战略管理英文版版教学课件第10章.ppt

Global Strategy: Competing Around the World2–22–2Part 2 Strategy Formulation10-2LO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets.LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.10-3ChapterCase 10 Hollywood Goes Global• •Hollywood movie: The quintessential American productHollywood movie: The quintessential American productØØHowever, non-US sales increased: 50% in 2000, However, non-US sales increased: 50% in 2000, AND AND 70% in 201070% in 2010ØØAltered global strategic focus Altered global strategic focus vvMovies that fit the global market by adapting foreign scripts, Movies that fit the global market by adapting foreign scripts, hiring international actors/actresses…etc.hiring international actors/actresses…etc.• •Treat emerging markets as focal targetsTreat emerging markets as focal targets ØØNot just Not just filmmakingfilmmaking industries, but also the industries, but also the electronicselectronics industry industry (ex: Korea, ), and (ex: Korea, ), and autoauto industry (ex: India industry (ex: India) )ØØKey questions: How can a company compete effectively in a Key questions: How can a company compete effectively in a global market place?global market place?10-4EXHIBIT 10.1 Lifetime Revenues - Blockbuster Movies10-5 Hollywood Goes Global• •What are the key implications of the opening case?What are the key implications of the opening case?• •How are Hollywood movies being made with How are Hollywood movies being made with international factors?international factors?ØØRecruiting international actors/actresses Recruiting international actors/actresses ØØAdapting foreign screenplaysAdapting foreign screenplaysØØUnderstanding different demands from different Understanding different demands from different geographic marketsgeographic markets10-6What Is Globalization?•Globalization is a process of closer integration and exchange between different countries and peoples worldwide.•Made possible by:ØØFalling trade and investment barriersFalling trade and investment barriersØØAdvanced telecommunicationsAdvanced telecommunicationsØØReduced transportation costsReduced transportation costsØØImportance of Importance of MNEs MNEs and and FDIsFDIs10-7What Is Globalization (cont'd)•Multinational Enterprise (MNE) ØDeploys resources and capabilities in the procurement, production, and distribution in at least two countriesvLess than 1% of firms, BUT employ 19% of U.S. workforce–74% of private sector R&D spending•Foreign Direct Investment (FDI)ØInvestments in value chain activities abroad•Global StrategyØTo sustain a competitive advantage ØCompeting against foreign and domestic companies around the world10-8Why Global?•Gain access to a larger market•Gain access to low-cost input factorsØLabor, natural resources, technology, logistics•Develop new competenciesØLocation economiesØUnique locational advantages10-91–10STRATEGY HIGHLIGHT 10.1Stages of Globalization•Globalization 1.0: 1900–1941Globalization 1.0: 1900–1941Ø Only sales and distribution took place overseasOnly sales and distribution took place overseas•Globalization 2.0: 1945–2000Globalization 2.0: 1945–2000ØØDuplicating business functions overseasDuplicating business functions overseas•Globalization 3.0: 21Globalization 3.0: 21stst century centuryØØMNEs become global collaboration networks (see MNEs become global collaboration networks (see Exhibit 10.2)Exhibit 10.2)10-10EXHIBIT 10.2 Globalization 3.0 - Collaboration Networks10-11EXHIBIT 10.3 International Sales as % of TotalData from 201010-121–13STRATEGY HIGHLIGHT 10.2 1.4 billion population, only 1 in 100 people owns a vehicle 1.4 billion population, only 1 in 100 people owns a vehicleØØJoint venture with Shanghai Automotive Industrial CorpJoint venture with Shanghai Automotive Industrial CorpØØ$ 250 million on a state-of-the-art R&D center…in Shanghai$ 250 million on a state-of-the-art R&D center…in ShanghaiØØFuture of GM likely decided in their international HQ…in Shanghai!!Future of GM likely decided in their international HQ…in Shanghai!!10-13Small Group Exercise 1•Accenture has moved its country of Accenture has moved its country of incorporation incorporation ØØCorporate officers are still in the U.S. Corporate officers are still in the U.S. ØØThe stock is still traded on the NYSEThe stock is still traded on the NYSEØØStated reason for the move was to save on taxes…Stated reason for the move was to save on taxes…•What defines a U.S. company? What defines a U.S. company? vvWhere it is incorporated? Where it is incorporated? vvWhere the top management team lives and works is "home"Where the top management team lives and works is "home"•Is there a fiduciary responsibility to move the Is there a fiduciary responsibility to move the firm to maximize shareholder wealth? firm to maximize shareholder wealth? 10-14Disadvantages of Expanding Internationally •Liability of foreignnessØAdditional cost of doing business in an unfamiliar cultural and economic environment ØCost of coordinating across geographic distanceØEconomic development may increase the cost of doing businessvRising wages with improved living standardsvDifficulty in protecting intellectual property10-15LO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets.LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.10-16Global Expansion: Where•How does an MNE decide where to go?