MT5 - Globalisation and Corporate Citizenship

Question 1

Bartlett and Goshal (1992)

Answer 1

Transnational organisations: integrate assets, people, units all arounds the world
strategic capabilities:
global-scale efficiency and competitiveness
national-level responsiveness and flexibility
cross-market capacity to leverage global learning
Types of managers needed:
Business manager: overseeing integrated worldwide operations (strategist, architect, coordinator)
Country manager: focuses on local customer and governmental needs (sensor, bulider, contributor)
Functional manager: focuses on a specialised field worldwide (scanner, cross-pollinator, champion)

Question 2

Ghemawat (2007)

Answer 2

Global strategy
AAA triangle:
Adaptation: responding to local needs (spending focus: advertising)
Aggregation: economies of scale by global operations and standardisation (spending focus: R&D)
Arbitrage: exploitation of differences between national or regional markets (spending focus: labour)
Companies can focus on two of these elements as well

Question 3

Baron (1995)

Answer 3

Nonmarket environment is important
4 I-s: issues, institutions, interests, information
e.g. government controls, challenges by activist groups, public concerns, reputation
Can create advantages if integrated into market strategy well: defence against new entrants and substitutes

Question 4

Porter (1998)

Answer 4

Competitive advantage of nations - the diamond model:
Factors of production: natural resources, workforce, but also factor creation, like scientific databases, or capital
Demand conditions: local demand that reflects the need for specific products (not the size, but the nature that matters)
Related and supporting industries: internationally competitive suppliers, partners (for quick communication)
Firm strategy, structure and rivalry: matching the culture, organisation type, management style to the methods of a nation
Supports the emergence of clusters