战略管理英文版版教学课件第10章.ppt

Global Strategy: Competing Around the World,22,22,Part 2 Strategy Formulation,10-2,LO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets.LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.,10-3,ChapterCase 10,Hollywood Goes Global,Hollywood movie: The quintessential American productHowever, non-US sales increased: 50% in 2000, AND70% in 2010Altered global strategic focus Movies that fit the global market by adapting foreign scripts, hiring international actors/actressesetc.Treat emerging markets as focal targets Not just filmmaking industries, but also the electronics industry (ex: Korea, ), and auto industry (ex: India)Key questions: How can a company compete effectively in a global market place?,10-4,EXHIBIT 10.1,Lifetime Revenues - Blockbuster Movies,10-5,Hollywood Goes Global,What are the key implications of the opening case?How are Hollywood movies being made with international factors?Recruiting international actors/actresses Adapting foreign screenplaysUnderstanding different demands from different geographic markets,10-6,What Is Globalization?,Globalization is a process of closer integration and exchange between different countries and peoples worldwide.Made possible by:Falling trade and investment barriersAdvanced telecommunicationsReduced transportation costsImportance of MNEs and FDIs,10-7,What Is Globalization (contd),Multinational Enterprise (MNE) Deploys resources and capabilities in the procurement, production, and distribution in at least two countriesLess than 1% of firms, BUT employ 19% of U.S. workforce74% of private sector R&D spendingForeign Direct Investment (FDI)Investments in value chain activities abroadGlobal StrategyTo sustain a competitive advantage Competing against foreign and domestic companies around the world,10-8,Why Global?,Gain access to a larger marketGain access to low-cost input factorsLabor, natural resources, technology, logisticsDevelop new competenciesLocation economiesUnique locational advantages,10-9,110,STRATEGY HIGHLIGHT 10.1,Stages of Globalization,Globalization 1.0: 19001941 Only sales and distribution took place overseasGlobalization 2.0: 19452000Duplicating business functions overseasGlobalization 3.0: 21st centuryMNEs become global collaboration networks (see Exhibit 10.2),10-10,EXHIBIT 10.2,Globalization 3.0 - Collaboration Networks,10-11,EXHIBIT 10.3,International Sales as % of Total,Data from 2010,10-12,113,STRATEGY HIGHLIGHT 10.2,1.4 billion population, only 1 in 100 people owns a vehicleJoint venture with Shanghai Automotive Industrial Corp$ 250 million on a state-of-the-art R&D centerin ShanghaiFuture of GM likely decided in their international HQin Shanghai!,10-13,Small Group Exercise 1,Accenture has moved its country of incorporation Corporate officers are still in the U.S. The stock is still traded on the NYSEStated reason for the move was to save on taxesWhat defines a U.S. company? Where it is incorporated? Where the top management team lives and works is homeIs there a fiduciary responsibility to move the firm to maximize shareholder wealth?,10-14,Disadvantages of Expanding Internationally,Liability of foreignnessAdditional cost of doing business in an unfamiliar cultural and economic environment Cost of coordinating across geographic distanceEconomic development may increase the cost of doing businessRising wages with improved living standardsDifficulty in protecting intellectual property,10-15,LO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets.LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.,10-16,Global Expansion: Where,How does an MNE decide where to go?National institutions: Well-established legal and ethical pillars as well as well- functioning economic institutions such as capital markets, banks, and infrastructuresNational culture: Programming of the mindGeert Hofstedes Cultural DimensionsPower distanceIndividualismMasculinity/femininity Uncertainty-avoidanceLong-term orientation,10-17,Global Expansion: Where,Hofstedes Cultural DimensionsPower distanceHow a society deals with inequality among people in terms of physical and intellectual capabilitiesHigh = Philippines Low = AustriaIndividualismRelationship between individuals in a society, particularly in regard to the relationship between individual and collective pursuitsHigh = U.S.A. Low = VenezuelaMasculinity/femininityRelationship between genders and its relation to an individuals role at work and in societyHigh = Japan Low = SwedenUncertainty-avoidanceSocietal differences in tolerance toward ambiguity and uncertaintyHigh = RussiaLow = Singapore,10-18,EXHIBIT 10.4,Corporate Tax Rates,Institutional Difference Matters,10-19,Global Expansion: How,Exporting: producing goods in one country to sell in anotherAcquisition, strategic alliance are also popular vehicles for entry into foreign marketsMNEs sometime prefers greenfield operations or wholly owned subsidiariesGreenfield is building new factories/offices from scratchPhysically and organizationally building from the ground up.,10-20,EXHIBIT 10.5,Modes of Foreign Market Entry,Market Entry along the Investment & Control Continuum,10-21,Strategy around the World: Cost Reduction vs. Local Responsiveness,Local responsiveness: Tailor product and service offerings to fit local consumer preferences and host-country requirementsHigher costEx: McDonalds uses mutton in India Cost reduction: MNEs enter global marketplace with the intention to reduce operation costEx: Toyota Prius,10-22,EXHIBIT 10.6,The Integration-Responsiveness Framework,10-23,Four Global Strategies,International strategyLeveraging home-based core competencies Selling the same products or services in both domestic and foreign marketsEx: Harley-Davidson in PolandLocalization strategy Maximize local responsiveness Consumers will perceive them to be domestic companiesEx: Nestls customized product offerings,10-24,Four Global Strategies (contd),Global standardization strategy Economies of scale and location economies Pursuing a global division of labor based on best-of-class capabilities reside at the lowest costTransnational strategyCombination of localization strategy (high responsiveness) with global standardization strategy (lowest cost position attainable)Glocalization Ex: German multimedia conglomerate Bertelsmann,10-25,EXHIBIT 10.7,Characteristics, Benefits, and Risks of Four Typesof Global Strategy,10-26,EXHIBIT 10.7,Characteristics, Benefits, and Risks of Four Types of Global Strategy (contd),10-27,128,STRATEGY HIGHLIGHT 10.3,Walmart Retreats from Germany,Walmart entered Germany Acquisition of 21 stores and 74 hypermarketsWalmart duplicated its U.S. policies and applied them in GermanyEmployees refused to accept those policies Walmart faced significant cultural differencesWalmart could not