ØNational institutions: vWell-established legal and ethical pillars as well as well- functioning economic institutions such as capital markets, banks, and infrastructuresØNational culture: "Programming of the mind"vGeert Hofstede’s Cultural Dimensions1.Power distance2.Individualism3.Masculinity/femininity 4.Uncertainty-avoidance5.Long-term orientation10-17Global Expansion: Where•Hofstede’s Cultural DimensionsØPower distancevHow a society deals with inequality among people in terms of physical and intellectual capabilitiesHigh = Philippines High = Philippines Low = AustriaLow = AustriaØIndividualismvRelationship between individuals in a society, particularly in regard to the relationship between individual and collective pursuitsHigh = U.S.A.High = U.S.A. Low = VenezuelaLow = VenezuelaØMasculinity/femininityvRelationship between genders and its relation to an individual’s role at work and in societyHigh = Japan High = Japan Low = SwedenLow = SwedenØUncertainty-avoidancevSocietal differences in tolerance toward ambiguity and uncertaintyHigh = RussiaHigh = RussiaLow = SingaporeLow = Singapore10-18EXHIBIT 10.4 Corporate Tax RatesInstitutional Difference Matters10-19Global Expansion: How •Exporting: producing goods in one country to sell in another•Acquisition, strategic alliance are also popular vehicles for entry into foreign markets•MNEs sometime prefers greenfield operations or wholly owned subsidiariesØGreenfield is building new factories/offices from scratchvPhysically and organizationally building from the "ground up". 10-20EXHIBIT 10.5 Modes of Foreign Market EntryMarket Entry along the Investment & Control Continuum10-21Strategy around the World: Cost Reduction vs. Local Responsiveness• Local responsiveness Local responsiveness: : ØØTailor product and service offerings to fit local Tailor product and service offerings to fit local consumer preferences and host-country consumer preferences and host-country requirementsrequirementsØØHigher costHigher costvvEx: McDonald’s uses mutton in IndiaEx: McDonald’s uses mutton in India• Cost reductionCost reduction: : ØØMNEs enter global marketplace with the MNEs enter global marketplace with the intention to reduce operation costintention to reduce operation costvvEx: Toyota Prius Ex: Toyota Prius 10-22EXHIBIT 10.6The Integration-Responsiveness Framework10-23Four Global Strategies•International strategyInternational strategyØØLeveraging home-based core competencies Leveraging home-based core competencies ØØSelling the same products or services in both Selling the same products or services in both domestic and foreign marketsdomestic and foreign marketsvvEx: Harley-Davidson in PolandEx: Harley-Davidson in Poland•Localization strategyLocalization strategy ØØMaximize local responsiveness Maximize local responsiveness ØØConsumers will perceive them to be domestic Consumers will perceive them to be domestic companiescompaniesvvEx: Nestlé’s customized product offerings Ex: Nestlé’s customized product offerings 10-24Four Global Strategies (cont'd)•Global standardization strategy ØEconomies of scale and location economies ØPursuing a global division of labor based on best-of-class capabilities reside at the lowest cost•Transnational strategyØCombination of localization strategy (high responsiveness) with global standardization strategy (lowest cost position attainable)ØGlocalization vEx: German multimedia conglomerate Bertelsmann10-25EXHIBIT 10.7Characteristics, Benefits, and Risks of Four Typesof Global Strategy  Characteristics Benefits Risk • Often the first step in• Leveraging core• No or limited local petence.responsiveness. • Used by MNEs with relatively large• Economies of scale.• Highly affected domestic markets (e.g., MNEs from• Low-cost implementationby exchange rate U.S., Germany, Japan).through:fluctuations.  International• Well-suited for high-end products• Exporting or licensing• IP embedded in product  Strategy(such as machine tools) and luxury   (for products)or service could be goods that can be shipped across• Franchising (for services)expropriated. the globe.• Licensing (for trademarks)   • Products and services tend to have  strong brands.  • Main competitive strategy tends to  be differentiation since exporting,  licensing, and franchising add  additional costs.   • Used by MNEs to compete in• Highest-possible local• Duplication of key host countries with large and/orresponsiveness.business functions lucrative but idiosyncratic domestic• Reduced exchange-ratein multiple countries  Localizationmarkets (e.g., Germany, Japan,exposure.leads to high cost of  (Multidomestic)Saudi Arabia).implementation.  Strategy• Often used in consumer products• Little or no economies of and food industries.scale. • Main competitive strategy is• Little or no learning across differentiation.different regions. • MNE wants to be perceived as local• Higher risk of IP company.Expropriation.    10-26EXHIBIT 10.7Characteristics, Benefits, and Risks of Four Types of Global Strategy (cont’d)Characteristics Benefits Risk  Global-• Used by MNEs that are offering• Location economies:• No local responsiveness.  