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SMMCG3[LN-11 & LN-1b]Strategic Governance, Extensions and Debates, Why…

- - - - Example
        
        IBM
        
        Proportion
        
        Americas
        
        7%
        
        US
        
        36%
        
        Still “U.S. company”:question:🧐
        
        Asia, Pacific
        
        24%
        
        Europ / Middle East / Africa
        
        33%
        
        Product
        
        Hardware
        
        Computer
        
        SQL
        
        DRAM
      - Why:question:
        
        reduction
        
        the costs of transportation
        
        transportation
        
        ICT
        
        Internet
        
        communication
        
        the breaking down of artificial barriers
        
        goods
        
        services
        
        capital
        
        knowledge
        
        people
      - What :question:
        
        The trend toward a more integrated global economic system
        
        In terms of demand (markets) & supply (production)
      - Another choice :question:
        
        Regionalization
        
        Example
        
        FTA, ASEAN plus three, WTO, EU, etc.
      - Outcomes
        
        Prosperity
        
        Impoverishment
      - How:question:
        
        Remove barriers of cross-broader trade , foreign direct investment
        
        Trade policy
        
        Tariffs
        
        Subsidies
        
        Import quotas
        
        Voluntary export restraint
        
        Local content requirement
        
        Anti-dumping
        
        Administrative policies
        
        Geography
        
        Distance
        
        Time zones
        
        Languages
        
        Culture
        
        Regulation
        
        Regulation
        
        Business/Financial/Monetary systems
      - Country and Culture Differences
        
        Country Difference
        
        :one:Political system
        
        power exercise :muscle:
        
        Democracy
        
        Totalitarianism
        
        social and cultural values :silhouette:
        
        Individualism
        
        Collectivism
        
        :three:Economic system
        
        Market Economy
        
        Command Economy
        
        Mixed Economy
        
        State-Directed Economy
        
        :two:Legal system
        
        Common (British) Law
        
        Civil (German)Law
        
        :five:Economic development system
        
        Index
        
        HDI
        
        GNP
        
        PPP
        
        Stage
        
        Developed
        
        NIC
        
        LDCs(4th world)
        
        :Four: Deregulation & Privatization
        
        :arrow_lower_left:
        
        Privatization
        
        Natural monopoly
        
        Prioritize profit over public interest
        
        2 more items...
        
        Culture Difference
        
        What :question:
        
        A group of people (society) has a system of common values (beliefs) and norms (rules)
        
        It depends
        
        Social structure
        
        Religion
        
        Ethics
        
        Language
        
        Education
        
        Political Philosophy
        
        Economic Philosophy
        
        Example
        
        McDonald's does not sell beef products in India
        
        The proportion of people using Yahoo in Japan is higher than that in Taiwan
        
        Business Growth and Expansion Strategies
        
        Business Expansion Strategies
        
        Product Diversification
        
        Unrelated
        
        Example
        
        1 more item...
        
        Related
        
        Example
        
        1 more item...
        
        Didiversification
        
        Example
        
        1 more item...
        
        Geographical Expansion
        
        Local
        
        International / Global
        
        Vertical Integration
        
        Scale up
        
        Upstream / Forward
        
        Material
        
        1 more item...
        
        Downstream / Backward
        
        User
        
        1 more item...
        
        Growth Strategies
        
        Inorganic growth
        
        Merger & Acquisition
        
        Example
        
        1 more item...
        
        Strategic Alliance
        
        Example
        
        Pepsi & Beyond Meat established a joint venture to develop snacks and beverages using plant protein
        
        1 more item...
        
        Organic growth
        
        Definition
        
        The increase in sales and profits is due to the development of the company's own activities
        
        How :question:
        
        Revenue maximization
        
        Cost structure Optimization
        
        Operating Effciency Improvements
        
        Example
        
        Xiaomi replaces top executives in Taiwan
        
        1 more item...
    - - Equity modes📜
        
        Wholly-owned subsidiaries
        
        Parent company owns 100% stock
        
        Acquisitions📝
        
        Green-fields⚙️
        
        Foreign Direct Investment
        
        Advantage
        
        Global strategic coordination
        
        Disadvantage
        
        1 more item...
        
        Joint Ventures
        
        50/50 JVs 💰
        
        Favored mode to entry new market
        
        Advantage
        
        Share costs and risks
        
        Disadvantage
        
        1 more item...
      - Non-equity modes🤝
        
        Contractual agreement
        
        Licensing🎫
        
        Licensee buys right
        
        To produce product
        
        Advantage
        
        2 more items...
        
        Franchising :silhouettes:
        
        Franchiser sells intangible property
        
        Insists franchisee follow rules
        
        Advantage
        
        2 more items...
        
