Please enable JavaScript.

Coggle requires JavaScript to display documents.

SMMC_G7＿[CS-3]＿LN11, SMMC G7, In the past. - Coggle Diagram

- - - - Internet
        
        Social Media
        
        Emai
    - - Container
        
        Air transport
    - - Tariffs
      - Treaties
    - - MNEs contribute towards globalization by understanding operation in many countries including the investment in form of FDI
        
        MNEs build up a product plant in foreign country, acquire another company
  - - - Focus on
        
        Trade
        
        Investment flows
        
        Movement of labor
        
        Multinational firms
- - - - Sure market
      - Emerging market
    - - labor, natural resources, tech, logistics
    - - to lessen vulnerability from emergencies in any specific country
  - - - sale of the product/services into international markets
        
        direct or via agent
    - - have contract to transfer rights with local partners
        
        transfer intangibles (e.g. tech and knowledge)
        
        must close monitor local partner to ensure quality
    - - Joint ventures with local partners
        
        both companies allocate resources to create an independent company
        
        share profit
        
        used for scaling
        
        Used for sourcing resources
    - - Greenfield
        
        Build from scratch
      - Brownfield
        
        Acquired fixed assets then reuse
      - Acquisition
        
        Acquisition
        
        Buying a local company
- - - - Take Netflix as an example. For Netflix, Canada is very similar to the United States in many ways, and there are few trade and investment barriers for American companies. But Netflix still finds it difficult to adapt to Canadian laws and deal with different currencies.
  - - - Like exporting or licensing.
    - - Such as the need to manufacture locally to reduce cost, then the company may choose to form an alliance or joint venture with a local firm.
  - - - The progress of communication and network.
      - The combination of specific national advantages and supportive government policies.
- - - - Second Base
        
        Price competition or competitive competition
        (Five Forces Analysis of Threats from Existing Competitors)
      - Third Base
        
        Factors of production conditions
        (five-force analysis of suppliers' bargaining power)
        
        Not only use in country but also in international business
        
        Helps companies understand
        
        how to form strong clusters of global competitiveness
        
        how companies can work with partners and local governments to create such clusters.
        
        how your company is competitive against foreign competitors from different national backgrounds and who may have strengths and weaknesses that reflect that background
      - First Base
        
        Demand conditions
        (five-force analysis of the buyer's bargaining power)
      - Home Base
        
        The relevant and supporting industries are complementary (surpassing five forces model's sixth force)
- - - - Mcdonalds
        
        To accommodate local tastes and religious sensitivities, McDonald's does not sell
        hamburgers with beef. Instead it offers many chicken based and vegetarian options.
  - - - Tesla
        
        Tesla can lower costs significantly to scale economies which has prompted with building a small number of Giga factories
  - - - typically operate through a single International
        Business Division
        
        Harley-Davidson Rolex
  - - - Consumers will perceive them to be domestic companies
        Maximize the local responsiveness via a multi-domestic strategy
        
        Bridgestone Nestle
  - - - One hallmark of such a company is its organization along product lines internationally and relatively less independence for each country operation
        
        Lenovo Tesla
  - - - This is where you try to achieve both localization, high responsiveness, and at the same time low
        cost
        
        P&G
  - - - no product differentiation
        
        no low-cost structure
        
        e.g. Starbucks
    - - low product differentiation but internationally
        
        consumers will perceive them to be domestic companies
        
        e.g. Nestle's customized product
    - - pursuit of global division of labor
        
        e.g. Lenovo's R&D's
    - - localization, high responsiveness, and low cost
        
        value chain where you have backward integration and forward integration
        
        e.g. Haier
      - need to support the extra cost of matrix organization
    - - International strategy
        
        Benefits
        
        leveraging core competence
        
        economies of scale
        
        Risks
        
        no or limited local responsiveness
        
        highly affected by exchange rate fluctuations
      - Localization strategy
        
        Benefits
        
        highest-possible local responsiveness
        
        reduced exchange-rate exposure
        
        Risks
        
        little or no economies of scale
        
        little or no learning across different regions
      - Global-standardization strategy
        
        Benefits
        
        economies of scale
        
        location economies
        
        Risks
        
        no local responsiveness
        
        little ability to differentiate product
      - Transnational strategy
        
        Benefits
        
        economies of scale, location, and learning
        
        Risks
        
        global matrix structure is costly