About six months ago, I mentioned the importance of globalization to the world's economy. But, how does a company form a business strategy in the current environment? Have a look at the attached. Toward the end of the presentation are specific strategies to take. I hope it generates some business ideas to explore.
Factors associated with Entry Mode
Timing of an Entry
FIRST MOVER ADVANTAGE
Scale of Entry & Strategic Commitments
ENTRY MODES
Explain exporting, turnkey projects and licensing entry modes with their advantages and disadvantages.
Explain franchising, joint venture and wholly owned subsidiaries with its advantages and disadvantages.
SELECTING ENTRY MODE
PROS & CONS OF ACQUISITION
PROS &CONS OF GREENFIELD VENTURES
What is strategic alliance?
What are the advantage and disadvantages of strategic alliance?
What are the factors contributing to the success of an alliance?
Factors associated with Entry Mode
Timing of an Entry
FIRST MOVER ADVANTAGE
Scale of Entry & Strategic Commitments
ENTRY MODES
Explain exporting, turnkey projects and licensing entry modes with their advantages and disadvantages.
Explain franchising, joint venture and wholly owned subsidiaries with its advantages and disadvantages.
SELECTING ENTRY MODE
PROS & CONS OF ACQUISITION
PROS &CONS OF GREENFIELD VENTURES
What is strategic alliance?
What are the advantage and disadvantages of strategic alliance?
What are the factors contributing to the success of an alliance?
this presentation explains what is IFC i.e international financial corporation,what are the goals and purposes of IFC what are the services provided by international financial corporation
foreign direct investment
,
the direction of fdi
,
the source of fdi
,
why foreign direct investment
,
the form of fdi: acquisitions versus greenfield i
,
foreign direct investment in the world economy
,
trends in fdi
,
theories of foreign direct investment
,
the radical view
,
benefits and costs of fdi
This revision presentation provides an overview of the topic of emerging markets. It highlights some examples of how businesses have pursued a growth strategy in emerging markets and also how developed economies have seen investment coming in the opposite direction. A brief overview of the methods and benefits/drawbacks of international expansion is also provided.
Global Collaborating Creates ProsperityRon McFarland
There is a lot of talk about protecting America from foreign influence in the US lately whether it be Latin America, the Middle East or Asia. That will only weaken the US, as trade has created great prosperity for the US, whether in wealth creation, pollution reduction, food supply increase, job creation or war prevention. Global collaboration is the best way to create prosperity and a better standard of living for everyone. People will have to be willing to adjust to change though. Ask any respectable economist. I did some research on this a good two years ago, but it is still valid today. Review this presentation. Imagine the past and think about what can be achieved in the future. We just have to start connecting and collaborating more globally. When language barriers come down with advances in translation technology, we will reach heights that no one had ever dreamed of. I hope this presentation gets people thinking.
this presentation explains what is IFC i.e international financial corporation,what are the goals and purposes of IFC what are the services provided by international financial corporation
foreign direct investment
,
the direction of fdi
,
the source of fdi
,
why foreign direct investment
,
the form of fdi: acquisitions versus greenfield i
,
foreign direct investment in the world economy
,
trends in fdi
,
theories of foreign direct investment
,
the radical view
,
benefits and costs of fdi
This revision presentation provides an overview of the topic of emerging markets. It highlights some examples of how businesses have pursued a growth strategy in emerging markets and also how developed economies have seen investment coming in the opposite direction. A brief overview of the methods and benefits/drawbacks of international expansion is also provided.
Global Collaborating Creates ProsperityRon McFarland
There is a lot of talk about protecting America from foreign influence in the US lately whether it be Latin America, the Middle East or Asia. That will only weaken the US, as trade has created great prosperity for the US, whether in wealth creation, pollution reduction, food supply increase, job creation or war prevention. Global collaboration is the best way to create prosperity and a better standard of living for everyone. People will have to be willing to adjust to change though. Ask any respectable economist. I did some research on this a good two years ago, but it is still valid today. Review this presentation. Imagine the past and think about what can be achieved in the future. We just have to start connecting and collaborating more globally. When language barriers come down with advances in translation technology, we will reach heights that no one had ever dreamed of. I hope this presentation gets people thinking.
