Tải bản đầy đủ

Slide multinational management 3e cullen ch05

Chapter 5
Multinational and Participation
Strategies: Content and Formulation

Copyright© 2004 Thomson Learning All rights reserved


Learning Objectives
••
••
••
••
••

Appreciate
Appreciate the
the complexities
complexities ofof the
the global-local
global-local dilemma
dilemma

Understand
Understand the
the content
content ofof the
the multinational
multinational strategies
strategies
Formulate
Formulate aa multinational
multinational strategy
strategy
Understand
Understand the
the content
content ofof the
the participation
participation strategies
strategies
Formulate
Formulate aa participation
participation strategy
strategy

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Multinational Strategies:
Dealing with the Global-Local
Dilemma
•• Local-responsiveness
Local-responsiveness solution:
solution: customize
customize toto country
country or
or
regional
regional differences
differences
•• Global
Global integration
integration solution:
solution: conduct
conduct business
business similarly
similarly
throughout
throughout the
the world
world
•• Global-local
Global-local dilemma:
dilemma: choice
choice between
between aa locallocalresponsiveness
responsiveness or
or global
global approach
approach toto aa multinational’s
multinational’s
strategies
strategies

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Multinational Strategies:
Dealing with the Global-Local
Dilemma
•• Four
Four broad
broad multinational
multinational strategies
strategies
•• Multidomestic
Multidomestic
•• Transnational
Transnational
•• International
International
•• Regional
Regional

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Multidomestic Strategy
•• Emphasizing
Emphasizing local-responsiveness
local-responsiveness issues
issues
•• Ex.:
Ex.: different
different packages,
packages, colors
colors
•• Costs
Costs more
more toto produce,
produce, need
need toto charge
charge higher
higher
prices
prices toto recoup
recoup
•• AAform
form ofof the
the differentiation
differentiation strategy
strategy
•• Not
Not limited
limited toto large
large multinationals
multinationals

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Transnational Strategy
•• Two
Two goals
goals get
get top
top priority
priority
•• Seeking
Seeking location
location advantages
advantages
•• Gaining
Gaining economic
economic efficiencies
efficiencies from
from operating
operating
worldwide
worldwide
•• Location
Location advantages:
advantages: dispersing
dispersing value-chain
value-chain activities
activities
anywhere
anywhere inin the
the world
world where
where they
they can
can be
be done
done best
best or
or
cheapest
cheapest
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Transnational Strategy (cont.)
•• Global
Global platform:
platform: country
country location
location where
where aa firm
firm can
can
better
better perform
perform some
some ofof its
its value-chain
value-chain activities
activities
•• Comparative
Comparative advantage:
advantage: advantages
advantages ofof nations
nations over
over
other
other nations
nations
•• No
No longer
longer only
only available
available toto domestic
domestic firms
firms
•• Location
Location advantages
advantages can
can exist
exist for
for all
all activities
activities ofof the
the
value
value chain
chain
Copyright© 2005 South-Western/Thomson Learning All rights reserved


International Strategy
•• International
International strategy:
strategy: selling
selling global
global products
products and
and using
using
similar
similar marketing
marketing techniques
techniques worldwide
worldwide
•• AAcompromise
compromise approach
approach
•• Limited
Limited adjustment
adjustment inin product
product offerings
offerings and
and
marketing
marketing strategies
strategies
•• Upstream
Upstream and
and support
support activities
activities remain
remain
concentrated
concentrated atat home
home country
country
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Regional Strategy
•• Regional
Regional strategy:
strategy: managing
managing raw-material
raw-material sourcing,
sourcing,
production,
production, marketing,
marketing, and
and support
support activities
activities within
within aa
particular
particular region
region
•• Another
Another compromise
compromise strategy
strategy
•• Attempts
Attempts toto gain
gain economic
economic advantages
advantages from
from
regional
regional network
network
•• Attempts
Attempts toto gain
gain local
local adaptation
adaptation advantages
advantages from
from
regional
regional adaptation
adaptation
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 5.1: Content of the Four
Basic Multinational Strategies

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Resolving the Global-Local
Dilemma: Formulating a
Multinational Strategy
•• Selection
Selection ofof strategy
strategy depends
depends on
on degree
degree ofof
globalization
globalization inin an
an industry
industry
•• Globalization
Globalization drivers:
drivers: conditions
conditions inin aa industry
industry that
that favor
favor
transnational
transnational or
or international
international strategies
strategies
•• Four
Four categories
categories ofof global
global drivers:
drivers: markets,
markets, costs,
costs,
governments,
governments, and
and competition
competition

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Global Markets
••
••
••

Are
Are there
there common
common customer
customer needs?
needs?
Are
Are there
there global
global customers?
customers?
Can
Can you
you transfer
transfer marketing?
marketing?

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Costs
••
••
••
••

Are
Are there
there global
global economies
economies ofof scale?
scale?
Are
Are there
there global
global sources
sources ofof low-cost
low-cost raw
raw materials?
materials?
Are
Are there
there cheaper
cheaper sources
sources ofof highly
highly skilled
skilled labor?
labor?
Are
Are product-development
product-development costs
costs high?
high?

