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Global Interdependent Organizational LeadershipComment by
[email protected]: Topic is incomplete.
Check feedback comment from ARP 1. Eg., you may add the
role of technology or the topic’s impact on organizational
culture, etc.
(New Topic) Bridging Global Leadership Gaps in Multinational
Organizations.
Department of Global Leadership, Indiana Institute of
Technology
David E. Popoola
Synthesis Matrix
Dr. Tina Abrefa-Gyan
October 30, 2021
Comment: See the embedded comments. Need to align work
with APA style of writing although you’ve demonstrated
significant improvement in this area. Per the instructions for
this assignment, you were to Identify at least 10 research
articles as a base for your ARP. You have used textbooks and
dissertations to replace some of the articles. It is necessary to
answer all question asked in an assignment to ensure that your
work meets the doctoral level standards.
Grade: 40/50
Global Interdependent Organizational Leadership
When you go through this synthesis Matrix one thing that will
be very clear to you is how you can hardly separate the success
of the organization from the success of the company. This
shows the reliance of the organizations on the host nations,
however, the bridge between the nation and her people, their
cultures and their ways are the leader. While the people are
getting introduced to the organization, they will meet and know
the leader, their opinion at this point begins to form. However,
the workings of diverse stations scattered all over the world
working as one is an efficient working and reliance of
multiculturism and the Global leader is right at the core of this
system (Schein & Schein 2016 and Setyaningrum 2017).
Citation in APA 7th edition Format
Claim 1 / Main Idea AComment by [email protected]: State the
ideas here
E.g., Meeting Needs Globally/Global Customer Satisfaction of
Products
Claim 2 / Main Idea B
Claim 3 / Main Idea C
Claim 4 / Main Idea D
Article 1: French, 2019
The goal is not to just be in multiple nations, but to see how
your product and service can meet need, that is what sustains a
foreign organization, this is a major mindset
Global leaders’ mindset, start from recognizing there are
differences in National character.
Success comes when the leader knows how to navigate between
these different characters in multination.
National culture and characteristics must be celebrated across
board; corporate, leadership and individual level of the
organization.
Article 2: Fry and Egel, 2021
Being in different nation has its challenges, and having a
working methods, models, and tools helps to navigate some of
the hurdles.
There are social and environmental challenges facing all
organizations represented in multiple organization.
The organization should focus on implementing organizational
change for sustainable development.
N/A
Article 3: Gilman, 2013
Organization can’t overlook cultural influences
Cultural influences will reflect of work ethics
Corporate culture must marry national culture to uniquely
maximize potential in that nation.
N/A
Article 4: Ravenscroft, 2012
Availability is important to learn
Before they interact with the organization, they will learn the
about the leader
N/A
Article 5: Setyaningrum, 2017
Rate of expansion of multinational organization has skyrocketed
Profit making will not sustain an organization, commitment to
the host nation must be palpable
Commitment cannot just be words; it starts from an
organizational culture committed to worker.
N/A
Article 6: Tran, 2012
Leaders make their mark bore the organization will ever begin
The personality of a global leader and the nation he is spreading
to, must work for success to be registered
Organizational leadership with a global perspective is not a
standalone, it involves may aspects that revolves around life
and culture,
N/A
Article 7: Pearson, 2012
Reliance, alliance and dependence, are the key ingredient every
21st century global leader need
Every aspect of a global leader is called into action when
leading in this age, because of the fast pace the world is moving
Just because of the unpredictability of the world we live in, a
global leader needs solid structure, framework and people.
N/A
Article 8: Mohammadian, 2019
Diversity is key in a multicultural organization
Representation is not overrated in a multicultural organization
Cultural value helps to build a workforce that is motivated
N/A
Article 9: Schein & Schein, 2016
To thrive in a new land study how the society influence the
people
When cultural is not clearly observed and defined, a faulty
organization culture is built
A global leader must recognize the dependency of External
adaptation and internal integration
N/A
Article 10: By & Burnes, 2012
Culture of transparency must be prominent evening the face of
faulty and corrupt host Country policy
Without solid ethical structure, a failure in a country will
spread to the next.
N/A
Comment by [email protected]: Instead, state the main ideas in
the table and use them here as subtitles. To help orient the
reader, I need to know the main ideas and your which paragraph
is used to describe each of the main ideas.
Main Ideas
There is an unending circle that flows from nation to nation,
around the framework of a global organization knitted together
by a corporate vision and culture. This as an overview cr eates
an image, however, the microscopic events are what guarantees
success. The matrix highlights how these microscopic pillars
hold the frameworks and systems of a global organization
together ensuring it thrives anywhere it is planted (Fry & Egel,
2021;, Gilman, 2013; Pearson, 2013 and Gilman, D. G. (2013).
You will see the global leader as a major determining factor and
piece in the equation. How the organization succeed and for
how long can be dependent on a leader’s mindset and
willingness to learn and unlearn. An organization producing
cheese originating from America must understand that cheese
itself is a cultural meal in eastern Europe and because of the
this the leader must be able to learn fast and adapt the culture of
the organization with that of the national culture. Any ethical
issues on the side of the leader as will is visible to very quickly
and cannot be hidden for too long (Ravenscroft, 2012).
Organization must ensure they are not sending men and women
with questionable ethical issues (Tran, 2012 and French, 2019).
Representation is key. Everything gravitates to what is familiar.
When an organization is in a foreign home, there must be a
drive to get indigenes into important role, by this, the
organization is local enough but globally reaching to produce
result a local organization can only dream of (Mohammadian,
2019).
However, what this matrix literature review did not show is the
difference that exist in the cultures. It made mention of
difference of culture and that a global leader that want to be
successful must be aware of these differences. But how does a
difference in culture, which includes beliefs, ethics and work
culture affect the organization when they differ from one nation
to another. How do we measure this effect and hows significant
is this effect on the corporate organization?
Conclusion
It’s no news that we live in a fast-paced world, however, not
everyone has realized how much we depend on each other for
basic things in the world, and how this dependance has made
our world smaller.
ReferencesComment by [email protected]: Per the instructions
for this assignment, you were to Identify at least 10 research
articles as a base for your ARP. You have used textbooks and
dissertations to replace some of the articles.
By, R. T., & Burnes, B. (Eds.). (2012). Organizational change,
leadership and ethics: Leading organizations towards
sustainability. Taylor & Francis Group.Comment by
[email protected]: This looks incorrect if it is an article or book.
Check the APA manual.
French, R. P. (2019). Global mindset: Cultivating knowledge in
multinational organizations. Cambridge Scholars Publishing.
ISBN: 1-5275-1825-6
Fry, L. W., & Egel, E. (2021). Global Leadership for
Sustainability. Sustainability, 13(11),6360.
http://dx.doi.org/10.3390/su13116360
Gilman, D. G. (2013). Comparative analysis of corporate culture
in a multinational organization (Order No. 3587467). Available
from ProQuest Dissertations & Theses Global; ProQuest One
Business; Publicly Available Content Database. (1426825462).
https://www.proquest.com/dissertations-theses/comparative-
analysis-corporate-culture/docview/1426825462/se-2
Mohammadian, H. D. (2019). International project management:
A focus on hr approach in multinational corporations.