We all hear about successful and failed mergers all the time, but how can they be done successfully? I studied this sometime back working with a consultant. I prepared infographic slides on this and think you might find them interesting. It is a bit long, but even reviewing some of the slides might be helpful. I hope you like them.
Every week for the past several months I have been uploading presentations on my international business travels covering some of the over 70 countries I've been to. This is the final presentation in this series and the worst of all the trips. In spite of this tragedy, I continue to enjoy traveling globally. Have a look at the events in this presentation. If you'd like to know more about the hijacking, have a look at https://www.youtube.com/watch?v=c72aZ5UxbxA&t=3s
I hope this presentation helps others to make like this Barabara Norris case study presentation. It is so much helpful for unversity level student who are doing Management course.
See it, Read it, Download it and enjoy it. But one thing do not be PLEGARISM......
As part of my studies, I had to make a pitch for the launch of a new product offering in the form of an executive presentation to the Senior Management Team of “SAMSUNG”. The aim of the Pitch is to help Senior Management to decide on its future Marketing Strategy in China.
The trade landscape, as we know it, is changing: Is India prepared?aakash malhotra
In report of August 2022, Deloitte India discusses the crucial changes occurring in the Indian economy and how exports contribute to India's GDP and vision of becoming a US$5 trillion economy.
As part of Duke CGGC collaboration with the National Analytical Center (NAC), an affiliate of Nazarbayev University in Kazakhstan, Duke CGGC Director Gary Gereffi presented an overview of global value chain and development. The presentation included a section dedicated to value chains and economic diversification in Kazakhstan.
Professor Gary Gereffi’s presentation highlights the GVC experiences of different countries, including China vs. Mexico and the offshore services GVC of countries like Chile and Costa Rica. It also shows how Mexico links regional value chains, clusters and policies; and some of the development strategy challenges facing emerging economies. Professor Gereffi presented this overview at the World Bank Group, Trade & Competitiveness GVC workshop on technical tools and operations in Washington, DC on June 17, 2016.
The main findings of the 2013 Global Innovation Index (GII) were presented by Daniela Benavente, Lead Researcher of the 2013 GII,to an audience of international trade experts and business representatives at the Bali Trade and Development Symposium (TDS) held in conjunction with the Ninth Ministerial Conference of the World Trade Organisation (WTO) in Bali, Indonesia, from 3 to 5 December 2013 Read more: http://owl.li/uJxg1
When should a company simply buy from other companies and resell the products? When should they produce by themselves? I present a costing presentation on this.
There is so much incivility today that the way to argue issues and achieve something has weakened. Therefore, I studied, applied and presented some concepts on how to argue. I hope this presentation is helpful to you.
As so much technology comes from Europe, the total economy is so huge and each country has its own characteristics, I have traveled extensively there both on sales training projects and developing distributors in each country. This presentation is quite long, so pick the countries you are interested in and just have a look at them. Hopefully you'll find something interesting in them.
I have traveled to many cities in the United States, but over the past 15 years I have found some cities particularly impressive. From Nashville and its music to San Antonio and it river walk, I found some real adventures. Here are six cities I very much liked going to on business trips.
Here is my experience working in Australia and New Zealand. Those two countries have interesting contrasts and similarities to Japan. They have a wealth of natural resources, but Japan does not. They both have low populations for their land sizes, but Japan has a huge population. Japan and New Zealand have similarities in that they both have wonderful natural hot springs, are island nations and are very mountainous. Have a look.
Working in & Traveling to Southern South AmericaRon McFarland
If you think about it, the southern part of South America is the farthest place on earth from Japan, where I live. Therefore, if you travel there you much achieve as much as possible/trip. I usually made 1-month business trips there. It is an important region of the world though with Brazil in particular being a major global country. I have worked in Brazil, Paraguay, Argentina and Chile. I loved them all. Have a look at my travels there.
During my sales training days, I traveled to the northern part of South America several times, only one time to Colombia though. Those countries are very dependent on the production and export of crude oil, particularly Venezuela (95% of exports). We hear in the news of all the problems of civil war and the drug trade regarding Colombia, but actually I think it is the most industrialized among Venezuela, Colombia and Ecuador. Also, Colombia has a good educational system and is one of the most biodiverse countries in the world. I've enjoyed my travels there. Have a look.
