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Gad Ariav Mit Forum Global Strategy Viz Cn
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Transcript of Gad Ariav Mit Forum Global Strategy Viz Cn
1 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Business
“Globalization 101”:
China @ Crossroad, 2009
International
Business Strategy viz. China:
The Unique Qualifiers
Gadi Ariav
MIT Forum, January 2010
Zhang HongTu
Image sourced from Saatchi Gallery website.
2 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Businesssynopsis
� one world – ready or not
� thinking strategically – global arbitrage?
� homework: configure the IB architecture
� the CN-modifiers:
� national differences, different stake-holders
� doing business in/with CN:
� challenging
� no excuse for ignorance-based failure
� unavoidable?
3 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Business
the design of globalcompetitive corporate business architecture
key strategic global choices:� home country� supplier / production countries� customer countries� partner countries� competitor strategic global choices
the global arbitrage case:global added value from trade
key global operational choices (“G5”):platform, network, intermediary,entrepreneurship, investment
4 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Business
global business strategy:implementation agenda
� managing the value network:
� manufacturing and supply networks
� locating components globally
� marketing
� payments and collections
� control:
� risk and asset protection
� governance
5 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Business
IB strategy:global strategic modifiers
� national differences:
� history, economic history
� political economic system
� legal system
� culture
� country linkages
� stakeholders: esp. government and public
� ethics and social responsibility
6 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Business
7 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global BusinessCN ultimate combination
� infinite pool of low wage, not-trained labor
� fast increase in productivity w/o impact on wages
� emerging and huge consumption markets
� potential access to global best practices
� diversified economic development among provinces
� acceptable secondary and tech education
� acceptable political stability
� very high political independence
8 / 8Copyright Max Perlman Center for Global Business 2010 ©
TEL AVIV
UNIVERSITYFaculty of
Management
Max PerlmanCenter for
Global Business
national differences:
� history, economic history: long, transitional
� political economic system: market socialism
� stakeholders: esp. government and public
� legal system: practice precedes law
� culture: deep, somewhat transitional
� ethics and social responsibility
� country linkages: China-fication of WTO
China strategic modifiers