Momentum Press.Comment by [email protected]: ???
Pearson, C. S. (2012). The transforming leader: New approaches
to leadership for the twenty-first century. Berrett-Koehler
Publishers, Incorporated.
Ravenscroft, D. A. (2012). A Unified Model of Competence in
Global Leader Behavior (Order No. 3544484). Available from
ProQuest Dissertations & Theses Global; ProQuest One
Business. (1226259578).
https://www.proquest.com/dissertations-theses/unified-model-
competence-global-leader-behavior/docview/1226259578/se-
2?accountid=42681
Schein, E. H., & Schein, P. A. (2016). Organizational culture
and leadership. John Wiley & Sons, Incorporated.
Setyaningrum, R. P. (2017). Relationship between Servant
Leadership in Organizational Culture, Organizational
Commitment, Organizational Citizenship Behaviour and
Customer Satisfaction. European Research Studies, 20(3), 554-
569. https://www.proquest.com/scholarly-journals/relationship-
between-servant-leadership/docview/1945556219/se-
2?accountid=42681
Tran, V. N. (2012). Romancing organizational leadership: A
study of the relationship between personality, maturity, national
culture, and romance of leadership in a multinational
organization (Order No. 3516959). Available from ProQuest
Dissertations & Theses Global; ProQuest One Business;
Publicly Available Content Database. (1030961295).
https://www.proquest.com/dissertations-theses/romancing-
organizational-leadership-study/docview/1030961295/se-2
Mike W. Peng, PhD
Jindal Chair of Global Strategy
University of Texas at Dallas
Chair, Global Strategy Interest Group, Strategic Management
Society (2008)
Decade Award Winner, Journal of International Business
Studies (2015)
The Only Global Strategy Textbook Author Listed in
The World’s Most Influential Scientific Minds (2015)
Global Strategy
FOURTH EDITION
Australia • Brazil • Mexico • Singapore • United Kingdom •
United States
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Global Strategy, Fourth Edition
Mike W. Peng
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ISBN: 978-0-357-03918-2
Printed in the United Kingdom by CPI Antony Rowe
Print Number: 04 Print Year: 2019
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WCN: 02-300
To Agnes, Grace, and James
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Brief Contents
Preface xviii
About the Author xxv
PART 1 FOUNDATIONS OF GLOBAL STRATEGY 1
1 STRATEGIZING AROUND THE GLOBE 2
OPENING CASE:
Emerging Markets: Samsung’s Global Strategy Group 3
CLOSING CASES:
Emerging Markets: Microsoft’s Evolving China Strategy 23
Emerging Markets: Samsung’s Global Strategy Group 25
The Global Strategy of Global Strategy 27
2 MANAGING INDUSTRY COMPETITION 32
OPENING CASE:
Emerging Markets: Competing in the Indian Airline Industry 33
CLOSING CASES:
Emerging Markets: Competing in the Indian Airline Industry 53
Emerging Markets: Competing in the Indian Retail Industry 54
Emerging Markets: High Fashion Fights Recession 56
3 LEVERAGING RESOURCES AND CAPABILITIES 60
OPENING CASE:
Enhancing Value, Rarity, and Inimitability at Burberry 61
CLOSING CASES:
Emerging Markets: From Copycats to Innovators 78
Enhancing Value, Rarity, and Inimitability at Burberry 80
IBM at 100 81
iv
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4 EMPHASIZING INSTITUTIONS, CULTURES, AND ETHICS
86
OPENING CASE:
Emerging Markets: One Rock Formation, Two Countries 87
CLOSING CASE:
Emerging Markets: One Rock Formation, Two Countries 106
PART 2 BUSINESS-LEVEL STRATEGIES 111
5 GROWING AND INTERNATIONALIZING THE
ENTREPRENEURIAL FIRM 112
OPENING CASE:
Emerging Markets: The Rise of Alibaba 113
CLOSING CASES:
Emerging Markets: Amazon.com of Russia 130
Emerging Markets: Microfinance, Macro Success or Global
Mess? 131
Emerging Markets: The Rise of Alibaba 133
6 ENTERING FOREIGN MARKETS 138
OPENING CASE:
Emerging Markets: SABMiller in Nigeria 139
CLOSING CASES:
Emerging Markets: Pearl River Goes Abroad 160
Emerging Markets: SABMiller in Nigeria 162
Enter the United States by Bus 163
7 MAKING STRATEGIC ALLIANCES AND NETWORKS
WORK 168
OPENING CASE:
Emerging Markets: Etihad Airways’ Alliance Network 169
CLOSING CASES:
Emerging Markets: BP, AAR, and TNK-BP (also see Emerging
Markets 7.1) 188
Emerging Markets: Etihad Airways’ Alliance Network 191
8 MANAGING GLOBAL COMPETITIVE DYNAMICS 196
OPENING CASE:
Emerging Markets: Emirates Airlines Fights Legacy Airlines
197
CLOSING CASES:
Emerging Markets: Emirates Airlines Fights Legacy Airlines
220
Emerging Markets: HTC Fights Apple 222
Brief Contents v
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PART 3 CORPORATE-LEVEL STRATEGIES 227
9 DIVERSIFYING AND MANAGING ACQUISITIONS
GLOBALLY 228
OPENING CASE:
Emerging Markets: Emerging Acquirers from China and India
229
CLOSING CASE:
Emerging Markets: Emerging Acquirers from China and India
251
10 STRATEGIZING, STRUCTURING, AND LEARNING
AROUND THE WORLD 258
OPENING CASE:
Emerging Markets: GE Innovates from the Base of the Pyramid
259
CLOSING CASES:
A Subsidiary Initiative at Bayer MaterialScience North America
277
Emerging Markets: GE Innovates from the Base of the Pyramid
279
11 GOVERNING THE CORPORATION AROUND THE
WORLD 284
OPENING CASE:
Global Competition in How to Best Govern Large Firms 285
CLOSING CASES:
Emerging Markets: The Private Equity Challenge 306
Emerging Markets: GE Innovates from the Base of the Pyramid
309
12 STRATEGIZING WITH CORPORATE SOCIAL
RESPONSIBILITY 316
OPENING CASE:
Emerging Markets: The Ebola Challenge 317
CLOSING CASES:
Emerging Markets: The Ebola Challenge 335
Launching the Nissan Leaf: The World’s First Electric Car 337
Glossary 343
Index 355
vi Brief Contents
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Contents
Preface xviii
About the Author xxv
PART 1 FOUNDATIONS OF GLOBAL STRATEGY 1
1 STRATEGIZING AROUND THE GLOBE 2
OPENING CASE:
Emerging Markets: Samsung’s Global Strategy Group 3
A GLOBAL GLOBAL-STRATEGY BOOK 4
WHY STUDY GLOBAL STRATEGY? 7
WHAT IS STRATEGY? 7
Origin 7
Plan versus Action 8
Strategy as Theory 9
FUNDAMENTAL QUESTIONS IN STRATEGY 13
Why Do Firms Differ? 13
How Do Firms Behave? 14
What Determines the Scope of the Firm? 16
What Determines the Success and Failure of Firms Around the
Globe? 16
WHAT IS GLOBAL STRATEGY? 17
WHAT IS GLOBALIZATION? 18
Three Views on Globalization 18
The Pendulum View on Globalization 18
Semiglobalization 20
GLOBAL STRATEGY AND THE GLOBALIZATION DEBATE
20
ORGANIZATION OF THE BOOK 22
vii
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CHAPTER SUMMARY 22
