11. global strategy & MNC Flashcards
world 3.0 phase
semi globalized: boarder and distance affect intensity of interaction between countries
globalisation involves
globalisation of market and product
global market
consumer preferences and demand are increasingly similar across countries
global industries
companies compete on a global scale, and their strategic positioning in one market affect their position in others
global companies
operates in multiple countries, with significant portion of its revenue coming from international market.
Porter competitive adv of nations
- international competitive adv is about companies not countries
- dynamics factor: innovation and upgrading
- critical role of national environment
porter national diamond
- factor conditions
- related and supporting industries
- demand conditions
- strategy, structure and rivalry
global strategy
huge eco of scale and no variation in customer demand (semi conductors) -> super basic strat
multi domestic strategy
limited eco of scale, pronounced diff in customer preff (retail bank) -> country-centered strat
liability of foreignness reasons
host government restriction
unfamiliarity with local environment
lack of legitimacy in host country
CAGE framework
cultural distance
admin and political distance
geographical distance
economic distance
transnational strategy
high FDI with extensive coordination among subsidiaries (unilever)
international strategy
export-based with decentralizated marketing
entering market
high risk, high control: wholly owned sub, joint venture with locals
mid risk, mid control: export through distributor
low risk, mid control: licensing, franchising
low risk, low control: indirect export
how current MNC manage variability
adaptive supply chain
redeployement of resource
exit
triple A framework
adaptation, aggregation, arbitrage
