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Block 2: Competing in a global context :globe_with_meridians:…
Block 2: Competing in a global context
:globe_with_meridians:
Context
Circumstances
Awareness
Guide decision making
Organisational
Operating environment
Geographic
Economic
Political
Cultural
Scope of organisation
Structure
Departments
Objectives
Sustainability goals
Pojasek, 2013
External
Outside influence
External stakeholders
Political regulations
Physical resources
Internal
Governance structures
Prevailing culture
Internal stakeholders
Existing relationships
Analysis
STEEPLE
PESTLE
Innovation
Improvements
Risk identification
Positive possibilities
Opportunities & Challenges
Geography
Not random nor uniform
Increasingly concentrated over time
Feasibility
Global
(Globalisation)
Enhanced organisational interactions
Global "rules"
General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO)
World Bank
International Monetary Fund (IMF)
Common values/practice internationally
Local
(Glocalisation)
Local
regional
national
global
desire
culture
need
Business Functions
:office:
OPERATIONS :truck:
International Operations
Supply chain
Source
Manufacture
Destination
Sustainability
Carbon footprint
Local supply
Offshoring
Benefits
Low labour costs
Lower losgistics costs
No trade barriers within that country
Local need
Customer expectations differ
Site selection
Ownership
Flexible marketing strategy
Speed of entry
Different logistics
Legalaties
Customs
Bonds
Licences
Compliance
Labour
Best practice
Effective corporate global vision
Investment in management structures and systems
Configuration of supply base
Redeploy resources to address issues
Costs
Sub-standard transport networks
Totalitarian/exploitive government
Congested ports
Intellectual capital issues
Supply chain costs v Labour costs
Regional logistics assessment
Assets
Geography
Infrastructure
Legal system
Banks
Duties and tariffs
Abilities
Manufacturing
Domestic souricing
Reactive international sourcing
Proactive international sourcing
Near-shoring
Why
High fuel prices
Worldwide recession
Raw material cost increase
Piracy
USD fluctuations
Lower logistics costs
Higher labour costs
Operation Strategies
Home country operations with exports
Multi-domestic operations
Regional Operations
Global coordinated operations
Facility location
Country-specific factors
Political alignment
Laws and regulations
Economics
Tax
Exchange rates
Inflation
Location of markets
Supplier availability and capability
Infrastructure
Labour
Competition
Social and cultural restrictions
Transport costs
Employee quality of life
Climate restrictions
Local factors
Proximity to key business elements
Suppliers
Customers
Headquarters
Competition
Availability of employee requirements
Local transport
Quality of life
Land availability and cost
Room for expansion
Changes
Complex supply networks
Adapt to conditions
Different country
Different customer
Different needs
Local markets
Supply Chain Management
:chains:
Benefits
Identify bottlenecks
Right processes
Right products
right place
Empowerment of people
Vertically integrated supply chain
cooperation among functions
Ownership of different parts of supply chain
Integration consideration
Direction
Upstream
Security of supply
Reliability of supply
Restriction to competitiors
Raw material cost control
Downstream
Customer control
Order control
Guarantee business
Shared market data
Customer knowledge
Extent
Narrow
Wide
Opportunity to remove link
Balance
Capacity per tier
Outsource shortages
Sell surplus
Keep core capacity and outsource variation
Potential issues
Reduces market forces
Min economic scales different
Capacity mismatch
Variety/complexity increases downstream
Competition variations
Supply locked in
Supply chain control
Outsourcing
Contractual
Advantages
Refocus on core internals
Supplier expertise
Reduced capital investment
Fewer staff
Lower unit cost
Clear supply chain costs
Expand overall
Disadvantages
Loss of control
Costs in managing
Reduced economies of scale
Closure of existing facility
Sharing of sensitive info
Dependency
Supply chain risk
Barnes outsourcin matrix
Strategic Value v Criticality
Propietary
competitive advantage
critical
1 more item...
Commodity
Propietary technology
Not critical
1 more item...
Novelty
Sepcialised
Competitive advantage
1 more item...
Utility
Widely available technology
Performance reliant
1 more item...
Bullwhip effect
Magnified demand fluctuations
Lessen effects
Reduce stages
Share demand info
Smaller and more frequent replenishment
Reduce lead times
Limit promotions therefore surges
Factors
Demand uncertainty
Lead times
Under/over reaction
Process characterstices
Batch sizes
Limited collaboration
Stock location
Offshoring supply
Processes
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service
Shift in demand
Innovation
MARKETING
:shopping_bags:
International Marketing
Decision
Marketing process (B1 S4)
Analysis
Global market environment
Own strengths/weaknesses
Opportunities and threars
Macroenvironment
STEEPLE
Trading systems
Socio-cultural
Language
History
Religion
Social conventions
Technological
Economic
Development
Income distribution
Employment level
Exchange rate
2 more items...