Standardizationstandardized products and servicesglobal division of labor• Little or no product  Strategy(e.g., computer hardware orbased on wherever best-of-differentiation. business process outsourcing).class capabilities• Some exchange-rate • Main competitive strategy is price.reside at lowest cost.exposure. • Economies of scale.• “Race to the bottom” as wages increase. • Some risk of IP   expropriation.  Transnational• Used by MNEs that pursue an• Attempts to combine• Global matrix structure    (Glocalization)integration strategy at the businessbenefits of localization andis costly and difficult to  Strategylevel by simultaneously focusing onstandardization strategiesimplement, leading to high product differentiation and low cost.simultaneously by creatingfailure rate. • Mantra: Think globally, act locally.a global matrix structure.• Some exchange-rate • Economies of scale,exposure. location, and learning.• Higher risk of IP expropriation.    10-271–28STRATEGY HIGHLIGHT 10.3Walmart Retreats from Germany• •Walmart entered GermanyWalmart entered GermanyØØ Acquisition of 21 stores and 74 hypermarkets Acquisition of 21 stores and 74 hypermarkets• •Walmart duplicated its U.S. policies and applied them in GermanyWalmart duplicated its U.S. policies and applied them in GermanyØØEmployees refused to accept those policies Employees refused to accept those policies • •Walmart faced significant cultural differencesWalmart faced significant cultural differences• •Walmart could not develop efficient economies of scale and Walmart could not develop efficient economies of scale and distribution centers to drive cost downdistribution centers to drive cost down• •The result is a defeated Walmart that sold its stores to Metro, The result is a defeated Walmart that sold its stores to Metro, Walmart’s key rival in Germany!Walmart’s key rival in Germany!• •ALDI, another of Walmart’s competitors in Germany, is now expanding ALDI, another of Walmart’s competitors in Germany, is now expanding aggressively in the U.S.aggressively in the U.S.10-2810-29 LO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy. LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages. LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets. LO 10-4 Describe the characteristics of and critically evaluate the four different strategies MNEs can pursue when competing globally. LO 10-5 Explain why certain industries are more competitive in specific nations than in others. LO 10-6 Evaluate the relationship between location in a regional cluster and firm-level competitive advantage.National Competitive AdvantageNational Competitive Advantage• •Death-of-distance hypothesisDeath-of-distance hypothesisØØGeographic location alone should not lead to firm-Geographic location alone should not lead to firm-level competitive advantage because firms are now level competitive advantage because firms are now more able to source inputs globally (ex: capital, more able to source inputs globally (ex: capital, commodities, etc.) Labor markets also have commodities, etc.) Labor markets also have become more global.become more global.vvConsumer electronics – Japan & South KoreaConsumer electronics – Japan & South KoreavvMining companies – AustraliaMining companies – Australia• •Why are certain industries in some countries more Why are certain industries in some countries more competitive than in others? competitive than in others? ØØAnswer: Answer: National Competitive AdvantageNational Competitive Advantage10-30EXHIBIT 10.8Porter’s Diamond of National Competitive AdvantagePorter American Future Video10-31National Competitive Advantage Framework•Factor conditions ØA nation’s endowments in terms of national, human, and other resources•Demand conditionsØSpecific characteristics of demand in a firm’s domestic market•Competitive intensityØHighly competitive environments tend to stimulate firms to outperform others•Related and supporting industry Øleadership in related and supporting industries can also foster world-class competitors in downstream industryØComplementarity10-32Regional Clusters•Regional clusterØA group of interconnected companies and institutions in a specific industry, located near each other geographically and linked by common characteristicsØKnowledge spillovervPositive externalities that are regionally constrainedvExchange of ideas among firms in a cluster 10-33Regional Clusters (cont'd)•Some locational characteristics that distant rivals cannot matchØKnowledge, relationships, reduced proximity, motivation, and complementarityvEx: Research Triangle Park (RTP) in North CarolinavMany MNEs are located in RTP clustervBASF, Bayer, Cisco Systems, Ericsson, and IBM–Creating about 140,000 jobs–Largely improve local economies while firms sustain competitive advantage by co-evolution10-34EXHIBIT 10.9Mapping a Regional Cluster: Research Triangle10-35CHAPTERCASE 10/Consider This…• •Hollywood film industry enters Hollywood film industry enters global marketglobal market to explore to explore new revenue stream! new revenue stream! • •Will we see a decrease in the production of regional and Will we see a decrease in the production of regional and U.S.-centered movies? Or will small independent movie U.S.