CRITICAL DISCUSSION QUESTIONS 23
TOPICS FOR EXPANDED PROJECTS 23
CLOSING CASES:
Emerging Markets: Microsoft’s Evolving China Strategy 23
Emerging Markets: Samsung’s Global Strategy Group 25
The Global Strategy of Global Strategy 27
NOTES 28
2 MANAGING INDUSTRY COMPETITION 32
OPENING CASE:
Emerging Markets: Competing in the Indian Airline Industry 33
DEFINING INDUSTRY COMPETITION 34
THE FIVE FORCES FRAMEWORK 35
From Economics to Strategy 35
Intensity of Rivalry among Competitors 35
Threat of Potential Entry 37
Bargaining Power of Suppliers 39
Bargaining Power of Buyers 39
Threat of Substitutes 40
Lessons from the Five Forces Framework 41
THREE GENERIC STRATEGIES 41
Cost Leadership 42
Differentiation 42
Focus 44
Lessons from the Three Generic Strategies 44
DEBATES AND EXTENSIONS 44
Clear versus Blurred Boundaries of Industry 44
Threats versus Opportunities 46
Five Forces versus a Sixth Force 46
Stuck in the Middle versus All-Rounder 46
Industry Rivalry versus Strategic Groups 47
Integration versus Outsourcing 49
Industry-Specific versus Firm-Specific and Institution-Specific
Determinants
of Performance 50
Making Sense of the Debates 50
viii Contents
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THE SAVVY STRATEGIST 51
CHAPTER SUMMARY 51
CRITICAL DISCUSSION QUESTIONS 52
TOPICS FOR EXPANDED PROJECTS 52
CLOSING CASES:
Emerging Markets: Competing in the Indian Airline Industry 53
Emerging Markets: Competing in the Indian Retail Industry 54
Emerging Markets: High Fashion Fights Recession 56
NOTES 58
3 LEVERAGING RESOURCES AND CAPABILITIES 60
OPENING CASE:
Enhancing Value, Rarity, and Inimitability at Burberry 61
UNDERSTANDING RESOURCES AND CAPABILITIES 62
RESOURCES, CAPABILITIES, AND THE VALUE CHAIN 63
FROM SWOT TO VRIO 67
The Question of Value 67
The Question of Rarity 68
The Question of Imitability 68
The Question of Organization 69
DEBATES AND EXTENSIONS 70
Firm-Specific versus Industry-Specific Determinants of
Performance 71
Static Resources versus Dynamic Capabilities 72
Offshoring versus Non-Offshoring 73
Domestic Resources versus International (Cross-Border)
Capabilities 75
THE SAVVY STATEGIST 75
CHAPTER SUMMARY 76
CRITICAL DISCUSSION QUESTIONS 77
TOPICS FOR EXPANDED PROJECTS 77
CLOSING CASES:
Emerging Markets: From Copycats to Innovators 78
Enhancing Value, Rarity, and Inimitability at Burberry 80
IBM at 100 81
NOTES 82
Contents ix
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4 EMPHASIZING INSTITUTIONS, CULTURES, AND ETHICS
86
OPENING CASE:
Emerging Markets: One Rock Formation, Two Countries 87
UNDERSTANDING INSTITUTIONS 88
Definitions 88
What Do Institutions Do? 89
How Do Institutions Reduce Uncertainty? 90
AN INSTITUTION-BASED VIEW OF BUSINESS STRATEGY
92
Overview 92
Two Core Propositions 94
THE STRATEGIC ROLE OF CULTURE 95
The Definition of Culture 95
The Five Dimensions of Culture 95
Cultures and Strategic Choices 97
THE STRATEGIC ROLE OF ETHICS 97
The Definition and Impact of Ethics 97
Managing Ethics Overseas 98
Ethics and Corruption 99
A STRATEGIC RESPONSE FRAMEWORK FOR ETHICAL
CHALLENGES 100
DEBATES AND EXTENSIONS 102
Opportunism versus Individualism/Collectivism 102
Cultural Distance versus Institutional Distance 103
THE SAVVY STRATEGIST 103
CHAPTER SUMMARY 104
CRITICAL DISCUSSION QUESTIONS 105
TOPICS FOR EXPANDED PROJECTS 105
CLOSING CASE:
Emerging Markets: One Rock Formation, Two Countries 106
NOTES 107
PART 2 BUSINESS-LEVEL STRATEGIES 111
5 GROWING AND INTERNATIONALIZING THE
ENTREPRENEURIAL FIRM 112
OPENING CASE:
Emerging Markets: The Rise of Alibaba 113
ENTREPRENEURSHIP AND ENTREPRENEURIAL FIRMS
114
x Contents
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A COMPREHENSIVE MODEL OF ENTREPRENEURSHIP 115
Industry-Based Considerations 115
Resource-Based Considerations 116
Institution-Based Considerations 117
FIVE ENTREPRENEURIAL STRATEGIES 118
Growth 118
Innovation 118
Network 119
Financing and Governance 120
Harvest and Exit 121
INTERNATIONALIZING THE ENTREPRENEURIAL FIRM
123
Transaction Costs and Entrepreneurial Opportunities 123
International Strategies for Entering Foreign Markets 123
International Strategies for Staying in Domestic Markets 124
DEBATES AND EXTENSIONS 125
Traits versus Institutions 125
Slow Internationalizers versus Born Global Start-ups 126
Anti-Failure Biases versus Entrepreneur-Friendly Bankruptcy
Laws 127
THE SAVVY ENTREPRENEUR 128
CHAPTER SUMMARY 129
CRITICAL DISCUSSION QUESTIONS 129
TOPICS FOR EXPANDED PROJECTS 130
CLOSING CASES:
Emerging Markets: Amazon.com of Russia 130
Emerging Markets: Microfinance, Macro Success or Global
Mess? 131
Emerging Markets: The Rise of Alibaba 133
NOTES 134
6 ENTERING FOREIGN MARKETS 138
OPENING CASE:
Emerging Markets: SABMiller in Nigeria 139
OVERCOMING THE LIABILITY OF FOREIGNNESS 140
UNDERSTANDING THE PROPENSITY TO
INTERNATIONALIZE 141
A COMPREHENSIVE MODEL OF FOREIGN MARKET
ENTRIES 142
Industry-Based Considerations 143
Contents xi
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Resource-Based Considerations 143
Institution-Based Considerations 144
WHERE TO ENTER? 146
Location-Specific Advantages and Strategic Goals 146
Cultural/Institutional Distances and Foreign Entry Locations
148
WHEN TO ENTER? 148
HOW TO ENTER? 150
Scale of Entry: Commitment and Experience 150
Modes of Entry: The First Step on Equity versus Non-Equity
Modes 151
Modes of Entry: The Second Step on Making Actual Selections
153
DEBATES AND EXTENSIONS 156
Liability versus Asset of Foreignness 156
Global versus Regional Geographic Diversification 156
Old-Line versus Emerging Multinationals: OLI versus LLL 157
THE SAVVY STRATEGIST 158
CHAPTER SUMMARY 159
CRITICAL DISCUSSION QUESTIONS 160
TOPICS FOR EXTENDED PROJECTS 160
CLOSING CASES:
Emerging Markets: Pearl River Goes Abroad 160
Emerging Markets: SABMiller in Nigeria 162
Enter the United States by Bus 163
NOTES 164
7 MAKING STRATEGIC ALLIANCES AND NETWORKS
WORK 168
OPENING CASE:
Emerging Markets: Etihad Airways’ Alliance Network 169
DEFINING STRATEGIC ALLIANCES AND NETWORKS 170
A COMPREHENSIVE MODEL OF STRATEGIC ALLIANCES
AND NETWORKS 171
Industry-Based Considerations 172
Resource-Based Considerations 173
Institution-Based Considerations 175
FORMATION 177
Stage One: To Cooperate or Not to Cooperate? 177
Stage Two: Contract or Equity? 177
Stage Three: Positioning the Relationship 178
xii Contents
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time if subsequent rights restrictions require it.
