Case studies Flashcards
Main points about NUMMI: incentives
Toyota need to enter the American market with someone who understood it
needed to object to the main competitors Honda and Nissan
they needed knowledge of the US trade unions
GM needed to restore their brand and its reputation, their old model didn’t work so they needed to learn from someone in the industry who with expertise
Main points about NUMMI: differences between toyota and GM
Toyota focused on quality control, whilst GM had the mentality to never stop prediction at any cost – leading to defect vehicle parts.
At Toyota, people were divided into teams of just four or five and they switched jobs every few hours to relieve the monotony. A team leader would step in to help when anything went wrong
Main points about NUMMI: why did it fail
Due to the recession mostly, GM went bankrupt and Toyota did not want to continue alone
Main reasons why germany failed in walmart
Wal-Mart apparently underestimated the ferocity of German competitors, the frugality of German shoppers, and the extent to which regulations, cultural differences, and labor unions would impede its ability to apply in Germany what had worked so well for it in the United States
German discount retailers offer very low prices, and German shoppers have shown they can be very demanding, buying based primarily on price
Germans liked shopping in different stores, did not agree with walmart concept
What is the cage analysis:
Cultural distance, administrative distance, economic distance and geographical distance
Cultural distance
CONSUMER TASTES
DIFFERENT WORKING HABITS
DIFFERENT FAMILY STRUCTURES
DIFFERENT SOCIAL NORMS
Administrative
COMMON TRADE POLCIY (EU, NAFTA)
GOVT POLICIES (PROTECTION OF SOME SECTORS, PROMOTION OF OTHERS ETC.)
BUSINESS BUREAUCRACY,
SIMILARITY OF LEGAL SYSTEMS
Geographical distance
COMMON LAND BORDER / SHARED COMMUNICATION LINKS
TRANSPORTATION INFRASTRUCTURE (CHANNEL TUNNEL)
DIGITAL COMMUNICATION INFRASTRCUTURE (GALILEO)
CLIMATE CONDITIONS
Economic
COMMON CURRENCY AND MONETARY POLICY
SIMILAR PURCHASING POWER
SHARED TAXATION SCHEMES
EQUALITY LEVELS /WEALTH CONCENTRATION