-centered movies? Or will small independent movie producers pick up a higher share of the domestic U.S. producers pick up a higher share of the domestic U.S. market?market?• •Will piracy become a significant concern when Will piracy become a significant concern when Hollywood filmmakers go global? How to combat the Hollywood filmmakers go global? How to combat the piracypiracy? ?• •How would you prioritize which nations to expand How would you prioritize which nations to expand distribution into if you were working for a major distribution into if you were working for a major Hollywood movie studio?Hollywood movie studio?10-36Take-Away ConceptsLO 10-1 Define globalization, multinational enterprise (MNE), foreign direct investment (FDI), and global strategy.üGlobalization involves closer integration and exchange between different countries and peoples worldwide, made by factors such as falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs.üA multinational enterprise (MNE) deploys resources and capabilities to procure, produce, and distribute goods and services in at least two countries.üForeign direct investment (FDI) denotes a firm’s investments in value chain activities abroad.LO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages.üFirms compete internationally to gain access to a larger market, gain access to low-cost input factors, and develop new competencies.üTo compete successfully abroad, firms must overcome the liability of foreignness.10-37Take-Away ConceptsLO 10-2 Explain why companies compete abroad and evaluate advantages and disadvantages. (cont’)üAs local wages and costs of living increase, a low-cost location advantage evaporates. On the upside, this can turn producers into consumers.üConstant pressures to reduce cost lead to a “race-to-the-bottom” where MNEs chase the lowest cost locations.LO 10-3 Explain which countries MNEs target for FDI, and how they enter foreign markets.üWhen an MNE has to decide between countries in which to invest, two additional country-level factors come into play: national institutions and national culture.üManagers have the following strategy vehicles for entering foreign markets (on a continuum from low to high investment needs and control): exporting, strategic alliances (licensing for products, franchising for services), joint venture, and subsidiary (acquisition or greenfield).10-38Take-Away ConceptsLO 10-4 Describe the characteristics of and critically evaluate the four different strategies that MNEs can pursue when competing globally.üTo navigate between the competing pressures of cost reductions and local responsiveness, MNEs have four strategies: international, localization, global-standardization, and transnational.üAn international strategy leverages home-based core competencies into foreign markets, primarily through exports. It is useful when the MNEs face low pressures for both local responsiveness and cost reductions.üA localization strategy attempts to maximize local responsiveness in the face of low pressure for cost reductions. It is costly and inefficient because it requires the duplication of key business functions in multiple countries.üA global standardization strategy seeks to reap economies of scale and location by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost. It involves little or no local responsiveness.10-39Take-Away ConceptsLO 10-4 Describe the characteristics of and critically evaluate the four different strategies that MNEs can pursue when competing globally. (Cont’)üA transnational strategy attempts to combine the high local responsiveness of a localization strategy with the lowest cost position attainable from a global-standardization strategy. It also aims to benefit from global learning. Although appealing, it is difficult to implement due to the organizational complexities involved.üExhibit 10.7 summarizes the characteristics, benefits, and risks of the four global competition strategies.LO 10-5 Explain why certain industries are more competitive in specific nations than in others.üNational competitive advantage, or world leadership in specific industries, is created rather than inherited.üFour interrelated factors explain national competitive advantage: (1) factor conditions, (2) demand conditions, (3) competitive intensity in a focal industry, and (4) related and supporting industries/complementors.10-40Take-Away Concepts10-41 LO 10-6 Evaluate the relationship between location in a regional cluster and firm- level competitive advantage.üEven in a globalized world, the basis for competitive advantage is often local.üStrong empirical evidence suggests that being located in a regional cluster can have a positive effect on firm-level competitive advantage, both domestically and globally.•Cultural distance•Death-of-distance hypothesis•Foreign direct investment (FDI)•Global-standardization strategy•Global strategy•Globalization•Globalization hypothesis•Individualism•Integration-responsiveness framework•International strategy•Knowledge spillover•Liability of foreignness•Local responsiveness•Localization strategy•Location economies•Masculinity–femininity dimension•Multinational enterprise (MNE)•National competitive advantage•National culture•Power-distance dimension•Regional cluster•Transnational strategy•Uncertainty-avoidance dimension10-42。