EVOLUTION 179
Combating Opportunism 179
Evolving from Strong Ties to Weak Ties 179
From Corporate Marriage to Divorce 181
PERFORMANCE 182
The Performance of Strategic Alliances and Networks 182
The Performance of Parent Firms 183
DEBATES AND EXTENSIONS 183
Majority JVs as Control Mechanisms versus Minority JVs as
Real Options 184
Alliances versus Acquisitions 184
Acquiring versus Not Acquiring Alliance Partners 185
THE SAVVY STRATEGIST 186
CHAPTER SUMMARY 187
CRITICAL DISCUSSION QUESTIONS 188
TOPICS FOR EXPANDED PROJECTS 188
CLOSING CASES:
Emerging Markets: BP, AAR, and TNK-BP (also see Emerging
Markets 7.1) 188
Emerging Markets: Etihad Airways’ Alliance Network 191
NOTES 192
8 MANAGING GLOBAL COMPETITIVE DYNAMICS 196
OPENING CASE:
Emerging Markets: Emirates Airlines Fights Legacy Airlines
197
STRATEGY AS ACTION 198
INDUSTRY-BASED CONSIDERATIONS 199
Collusion and Prisoners’ Dilemma 199
Industry Characteristics and Collusion vis-à-vis Competition
201
RESOURCE-BASED CONSIDERATIONS 203
Value 203
Rarity 203
Imitability 204
Organization 204
Resource Similarity 204
Fighting Low-Cost Rivals 205
INSTITUTION-BASED CONSIDERATIONS 207
Formal Institutions Governing Domestic Competition: A Focus
on Antitrust 207
Formal Institutions Governing International Competition: A
Focus on Antidumping 209
Contents xiii
Copyright 2017 Cengage Learning. All Rights Reserved. May
not be copied, scanned, or duplicated, in whole or in part. Due
to electronic rights, some third party content may be suppressed
from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does
not materially affect the overall learning experience. Cengage
Learning reserves the right to remove additional content at any
time if subsequent rights restrictions require it.
ATTACK AND COUNTERATTACK 210
Three Main Types of Attack 210
Awareness, Motivation, and Capability 212
COOPERATION AND SIGNALING 213
LOCAL FIRMS VERSUS MULTINATIONAL ENTERPRISES
213
DEBATES AND EXTENSIONS 215
Strategy versus IO Economics and Antitrust Policy 215
Competition versus Antidumping 216
THE SAVVY STRATEGIST 218
CHAPTER SUMMARY 219
CRITICAL DISCUSSION QUESTIONS 220
TOPICS FOR EXTENDED PROJECTS 220
CLOSING CASES:
Emerging Markets: Emirates Airlines Fights Legacy Airlines
220
Emerging Markets: HTC Fights Apple 222
NOTES 224
PART 3 CORPORATE-LEVEL STRATEGIES 227
9 DIVERSIFYING AND MANAGING ACQUISITIONS
GLOBALLY 228
OPENING CASE:
Emerging Markets: Emerging Acquirers from China and India
229
PRODUCT DIVERSIFICATION 231
Product-Related Diversification 231
Product-Unrelated Diversification 231
Product Diversification and Firm Performance 232
GEOGRAPHIC DIVERSIFICATION 233
Limited versus Extensive International Scope 233
Geographic Diversification and Firm Performance 233
COMBINING PRODUCT AND GEOGRAPHIC
DIVERSIFICATION 235
A COMPREHENSIVE MODEL OF DIVERSIFICATION 236
Industry-Based Considerations 236
Resource-Based Considerations 237
Institution-Based Considerations 239
The Evolution of the Scope of the Firm 240
xiv Contents
Copyright 2017 Cengage Learning. All Rights Reserved. May
not be copied, scanned, or duplicated, in whole or in part. Due
to electronic rights, some third party content may be suppressed
from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does
not materially affect the overall learning experience. Cengage
Learning reserves the right to remove additional content at any
time if subsequent rights restrictions require it.