Last week, I mentioned traveling in Central America. Although very close, the Caribean is very different. They countries are mostly tourism based, but there are very important raw materials in the region. Also, they have a mixture of some countries having a British colony history and others having a Spanish colony history. Mostly, it is a region to relax and have fun it. Here are my travels to Jamaica, the Dominian Republic, Puerto Rico, Barbados and Trinidad & Tobago.
Here are my travels to Central America. Each (Guatemala, El Salvador, Nicaragua, Costa Rica, Panama) are different. They all have a charm about them. I mainly gave light-duty truck sales seminars in that region. I hope you enjoy the tour.
Over the years, I've worked in the Canary Islands, Malta, Cyprus and Israel. The Canary Islands was the stopping point of Columbus on his way to discover America. It is part of Spain today and is a tourist destination for Europeans. Malta too is a tourist spot. Interestingly, it has its own language (Maltese) and culture. Cyprus is divided between Greek Cyprus and Turkey. It too is mainly at tourism economy. Israel is the holy land with all the Western religions represented there. All are wonderful places. I worked there mainly giving seminars on pick-up truck and RWD vehicle selling. I hope you enjoy the slides.
West Africa is a region rich in natural resources from oil, to diamonds, to gold and a wide range of agricultural products. Unfortunately, it has a reputation for being the center of the slave trade in the 1600's to 1800's. The region is both English and French speaking. I traveled through that region many time, mostly to Ghana which is English speaking. Here are some slides of my vehicle training work in that region.
East Africa is where us humans originally came from. It is also where coffee was first discovered. I also has a wealth of natural resources. When I traveled through there, I found it the game park center of the world. I loved my business trips there not only for the beautiful animals and scenery but the people and cultures there as well. Have a look.
Between the 1990's and early 2000, I traveled and working in Northern Africa. I felt that that region was more like the Middle East than Africa though. I'd been to Morocco several times, one time to Tunisia and many times to Egypt. It is a region rich in natural resources which it is why it is so important for industrialized countries. Have a look at these slide to give you a feeling for the region. The region has politically greatly than when I was there though. I found wonderful people there.
People say that international travel is fun, but it is far more than that. It opens your eyes to life around the world. My first international trip from California was in 1972. That experience was so impactful that it directed me toward the life I wanted to live, namely interacting with people around the global. To date I have worked with and been to over 80 countries. Here is my very first foreign trip.
We hear so much about all the problems in the Middle East, but my travels there have been wonderful, and I enjoyed working and interacting with the people there very much. This presentations starts with my background in going to Japan and then starting my global working career. I present the six countries I have worked in in the Middle East. Notice the percentage of foreigners in each country. Those foreigners are mainly who I gave training to when traveling there.
I hope you find them enjoyable. If anyone would like to know more specifics in one of those countries, just let me know.
Too often when sales go down people start blaming the sales people, but there are many reasons why sales are made or not made. Only one reason is the activities of the sales people. Therefore, I created and have given a seminar on managing the selling process. It has been my most enjoyable seminar over the years. Here it is for you. I hope you find it informative and interesting. If you have any questions or comments, please let me know.
In the first business management class I took in California in the late 1960's, the professor said that a manager can delegate authority but can never delegate responsibility. The manager always remains responsible. I think that is still true today and is still something many managers don’t fully understand.
We all know organization charts where the president is at the top. He develops company objectives and passes them down to department managers. The department managers then pass assignments down to the staff in their departments. That is the normal flow.
Imagine taking that organization chart and turning it upside down, where the president is at the bottom. He must provide support up to all department managers, so they can successfully achieve their objectives. Also, the department managers must support their staff in achieving each task assigned. This support is often forgotten. Have a look at this presentation I prepared on this subject. It is so often forgotten.
