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SMMCG4[LN-11 & LN-1b] Geographical Expansion and Strategic Governance,…

- - - - Vertical Integration
    - - Expanding product lines or entering new product markets
    - - Controlling upstream or downstream parts of the supply chain
  - - - Lower risk, high control
    - - Rapid expansion, immediate market presence
    - - Risk sharing, local adaptability
  - - - Expansion into neighboring or similar regions
        
        Easier to manage, culturally closer
    - - Entering foreign or global markets
        
        Challenges include regulations, cultural differences, logistics
- - - - 🌟Demand (market)
        🌟Supply (Production)
        
        ➡️That is, the international division of labor and connection between markets and production supply chains.
      - ❓How does Globalization come true?
        
        Relies on removing barriers to trade and investment
        
        ❓What will Globalization bring about?
        
        Prosperity👍🏻：Driving economic growth, creating jobs and improving living standards
        
        Impoverishment👎🏻：Aggravating the gap between the rich and the poor, damaging local industries, and causing cultural loss.
  - - - Political 、Economic、 Legal System、Economic Development 、 Deregulation & Privatization
    - - System of values (believes) and norms (rules) shared among a group of people (society) for living.
        
        ❓The determinants of Culture
        
        Social structure, religion and ethics, language, education, political/economic philosophy, etc.
        
        🌟Hofstede’s Model
        
        Power Distance
        
        Malaysia vs Sweden
        
        Individualism
        
        America vs. China
        
        Uncertainty Avoidance
        
        Japan vs Singapore
        
        Masculinity
        
        Japan vs Netherlands
- - - - Low
        
        Global Product Division
        
        Centralized at optimal global location
        
        Global product-group structure
        
        High
        
        Important
  - - - High
        
        Global Matrix
        
        Simultaneously centralized and
        decentralized
        
        Global-matrix structure
        
        Very High
        
        Very Important
  - - - Low
        
        International Division
        
        Core competencies centralized;others decentralized to local units
        
        Global-division structure
        
        Medium
        
        Quite Important
  - - - High
        
        Geographic Area
        
        Decentralized to national units
        
        Global-area structure
        
        Low
        
        Not Important