ACQUISITIONS 243
Setting the Terms Straight 243
Motives for Mergers and Acquisitions 244
Performance of Mergers and Acquisitions 245
Restructuring 248
DEBATES AND EXTENSIONS 248
Product Relatedness versus Other Forms of Relatedness 248
Acquisitions versus Alliances 249
THE SAVVY STRATEGIST 249
CHAPTER SUMMARY 250
CRITICAL DISCUSSION QUESTIONS 251
TOPICS FOR EXPANDED PROJECTS 251
CLOSING CASE:
Emerging Markets: Emerging Acquirers from China and India
251
NOTES 254
10 STRATEGIZING, STRUCTURING, AND LEARNING
AROUND THE WORLD 258
OPENING CASE:
Emerging Markets: GE Innovates from the Base of the Pyramid
259
MULTINATIONAL STRATEGIES AND STRUCTURES 260
Pressures for Cost Reduction and Local Responsiveness 260
Four Strategic Choices 261
Four Organizational Structures 264
The Reciprocal Relationship between Multinational Strategy
and Structure 266
A COMPREHENSIVE MODEL OF MULTINATIONAL
STRATEGY, STRUCTURE, AND LEARNING 267
Industry-Based Considerations 267
Resource-Based Considerations 268
Institution-Based Considerations 269
WORLDWIDE LEARNING, INNOVATION, AND
KNOWLEDGE MANAGEMENT 271
Knowledge Management 271
Knowledge Management in Four Types of Multinational
Enterprises 271
Globalizing Research and Development (R&D) 272
Problems and

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1Global Interdependent Organizational LeadershipC

  • 1. 1 Global Interdependent Organizational LeadershipComment by [email protected]: Topic is incomplete. Check feedback comment from ARP 1. Eg., you may add the role of technology or the topic’s impact on organizational culture, etc. (New Topic) Bridging Global Leadership Gaps in Multinational Organizations. Department of Global Leadership, Indiana Institute of Technology David E. Popoola Synthesis Matrix Dr. Tina Abrefa-Gyan October 30, 2021 Comment: See the embedded comments. Need to align work with APA style of writing although you’ve demonstrated significant improvement in this area. Per the instructions for this assignment, you were to Identify at least 10 research articles as a base for your ARP. You have used textbooks and dissertations to replace some of the articles. It is necessary to answer all question asked in an assignment to ensure that your work meets the doctoral level standards. Grade: 40/50
  • 2. Global Interdependent Organizational Leadership When you go through this synthesis Matrix one thing that will be very clear to you is how you can hardly separate the success of the organization from the success of the company. This shows the reliance of the organizations on the host nations, however, the bridge between the nation and her people, their cultures and their ways are the leader. While the people are getting introduced to the organization, they will meet and know the leader, their opinion at this point begins to form. However, the workings of diverse stations scattered all over the world working as one is an efficient working and reliance of multiculturism and the Global leader is right at the core of this system (Schein & Schein 2016 and Setyaningrum 2017). Citation in APA 7th edition Format Claim 1 / Main Idea AComment by [email protected]: State the ideas here E.g., Meeting Needs Globally/Global Customer Satisfaction of Products Claim 2 / Main Idea B Claim 3 / Main Idea C Claim 4 / Main Idea D Article 1: French, 2019 The goal is not to just be in multiple nations, but to see how your product and service can meet need, that is what sustains a foreign organization, this is a major mindset Global leaders’ mindset, start from recognizing there are differences in National character. Success comes when the leader knows how to navigate between these different characters in multination. National culture and characteristics must be celebrated across
  • 3. board; corporate, leadership and individual level of the organization. Article 2: Fry and Egel, 2021 Being in different nation has its challenges, and having a working methods, models, and tools helps to navigate some of the hurdles. There are social and environmental challenges facing all organizations represented in multiple organization. The organization should focus on implementing organizational change for sustainable development. N/A Article 3: Gilman, 2013 Organization can’t overlook cultural influences Cultural influences will reflect of work ethics Corporate culture must marry national culture to uniquely maximize potential in that nation. N/A Article 4: Ravenscroft, 2012 Availability is important to learn Before they interact with the organization, they will learn the about the leader N/A Article 5: Setyaningrum, 2017 Rate of expansion of multinational organization has skyrocketed Profit making will not sustain an organization, commitment to the host nation must be palpable Commitment cannot just be words; it starts from an organizational culture committed to worker. N/A Article 6: Tran, 2012 Leaders make their mark bore the organization will ever begin The personality of a global leader and the nation he is spreading to, must work for success to be registered Organizational leadership with a global perspective is not a
  • 4. standalone, it involves may aspects that revolves around life and culture, N/A Article 7: Pearson, 2012 Reliance, alliance and dependence, are the key ingredient every 21st century global leader need Every aspect of a global leader is called into action when leading in this age, because of the fast pace the world is moving Just because of the unpredictability of the world we live in, a global leader needs solid structure, framework and people. N/A Article 8: Mohammadian, 2019 Diversity is key in a multicultural organization Representation is not overrated in a multicultural organization Cultural value helps to build a workforce that is motivated N/A Article 9: Schein & Schein, 2016 To thrive in a new land study how the society influence the people When cultural is not clearly observed and defined, a faulty organization culture is built A global leader must recognize the dependency of External adaptation and internal integration N/A Article 10: By & Burnes, 2012 Culture of transparency must be prominent evening the face of faulty and corrupt host Country policy Without solid ethical structure, a failure in a country will spread to the next. N/A Comment by [email protected]: Instead, state the main ideas in the table and use them here as subtitles. To help orient the reader, I need to know the main ideas and your which paragraph is used to describe each of the main ideas.
  • 5. Main Ideas There is an unending circle that flows from nation to nation, around the framework of a global organization knitted together by a corporate vision and culture. This as an overview cr eates an image, however, the microscopic events are what guarantees success. The matrix highlights how these microscopic pillars hold the frameworks and systems of a global organization together ensuring it thrives anywhere it is planted (Fry & Egel, 2021;, Gilman, 2013; Pearson, 2013 and Gilman, D. G. (2013). You will see the global leader as a major determining factor and piece in the equation. How the organization succeed and for how long can be dependent on a leader’s mindset and willingness to learn and unlearn. An organization producing cheese originating from America must understand that cheese itself is a cultural meal in eastern Europe and because of the this the leader must be able to learn fast and adapt the culture of the organization with that of the national culture. Any ethical issues on the side of the leader as will is visible to very quickly and cannot be hidden for too long (Ravenscroft, 2012). Organization must ensure they are not sending men and women with questionable ethical issues (Tran, 2012 and French, 2019). Representation is key. Everything gravitates to what is familiar. When an organization is in a foreign home, there must be a drive to get indigenes into important role, by this, the organization is local enough but globally reaching to produce result a local organization can only dream of (Mohammadian, 2019). However, what this matrix literature review did not show is the difference that exist in the cultures. It made mention of difference of culture and that a global leader that want to be successful must be aware of these differences. But how does a difference in culture, which includes beliefs, ethics and work culture affect the organization when they differ from one nation to another. How do we measure this effect and hows significant is this effect on the corporate organization? Conclusion
  • 6. It’s no news that we live in a fast-paced world, however, not everyone has realized how much we depend on each other for basic things in the world, and how this dependance has made our world smaller. ReferencesComment by [email protected]: Per the instructions for this assignment, you were to Identify at least 10 research articles as a base for your ARP. You have used textbooks and dissertations to replace some of the articles. By, R. T., & Burnes, B. (Eds.). (2012). Organizational change, leadership and ethics: Leading organizations towards sustainability. Taylor & Francis Group.Comment by [email protected]: This looks incorrect if it is an article or book. Check the APA manual. French, R. P. (2019). Global mindset: Cultivating knowledge in multinational organizations. Cambridge Scholars Publishing. ISBN: 1-5275-1825-6 Fry, L. W., & Egel, E. (2021). Global Leadership for Sustainability. Sustainability, 13(11),6360. http://dx.doi.org/10.3390/su13116360 Gilman, D. G. (2013). Comparative analysis of corporate culture in a multinational organization (Order No. 3587467). Available from ProQuest Dissertations & Theses Global; ProQuest One Business; Publicly Available Content Database. (1426825462). https://www.proquest.com/dissertations-theses/comparative- analysis-corporate-culture/docview/1426825462/se-2 Mohammadian, H. D. (2019). International project management: A focus on hr approach in multinational corporations. Momentum Press.Comment by [email protected]: ??? Pearson, C. S. (2012). The transforming leader: New approaches to leadership for the twenty-first century. Berrett-Koehler Publishers, Incorporated. Ravenscroft, D. A. (2012). A Unified Model of Competence in Global Leader Behavior (Order No. 3544484). Available from
  • 7. ProQuest Dissertations & Theses Global; ProQuest One Business. (1226259578). https://www.proquest.com/dissertations-theses/unified-model- competence-global-leader-behavior/docview/1226259578/se- 2?accountid=42681 Schein, E. H., & Schein, P. A. (2016). Organizational culture and leadership. John Wiley & Sons, Incorporated. Setyaningrum, R. P. (2017). Relationship between Servant Leadership in Organizational Culture, Organizational Commitment, Organizational Citizenship Behaviour and Customer Satisfaction. European Research Studies, 20(3), 554- 569. https://www.proquest.com/scholarly-journals/relationship- between-servant-leadership/docview/1945556219/se- 2?accountid=42681 Tran, V. N. (2012). Romancing organizational leadership: A study of the relationship between personality, maturity, national culture, and romance of leadership in a multinational organization (Order No. 3516959). Available from ProQuest Dissertations & Theses Global; ProQuest One Business; Publicly Available Content Database. (1030961295). https://www.proquest.com/dissertations-theses/romancing- organizational-leadership-study/docview/1030961295/se-2 Mike W. Peng, PhD Jindal Chair of Global Strategy University of Texas at Dallas Chair, Global Strategy Interest Group, Strategic Management Society (2008)
  • 8. Decade Award Winner, Journal of International Business Studies (2015) The Only Global Strategy Textbook Author Listed in The World’s Most Influential Scientific Minds (2015) Global Strategy FOURTH EDITION Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest.
