Please enable JavaScript.
Coggle requires JavaScript to display documents.
Glbl entry & strategic management - corporate strategy considerations…
Glbl entry & strategic management -
corporate strategy considerations
Strategic alliances & networks
considerations
Respource-based considerations
creating value through complementary capabilities
Institution-based considerations
collaboration amog rivals = decreases risk, compatition, increases profits
entry barriers scaled by alliances = kao jači smo skupa upasti
upstream/downstream vertical alliance - bargaining powers, from zero sum to winwin
substitute products?
Industry-based considerations
fromal institutions - anti trust concerns (not as much of an issue for the alliances as for the M&As)
informal institutions -
types
contarctual / non equity
co-marketing
R&D
turnkey project
strategic suppleir
strategic distributora
licencing/franchising
equity
M&A
JV
phases
formation
(1) to cooperate or not = can strategic goal be achieved through a) market trasaction b) acquisition or c) an alliance
(2) contract or equity - depends on
nature of shared resources
importance of direct monitoring and control
potential as real options
influence of formal institutions)
(3) positioning the relationsjip
evolution
combating opporuntis
walling of the critical capabilities
swapping the critical capabilities
dissolution
initiation, going public, uncoupling, aftermath
performance
depdens on
equity
leaning & experience
culture
relationsal capabilities
Foreign market entry modes
considerations
resource based considerations
institution based considerations
Industry based considetations
libaility of foreigness - key to succeddingin the foreign market
propensity to internationalize - depends on the size of the company and the size of the domestic matket
enthusiastric internationalizes,
slow internationalize
sfollowe internationalizer,
occasional internationalizer
push-pull factors - smth pushes the company from the lcoal amrket and something else pulls it toward a certain foreign market
WHY
natural resource seeking
market seeking
efficiency seeking
innovation seeking
WHERE
depends on why and location specific advantages / disadvanatges
cultural and instirutional distances
stage model versus strategic goals model
HOW
(1) scale
small scale entry
learning yb doing
drawbacks
difficulty of building market chare
lack of commitment
large scale entry
drawbacks from
limited strategic flexibiltiy
bigger risk eexposure
benefits from strategic commitmets versus
(2) mode
nonequity
equity
WHEN
first mover
developoing proprietary leadership
preempting scarce assets
establishing entry barriers
becoing a dominant name
opportunities for relationship with key sakeholders
late mover advanatges
benefit from first mover investment
learn from first mover experiece in market uncertaintis
leapfroging first mover inflexibility with fixed assets
Diversification
considerations
resource based considerations
creates value by speading risk, leveraging core competencies
rarity - unique skills to execute diversification strategy
iminability - post-acquisition immigration is hard - soething hard to imitate
matchg between the diversification startegy and organiaztion in the company
institution based considerations
formal institutions
anti trust claims ( industryx moving away from the product related diversification twoards conglomeration,then governemtn changed its mind and there was a wave of trying to focus on the crore comeptencies
gographic diversification due to glubalization
Industry-based considertations
invnse industry rivlary = motiveates to diversify
high entry barriers = motivates to diversify
high barigaing powert of suppliers / buyers - motivates to dicversify
threat of substitutes = motivates to diversify
2 dimensions of diversification
product diversification
product-related diversifciation
emphasis on OPERATIONAL SYNERGY (economies of scale)
sources of this synergy can be
technologies - common platforms
marketing - common brands
manufacutirng - common logistics
product-unrelated diversification
conglomeration as a strategy (HQ serving as a internal capital market - prelijeva iz supljeg u prazno)
focusing on FINANCIAL SYNERGY (economies of scope)
diversification premimu versus diversification discount
about perofrmance
geographic diversification
limited versus extensive
corporate startegy
multinational replicator
anchored replicator
far flung conglomerate
classic conglomerate
scopoe of the firm
relation between the level of diversification that a comapny has and the level of costs/benefits in line with that level
acquisitions& mergers
one firm becoming a nuit of another (transfer fo control)
types
based on the target company
vertical
conglomorate
horizontal
based on the type of takeover
friendly
hostile
value creation
motives influencing value creation
synergistic motives increase value
hubris / amnagerial mtoives decrease value added
overwhelmingly, M&As failpreacquisiton
reasons
preacquisition
overpayment
managers overestimatig ability to create value
poor strategic fit
poor preacquisiton screening
post acquisition
failure of integration
poor organizational fit
not addresing stakeholders soncerns
combination of assets, oeprations and amangement
restructuring
Strategizing, structuring and learning around the world
2 types of pressures - local responsivness and cost reduction
multinational strategies and structures: integration-responsivness network
global standarization strategy (global product divisions)
home replicator - international division
transnational strategy - global amtrix
localization strategy - geographic area
