Globalisation & the Firm Flashcards
why does Rugman (2001) say global strategy is a myth
it is never the whole world working together
it is triad based business (3 regions )
- North America
- EU
- Japan
(2001 so prior to China joining WTO)
so the strategies are regional not global
it is also hightly regulated so limiting the freedom
what is Rugman (2001) mantra for global strategy
business needs to think regional, act local and forget global
why does Rugman (2001) say to businesses to think regional, act local and forget global
less risk
locally there will be similar cultures, attitudes, beliefs and core values
may also share currencies
how should global strategies be designed instead, to make them not just a myth
- learn to deal with national cultures
- acknowledge the triad based clusters and develop on them rather than developing pure global strategies
- make alliances
what are the two approaches to international trade according to Simmonds
standardisation of products
global branding
how do McDonalds excel at balancing standardisation with regional branding
- Operations are standardised globally i.e. there is the same expectations for cleanliness, hygiene and prep time globally
- But menus are tweaked slightly to reflect local taste
what does Simmonds define Globalisation as in Globalisation: Another View
the ability to transfer information and knowledge globally
what does Simmonds say the 3 stages of Globalisation are in Globalisation: Another View
- Globalisation of markets (tangible goods)
- Globalisation of sources (offshoring)
- Globalisation of intellect (human capital)
what steps are involved in globalisation of markets (tangible products)
- industry analysis
- competitor analysis
- financial capital
- market positioning
what steps are involved in globalisation of resources
organisational capability
what steps are needed for globalisation of talent and human capital
entreprenuership
experimentation
vision and values
what are the 5 major forces influencing the global market place
- shift from information to knowledge
- shift from bureaucracies to networks
- shift from training and development to learnings
- shift from national to transnational
- shift from competitive to collaborative
what is meant by a shift from information to knowledge
from data and information
to
intelligence
how has fast fashion like Shein and Zara leveraged technology
through the supply side and also through marketing (social media)
why is collaboration between competitors (frenemies) considered good
minimise cost
access to new clients and markets
examples of competitors who collaborated
Apple and Samsung
collaborated on chips for the iPhone
Amazon collaborates with people who sell in their market place
Amazon gets commission and the sellers tap into a huge market base
why would collaboration be particularly valuable for SMEs
they may not be able to fill a container on a ship
why are firms increasingly collaborating
(4 reasons)
- reducing costs
- to bring firms from different industries together
- collaborating with local partners overseas (cross boarder ties)
- to satisfy consumer demands
why are alliances among carmakers common
must spend fortunes into research and development of hybrid and renewable energy cars while still investing in their petrol and diesel vehicles
would be too risky to invest all this money alone
examples of car makers that have collaborated
Toyota and BMW
fuel cell technology
examples of partnerships that bring firms from different industries together
tickets for concerts through 3
why are partnerships and collaborations usually established with local partners when locating overseas
to understand culture, regulations and have people who speak the language
eases entry to market
examples of consumer demands that drive partnerships
Starbucks in Uniqlo
customers can enjoy a coffee while they shop
H&M, clothes donation and upcycling to receive free discounts
examples of growth of MNCs from global south
Hawaweuai phones
examples of companies that standardise their products world wide
coca cola
examples of companies that personalise their products worldwide
proctor and gamble
eg. USA sell shampoo in bulk, people drive to supermarkets, use more
Philippines sell in single use sachets, people walk to shops
Suggestions for ‘whose’ century it might be
Country - China?
Firms - Apple?
Individuals - Jeff Bezoz?
