Hatakenaka s p w gjelsvik m and lester r 2006

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Unformatted text preview: Oil for Development Initiative, which focuses on capacity building around resource management, revenue management, and environmental protection in more than 20 developing countries. In addition to partnering with Statoil’s efforts to “maximize shared value,”4 individual oil and gas supplier firms should develop comprehensive local content strategies in foreign markets, which outline 5 ­10 year tactics for investing in the skills of local workers and making strategic community investments. They also should sponsor exchange assignments in Norway for local staff. Challenge no. 4: Low Cost Foreign Competitors Competing clusters threaten Norway’s innovative, but high cost strategic positioning. Recommendations: Develop partnerships with firms and IFCs in emerging clusters, in particular Brazil. Suppliers should recruit local talent by offering higher salaries than competitors and actively benchmark to stay ahead of poaching efforts. Challenge no. 5: Loss of Ties to Norway With internationalization as the core strategy for growth, supplier firms risk losing their Norwegian identities and may shift headquarters due to tax or market incentives. Recommendations: Initiate a dialogue with business leaders with regard to securing the maintenance of long term roots in Norway. This works to the cluster’s strategic advantage. According to Michael Porter, “The strongest international competitors will often be those that can establish deeper roots in important communities. Companies that can embrace this new locational thinking will create shared value” (Porter, 2011). 4 For example, Statoil has a Management and Technology Transfer Program w...
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This document was uploaded on 03/30/2014.

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