Competing in a global context

Global Context

Internal Context

• Structures
• Prevailing Culture
• Internal stakeholders
• Existing relationships

External context

• External stakeholders
• Political regulations
• resources
• cultural norms

Competing and trading among countries

Relative comparative advantage

Absolute comparative advantage

Michael_Porter_Diamond_Model

fiveforcesmichaelporter

Supply Chains #

Hidden costs
• Shipping
• Time Delays

Carbon footprint

International operations strategy’s

Home country operations

Multi-domestic operations

Regional operations

Global coordinated operations

Supply chain managment

Procurement

Sourcing #

Conversion

logistics

Economics and financial flow

International financial institutions

International monetary fund

The world Bank

Helps countries in financial trouble borrow money

Helps to eradicate extreme poverty

Balance of payments – Tracks transactions between individuals, firms or government bodys:

Current accounts: :

capital account

financial acccount

Foreign direct investment

Transfer pricing

Transfer mispricing = illegal

Arms Length principal

allows for shifting profit

Unitrary taxations with profit apportionement

Exchange rate fluctuations

affects import export costs

Foreign exchange market - Forex #

Mc Burger index - over or undervalued currency

governemt intevention

buying currency using foreign currency reserves

increase interest rates

Globalisation # # #

Convergence

Divergence

crossvergence #

Glocalisation

accepting global norms and practises but adapting for local conditions

Employee relations

global talent

international labour

product markets

human resource managment

Managing cultural differences

Corporate social respnsability

IFRS Standards

IFRS 1 - First time adoption of international financial reporting standards

IFRS 2- Share-based payment

IFRS 3 - Buisness combinations

IFRS 4- Insurance contracts

IFRS 5 - Non-Current assets held for sale and discontinued operations

IFRS 6 - Explorations for and evalluation of mineral resources

IFRS-7 - Financial insruments - Disclosure

IFRS 8 - Operating segments #

IFRS 9 - Financial Instruments

IFRS 10 – Consolidated financial statements

IFRS 11 Join Arrangements

IFRS 12- Discloure of interest in other entities

IFRS 13 Fair value measurement #

IFRS 14 – Regulatory deferral accounts

Modes of Entry Into international markets

Indirect exporting

Direct exporitng

Joint ventrures

strategic alliances

global strategic partnerships

Licensing

franchising

conrtract manufacturing

management contracting

direct investment