How often have you desired to change a bad habit, but could not? Whether personal or within whole organizations, habits form. How do we change them? In organizations, how can you change the environment to encourage habit modification? After studing this, I have learned it all comes down to desire and identifying and modifying "triggers". If you analyze the environment in which a habit occurs you can put in an advance strategy to change it when the urge comes. I have successfully made changes using the advice in this presentation. I hope it gives you ideas too.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
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Developing a global strategy
1. Sources: DHL Global Connectedness Index, 2011
Concept based on WORLD 3.0 Global prosperity and how to achieve it,
Harvard Business Review Press, Copyright, 2011
1
NAFTA
LAFTA
EU
ASEAN
2. World is flat.
The world is one huge market.
Anything or anyone can go anywhere, anytime.
Do you think this is true?
Are there barriers to connectedness?
2
3. Global Connectedness – Goods & Service Trade
In comparison to total economic activity (GDP), what percent is global?
When asked about global interaction, the traditional data to compare a
country’s external merchandise/service trade with it’s total GDP.
So, lets start there.
Global Trade
3
Total GDP
4. Global Connectedness – Merchandise & Service Trade
With both merchandise and service international trade at only 30% of the
world GDP, there is still a great deal of growth potential. This 22% could
actually be closer to 15% if you consider re-exporting of semi-finished
products exported to another country for final processing and supplied to
the end user. We could be connected a great deal more.
1930
9%
of GDP
2015
22%
of GDP
Growth in trade
connectedness
Source: DHL Global Connectedness Index, 2016
4
5. Japan’s Global Connectedness – Merchandise & Service Trade
Japan’s external trade ratio is well below the average.
It is mainly due to it large domestic market. It has
much room for expansion.
Outward
15%
of GDP
Inward
16%
of GDP
Source: DHL Global Connectedness Index, 2016
From worldwide suppliers
To worldwide
markets
5
6. USA’s Global Connectedness – Merchandise & Service Trade
The United States’ external trade ratio is below the
average. It is mainly due to it large domestic market
too. It can expand much more.
Outward
8%
of GDP
Inward
13%
of GDP Source: DHL Global Connectedness Index, 2016
USA
From worldwide
suppliers
To worldwide
markets
6
7. China’s Global Connectedness – Merchandise & Service Trade
The China’s external trade ratio is closer to the average. This
might be one of the main reasons China has such high growth. It
is helped by valuable imports and it is financed by exports. In the
future, serving the domestic market will become more important as
wealth is created.
Outward
21%
of GDP
Inward
15%
of GDP
Source: DHL Global Connectedness Index, 2016
China
From worldwide
suppliers
To worldwide
markets
7
8. Global Connectedness – Foreign Direct Investment (FDI)
Source: DHL Global Connectedness Index, 2011
FDI peeked
in
2000
20%
of capital
formation
Foreign direct investment (FDI) to capital formation
(Total investment in fixed assets)
FDI settled in
2010
10%
of capital formation
FDI fell in
2007
15%
of capital
formation
There is great global economic benefits of FDI (financial transfer, technical
transfer, business knowhow transfer, etc.)
8
9. Global Connectedness – Financial Movement
Source: “Home Bias in International Equity Portfolios: A Review (August 2007)
Foreign equity investment (share purchase only)
Foreign equity investment
2005 ~ 2007
20%
of all investments
There is much room for foreigners investing in foreign companies. It
trust and better communication continues to grow so should
investment.
9
10. Global Connectedness – Communication & Information
20%
of all internet connections are international.
5%
of all phone calls are international.
Source: DHL Global Connectedness Index, 2011
We could communicate and share information much more than we are
now. This would build trust, investment and greater prosperity.
10
11. 53/140
Bits per second per
internet user
International calls
International email
63/140
Outward per minutes/capita
112/140
Inward per minutes/capita
Source: DHL Global Connectedness Index, 2012
(World ranking among 140 countries (99% of world GDP and 95% of population)
Japan’s Global Ranking – Telephone/Internet Communication
Of 140
countries
Outward calls
Inward calls
11
Outward email data
Inward email data
12. Visiting foreign countries & foreign populations
1.9%
Of Japanese
population is
from another
country.
Source: UN report Trends in International Migrant Stock: The 2015 Revision.
14.3%
Of USA
population is
from another
country.
Connecting face-to-face
What percent of the world population are from foreign countries?
3% of the world population live outside of their home country.