        Exports
        
        Direct exports :red_flag:
        
        Direct sales to client
        
        Indirect exports:silhouettes:
        
        Appoint third parties
        
        eg. Agent、Distributor
        
        Advantage
        
        2 more items...
      - National Competitive Advantage🌐
        
        Porter's Diamond Model
        
        company makes successful
        
        In particular region
        
        Elements
        
        Factor endowments
        
        2 more items...
  - - - outside-in
        
        Realizing Location Economies
        
        Moving production lines to countries with comparative advantages
        
        Consider trade barriers and transportation costs
        
        Reduce costs
        
        Placing a value creation activity in its optimal location
        
        Realize product differentiation
        
        Reduce costs
      - as a whole
        
        Realizing Experience Curve Economies
        
        Pricing aggressively
        
        Entering the market at a lower price
        
        Short term
        
        Lower or unprofitable profit
        
        1 more item...
        
        Long term
        
        Greater economic benefits
        
        1 more item...
        
        Economies of scale and learning effects
        
        ➡️
        
        Increase Production
        
        ➡️
        
        1 more item...
      - inside-out
        
        Transferring Core Competence
        
        Leveraging its unique capabilities to enter foreign markets where competitors lack the same skills and products
        
        Increase market share
    - - Demand
        
        Local Responsiveness
        
        Firms adjust their product offerings and operational strategies to differences in demand and environmental changes in different markets
        
        But
        
        Increasing Costs
      - Supply
        
        Cost Reduction
        
        Lower supply costs due to globalization have led to more intense price competition
    - - Lifetime Revenues - Blockbuster Movies
        
        International Sales as % of Total
        
        Boeing 787 Dreamliner
- - - - not equal to❌
        
        it will be successful elsewhere, neither for all other firms as well
  - - - 1912 -
    - - present students a variety of business problems
    - - guide how action should be carried out
    - - analysis
      - problem
      - policy
      - action
    - - the level of top management
        
        company-wide objectives
        
        set
        
        department policies and activities
        
        coordinated
    - - capstone course at both the graduate and undergraduate levels
- - - - is the pattern of decisions in a company that
        
        Determines the company's goals
        
        Produces the main policies and plans to achieve these goals:check:
        
        Defines the range of businesses the company will engage in
        
        Specifies the type of organization the company will develop
        
        Identifies the nature of the contributions the company intends to make
      - Not a detailed plan but focuses on doing things differently👍🏻
    - - The choice of products or services for individual business units within the firm
        
        The selection of markets for these products or services
        
        How the company will compete in each specific business area
    - - Strategy goal
        
        4S
        
        Survival
        
        Success
        
        Superior performance ✨
        
        Sustainability♻️
      - Effevtive Implementation
      - Strategy Formulation
- - - - Failing to get the balance of interests
  - - - Manager、Stockholders、Board Members
    - - Customers、Suppliers、Government、Union、Local community
        
        The company
  - - - majority
        
        Controls more than 50% of a company’s outstanding shares
      - minority
        
        Controls more than 50% of a company’s outstanding shares
    - - WACC = D÷(E+D) × Rd × (1-t) + E÷(E+D) × Re
      - Opportunity cost
    - - Capital appreciation
      - Dividend
  - - - Shareholders
      - Stockholders
      - How to get balance :question:
  - - - Brand Loyalty
        
        Network Effect
        
        Locked-up Supply
        
        Scale
        
        Location
        
        Intellectual Property
- - - - how to compare :question:
        
        horizontal differentiation
        
        need for complex integrating mechanisms
        
        centralization of authority
        
        organizational culture
        
        low :arrow_up:
        
        high :arrow_down:
  - - - Knowledge Management
        
        role of foreign subsidiaries
        
        development and diffusion of knowledge
        
        interdependence or not
        
        flow of knowledge
- - - - Better motivates subsidiary-level managers and employees
      - Permits greater speed, flexibility, and innovation
      - Decentralization reduces corporate-level managers’ overload of responsibilities and improves decision quality
    - - Consistency in decision-making
      - Sufficient power for corporate-level managers to initiate necessary actions
      - Capability to facilitate corporate-wide coordination
- - - - the result after the competition
      - Why :question:
        
        The importance of Strategies Across Levels
        
        :arrow_up:
        
        Functional strategy
        
        Business function:two:
        
        3 more items...
        
        :large_blue_circle:
        
        :large_blue_circle:
        
        :large_blue_circle:
        
        :star:Strategy Configuration
        
        Horizontal integration :left_right_arrow:
        
        Geographic scope :world_map:
        
        Vertical integration :arrow_up_down:
        
        :star:Strategic Innovation
        
        New business model
- - - - External fit
        
        Internal fit
        
        Dynamic fit
  - - - macro-level
        
        :one: institutional conditions and transitions
        
        Strategy Tripod :small_red_triangle:
        
        PESTEL
      - industry-level
        
        :two: industry-based competition
        
        5 force
    - - firm-level
        
        :three: firm specific resources & capabilities
      - intra firm-level
  - - - 一
        
        Not necessarily the same
    - - 一