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Governments
•• Do
Do the
the targeted
targeted countries
countries have
have favorable
favorable trade
trade
policies?
policies?
•• Do
Do the
the target
target countries
countries have
have regulations
regulations that
that restrict
restrict
operations?
operations?

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Competition
••
••

What
What strategies
strategies do
do your
your competitors
competitors use?
use?
What
What isis the
the volume
volume ofof imports
imports and
and exports
exports inin the
the
industry?
industry?

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Competitive Advantage in the
Value Chain
•• Location
Location ofof competitive
competitive advantage
advantage inin value
value chain
chain
determines
determines choice
choice ofof generic
generic strategy
strategy
•• Upstream
Upstream advantages:
advantages: low-cost
low-cost or
or high-quality
high-quality design
design
•• Favor
Favor transnational
transnational strategy
strategy or
or an
an international
international
strategy
strategy
•• Downstream
Downstream advantages:
advantages: marketing,
marketing, sales,
sales, service
service
•• Favor
Favor multidomestic
multidomestic strategy
strategy
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Competitive Advantage in the
Value Chain (cont.)
•• Mixed
Mixed conditions
conditions
•• Competitive
Competitive strength
strength downstream
downstream inin industry
industry with
with
strong
strong globalization
globalization drivers
drivers
•• Competitive
Competitive strength
strength upstream
upstream inin industries
industries with
with
local
local adaptation
adaptation pressures
pressures
•• Both
Both favor
favor regional
regional strategies
strategies

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 5.2: Pressures for
Globalization vs. Localization

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Transnational or International:
Which Way for the Global
Company?
•• Select
Select aa transnational
transnational over
over an
an international
international strategy
strategy
when:
when:
•• Benefits
Benefits ofof dispersing
dispersing activities
activities worldwide
worldwide offset
offset the
the
costs
costs ofof coordinating
coordinating aa more
more complex
complex organization
organization
•• Select
Select an
an international
international strategy
strategy over
over aa transnational
transnational
when:
when:
•• Cost
Cost savings
savings ofof centralization
centralization offset
offset the
the lower
lower costs
costs
ofof higher
higher quality
quality raw
raw materials/labor
materials/labor from
from worldwide
worldwide
locations
locations
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Participation Strategies:
The Content Options
•• Participation
Participation strategies:
strategies: the
the choice
choice ofof how
how toto enter
enter
each
each international
international market
market
•• Exporting
Exporting
•• Licensing
Licensing
•• Strategic
Strategic alliances
alliances
•• Foreign
Foreign direct
direct investment
investment

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exporting
••
••

Easiest
Easiest way
way toto sell
sell aa product
product inin international
international market
market
Passive
Passive exporter:
exporter: company
company that
that treats
treats and
and fills
fills
overseas
overseas orders
orders like
like domestic
domestic orders
orders
•• Alternatively,
Alternatively, aa company
company can
can put
put extensive
extensive resources
resources
into
into exporting
exporting with
with dedicated
dedicated export
export department
department

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Export Strategies
•• Indirect
Indirect exporting:
exporting: uses
uses intermediaries
intermediaries or
or go-between
go-between
firms
firms
•• The
The most
most common
common intermediaries
intermediaries
•• Export
Export Management
Management Company
Company (EMC)
(EMC) and
and Export
Export
Trading
Trading Company
Company (ETC)
(ETC)
•• Specialize
Specialize inin products,
products, countries,
countries, or
or regions
regions
•• Provide
Provide ready-made
ready-made access
access toto markets
markets
•• Have
Have networks
networks ofof foreign
foreign distributors
distributors
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Export Strategies
•• Direct
Direct exporting:
exporting: direct
direct contact
contact with
with customers
customers inin the
the
foreign
foreign market
market
•• More
More aggressive
aggressive exporting
exporting strategy
strategy
•• Requires
Requires more
more contact
contact with
with foreign
foreign companies
companies
•• Uses
Uses foreign
foreign sales
sales representatives,
representatives, distributors,
distributors, or
or
retailers
retailers
•• May
May require
require branch
branch offices
offices inin foreign
foreign countries
countries
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Export Strategies (cont.)
•• Channels
Channels inin direct
direct exporting
exporting
•• Sales
Sales representatives
representatives use
use the
the company’s
company’s
promotional
promotional literature
literature and
and samples
samples
•• Foreign
Foreign distributors
distributors resell
resell the
the products
products
•• Sell
Sell directly
directly toto foreign
foreign retailers
retailers or
or end
end users
users

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Licensing
•• Licensing:
Licensing: contractual
contractual agreement
agreement between
between aa domestic
domestic
licensor
licensor and
and aa foreign
foreign licensee
licensee
•• Licenser
Licenser has
has valuable
valuable patent,
patent, know-how,
know-how, or
or trademark
trademark
•• Foreign
Foreign licensee
licensee pays
pays royalties
royalties for
for use
use

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Tài liệu bạn tìm kiếm đã sẵn sàng tải về

Tải bản đầy đủ ngay

×

×