Class notes # 10

Class notes # 10 - Integrated Strategy in an International...

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Integrated Strategy in an International Context 1. Objectives Study the special challenges faced by a multinational corporation when developing an integrated strategy Develop a framework, the CAGE distance framework, for understanding the market and nonmarket environment for the multinational firm Show how the CAGE framework should guide firms when expanding globally 2. Multinational Firms and Integrated Strategy A firm with operations in multiple countries faces challenges that other firms do not o Politics, culture preferences differ o A one size fits all approach to market, nonmarket and integrated strategy won’t work o Example: Wal-Mart in Germany Nonmarket threats multiply as well o More laws, policies, politics to keep straight o Actions in one country can have effects in others o Greater susceptibility to boycotts and activist groups 3. Differences Matter Semi globalization: Levels of cross-border integration are increasing, but the process is far from complete. To formulate effective strategies, firms need to consider how different one country is from another We are going to identify three types of differences o Unilateral: features of a country without comparison to others
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This note was uploaded on 11/29/2010 for the course PSC 222 taught by Professor Jing during the Spring '10 term at Rochester.

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Class notes # 10 - Integrated Strategy in an International...

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