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EXPANDING ABROAD Motives, Means, Mentalities
MNE <ul><li>Operates globally and adjusts products to country </li></ul><ul><li>Qualifications </li></ul><ul><ul><li>Direc...
Why Internationalize? <ul><li>Traditional motives: </li></ul><ul><ul><li>Secure key supplies </li></ul></ul><ul><ul><li>Ma...
Phases <ul><li>Innovation </li></ul><ul><li>Demand overseas grows </li></ul><ul><li>Company moves to low-wage country </li...
Prerequisites to become MNE <ul><li>Must have: </li></ul><ul><ul><li>Location specific advantage </li></ul></ul><ul><ul><u...
How? <ul><li>Uppsala Model </li></ul><ul><ul><li>Gain experience in foreign market </li></ul></ul><ul><ul><li>Start close ...
Mentalities <ul><li>International </li></ul><ul><li>Multinational </li></ul><ul><li>Global </li></ul><ul><li>Transactional...
Acer, Inc
Foundations <ul><li>Did not expand too quickly </li></ul><ul><li>Employee ownership </li></ul><ul><li>Avoid debt </li></ul...
Leonard Liu <ul><li>Acer stock crashed in late 1980’s below market index </li></ul><ul><li>Liu introduced accountability f...
Should Acer, Inc continue…?
EPG <ul><li>Ethnocentric </li></ul><ul><ul><li>Home managers more capable than non-native </li></ul></ul><ul><li>Polycentr...
Distance is a “Multidimensional Construct?”
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Presentation ch1

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Presentation ch1

  1. 1. EXPANDING ABROAD Motives, Means, Mentalities
  2. 2. MNE <ul><li>Operates globally and adjusts products to country </li></ul><ul><li>Qualifications </li></ul><ul><ul><li>Direct investment in foreign countries </li></ul></ul><ul><ul><ul><li>Not just import-export business </li></ul></ul></ul><ul><ul><li>Manage operations as essential parts of company </li></ul></ul>
  3. 3. Why Internationalize? <ul><li>Traditional motives: </li></ul><ul><ul><li>Secure key supplies </li></ul></ul><ul><ul><li>Market-seeking </li></ul></ul><ul><ul><li>Access low-cost factors </li></ul></ul><ul><li>Current motives: </li></ul><ul><ul><li>Scale economies, R&D investment inflating, shortened product life cycles </li></ul></ul><ul><ul><li>Global scanning/learning </li></ul></ul><ul><ul><li>Competitive positioning </li></ul></ul>
  4. 4. Phases <ul><li>Innovation </li></ul><ul><li>Demand overseas grows </li></ul><ul><li>Company moves to low-wage country </li></ul><ul><ul><li>Develop at lower cost </li></ul></ul>
  5. 5. Prerequisites to become MNE <ul><li>Must have: </li></ul><ul><ul><li>Location specific advantage </li></ul></ul><ul><ul><ul><li>Foreign motivation to invest </li></ul></ul></ul><ul><ul><li>Strategic competencies </li></ul></ul><ul><ul><ul><li>Owner/MGT skills to overcome foreignness </li></ul></ul></ul><ul><ul><li>Organizational capabilities </li></ul></ul>
  6. 6. How? <ul><li>Uppsala Model </li></ul><ul><ul><li>Gain experience in foreign market </li></ul></ul><ul><ul><li>Start close  move further </li></ul></ul><ul><ul><li>Traditional exports  demanding operations </li></ul></ul><ul><li>Invest in local partners as shortcut </li></ul><ul><li>High commitment-high control </li></ul>
  7. 7. Mentalities <ul><li>International </li></ul><ul><li>Multinational </li></ul><ul><li>Global </li></ul><ul><li>Transactional </li></ul>
  8. 8. Acer, Inc
  9. 9. Foundations <ul><li>Did not expand too quickly </li></ul><ul><li>Employee ownership </li></ul><ul><li>Avoid debt </li></ul><ul><li>Acer 1-2-3 </li></ul><ul><li>Employee “think and learn” </li></ul>
  10. 10. Leonard Liu <ul><li>Acer stock crashed in late 1980’s below market index </li></ul><ul><li>Liu introduced accountability for profit and loss to managers </li></ul><ul><ul><li>Challenged traditional ideals </li></ul></ul><ul><ul><li>Evaluations  Layoffs </li></ul></ul>
  11. 11. Should Acer, Inc continue…?
  12. 12. EPG <ul><li>Ethnocentric </li></ul><ul><ul><li>Home managers more capable than non-native </li></ul></ul><ul><li>Polycentric </li></ul><ul><ul><li>Host country knows what’s best for its people </li></ul></ul><ul><li>Geocentric </li></ul><ul><ul><li>Hire best men for the job no matter the nationality </li></ul></ul><ul><li>Regiocentric </li></ul><ul><ul><li>More than one country (NAFTA) </li></ul></ul>
  13. 13. Distance is a “Multidimensional Construct?”

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