Globalization F2014 PDF
Strategic Management
WEEK 8
Please stow all laptops and electronic devices
Today’s Agenda…
Globalization rationale
Global market entry tactics
Degrees of international coordination/centralization
Some global market and infrastructure challenges
Putting it all together
Grolsch Case Preps
MT#1 Results
Why Go Global?
Many Reasons Are Similar To
Diversification Rationale…
But There Are Some Differences
In How Things Play Out
For Businesses Across The Globe…
Globalization Rationale
To
Hedge Risk…
– Boom/recession cycles of varied economies must be accounted for …
Also need some flexibility to maneuver around tariffs (or political instability)
(Good Resources For Forecasts and Warnings: State Dept. briefings, www.stratfor.com.)
– Currency markets move in different ways... Current race to the bottom?
The Challenge: BMW brings less Euros home when Euro is strong …
Tactics: Continuous currency hedging, shifting center-of-gravity toward other markets.
USD
REF: http://www.xe.com/
CNY
Globalization Rationale
To
Using profits in one market to compete vigorously in another.
Build presence, launch ads and promos… Aggressive pricing Antidumping backlash
To
Cross-Subsidize…
Save $$$...
if Scale Economies or Location-Based Savings can be attained
Globalization Rationale
Ex1: BMW Is Serious About Learning
& Recruiting The Best Minds
To Learn...
BMW
CU ICAR Information:
See: http://www.greenvillehd.com/video/greenville-sctechnology/clemson-univerisity-cuicar/ (4:00-4:59)
Globalization Rationale
Ex2: Organizations Can Learn Via “Reverse Innovation”
Wireless Banking – Kenya
Telemedicine and Low Cost
No minimum balance, low transaction Medical Devices – China and India costs, no brick-and-mortar, no ATMs
Car and Ride Sharing – Zimbabwe
P&G single-serve sachets
(coffee, toothpaste, shampoo) –
Bottom of pyramid Recessionplagued Greece, Spain, US
Prepaid Phone Plans – India
Microlending – India Citigroup
See
WEEK 8
Please stow all laptops and electronic devices
Today’s Agenda…
Globalization rationale
Global market entry tactics
Degrees of international coordination/centralization
Some global market and infrastructure challenges
Putting it all together
Grolsch Case Preps
MT#1 Results
Why Go Global?
Many Reasons Are Similar To
Diversification Rationale…
But There Are Some Differences
In How Things Play Out
For Businesses Across The Globe…
Globalization Rationale
To
Hedge Risk…
– Boom/recession cycles of varied economies must be accounted for …
Also need some flexibility to maneuver around tariffs (or political instability)
(Good Resources For Forecasts and Warnings: State Dept. briefings, www.stratfor.com.)
– Currency markets move in different ways... Current race to the bottom?
The Challenge: BMW brings less Euros home when Euro is strong …
Tactics: Continuous currency hedging, shifting center-of-gravity toward other markets.
USD
REF: http://www.xe.com/
CNY
Globalization Rationale
To
Using profits in one market to compete vigorously in another.
Build presence, launch ads and promos… Aggressive pricing Antidumping backlash
To
Cross-Subsidize…
Save $$$...
if Scale Economies or Location-Based Savings can be attained
Globalization Rationale
Ex1: BMW Is Serious About Learning
& Recruiting The Best Minds
To Learn...
BMW
CU ICAR Information:
See: http://www.greenvillehd.com/video/greenville-sctechnology/clemson-univerisity-cuicar/ (4:00-4:59)
Globalization Rationale
Ex2: Organizations Can Learn Via “Reverse Innovation”
Wireless Banking – Kenya
Telemedicine and Low Cost
No minimum balance, low transaction Medical Devices – China and India costs, no brick-and-mortar, no ATMs
Car and Ride Sharing – Zimbabwe
P&G single-serve sachets
(coffee, toothpaste, shampoo) –
Bottom of pyramid Recessionplagued Greece, Spain, US
Prepaid Phone Plans – India
Microlending – India Citigroup
See