13 - Global Strategies II, Aggregation, pre class slides Win11

13 - Global Strategies II, Aggregation, pre class slides Win11

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Global Strategies II: Aggregation Whirlpool: Session 13 – Prof. Robb Jensen
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Global Strategy II: Aggregation Aggregation Competitive Advantage Achieve scale and scope economies through international standardization Configuration Mainly in foreign countries that are similar to home base (limit effects of distance) Coordination By business, region, or customer with emphasis on horizontal relationships for cross-border economies of scale Controls Excessive standardization Change Blockers All-powerful unit, regional, or account heads Corporate Diplomacy Avoid appearance of homogeneity or hegemonism (especially if US firm) Corporate Strategy Regions and other country groupings Product or business Function Platform Competence Client Industry
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Cost Structure Sensitivity Analysis % of cost structure influenced by global
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Unformatted text preview: scale Experience Curve Slope 1% savings 2% 3% 2% 4% 6% 3% 6% 9% 4% 8% 12% 5% 10% 15% 10 % 20 % 30 % 40 % 50 % 90% 80% 70% Complete Globalization or Regionalization? Aggregation as Regional Strategies Source: Ghemawat, 2007, Redefining Global Strategy Toyota and Regional Aggregation Source: Ghemawat, Regional Strategies for Global Leadership, HBR IR Framework and Aggregation Source: Bartlett & Ghoshal, Managing Across Borders, SMR How might Aggregation affect the ADDING value scorecard? Components of Value Achievements, Attempts, or Intent Effect A dding Volume or Growth D ecreasing Costs D ifferentiating or Increasing Willingness to Pay I mproving Industry Attractiveness N ormalizing (or optimizing) risk G enerating Knowledge and other Resources and Capabilities...
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This note was uploaded on 03/30/2012 for the course BUS M 490 taught by Professor Robbjense during the Winter '11 term at BYU.

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13 - Global Strategies II, Aggregation, pre class slides Win11

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