What percent of the world population have studied in a foreign country?
2% of university student have studied outside their country.
What professionals are foreigners in the US?
33% of USA engineers are from foreign countries.
27% of USA mathematician, statisticians and computer science
specialists are from foreign countries.
24% of USA scientists and researches are from foreign countries.
12
13. United Arab Emirates 7,826,981 83.7
Singapore 2,323,252 42.9
Switzerland 2,438,702 28.9
Israel 2,046,873 26.5
New Zealand 1,132,736 25.1
Germany 12,005,690 14.9
United States 46,627,102 14.3
Sweden 1,639,771 14.3
United Kingdom 8,543,120 11.3
France 7,784,418 11.1
Greece 1,242,514 11.1
Italy 5,788,875 8.0
Russia 11,643,276 7.7
Turkey 4,580,678 5.81
Japan 2,437,169 1.9
India 5,338,486 0.4
Egypt 297,448 0.4
China 848,511 0.1
Indonesia 295,433 0.1
Vietnam 68,290 0.1
Visiting foreign countries & foreign populations
Connecting face-to-face
(foreign population & percentage of total population)
THE BENEFIT: Advanced cultural diversity, learning,
teaching, blending, interaction and understanding
13
14. 20% 40% 60% 80% 100%0
Source: Concept based on Redefining Global Strategy,
Crossing Borders in a World Where Differences Still Matters, Harvard Business School Press, Copyright, 2007
Global Connectedness – Overall Summary
Level of international connection
International to domestic telephone calls
Foreign university students to total
Management research with global content to total
Charity to foreign country to domestic
Foreign direct investment to capital formation
Foreign tourists to total
Foreign related patents to domestic
Foreign held stock to domestic
Foreign trade to GDP
Immigrants to total population
14
15. 40% 80% 120% 160% 200%0
Source: Pankaj Ghemawat and Rajiv Malick, “The Industry-Level Structure of International Trade Networks: A
Gravity-Based Approach”, working paper, Harvard Business School, February 2003
Global Connectedness – Overall Summary
Factors that improve connected (over average)
Common
language
Colony or
colonizer
Common
currency
Common land
border
Common regional
trading block
+188%
+114%
+125%
+42%
+47%
15
16. Looking at foreign markets & production bases
Differences from us & other regions
Source: World 3.0 GLOBAL PROSPERITY AND HOW TO ACHIEVE IT
Are all other regions very different from us?
Are there great differences between us and the other location?
Is there great distance between us and the other location?
In World 3.0 both distance and differences still matter greatly. Those
differences must be explored in each case to determine the ideal level of
connectedness. Some issues should be kept at the local level, other
issues at the global level.
Yes No
16
17. CAGE - Differences
Source: World 3.0 GLOBAL PROSPERITY AND HOW TO ACHIEVE IT
G-Geographic – Are there great geographic differences?
E-Economic – Are there great economic differences?
A-Administrative – Are there great administrative differences?
C-Culture – Are there great cultural differences?
Yes No
17
18. C- Cultural Differences – Industry Sensitivity Indicators
Source: World 3.0 GLOBAL PROSPERITY AND HOW TO ACHIEVE IT
Country of Origin – Is country of origin a major concern?
Language – Is high language communication skill required?
Tastes – Are there great preference/standards differences?
Traditions – Are there strong historic traditions in the industry?
Yes No
18
19. A- Administrative Differences – Industry Sensitivity Indicators
Source: World 3.0 GLOBAL PROSPERITY AND HOW TO ACHIEVE IT
Government Involvement – Is the government involved in
funding, procurement, standard-setting, etc?
Yes No
National Priority – Is this industry of strategic national priority?
Rigidity/flexibility – Are the products highly specialized,
capital intensive (can affect potential and risks)?
Restraints – Are there strong operating procedure restrictions
(imports, exports, FDI)?
19
20. G- Geographic Distance – Industry Sensitivity Indicators
Source: World 3.0 GLOBAL PROSPERITY AND HOW TO ACHIEVE IT
Hazards/fragile – Is quality transportation and freight hazards a concern?
Weight/Value – Are the products high weight & low value?
Perishable – Does the product lose its value quickly (time-sensitive)?