develop efficient economies of scale and distribution centers to drive cost downThe result is a defeated Walmart that sold its stores to Metro, Walmarts key rival in Germany!ALDI, another of Walmarts competitors in Germany, is now expanding aggressively in the U.S.,10-28,10-29,LO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy. LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages. LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets. LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally. LO 10-5 Explain why certain industries are more competitive in specific nations than in others. LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.,National Competitive Advantage,Death-of-distance hypothesisGeographic location alone should not lead to firm-level competitive advantage because firms are now more able to source inputs globally (ex: capital, commodities, etc.) Labor markets also have become more global.Consumer electronics Japan & South KoreaMining companies AustraliaWhy are certain industries in some countries more competitive than in others? Answer: National Competitive Advantage,10-30,EXHIBIT 10.8,Porters Diamond of National Competitive Advantage,Porter American Future Video,10-31,National Competitive Advantage Framework,Factor conditions A nations endowments in terms of national, human, and other resourcesDemand conditionsSpecific characteristics of demand in a firms domestic marketCompetitive intensityHighly competitive environments tend to stimulate firms to outperform othersRelated and supporting industry leadership in related and supporting industries can also foster world-class competitors in downstream industryComplementarity,10-32,Regional Clusters,Regional clusterA group of interconnected companies and institutions in a specific industry, located near each other geographically and linked by common characteristicsKnowledge spilloverPositive externalities that are regionally constrainedExchange of ideas among firms in a cluster,10-33,Regional Clusters (contd),Some locational characteristics that distant rivals cannot matchKnowledge, relationships, reduced proximity, motivation, and complementarityEx: Research Triangle Park (RTP) in North CarolinaMany MNEs are located in RTP clusterBASF, Bayer, Cisco Systems, Ericsson, and IBMCreating about 140,000 jobsLargely improve local economies while firms sustain competitive advantage by co-evolution,10-34,EXHIBIT 10.9,Mapping a Regional Cluster: Research Triangle,10-35,CHAPTERCASE 10/Consider This,Hollywood film industry enters global market to explore new revenue stream! Will we see a decrease in the production of regional and U.S.-centered movies? Or will small independent movie producers pick up a higher share of the domestic U.S. market?Will piracy become a significant concern when Hollywood filmmakers go global? How to combat the piracy?How would you prioritize which nations to expand distribution into if you were working for a major Hollywood movie studio?,10-36,Take-Away Concepts,LO 10-1Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy.Globalization involves closer integration and exchange between different countries and peoples worldwide, made by factors such as falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs.A multinational enterprise (MNE) deploys resources and capabilities to procure, produce, and distribute goods and services in at least two countries.Foreign direct investment (FDI) denotes a firms investments in value chain activities abroad.LO 10-2Explain why companies compete abroad and evaluate advantages and disadvantages.Firms compete internationally to gain access to a larger market, gain access to low-cost input factors, and develop new competencies.To compete successfully abroad, firms must overcome the liability of foreignness.,10-37,Take-Away Concepts,LO 10-2Explain why companies compete abroad and evaluate advantages and disadvantages. (cont)As local wages and costs of living increase, a low-cost location advantage evaporates. On the upside, this can turn producers into consumers.Constant pressures to reduce cost lead to a “race-to-the-bottom” where MNEs chase the lowest cost locations.LO 10-3Explain which countries MNEs target for FDI, and how they enter foreign markets.When an MNE has to decide between countries in which to invest, two additional country-level factors come into play: national institutions and national culture.Managers have the following strategy vehicles for entering foreign markets (on a continuum from low to high investment needs and control): exporting, strategic alliances (licensing for products, franchising for services), joint venture, and subsidiary (acquisition or greenfield).,10-38,Take-Away Concepts,LO 10-4Describe the characteristics of and critically evaluate the four different strategies that MNEs can pursue when competing globally.To navigate between the competing pressures of cost reductions and local responsiveness, MNEs have four strategies: international, localization, global-standardization, and transnational.An international strategy leverages home-based core competencies into foreign markets, primarily through exports. It is useful when the MNEs face low pressures for both local responsiveness and cost reductions.A localization strategy attempts to maximize local responsiveness in the face of low pressure for cost reductions. It is costly and inefficient because it requires the duplication of key business functions in multiple countries.A global standardization strategy seeks to reap economies of scale and location by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost. It involves little or no local responsiveness.,10-39,Take-Away Concepts,LO 10-4 Describe the characteristics of and critically evaluate the four different strategies that MNEs can pursue when competing globally. (Cont)A transnational strategy attempts to combine the high local responsiveness of a localization strategy with the lowest cost position attainable from a global-standardization strategy. It also aims to benefit from global learning. Although appealing, it is difficult to implement due to the organizational complexities involved.Exhibit 10.7 summarizes the characteristics, benefits, and risks of the four global competition strategies.LO 10-5Explain why certain industries are more competitive in specific nations than in others.National competitive advantage, or world leadership in specific industries, is created rather than inherited.Four interrelated factors explain national competitive advantage: (1) factor conditions, (2) demand conditions, (3) competitive intensity in a focal industry, and (4) related and supporting industries/complementors.,10-40,Take-Away Concepts,10-41,LO 10-6 Evaluate the relationship between location in a regional