What is internationalization and what is the outcome – slide 9 – lecture 9
Internationalization is not a new phenomenon, occurring for centuries – (Sparrow, Brewster & Harris 2004)
Reasons for internationalization – pressure for growth to satisfy investor pressure and/ or management ambition
Vertical scope (what range of vertically linked activities should the firm encompass/ Horizontal scope (how specialized already in terms of product range)
NB – Diversifying is a risky strategy – this leads to market development, by selling existing products to new markets (Ansoffs Matrix)
Tesco generally encompasses market development, whereby selling existing products on new markets
Grant 2010 p 370 – quotes about internationalization benefits (expanding opportunity for both consumer and business) – competitive and efficient
Bartlett states that international management is now a common practice, seize opportunity and gain wider market exposure
We can these the push/pull factors – (Read an article on these factors)
Bartlett et al (1995) – traditional vs. emerging motivations
Ghosahal and Barlett – main readings
We need evaluate whether the growth is sustainable and are the effects either positive or negative
Internationalization not always successful, in Taiwan but in America suffered loss making from ‘Fresh & Easy chain’
Different industries have different patterns of industry internationalization Grant (2010) – from chart Tesco and the ‘packaged groceries industry ‘ has high foreign direct investment but experiences a lower level of international trade
Services are now also going international (consulting and universities e.g.)
Supply chain management is key for internationalization, define it and discuss for Tesco (find an article) – products are sourced globally, i.e. different plane parts are sourced globally
Internationalization is not a new phenomenon, occurring for centuries – (Sparrow,