2 Global Strategy - Introduction Short Version

2 Global Strategy - Introduction Short Version - Global...

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Unformatted text preview: Global Business Global Business MOR 492 Global Strategy 1 Doing Where are you? Global Business MOR 492 Global Strategy 2 Where are you? Global Business MOR 492 Global Strategy 3 Global Business MOR 492 Global Strategy 4 Global Business MOR 492 Global Strategy 5 Global Business Who is us Click to edit Master subtitle style MOR 492 Global Strategy 6 Global Business Globalization u Drivers x u of Globalization New technology in transportation Container shipping u Air travel New technology in Communication x eCommerce x u Example: Alibaba.com MOR 492 Global Strategy 7 Global Business MOR 492 Global Strategy 8 Global Business MOR 492 Global Strategy 9 Global Business MOR 492 Global Strategy 10 Global Business Globalization u Drivers Decline of closed economies - Communism x Adoption of free market economics x WTO and Regional Trading Agreements x Companies seeking global markets, capital, sources of raw materials, cost-effective manufacturing x MOR 492 Global Strategy 11 Global Business Relative Size of the World • • • • Global telecom capabilities Email and eCommerce Rapid transportation Open borders MOR 492 Global Strategy 12 Global Business Myth or reality: Are global markets really integrating? Telephone Direct Calls Investment Global Stock Trade Investment The 10% Surprise 50 100 .... . 0 5 10 15 20 Management Research Private Charity . 25 Percent international MOR 492 Global Strategy Source: Ghemawat, 2006 13 Global Business Profit = Q(R-C)*TIME Q – quantity sold R – revenue (price) C – cost TIME – Sustainable business model MOR 492 Global Strategy 14 (Global) Business Objective Global Business What is Global Business? u Finding raw materials where they are the cheapest and most readily available u Locating production where it is most cost effective u Raising capital where it is cheapest u Selling products and services where the prices are the highest u How different is it global business, really? MOR 492 Global Strategy 15 Global Business Why Go Global? u More “Q” u Higher “Prices” u Lower “Costs” u Sustaining and extending a business idea (model) BUT u Crossing borders adds new and different costs and risks to the benefits MOR 492 Global Strategy 16 Global Business u u u Importing and Exporting Global Investing Global Business x Entering, Types of Global Business operating, and managing enterprises in foreign market places MOR 492 Global Strategy 17 Global Business Core of Global Strategy u Arbitrage x Buying cheap and selling high u Adaptation x (Replication) Transferring and/or adapting a business model Collecting smaller amounts of demand across markets to achieve critical mass (minimum efficient scale) 18 u Aggregation x MOR 492 Global Strategy Global Business MOR 492 Global Strategy 19 Arbitrage Global Business MOR 492 Global Strategy 20 Replication Global Business MOR 492 Global Strategy 21 Adaptation/Replicatio n Global Business MOR 492 Global Strategy 22 How far can a business model travel? Global Business MOR 492 Global Strategy 23 Global Business Aggregating demand across markets MOR 492 Global Strategy 24 Aggregating operations to lower administrative (back office) costs Global Business MOR 492 Global Strategy 25 Global Business MOR 492 Global Strategy 26 Arbitrage Global Business Wal-Mart is the fifth largest trading partner in China MOR 492 Global Strategy 27 Adaptation/Replication Global Business MOR 492 Global Strategy 28 Global Business MOR 492 Global Strategy 29 Global Business MOR 492 Global Strategy 30 Global Business MOR 492 Global Strategy 31 Global Business MOR 492 Global Strategy 32 Global Business MOR 492 Global Strategy 33 ...
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2 Global Strategy - Introduction Short Version - Global...

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