Post on 14-Jul-2015
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SyllabusPart 1 (2x3H) : WHAT ARE WE SPEAKING ABOUT? Facts about Globalization, Main Concepts we will deal with and their definitions. The problem of Perceived Reality. Illustration with Cases.
Part 2 (4H30) : WHY WE SHOULD CARE ABOUT CONSISTENCY IN FUTURE STEPS ? Key analysis and Tools to support Strategy in Internationalization and Making Decisions appropriately. External Analysis, Key drivers for Change in internationalization, Internal perspective. Value Chain appraisal. Illustration with cases. Some preparation from Students required between Part 1 and Part 2.
Part 3 (4H30): HOW WE MAKE DECISION BECOME REALITY ? Consistency in Processes, IS. Organizational factors, Management Systems evolution and HR policy. Bridging Cultural gaps. Some preparation to be done between the 2 session of Part 3.
According to interest, questions, Parts 1, 2 and 3 may vary by up to 1H in their total duration.
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Start with a Quiz
http://pedagogie.ac-montpellier.fr/Disciplines/ses/Exercices/TES/TES3%20ann%E9e2005-06/Valentini%20MatosL%20Gay%20MathieuJ/QCM.htm
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International vs Global
• International Strategy refers to a range of options for operating outside an organization's country of origin
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International vs Global
• International Strategy refers to a range of options for operating outside an organization's country of origin
• Global Strategy is one kind of International Strategy. It involves high coordination of extensive activities dispersed geographically in many countries around the world
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GLOBAL COMPLEX EXPORT
MULTI DOMESTIC EXPORT
High Need of Coordination
More Concentrated Activities
More Dispersed Activities
Low Coordination between activities
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GLOBAL COMPLEX EXPORT
MULTI DOMESTIC SIMPLE EXPORT
High Need of Coordination
More Concentrated Activities
More Dispersed Activities
Low Coordination between activities
Concentration of activitiesCoordination of MarketingPricing, Packaging, DistributionManagerial capabilities to coordinateLittle value to coordinate
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GLOBAL COMPLEX EXPORT
MULTI DOMESTIC SIMPLE EXPORT
High Need of Coordination
More Concentrated Activities
More Dispersed Activities
Low Coordination between activities
Loosely coordinated internationally, some activities overseasGoods & Service treated independentlyProfessional services where local relationships are critical
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GLOBAL COMPLEX EXPORT
MULTI DOMESTIC SIMPLE EXPORT
High Need of Coordination
More Concentrated Activities
More Dispersed Activities
Low Coordination between activities
Most activities in ONE single country Economy of scale (Manufacturing, R&D)Coordinated Mktg but local branding&pricingEx: Companies from emerging countries
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GLOBAL COMPLEX EXPORT
MULTI DOMESTIC SIMPLE EXPORT
High Need of Coordination
More Concentrated Activities
More Dispersed Activities
Low Coordination between activities
Extensive use of value network, location advantage for each activityProduct dev, Mktg, Manufacturing may be located in different countriesNeed to invest in Coordination (Skills, Org and Management Systems)
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The World is Flat (Thomas L. Friedman)
• 1989 : WoB • 1995 : www• Late 1990s : W-SW : work together (html, soap,XML ...)• 2000s :
• Community (connected individuals)• Outsourcing and Insourcing• Supply Chaining
• 2010s : Informing
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Government Drivers
• Trade policies
• Standards and Norms
• World Trade Regulations
• Labor cost
• Deregulation / Privatization
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Government DriversLoss of Sovereignty
Large multinationals can exert considerable influence on governments through their economy
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http://www.youtube.com/watch?v=M1sy8skjA1QDanny Quah – Oct 2011
“As the economic center of gravity
shifts East, the question should not be
what is good for the West, but what is
good for the world as a whole.”
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WHY CHINA’S GROWTH MIGHT SLOW
1. Convergence; middle-income trap2. Over-investment, excess capacity3. Insufficient domestic demand, over-reliance on export-driven growth
4. Inequality and pressure for political reform5. Currency and financial development6. Aging population; gender imbalance
7. Forced to do so by the rest of the world
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Globalization as a ChangeDid you know 3.0
https://www.youtube.com/watch?v=jp_oyHY5bug&feature=fvwrel
08:10