Transport and comms infrastructure
Politcal and legal
Ethical
child labour
poor working conditions
less regulates safety conditions
Microenvironment
Market size and growth rate
Competition
Cost of serving the market
Profit potential
Market access
Skills
Resources
Product adaptiam
Competitive advantage
TNC/MNC
Coordinate and control operations
1 country
Global firm
Operating >1 country
gains advantages
R&D
Prodution
Marketing
financial
Not available to domestic competitors
Risks
Economic instability
Political instability
Legislative restrictions
Trade barriers
Diverse cultural preferences/practices
Triggers
Saturated domestiv markets
Small domestic markets
Low-growth domestic markets
Customer drivers
Competitive forces
Cost factors
Portfolio balance
Entering international markets
Indirect exporting
Using an independent organisation
Direct exporting
Joint ventures
Shared costs/risks
Strategic alliances
Possibly previously competitors
Global strategic partnerships
Licensing
Selling the rights to something
Franchising
Contract manufacturing
Contracting a foreign manufacturer
Management contracting
Direct investment
Globalisation
Local needs
Adaptions
Products
Marketing
Market segments
Premium
Middle-market
Loe-end
Marketing Mix
Branding
Nature/Roles
For organisation
Enable premium pricing
Deter competitors
Facilitate new market entry
Increase bargaining power
Command royalties through licensing
Benefit sales
Encourage customer loyalty
Guarantee future income
For consumer
Identification and cost of searching
Cues to product info
Inspire trust/confidence
Reduce perceived risk
Communicate associations
Swimulate emotional rewards
Nostalgia
Identity
Fulfilment
Brand naming
Encapsulating associations
Convey benefits
Allow for growth
Not offensive
Trademarkable
Spectrum
Company as brand name
Strong company endorsement
Weak company endorsement
Individual brand name
Trademark potential
Coined
Made-up
Arbitrary
Existing word
No connection
Suggestive
Infers nature/benefits
Descriptive
Describes characteristics of offering
Generic
Synonymous with product
Untrademarkable
Brand naming process
Specify objectices
Candidate brand names
Evaluation
Choice
Trademark
Key concepts
Brand Identity
Sender's side
What it stands for
Creator
Potential mismatch
Kapferer's brand identity prism
6 facet's
Physique
Define sender
Personality
Culture
Relationship
Bridge gap
Reflection
Define recipient
Self-image
Strong
Few words per facet
Different words
Strong words
Brand image
Receiver's side
Perception/Interpretation
Consumers
1 more item...
Internal formulation
Brand reputation
External evaluation
Past actions
results
ability
Brand equity
Monetary value
Indicators
Brand recognition
spontaneous recall
Buyer's consideration set
brand consumption
Power
Purchase of brands by other organisations
Brand content
Non-product engagement
Typically online
Content to engage/inform
Desire to share
Ethical considerations
Influence
Peer pressure
Social relations
Sponsorship
Murphy and Laczniak's seven essential basic perspectives
People forst
Behavioural standard above the law
Responsibility
Morality in employees
Core ethical principals
Stakeholder orientation
Delineate ethical decision-making protocal
Key issues
Differing standards of consumer protection
Utilising differing legal regs
Self-regulation
Exporting consumerism and increased homogenisation
Loss of local culture
Movement of perceived value
Increased levels of waste
Single-use culture
Low-income consumer targetting
Exploitation
Informed decisions?
Dissatisfaction if beyond reach
Increases gap between affluent and poor
Geographical segregation of operations
Differing standards
Tax evasion
Corporate social responsibility
Climate change
Labour practices
Influence consumers
Trust
Loyalty
Reputation
Conduct
Impact
Perspectives
Right thing
Expected
Self-interest
Strategic Corporate Responsibility (SCR)
market opportunity
Worker perspectives
Modern-day slavery
High agency costs
Labour violations
Typically foreign workers
Debt bondage
E-waste
Hazardous to environment
Physical effects
Consumer perspective
Wide variation
Exclusivity
Readily attainable
Logo
Image and colours
Brand recognition
Packaging and labelling
Further communication
Appealing
Secure
Sustainability
Information
Global context
Innovation
Branding evolution
New products
Key to sustaining
Glocal branding
Product adaptions
Marketing adaptians
Brand types
Global
Same globally
Advantages
3 more items...
