complicate information exchange
overhead expenses
Benefits
Global strategy
Limits
Little latitude to adapt value
acto to local conditions
Disruptive change
Benefits
leveraging economies of scale
ongoing integration of global market
tremendous flexibility
maximizing efficiency
Perspective on strategy
Great by Choice
What explain performance ?
power of the manager
new markets
new offerings
Gain share
Industry Organization Paradigm
Elements of Paradigm
Structure
Conduct
Performance