Please enable JavaScript.

Coggle requires JavaScript to display documents.

[CS-3] Global Strategy, G5, Emily, Winnie, Jessica, Sunny, Stella, :star:,…

- - - - reduce business risk
        
        no longer vulnerable to adverse outcomes in any country
      - technology: strengthened by local knowledge and talent
        
        Ex: iRobot's IT development in India and do some R&D
      - access better or lower cost factors of production abroad
        
        Ex2: oil industry, for the natural resources
        
        Ex1: iRobot, take advantage for low labor cost and significant manufacturing capabilities in China
      - expand the market for company's products and services
        
        look to large economically developed markets
        
        OECD countries, China, India
      - leverage core capabilities
        
        Ex: McDonalds & Yum running a chain of restaurants
      - develop new capabilities
        
        learning from foreign operations
  - - - expansion
        
        North America- Canada- America- Mexico- Europe
        
        strongest economy after WWII
        
        early 2000, diversifying into BRIC countries
      - follow the trend:
        enable human flourishing
        
        people want to eat better & build infrastructure
      - long-run
        
        largest tractor market in India
    - - How should the company enter that country
        
        exporting
        
        indirectly via local agents and then they'll resell
        
        alternative
        
        strategic alliance
        
        🤝local partners
        
        active coordination & broader scope to coordinate
        
        Interview: WL Gore and Associate
        
        ally with Japan
        
        2 more items...
        
        background: make cortex
        
        licensing and franchising
        
        transfer rights within foreign countries to intangible
        
        ex: patented technology or intangibles such as know-how and brands
        
        company should monitor
        
        performance, interests and returns correctly accounted for
        
        direct to foreign customers
        
        international analog of arm's-length sales or outsourcing
        
        joint ventures
        
        🤝local partners
        
        share in profits
        
        Ex1: Sony Ericsson, pooling joint venture in phone handsets
        
        combine
        
        foreign companies
        
        technology or business capabilities
        
        local companies
        
        home market related capabilities or position
        
        Ex2: Starbucks and Tata group
        
        subsidiary
        
        wholly owned, international analog of full integration
        
        greenfield
        
        build from grown-up or scratch
        
        brownfield
        
        acquired fixed assets and reuse
        
        acquisition
        
        buy a local company and integrate
    - - John Deere: ag market human flourishing company No.1 in core market for over half century
  - - - :check: joint venture
      - :green_cross: wholly owned subsidiary
    - - different degree of ownership and control
      - entails fewer costs and risks, less financial returns
- - - - automobiles
        
        Germany and Japan
      - consumer electronics
        
        Japan and South Korea
      - movies
        
        USA and India
      - software
        
        the US, Israel, and India
    - - Michael Porter
        
        NATIONAL COPETITIVE ADVANTAGE
        
        Related and supporting Industry/ Complementors
        
        Leadership in related and supporting industries fosters world-class competitors in downstream industry complementarity
        
        EXAMPLE
        
        1 more item...
        
        Factor Conditions
        
        the power of suppliers
        
        Nation endowments in term of national , human, and other resources, as well as supportive infrastructure and institution
        
        Competitive Industry in Focal Industry
        
        price rivalry or
        competitive rivalry
        
        stronger firm capabilities through that competition
        
        the competitive environment that that firm faces
        
        Demand Conditions
        
        power of buyers
        
        specific characteristics of demand
        in the firm's domestic market.
      - useful for countries that are trying to develop a competitive advantage in different industries.
      - a number of potential implications for managers who are thinking about their company strategy on the global stage.
      - useful in identifying a potential source of future competition.
      - understanding company's own competitive advantages
      - to understand better how to compete with these foreign competitors
      - helps companies appreciate how strong globally competitive clusters form and companies can bind together with partners and local governments to create such clusters.
- - - - Ex. shipping,the use of containers has had a very big impact in building and operating large ships
    - - negotiations and treaties
        between countries
        
        Ex. China and India
    - - Multinational Enterprises
        
        Conduct operation in at least two countries
        
        Procurement, production or sale/distribution
      - Foreign Direct Investment
        
        Productive activities
- - - - operating internationally
        
        scale economies
        
        operating in a similar way with the same resources acorss multiple markets
    - - individual markets
        
        Mcdonald's
  - - - except to the minimum extent necessary
- - - - More costly to do business in a foreign country
        
        Institutional voids and legal risks
        
        Economic conditions and risks
        
        Geographic distance
        
        Currency differences and risks
        
        Cultural and social economy unfamiliarity
        
        Political biases and instability