International
Some elements the same
Local
Single country/geographical area
Flexibility in needs
Flexibility in marketing mix
Insulation from damages elsewhere
Close customer relationships
Tribes/Communities
Heterogeneous network
Shared passion/emotion
Roles
Adherents/Devotees
Practitioners
Participants
Sympathisers
Features
Belonging
Rituals and traditions
Moral responsibility/obligation
E.g. Facebook groups
Alternative
Segmentation
Global Positioning Marketing
GPS
Location-based
Automatic
FINANCE
:moneybag:
Economic and financial flows
Balance of payments
Current account
Imports
Exports
Individual's incomes and transfers
Capital account
Capital
Financial account
Direct investments
Establishing foreign bases
Multinationals
Secure operational control
Portfolio investments
Buy and sell
Assets
Reserve assets
Comparative position
Global imblanaces
Correction
Market forces
Government action
Deficits
Large
Persistent
Surplus in account balances
Crises
Uncertainty
Threat to foundation
Urgency
Financial institutions
IMF
Avoid competitive devaluations
Ensure stability
The World Bank
End extreme poverty
Promote shared prosperity
Multinationals
Positives
Innovative creations
Free services
Negatives
Imbalance of power
Tax avoidance
Drives up costs
Reduces competition
Choices
Where cash is kept
Currency
Records
Transfer pricing
Tax and exchange rates
Tax avoidance
Shifting profits
Lower rate countries
Legal
Tax avoidance
Illegal
Not paying
Not reporting
Illegal expenses
Transfer pricing
Trading within same multinational
Legal
Transfer mispricing
Illegal
Arm's-length principle
Unrelated companies
Market price
Related companies = Same
Difficult to implement
Unitary taxation
Profit apportionment
Formula-driven
Economic activity-based
Obsticals
Path dependency
Vested interests
Technical issues
BEPS
Base Erosion and Profit Shifting
Foreign exchange market
Determines exchange rate
'Strong'
High by comparison
'Weak'
Low by comparison
Exchange rate
PESTEL facotor
Outwith control
Significant influence
Financial reporting
Evolving
Stewardship
Economic development
Borrowed finery
Imperialism
Taxation
Objective
Aid investors
Contingent model
New equilibrium
IFRS Standards
Mission
Transparency
Accounability
Efficiency
For prep of financial statements
HRM
:silhouettes:
Employee Relations
Collective bargaining
Unions
Role
Manage culutral differences
Recruitment
Adjustments
Shape strategy
Guide employee relations
Maximise performance
Workforce empowerment
Improved work-life balance
Globalisation
More with less
Corporate Social Responsibility
Global innovation
International labour market
Multiculturalism
Immigration requirements
Universal values and practice
Other business functions
Navigate global factors
Stakeholders
Inclusiveness
Balance tensions
Financial
Non-financial
Different perspectives
Limits strategy and priorities
Free market
Declined protections
Job insecurity
Innovation
Employee interests
Welbbeing
"Race to the bottom"
Profit over development
Lack of innovation
LINK TO CROSSVERGENCE
Privatisation
HRM influence
Reversal?
Global Trade Environment
Buying and selling
Worldwide
WTO
Global rules of trade
Negotiations
General Agreement on Tarrifs and Trade
legal ground rules
Competition
Diamond Model
Structure of firms and rivalry
Demand Conditions
Related and supporting industries
Government influence
Factor conditions
Comparative Advantage
Absolute
Buy from the country that can supply cheapest
Relative
Specialisation by the country in the goods it can produce efficiently
Five Forces Model
Direct industry competitors
Suppliers
Buyers
Potential entrants
Subsitutes
Globalisation
Trade barriers
Globalisation
Convergence
Global culture
Similar values/processes
Popular/effective ideas
Maximum coverage
Collective intelligence
Adopting ideas
International culture
Benefit
Latest global thinking
Pressure
Embrace unsuitable options
Embracing common values
Institutions
Modern tech
Industrialisation
Divergence
Parent culture
Internal/localised practice
Against global norm
Challenging dominance
Capitalise on local coniditions
Change averse
Culture first
Balance
Global knowledge
Local needs
Benefits
Improved living standards
Better access to technology
Healthier and wealthier on average
Negative consequences
Inequalities
Further divisions within the same country
Barriers for trade
Innovation
Respond to context
Understand culture
Change culture
Create new
Multi-cultured
Multi-faced
Compare and decide
Where are we going
Strengths
Weaknesses
Which?
PESTLE
Global mentality
HRM
Assessment
Crossvergence
Respond
Influence
Dynamic
Adoption to adaption
Empowerment
Influencer, not influenced
Organisational environment
Expanding
Global events
Trends
International pressures
Multiple contexts
Cultural perspective
Increase exposure
Operations
Diverse cultures
Marketing
Tailored offerings
HRM
Coordination
Strategy
Management of approach
Multiculturalism
Unify organisation
City Leadership
Forms
Managerial
Political
Civic
Business
Elements
Actors
People/Organisations
Doing the doing
Structures
Things to enable
Processes
the thing that is done
+1 Followership
Participants
Respondents