Yes No
20
21. E – Economic Distance – Industry Sensitivity Indicators
Source: World 3.0 GLOBAL PROSPERITY AND HOW TO ACHIEVE IT
Yes No
Cost Content – Is the product costing heavily dependent on local
factors (labor, material process, equipment, etc.)?
Scale – Is it difficult to standardize the product
to suit a wide range of international markets?
Pricing – Are the products price sensitive? Price negotiations on
price is very common when deciding to buy?
Distribution – Is the supply chain poorly developed and very
different from your home market?
21
22. What global connectedness offers (ADDING)
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
A – ADDING BUSINESS, production volume/economies of scale
D – DECREASING COSTS through regional costing differences
D – DIFFERENTIATING, offering different products
and solutions to increase willingness to pay more
I – IMPROVING COMPETITIVE ADVANTAGE
and bargaining power
N – NORMALIZE RISKS as success in one market
balances failures in others
G – GENERATING CAPACITY by spreading
and diffusing knowledge
22
23. ADDING Value Scorecard – A – Adding volume, or growth
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Confirm the goals of entering a foreign market
or producing overseas
Forecast the profit potential of added growth and volume
Forecast potential on a global level, regional level,
national level, distributor level and end-user level
Determine the company capacity for expansion
Determine the effect of volume on competitiveness
Determine added supply requirements
23
24. ADDING Value Scorecard – D – Decrease Costs
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
24
Confirm where the cost reduction will come from
(separate all costs)
Explore any added cost that might occur
Explore any potential indirect costs
Project long-term cost increases
Determine fixed cost, variable costs and break-even point
Determine main factors that determine costs
increases/decreases (like currency movements)
Estimate any potential shortages that could influence costs
25. ADDING Value Scorecard – D – Differentiating
& increasing willingness to pay
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Look at R & D-to-sales and advertising-to-sales ratios
in industry and your strengths among competitors
Focus on customer willingness to pay and product benefit
to them
Project impact of differentiation by global changes
Anticipate competitor reaction to your global strategy
Segment market appropriately
25
26. ADDING Value Scorecard – I – Improving bargaining power
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Determine international differences in industry profitability
Determine any market entry/exit bearers
Determine customer switching bearers
Determine potential for substitution
Determine change on influence with suppliers
Determine change on influence on customers
Determine moves of competitors to response to your
cross-border operation
Explore and react to regulatory and nonmarket restraints
and local business ethics
26
27. ADDING Value Scorecard – N – Neutralizing risks
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Identify the key risks in your industry
(capital intensity, labor concerns, supply
shortages, legal restrictions,
demand volatility)
Assess how much cross-boarder operations
reduce or increase risks
Compare benefits to risks by cross-boarder
operation
27
28. Risk rating for material development projects in rural areas
Source: Nippon Export and Investment Insurance
A Japan, Singapore, Germany, USA, Britain
B South Korea, Spain, Slovakia
C China, Malaysia, Poland, Chile
D Russia, India, Thailand, Mexico, Algeria, Morocco
E Philippines, Turkey, Hungary, Colombia
F Vietnam, Greece, Egypt, Angola
G Cambodia, Honduras, Cameroon, Bolivia
H North Korea, Myanmar, Iraq, Lebanon, Libya
Review national risk rating by governments, insurance companies
and financial institutions. They specialize in risk management.
Below is just on source rating anywhere in these countries. The
higher the risk, the greater the profit potential must be.
Highest
Lowest
RISK
28
29. ADDING Value Scorecard – G – Generating knowledge,
resources and capacity
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Access local specifications and learn user requirements
Access local distribution requirements
Explore similar capacities that could be of value
Hold discussions with suppliers, consultants, target users,
distributors, political leaders and local firms
Hire people who are open, willing to learn and adapt
Create cross-boarder teams in diverse locations
Expand on cross-boarder interaction and assignments
Explore
valuable
diversity
29
30. Strategies for Global Value Creation
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
TRANSFER
EXPERTISE
Offer
new value
ADAPTATION
Make appropriate
market &
production
adjustments WEALTH
CREATION
Confirm profit
potential
30
31. Strategies for Global Value Creation - Adaption
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
ADAPTATION
Make appropriate
market &
production
adjustments
31
32. Strategies for Global Value Creation - Adaption
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Design: reduce
process costs
Use production standardization,
platforms and modules to
reduce production costs
Focus: reduce
need for costly
variation
Target a specific region,
segment, product line or
value chain process
Innovation:
improve
effectiveness
Explore new
applications and
combinations for
the foreign market
Variation
Modify the product and
marketing promotional
program.
