战略管理英文版版教学课件第10章.ppt

1、2222Part 2 Strategy Formulation10-2LO 10-1 Define globalization,multinational enterprise(MNE),foreign direct investment(FDI),and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs target for FDI,and how they ent

2、er foreign markets.LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the relationship between location i

3、n a regional cluster and firm-level competitive advantage.10-3ChapterCase 10 Hollywood Goes Global10-4EXHIBIT 10.1 Lifetime Revenues-Blockbuster Movies10-5 Hollywood Goes Global10-6What Is Globalization?Globalization is a process of closer integration and exchange between different countries and peo

4、ples worldwide.Made possible by:10-7What Is Globalization(contd)Multinational Enterprise(MNE)Deploys resources and capabilities in the procurement,production,and distribution in at least two countriesvLess than 1%of firms,BUT employ 19%of U.S.workforce 74%of private sector R&D spending Foreign Direc

5、t Investment(FDI)Investments in value chain activities abroad Global StrategyTo sustain a competitive advantage Competing against foreign and domestic companies around the world10-8Why Global?Gain access to a larger market Gain access to low-cost input factorsLabor,natural resources,technology,logis

6、tics Develop new competenciesLocation economiesUnique locational advantages10-9110STRATEGY HIGHLIGHT 10.1Stages of Globalization10-10EXHIBIT 10.2 Globalization 3.0-Collaboration Networks10-11EXHIBIT 10.3 International Sales as%of TotalData from 201010-12113STRATEGY HIGHLIGHT 10.210-13Small Group Exe

7、rcise 110-14Disadvantages of Expanding Internationally Liability of foreignnessAdditional cost of doing business in an unfamiliar cultural and economic environment Cost of coordinating across geographic distanceEconomic development may increase the cost of doing businessvRising wages with improved l

8、iving standardsvDifficulty in protecting intellectual property10-15LO 10-1 Define globalization,multinational enterprise(MNE),foreign direct investment(FDI),and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs

9、 target for FDI,and how they enter foreign markets.LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the

10、 relationship between location in a regional cluster and firm-level competitive advantage.10-16Global Expansion:Where How does an MNE decide where to go?National institutions:vWell-established legal and ethical pillars as well as well-functioning economic institutions such as capital markets,banks,a

11、nd infrastructuresNational culture:Programming of the mindvGeert Hofstedes Cultural Dimensions1.Power distance2.Individualism3.Masculinity/femininity 4.Uncertainty-avoidance5.Long-term orientation10-17Global Expansion:Where Hofstedes Cultural DimensionsPower distancevHow a society deals with inequal

12、ity among people in terms of physical and intellectual capabilitiesIndividualismvRelationship between individuals in a society,particularly in regard to the relationship between individual and collective pursuitsMasculinity/femininityvRelationship between genders and its relation to an individuals r

13、ole at work and in societyUncertainty-avoidancevSocietal differences in tolerance toward ambiguity and uncertainty10-18EXHIBIT 10.4 Corporate Tax RatesInstitutional Difference Matters10-19Global Expansion:How Exporting:producing goods in one country to sell in another Acquisition,strategic alliance

14、are also popular vehicles for entry into foreign markets MNEs sometime prefers greenfield operations or wholly owned subsidiariesGreenfield is building new factories/offices from scratchvPhysically and organizationally building from the ground up.10-20EXHIBIT 10.5 Modes of Foreign Market EntryMarket

15、 Entry along the Investment&Control Continuum10-21Strategy around the World:Cost Reduction vs.Local Responsiveness10-22EXHIBIT 10.6The Integration-Responsiveness Framework10-23Four Global Strategies10-24Four Global Strategies(contd)Global standardization strategy Economies of scale and location econ

16、omies Pursuing a global division of labor based on best-of-class capabilities reside at the lowest cost Transnational strategyCombination of localization strategy(high responsiveness)with global standardization strategy(lowest cost position attainable)Glocalization vEx:German multimedia conglomerate

