GLOBAL STRATEGYAND MULTINATIONALS’ ENTRY MODE CHOICE W. Chan Kim* INSEAD Peter Hwang** Baruch College Abstract. This paper makes a case directed towards establishing the importance of global strategic considerations in choosing multinationals’entry mode. Specifically‚it is our contention that beyond the environmental and transaction-specificfactors well established in the literature to affect the entry mode decision‚ we should also consider the strategicrelationshipa multinational envisages between
Premium Multinational corporation
THREAT OR STRENGHT ? Corporate venturing behavior is generally related to innovative activities. Creating a corporate venture is a useful choice for firms interested in entering new businesses by expanding operations into new or existing markets (Guth &Ginsberg‚1990; Zahra 1993‚ 1995‚ 1996). Through corporate ventures‚ a company can invest in new products or technologies by funding businesses that have a fairly autonomous management team‚ with the goal of developing new products or
Premium Strategic management Business
Competing on Resources Key ideas from the Harvard Business Review article By David J. Collis‚ Cynthia A. Montgomery The Idea in Brief What gives your company a competitive edge? Your strategically valuable resources -- the ones enabling your enterprise to perform activities better or more cheaply than rivals. These can be physical assets (a prime location)‚ intangible assets (a strong brand)‚ or capabilities (a brilliant manufacturing process). For example‚ Japanese auto companies have consistently
Premium Business school Management Strategic management
responding to complex circumstances. Many scholars refer to learning as a context-dependent process leading to the creation‚ storage‚ and further refinement of routines‚ competences and capabilities (Nelson and Winter‚ 1982; Teece et al. 1997; Prahalad and Hamel‚ 1990; Leonard-Barton‚ 1992). In this respect‚ learning is critical since (i) it represents the act to acquiring organizational knowledge‚ and (ii) capabilities
Free Knowledge Learning Knowledge management
suggested strategies. The strategies will be generated on the basis of the internal analysis‚ providing detailed recommendations of those most important to the future of SABMiller. 1 Internal Analysis 2.2 Prahalad & Hamel (1990) Core Competencies Prahalad & Hamel (1990) state that a core competency must possess all three of the following characteristics: 1. It should provide potential access to a wide variety of markets 2. It should make a significant contribution to
Premium Emerging markets Strategic management
rise and fall of strategic planning. New York: Free Press. Pettigrew‚ A. M.‚ Thomas‚ H. and Whittington‚ R. 2002. Handbook of strategy and management. London: Sage Publications. Porter‚ M. E. 1980. Competitive strategy. New York: Free Press. Prahalad‚ C.K. and Hamel‚ G. (1990) The core competence of the corporation‚ Harvard Business Review (v. 68‚ no. 3) pp. 79–91. Shell.com. 2014. New Lens Scenarios - Shell Global. [online] Available at: http://www.shell.com/global/future-energy/scenarios/new-lens-scenarios
Premium Strategic management Management
Journal‚ Vol Dierickx‚ I. and Cool‚ K. (1989)‚ “Asset stock accumulation and sustainability of competitive advantage”‚ Management Science‚ Vol Foss‚ N.J. (1997)‚ “Resources and strategy: problems‚ open issues‚ and ways ahead”‚ in Foss‚ N.J. Hamel‚ G. and Prahalad‚ C.K. (1994)‚ Competing for the Future‚ Harvard Business School Press‚ Boston‚ MA. Hill‚ W.L.‚ Jones‚ G.R.‚ Galvin‚ P. and Haidar‚ A. (2007)‚ Strategic Management: An Integrated Approach‚ John Wiley and Sons‚ Sydney. Jarzabkowski‚ P. and Wilson
Premium Strategic management Management
Business Generic A firm positions itself by leveraging its strengths. Michael Porter has argues that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation which are applied at the business unit level. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them‚ lead to three generic strategies for achieving above average performance in an industry: cost leadership‚ differentiation‚ and focus
Premium Strategic management Porter generic strategies Blue Ocean Strategy
important factors of developing a business strategy is identifying the organization’s core competencies. Therefore‚ an important part of strategic planning is identifying and predicting the core competencies. Core Competencies According to Prahalad and Hamel (1990) “Core competencies are the collective learning in the organization‚ especially how to coordinate diverse production skills and integrate multiple streams of technologies.” From their points of view the core competencies are
Premium Strategic management Milk
start by doing an internal analysis of the company and define the strengths or weaknesses in different areas. In that case‚ these companies are trying to developing a strategy for competitive advantage based on “resources and capabilities”. Prahalad and Hamel (cited in B820‚ Unit 3‚ p. 7) are accounted for the popularization of resource-based view (RBV) approach and they described “resources and capabilities” as “Core competencies”. They argued that competitive advantages are based on core competencies
Premium Management Strategic management