Externalization: reduce
variation burden
Outsource certain functions through
strategic alliances, franchising, etc.
32
33. Strategies for Global Value Creation – Transfer Expertise
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
TRANSFER
EXPERTISE
Offer
new value
33
34. Transferring expertise – Regional strategies
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
1. Regional or home focus: One processing location
mainly service home market. Small amount of second
market attention
2. Regional portfolio: Move to one off-shore foreign direct
investment to supply that market
3. Regional hub: Create an off-shore production operation
to serve the surrounding markets in that region
4. Regional platforms: Standardize components in each
production operation to supply several regions
5. Regional mandates: Awarding certain regions
assignments to specialize in specific global
responsibilities and roles.
6. Regional networks: A broad configuration of
coordinated processes to supply the whole cross-
boarder network of markets
90% of global companies
34
35. 3. Regional hub
R2R1
1. Regional focus
R2R1
2. Regional portfolio
R2R1
= One product line
R = Region = minor effort
= minor effort
Home production,
major and minor
markets.
Major and minor
production, cross
sharing products
Major and minor
production, major
and minor markets
Increasing complexity & managerial challenge
with regional development issues,
supervision issues and coordination issues
Transferring expertise – Regional strategies review
35
36. 6. Regional networks
R2R1
4. Platforms
R2
5. Regional Mandates
R2R1R1
Even more of a complex
managerial challenge
= One product line
R = Region = minor effort
= minor effort
R4R3
Products and
components for
global markets
Massive,
coordinated and
controls worldwide
supply system.
HQ request for
production
specialization for
global markets
Transferring expertise – Regional strategies review
36
37. Strategies for Global Value Creation – Wealth creation
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
WEALTH
CREATION
Confirm profit
potential
37
38. Wealth Creation – Questions to ask
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
1. Volume: Can wealth be created by adding volume
across-boarders?
2. Costs: Can costs be reduced by cross-boarder projects?
3. Differentiation: Can differentiation be created by cross-
boarder activities which increase willingness to buy?
4. Bargaining Power: Will bargaining power be improved
by crossing boarders?
5. Risks: Will risks be reduced by going across boarders?
6. Capacity: Will added skills, valuable experience and
knowledge be gained which will increase capacity
through foreign market activities?
38
39. Combinations of global value creation strategies
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
Selling products across boarders
Transfer
expertise
mainly as is
Adapt
mainly to local
market
Producing products across boarders
Ideal point
Ideal point
Where should your company be on these lines?
Where is the competition on these lines?
What will be your competitive advantage?
39
40. Getting started using a refined global strategy analysis
Source: Redefining Global Strategy, Pankaj Ghemawat, Harvard Business School Press, 2007
1. Performance Review: In what regions is the customer
underserved for your product? Can they be profitably
supplied?
2. Industry’s competitive environment: Who are the top
players in the industry? What cross-boarder production is
there? Are products standardized? Are prices moving up
or down? What is the relationship between costing and
volume? What is the main distribution method? How
important is advertising/marketing, R&D, labor costs,
capital investment in your industry?
3. CAGE: Do the CAGE analysis and determine market
differences.
4. Global Value Creation: Using the ADAPTATION, TRANSFER
EXPERTISE, WEALTH CREATION material, determine what
value could be created.
5. ADDING: Do the ADDING analysis and determine your ideal
strategy.
40
41. 41
A successful global strategy has many benefits:
1. It can help a company expand when its industry is declining.
2. It can help a company reduce its costs much more that it can
in its home market only.
3. It can make a company far more competitive than its
competitors.
4. It can give a company bargaining power it does not have in
its domestic market only.
5. It can reduce a company’s overall risks.
6. It can provide great experiences which will develop its
overall abilities.