Chapter 9- Stragegic Planning

Chapter 9- Stragegic Planning - International Strategic...

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International Strategic Planning November 1, 2010 Presented by: Professor Charles Skuba
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Entry modes projections 2 Source: UNCTAD Survey World Investment Prospects 2009- 2011
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Globalization Drivers Market Factors (the emerging global consumer market & global distribution systems) Cost Factors (avoiding cost inefficiencies and duplication of effort) Environmental Factors Competitive Factors
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Commodities and scale-driven goods Consumer goods & locally delivered goods and services Government services Triad Established arena Globalized in 1980s Emerging countries Growing arena Globally contestable today Low-income countries Closed arena Still blocked or lacking significant opportunity Country Global Local Industry Less globalized More globalized The Global Landscape by Industry and Market Source: Adapted and updated from Jane Fraser and Jeremy Oppenheim, “What’s new about Globalization,” The McKinsey Quarterly 33 (no. 2, 1997): 173; and Jagdish N. Sheth and Atul Parkatiyar, “ The Antecedents and Consequences of Integrated Global Marketing,” International Marketing Review 18 (no. 1, 2001): 16-29
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Globalization Salient factors affecting strategy Globalization of markets and consumer behavior is ongoing and affects every market and marketer. The international economic, political and cultural environment(s) present unique barriers, challenges and opportunities. Multiple options exist for international strategy. Consumer needs and behavior are influenced by local market conditions and cultural differences. A fundamental conflict exists between globalization efficiency and local adaptation.
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“The Globalization of Markets” “ The globalization of markets is at hand. With that the multinational commercial world nears its end and so does the multinational corporation.” Theodore Levitt, The Globalization of Markets
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Multinational & global corporations “It boils down to cost. The multinational corporation operates in a number of countries and adjusts its products and practices in each at high relative costs.” “The global corporation operates with resolute constancy - at low relative cost - as if the entire world were a single entity. It sells the same things in the same way everywhere.” Source: Theodore Levitt, The Globalization of Markets
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Spectrum of Global Strategy for Multinational Corporations Multidomestic Global A series of distinct domestic strategies An integrated, interdependent centralized strategy Source: Concept: Michael E. Porter, “On Competition”
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