  • 9. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Global Strategy, Fourth Edition Mike W. Peng Senior Vice President, General Manager, Social Sciences, Humanities, and Business: Erin Joyner Product Director: Jason Fremder Senior Product Manager: Mike Roche Product Assistant: Jamie Mack Marketing Manager: Katie Jergens Marketing Coordinator: Casey Binder Senior Content Project Manager: Darrell E. Frye Manufacturing Planner: Ron Montgomery
  • 10. Production Service: MPS Limited Senior Art Director: Bethany Casey Cover Image: Black_Diamond/Shutterstock.com; vs148/Shutterstock.com; scyther5/Shutterstock.com; Pulvas/Shutterstock.com Intellectual Property Analyst: Diane Garrity Project Manager: Sarah Shainwald © 2017, 2014 Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706. For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions. Further permissions questions can be emailed to [email protected] Unless otherwise noted all items © Cengage Learning. Library of Congress Control Number: 2016942625 ISBN: 978-1-337-29652-6
  • 11. Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage Learning products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage Learning Solution s, visit www.cengage.com. Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com. ISBN: 978-0-357-03918-2 Printed in the United Kingdom by CPI Antony Rowe
  • 12. Print Number: 04 Print Year: 2019 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. WCN: 02-300 To Agnes, Grace, and James Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
  • 13. Brief Contents Preface xviii About the Author xxv PART 1 FOUNDATIONS OF GLOBAL STRATEGY 1 1 STRATEGIZING AROUND THE GLOBE 2 OPENING CASE: Emerging Markets: Samsung’s Global Strategy Group 3 CLOSING CASES: Emerging Markets: Microsoft’s Evolving China Strategy 23 Emerging Markets: Samsung’s Global Strategy Group 25 The Global Strategy of Global Strategy 27 2 MANAGING INDUSTRY COMPETITION 32 OPENING CASE:
  • 14. Emerging Markets: Competing in the Indian Airline Industry 33 CLOSING CASES: Emerging Markets: Competing in the Indian Airline Industry 53 Emerging Markets: Competing in the Indian Retail Industry 54 Emerging Markets: High Fashion Fights Recession 56 3 LEVERAGING RESOURCES AND CAPABILITIES 60 OPENING CASE: Enhancing Value, Rarity, and Inimitability at Burberry 61 CLOSING CASES: Emerging Markets: From Copycats to Innovators 78 Enhancing Value, Rarity, and Inimitability at Burberry 80 IBM at 100 81 iv
  • 15. Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 4 EMPHASIZING INSTITUTIONS, CULTURES, AND ETHICS 86 OPENING CASE: Emerging Markets: One Rock Formation, Two Countries 87 CLOSING CASE: Emerging Markets: One Rock Formation, Two Countries 106 PART 2 BUSINESS-LEVEL STRATEGIES 111 5 GROWING AND INTERNATIONALIZING THE
  • 16. ENTREPRENEURIAL FIRM 112 OPENING CASE: Emerging Markets: The Rise of Alibaba 113 CLOSING CASES: Emerging Markets: Amazon.com of Russia 130 Emerging Markets: Microfinance, Macro Success or Global Mess? 131 Emerging Markets: The Rise of Alibaba 133 6 ENTERING FOREIGN MARKETS 138 OPENING CASE: Emerging Markets: SABMiller in Nigeria 139 CLOSING CASES: Emerging Markets: Pearl River Goes Abroad 160 Emerging Markets: SABMiller in Nigeria 162
  • 17. Enter the United States by Bus 163 7 MAKING STRATEGIC ALLIANCES AND NETWORKS WORK 168 OPENING CASE: Emerging Markets: Etihad Airways’ Alliance Network 169 CLOSING CASES: Emerging Markets: BP, AAR, and TNK-BP (also see Emerging Markets 7.1) 188 Emerging Markets: Etihad Airways’ Alliance Network 191 8 MANAGING GLOBAL COMPETITIVE DYNAMICS 196 OPENING CASE: Emerging Markets: Emirates Airlines Fights Legacy Airlines 197 CLOSING CASES: Emerging Markets: Emirates Airlines Fights Legacy Airlines 220
  • 18. Emerging Markets: HTC Fights Apple 222 Brief Contents v Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. PART 3 CORPORATE-LEVEL STRATEGIES 227 9 DIVERSIFYING AND MANAGING ACQUISITIONS GLOBALLY 228 OPENING CASE: Emerging Markets: Emerging Acquirers from China and India 229
  • 19. CLOSING CASE: Emerging Markets: Emerging Acquirers from China and India 251 10 STRATEGIZING, STRUCTURING, AND LEARNING AROUND THE WORLD 258 OPENING CASE: Emerging Markets: GE Innovates from the Base of the Pyramid 259 CLOSING CASES: A Subsidiary Initiative at Bayer MaterialScience North America 277 Emerging Markets: GE Innovates from the Base of the Pyramid 279 11 GOVERNING THE CORPORATION AROUND THE WORLD 284 OPENING CASE: Global Competition in How to Best Govern Large Firms 285
  • 20. CLOSING CASES: Emerging Markets: The Private Equity Challenge 306 Emerging Markets: GE Innovates from the Base of the Pyramid 309 12 STRATEGIZING WITH CORPORATE SOCIAL RESPONSIBILITY 316 OPENING CASE: Emerging Markets: The Ebola Challenge 317 CLOSING CASES: Emerging Markets: The Ebola Challenge 335 Launching the Nissan Leaf: The World’s First Electric Car 337 Glossary 343 Index 355 vi Brief Contents
  • 21. Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Preface xviii About the Author xxv PART 1 FOUNDATIONS OF GLOBAL STRATEGY 1 1 STRATEGIZING AROUND THE GLOBE 2 OPENING CASE: Emerging Markets: Samsung’s Global Strategy Group 3 A GLOBAL GLOBAL-STRATEGY BOOK 4
  • 22. WHY STUDY GLOBAL STRATEGY? 7 WHAT IS STRATEGY? 7 Origin 7 Plan versus Action 8 Strategy as Theory 9 FUNDAMENTAL QUESTIONS IN STRATEGY 13 Why Do Firms Differ? 13 How Do Firms Behave? 14 What Determines the Scope of the Firm? 16 What Determines the Success and Failure of Firms Around the Globe? 16 WHAT IS GLOBAL STRATEGY? 17 WHAT IS GLOBALIZATION? 18
