Six More Weeks of Winter Globalization Are customers culturally/nationally diverse? Large percent of foreign revenue? Large percent of foreign assets? Are.
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Transcript Six More Weeks of Winter Globalization Are customers culturally/nationally diverse? Large percent of foreign revenue? Large percent of foreign assets? Are.
Six More Weeks of Winter
Globalization
Are
customers culturally/nationally diverse?
Large percent of foreign revenue?
Large percent of foreign assets?
Are competitors global?
Are owners, partners, suppliers global?
How big is globalization?
Who’s doing it? Why?
What are companies actually doing? Why?
Who is successful? Why?
Reasons to Go International
Proactive Reasons
Reactive Reasons
Exploit factor-cost
Competitive pressure
differences across
Overcapacity
countries
Declining domestic
Unique product
sales
Technological advantage
Saturated home market
Economies of scale
Under attack from
Growing foreign markets
foreign rivals
Exclusive information
Attack rivals on home turf
Going Global: Effect on Bottom Line
ROI
% Foreign Sales/
Total Sales
FDI in the U.S.
“The New American Challenge”
Attractiveness
test?
Performance test?
Diagnosis of barriers to competitiveness
– Scale
– Entry mode
– Competitive response
FDI Modes and Choices
Scale Level
[Activity Type]
None
Sales
Distribution
Full Scale
Partner
Type
Ownership
WOS
Majority
Minority
None
None
Other
MNC
Local
Firm
Govt.
Factors/Issues of Globalization
Economic
Political
Cultural
Legal
Challenge to Global Managers
Vision,
Purpose,
& Goals
Strategy &
Intelligence
Cultural
Interpreter
Structure &
Configuration
Learning,
Cross-Pollination,
& Change
Competitive Forces
First-mover
advantage eroding via local
competition in foreign markets
– Great Lakes’ Juicee and MingLang juice in China
– Wal-Mart/Seiyu stores in Japan
Market
share dominance in U.S. under
continuous attack by foreign rivals located here
– Toyota, Honda, Nissan, Mercedes, BMW
– Nestles, Grand Metropolitan, Unilever
“Made
in America…Who’s the Enemy?”