17、 Bertelsmann10-25EXHIBIT 10.7Characteristics,Benefits,and Risks of Four Typesof Global Strategy CharacteristicsBenefitsRiskOftenthefirststepinLeveragingcoreNpetence.responsiveness.UsedbyMNEswithrelativelylargeEconomiesofscale.Highlyaffecteddomesticmarkets(e.g.,MNEsfromLow-costimplementationbyexchang

18、erateU.S.,Germany,Japan).through:fluctuations.InternationalWell-suitedforhigh-endproductsExportingorlicensingIPembeddedinproduct Strategy(suchasmachinetools)andluxury(forproducts)orservicecouldbegoodsthatcanbeshippedacrossFranchising(forservices)expropriated.theglobe.Licensing(fortrademarks)Products

19、andservicestendtohavestrongbrands.Maincompetitivestrategytendstobedifferentiationsinceexporting,licensing,andfranchisingaddadditionalcosts.UsedbyMNEstocompeteinHighest-possiblelocalDuplicationofkeyhostcountrieswithlargeand/orresponsiveness.businessfunctionslucrativebutidiosyncraticdomesticReducedexc

20、hange-rateinmultiplecountries Localizationmarkets(e.g.,Germany,Japan,exposure.leadstohighcostof (Multidomestic)SaudiArabia).implementation.StrategyOftenusedinconsumerproductsLittleornoeconomiesofandfoodindustries.scale.MaincompetitivestrategyisLittleornolearningacrossdifferentiation.differentregions

21、.MNEwantstobeperceivedaslocalHigherriskofIPcompany.Expropriation.10-26EXHIBIT 10.7Characteristics,Benefits,and Risks of Four Types of Global Strategy(contd)CharacteristicsBenefitsRisk Global-UsedbyMNEsthatareofferingLocationeconomies:Nolocalresponsiveness.Standardizationstandardizedproductsandservic

22、esglobaldivisionoflaborLittleornoproduct Strategy(e.g.,computerhardwareorbasedonwhereverbest-of-differentiation.businessprocessoutsourcing).classcapabilitiesSomeexchange-rate Maincompetitivestrategyisprice.resideatlowestcost.exposure.Economiesofscale.“Racetothebottom”as wagesincrease.SomeriskofIP ex

23、propriation.TransnationalUsedbyMNEsthatpursueanAttemptstocombineGlobalmatrixstructure (Glocalization)integrationstrategyatthebusinessbenefitsoflocalizationandiscostlyanddifficultto Strategylevelbysimultaneouslyfocusingonstandardizationstrategiesimplement,leadingtohighproductdifferentiationandlowcost

24、.simultaneouslybycreatingfailurerate.Mantra:Thinkglobally,actlocally.aglobalmatrixstructure.Someexchange-rateEconomiesofscale,exposure.location,andlearning.HigherriskofIPexpropriation.10-27128STRATEGY HIGHLIGHT 10.3Walmart Retreats from Germany10-2810-29 LO 10-1 Define globalization,multinational en

25、terprise(MNE),foreign direct investment(FDI),and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs target for FDI,and how they enter foreign markets.LO 10-4 Describe the characteristics of and critically evalua

26、te the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.10-30EXHIBIT 10.8Porte

27、rs Diamond of National Competitive AdvantagePorter American Future Video10-31National Competitive Advantage Framework Factor conditions A nations endowments in terms of national,human,and other resources Demand conditionsSpecific characteristics of demand in a firms domestic market Competitive inten

28、sityHighly competitive environments tend to stimulate firms to outperform others Related and supporting industry leadership in related and supporting industries can also foster world-class competitors in downstream industryComplementarity10-32Regional Clusters Regional clusterA group of interconnect

29、ed companies and institutions in a specific industry,located near each other geographically and linked by common characteristicsKnowledge spillovervPositive externalities that are regionally constrainedvExchange of ideas among firms in a cluster 10-33Regional Clusters(contd)Some locational character