  • 23. Three Views on Globalization 18 The Pendulum View on Globalization 18 Semiglobalization 20 GLOBAL STRATEGY AND THE GLOBALIZATION DEBATE 20 ORGANIZATION OF THE BOOK 22 vii Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
  • 24. CHAPTER SUMMARY 22 CRITICAL DISCUSSION QUESTIONS 23 TOPICS FOR EXPANDED PROJECTS 23 CLOSING CASES: Emerging Markets: Microsoft’s Evolving China Strategy 23 Emerging Markets: Samsung’s Global Strategy Group 25 The Global Strategy of Global Strategy 27 NOTES 28 2 MANAGING INDUSTRY COMPETITION 32 OPENING CASE: Emerging Markets: Competing in the Indian Airline Industry 33 DEFINING INDUSTRY COMPETITION 34 THE FIVE FORCES FRAMEWORK 35
  • 25. From Economics to Strategy 35 Intensity of Rivalry among Competitors 35 Threat of Potential Entry 37 Bargaining Power of Suppliers 39 Bargaining Power of Buyers 39 Threat of Substitutes 40 Lessons from the Five Forces Framework 41 THREE GENERIC STRATEGIES 41 Cost Leadership 42 Differentiation 42 Focus 44 Lessons from the Three Generic Strategies 44 DEBATES AND EXTENSIONS 44
  • 26. Clear versus Blurred Boundaries of Industry 44 Threats versus Opportunities 46 Five Forces versus a Sixth Force 46 Stuck in the Middle versus All-Rounder 46 Industry Rivalry versus Strategic Groups 47 Integration versus Outsourcing 49 Industry-Specific versus Firm-Specific and Institution-Specific Determinants of Performance 50 Making Sense of the Debates 50 viii Contents Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
  • 27. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. THE SAVVY STRATEGIST 51 CHAPTER SUMMARY 51 CRITICAL DISCUSSION QUESTIONS 52 TOPICS FOR EXPANDED PROJECTS 52 CLOSING CASES: Emerging Markets: Competing in the Indian Airline Industry 53 Emerging Markets: Competing in the Indian Retail Industry 54 Emerging Markets: High Fashion Fights Recession 56 NOTES 58
  • 28. 3 LEVERAGING RESOURCES AND CAPABILITIES 60 OPENING CASE: Enhancing Value, Rarity, and Inimitability at Burberry 61 UNDERSTANDING RESOURCES AND CAPABILITIES 62 RESOURCES, CAPABILITIES, AND THE VALUE CHAIN 63 FROM SWOT TO VRIO 67 The Question of Value 67 The Question of Rarity 68 The Question of Imitability 68 The Question of Organization 69 DEBATES AND EXTENSIONS 70 Firm-Specific versus Industry-Specific Determinants of Performance 71 Static Resources versus Dynamic Capabilities 72
  • 29. Offshoring versus Non-Offshoring 73 Domestic Resources versus International (Cross-Border) Capabilities 75 THE SAVVY STATEGIST 75 CHAPTER SUMMARY 76 CRITICAL DISCUSSION QUESTIONS 77 TOPICS FOR EXPANDED PROJECTS 77 CLOSING CASES: Emerging Markets: From Copycats to Innovators 78 Enhancing Value, Rarity, and Inimitability at Burberry 80 IBM at 100 81 NOTES 82 Contents ix
  • 30. Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 4 EMPHASIZING INSTITUTIONS, CULTURES, AND ETHICS 86 OPENING CASE: Emerging Markets: One Rock Formation, Two Countries 87 UNDERSTANDING INSTITUTIONS 88 Definitions 88 What Do Institutions Do? 89 How Do Institutions Reduce Uncertainty? 90
  • 31. AN INSTITUTION-BASED VIEW OF BUSINESS STRATEGY 92 Overview 92 Two Core Propositions 94 THE STRATEGIC ROLE OF CULTURE 95 The Definition of Culture 95 The Five Dimensions of Culture 95 Cultures and Strategic Choices 97 THE STRATEGIC ROLE OF ETHICS 97 The Definition and Impact of Ethics 97 Managing Ethics Overseas 98 Ethics and Corruption 99 A STRATEGIC RESPONSE FRAMEWORK FOR ETHICAL
  • 32. CHALLENGES 100 DEBATES AND EXTENSIONS 102 Opportunism versus Individualism/Collectivism 102 Cultural Distance versus Institutional Distance 103 THE SAVVY STRATEGIST 103 CHAPTER SUMMARY 104 CRITICAL DISCUSSION QUESTIONS 105 TOPICS FOR EXPANDED PROJECTS 105 CLOSING CASE: Emerging Markets: One Rock Formation, Two Countries 106 NOTES 107 PART 2 BUSINESS-LEVEL STRATEGIES 111 5 GROWING AND INTERNATIONALIZING THE
  • 33. ENTREPRENEURIAL FIRM 112 OPENING CASE: Emerging Markets: The Rise of Alibaba 113 ENTREPRENEURSHIP AND ENTREPRENEURIAL FIRMS 114 x Contents Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. A COMPREHENSIVE MODEL OF ENTREPRENEURSHIP 115 Industry-Based Considerations 115
  • 34. Resource-Based Considerations 116 Institution-Based Considerations 117 FIVE ENTREPRENEURIAL STRATEGIES 118 Growth 118 Innovation 118 Network 119 Financing and Governance 120 Harvest and Exit 121 INTERNATIONALIZING THE ENTREPRENEURIAL FIRM 123 Transaction Costs and Entrepreneurial Opportunities 123 International Strategies for Entering Foreign Markets 123 International Strategies for Staying in Domestic Markets 124
  • 35. DEBATES AND EXTENSIONS 125 Traits versus Institutions 125 Slow Internationalizers versus Born Global Start-ups 126 Anti-Failure Biases versus Entrepreneur-Friendly Bankruptcy Laws 127 THE SAVVY ENTREPRENEUR 128 CHAPTER SUMMARY 129 CRITICAL DISCUSSION QUESTIONS 129 TOPICS FOR EXPANDED PROJECTS 130 CLOSING CASES: Emerging Markets: Amazon.com of Russia 130 Emerging Markets: Microfinance, Macro Success or Global Mess? 131 Emerging Markets: The Rise of Alibaba 133
  • 36. NOTES 134 6 ENTERING FOREIGN MARKETS 138 OPENING CASE: Emerging Markets: SABMiller in Nigeria 139 OVERCOMING THE LIABILITY OF FOREIGNNESS 140 UNDERSTANDING THE PROPENSITY TO INTERNATIONALIZE 141 A COMPREHENSIVE MODEL OF FOREIGN MARKET ENTRIES 142 Industry-Based Considerations 143 Contents xi Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does
  • 37. not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Resource-Based Considerations 143 Institution-Based Considerations 144 WHERE TO ENTER? 146 Location-Specific Advantages and Strategic Goals 146 Cultural/Institutional Distances and Foreign Entry Locations 148 WHEN TO ENTER? 148 HOW TO ENTER? 150 Scale of Entry: Commitment and Experience 150 Modes of Entry: The First Step on Equity versus Non-Equity Modes 151
  • 38. Modes of Entry: The Second Step on Making Actual Selections 153 DEBATES AND EXTENSIONS 156 Liability versus Asset of Foreignness 156 Global versus Regional Geographic Diversification 156 Old-Line versus Emerging Multinationals: OLI versus LLL 157 THE SAVVY STRATEGIST 158 CHAPTER SUMMARY 159 CRITICAL DISCUSSION QUESTIONS 160 TOPICS FOR EXTENDED PROJECTS 160 CLOSING CASES: Emerging Markets: Pearl River Goes Abroad 160 Emerging Markets: SABMiller in Nigeria 162
  • 39. Enter the United States by Bus 163 NOTES 164 7 MAKING STRATEGIC ALLIANCES AND NETWORKS WORK 168 OPENING CASE: Emerging Markets: Etihad Airways’ Alliance Network 169 DEFINING STRATEGIC ALLIANCES AND NETWORKS 170 A COMPREHENSIVE MODEL OF STRATEGIC ALLIANCES AND NETWORKS 171 Industry-Based Considerations 172 Resource-Based Considerations 173 Institution-Based Considerations 175 FORMATION 177 Stage One: To Cooperate or Not to Cooperate? 177
  • 40. Stage Two: Contract or Equity? 177 Stage Three: Positioning the Relationship 178 xii Contents Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. EVOLUTION 179 Combating Opportunism 179 Evolving from Strong Ties to Weak Ties 179 From Corporate Marriage to Divorce 181
  • 41. PERFORMANCE 182 The Performance of Strategic Alliances and Networks 182 The Performance of Parent Firms 183 DEBATES AND EXTENSIONS 183 Majority JVs as Control Mechanisms versus Minority JVs as Real Options 184 Alliances versus Acquisitions 184 Acquiring versus Not Acquiring Alliance Partners 185 THE SAVVY STRATEGIST 186 CHAPTER SUMMARY 187 CRITICAL DISCUSSION QUESTIONS 188 TOPICS FOR EXPANDED PROJECTS 188 CLOSING CASES:
  • 42. Emerging Markets: BP, AAR, and TNK-BP (also see Emerging Markets 7.1) 188 Emerging Markets: Etihad Airways’ Alliance Network 191 NOTES 192 8 MANAGING GLOBAL COMPETITIVE DYNAMICS 196 OPENING CASE: Emerging Markets: Emirates Airlines Fights Legacy Airlines 197 STRATEGY AS ACTION 198 INDUSTRY-BASED CONSIDERATIONS 199 Collusion and Prisoners’ Dilemma 199 Industry Characteristics and Collusion vis-à-vis Competition 201 RESOURCE-BASED CONSIDERATIONS 203
  • 43. Value 203 Rarity 203 Imitability 204 Organization 204 Resource Similarity 204 Fighting Low-Cost Rivals 205 INSTITUTION-BASED CONSIDERATIONS 207 Formal Institutions Governing Domestic Competition: A Focus on Antitrust 207 Formal Institutions Governing International Competition: A Focus on Antidumping 209 Contents xiii Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed
  • 44. from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. ATTACK AND COUNTERATTACK 210 Three Main Types of Attack 210 Awareness, Motivation, and Capability 212 COOPERATION AND SIGNALING 213 LOCAL FIRMS VERSUS MULTINATIONAL ENTERPRISES 213 DEBATES AND EXTENSIONS 215 Strategy versus IO Economics and Antitrust Policy 215 Competition versus Antidumping 216
  • 45. THE SAVVY STRATEGIST 218 CHAPTER SUMMARY 219 CRITICAL DISCUSSION QUESTIONS 220 TOPICS FOR EXTENDED PROJECTS 220 CLOSING CASES: Emerging Markets: Emirates Airlines Fights Legacy Airlines 220 Emerging Markets: HTC Fights Apple 222 NOTES 224 PART 3 CORPORATE-LEVEL STRATEGIES 227 9 DIVERSIFYING AND MANAGING ACQUISITIONS GLOBALLY 228 OPENING CASE: Emerging Markets: Emerging Acquirers from China and India 229
  • 46. PRODUCT DIVERSIFICATION 231 Product-Related Diversification 231 Product-Unrelated Diversification 231 Product Diversification and Firm Performance 232 GEOGRAPHIC DIVERSIFICATION 233 Limited versus Extensive International Scope 233 Geographic Diversification and Firm Performance 233 COMBINING PRODUCT AND GEOGRAPHIC DIVERSIFICATION 235 A COMPREHENSIVE MODEL OF DIVERSIFICATION 236 Industry-Based Considerations 236 Resource-Based Considerations 237 Institution-Based Considerations 239
  • 47. The Evolution of the Scope of the Firm 240 xiv Contents Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. ACQUISITIONS 243 Setting the Terms Straight 243 Motives for Mergers and Acquisitions 244 Performance of Mergers and Acquisitions 245 Restructuring 248
  • 48. DEBATES AND EXTENSIONS 248 Product Relatedness versus Other Forms of Relatedness 248 Acquisitions versus Alliances 249 THE SAVVY STRATEGIST 249 CHAPTER SUMMARY 250 CRITICAL DISCUSSION QUESTIONS 251 TOPICS FOR EXPANDED PROJECTS 251 CLOSING CASE: Emerging Markets: Emerging Acquirers from China and India 251 NOTES 254 10 STRATEGIZING, STRUCTURING, AND LEARNING AROUND THE WORLD 258 OPENING CASE:
  • 49. Emerging Markets: GE Innovates from the Base of the Pyramid 259 MULTINATIONAL STRATEGIES AND STRUCTURES 260 Pressures for Cost Reduction and Local Responsiveness 260 Four Strategic Choices 261 Four Organizational Structures 264 The Reciprocal Relationship between Multinational Strategy and Structure 266 A COMPREHENSIVE MODEL OF MULTINATIONAL STRATEGY, STRUCTURE, AND LEARNING 267 Industry-Based Considerations 267 Resource-Based Considerations 268 Institution-Based Considerations 269 WORLDWIDE LEARNING, INNOVATION, AND
  • 50. KNOWLEDGE MANAGEMENT 271 Knowledge Management 271 Knowledge Management in Four Types of Multinational Enterprises 271 Globalizing Research and Development (R&D) 272 Problems and