30、istics that distant rivals cannot matchKnowledge,relationships,reduced proximity,motivation,and complementarityvEx:Research Triangle Park(RTP)in North CarolinavMany MNEs are located in RTP clustervBASF,Bayer,Cisco Systems,Ericsson,and IBM Creating about 140,000 jobs Largely improve local economies w

31、hile firms sustain competitive advantage by co-evolution10-34EXHIBIT 10.9Mapping a Regional Cluster:Research Triangle10-35CHAPTERCASE 10/Consider This10-36LO 10-1 Define globalization,multinational enterprise(MNE),foreign direct investment(FDI),and global strategy.Globalization involves closer integ

32、ration and exchange between different countries and peoples worldwide,made by factors such as falling trade and investment barriers,advances in telecommunications,and reductions in transportation costs.A multinational enterprise(MNE)deploys resources and capabilities to procure,produce,and distribut

33、e goods and services in at least two countries.Foreign direct investment(FDI)denotes a firms investments in value chain activities abroad.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.Firms compete internationally to gain access to a larger market,gain access

34、 to low-cost input factors,and develop new competencies.To compete successfully abroad,firms must overcome the liability of foreignness.10-37LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.(cont)As local wages and costs of living increase,a low-cost location ad

35、vantage evaporates.On the upside,this can turn producers into consumers.Constant pressures to reduce cost lead to a“race-to-the-bottom”where MNEs chase the lowest cost locations.LO 10-3 Explain which countries MNEs target for FDI,and how they enter foreign markets.When an MNE has to decide between c

36、ountries in which to invest,two additional country-level factors come into play:national institutions and national culture.Managers have the following strategy vehicles for entering foreign markets(on a continuum from low to high investment needs and control):exporting,strategic alliances(licensing

37、for products,franchising for services),joint venture,and subsidiary(acquisition or greenfield).10-38LO 10-4 Describe the characteristics of and critically evaluate the four different strategies that MNEs can pursue when competing globally.To navigate between the competing pressures of cost reduction

38、s and local responsiveness,MNEs have four strategies:international,localization,global-standardization,and transnational.An international strategy leverages home-based core competencies into foreign markets,primarily through exports.It is useful when the MNEs face low pressures for both local respon

39、siveness and cost reductions.A localization strategy attempts to maximize local responsiveness in the face of low pressure for cost reductions.It is costly and inefficient because it requires the duplication of key business functions in multiple countries.A global standardization strategy seeks to r

40、eap economies of scale and location by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost.It involves little or no local responsiveness.10-39LO 10-4 Describe the characteristics of and critically evaluate the four different strategies that MNEs

41、 can pursue when competing globally.(Cont)A transnational strategy attempts to combine the high local responsiveness of a localization strategy with the lowest cost position attainable from a global-standardization strategy.It also aims to benefit from global learning.Although appealing,it is diffic

42、ult to implement due to the organizational complexities involved.Exhibit 10.7 summarizes the characteristics,benefits,and risks of the four global competition strategies.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.National competitive advantage,or w

43、orld leadership in specific industries,is created rather than inherited.Four interrelated factors explain national competitive advantage:(1)factor conditions,(2)demand conditions,(3)competitive intensity in a focal industry,and(4)related and supporting industries/complementors.10-4010-41 LO 10-6 Eva

44、luate the relationship between location in a regional cluster and firm-level competitive advantage.Even in a globalized world,the basis for competitive advantage is often local.Strong empirical evidence suggests that being located in a regional cluster can have a positive effect on firm-level compet

45、itive advantage,both domestically and globally.Cultural distance Death-of-distance hypothesis Foreign direct investment(FDI)Global-standardization strategy Global strategy Globalization Globalization hypothesis Individualism Integration-responsiveness framework International strategy Knowledge spill

46、over Liability of foreignness Local responsiveness Localization strategy Location economies Masculinityfemininity dimension Multinational enterprise(MNE)National competitive advantage National culture Power-distance dimension Regional cluster Transnational strategy Uncertainty-avoidance dimension10-42