INTERNATIONAL BUSINESS Ilan Bijaoui 2006 [email protected].
-
date post
21-Dec-2015 -
Category
Documents
-
view
217 -
download
1
Transcript of INTERNATIONAL BUSINESS Ilan Bijaoui 2006 [email protected].
INTERNATIONAL BUSINESS
Ilan Bijaoui
2006
THE POLITICAL SPECTRUM
DEMOCRACY TOTALITARISM
Reactionary Conservative Liberal Radical
Authoritarian Facist Communist Authoritarian
Rule people
Control souls
Economy+Politics
Islam
COMPARATIVE MEASURES OF FREEDOM
POLITICAL RIGHTS
CIVIL RIGHTS
Fair elections, representatives with power, political parties, rights of minorities
Freedom of press, equality under law, social freedom, government-corruption
ECONOMIC SYSTEMS
Market Allocation: Consumers allocate resources. Competition + Consumer Protection (USA)
Command Allocation: State Planners.
Mixed Systems: Governmental Expenditures/GDP 32% USA, 64% Sweden
POLITICS AND MANAGEMENT DECISIONS
• Political risks: Micro (population) and Macro (government)
• Government intervention: Individual-communitarian paradigm
INDEX OF ECONOMIC FREEDOM
Source: Heritage foundation www.heritage.org
Map of countries by GDP (PPP) per capita, based on the 2005 IMF data.
Rank Country GDP$ per capita
1 Luxembourg 69,800
2 Norway 42,364
3 United States 41,399
4 Ireland 40,610
5 Iceland 35,586
6 Denmark 34,737
7 Canada 34,273
8 Austria 33,615
9 Hong Kong 33,411
10 Switzerland 32,571
11 Qatar 31,397
12 Belgium 31,244
13 Finland 31,208
•International Monetary Fund
, World Economic Outlook Database, April 2006 [1]
[edit]
See also
14 Australia 30,897
15 Netherlands 30,862
16 Japan 30,615
17 Germany 30,579
18 United Kingdom 30,470
19 Sweden 29,898
20 France 29,316
21 Italy 28,760
22 Singapore 28,100
23 United Arab Emirates
27,957
24 Taiwan
(R.O.C)
27,572
25 Spain 26,320
26 Brunei 24,826
27 New Zealand 24,769
28 Israel 23,416
29 Netherlands Antilles ,Netherlands
22,750
30 Greece 22,392
31 Slovenia 21,911
32 Cyprus 21,232
33 South Korea 20,590
Leading exporters and importers in world merchandise trade, 2005
(Billion dollars and percentage.)WTO
Sources: US International Trade Commission, US Department of Commerce
Source: PRC General Administration of Customs, China's Customs Statistics
Income Gini coefficients in the world
Rank Country Giniindex
Richest 10%to poorest 10%
Richest 20%to poorest 20%
Surveyyear
1 Denmark 24.7 8.1 4.3 1997
2 Japan 24.9 4.5 3.4 1993
3 Sweden 25 6.2 4 2000
4 Belgium 25 7.8 4.5 1996
5 Czech Republic 25.4 5.2 3.5 1996
6 Norway 25.8 6.1 3.9 2000
7 Slovakia 25.8 6.7 4 1996
8 Bosnia and Herzegovina
26.2 5.4 3.8 2001
9 Uzbekistan 26.8 6.1 4 2000
10 Finland 26.9 5.6 3.8 2000
49 Israel 35.5 11.7 6.4 1997
MOTIVATION PUSHES AND PULLS TO INTERNATIONALIZE
TRADITIONAL MOTIVATIONS(Bartlett)
Expand sales, acquire resources, minimize risk
. Secure Key Supplies
Access Low Cost Factors
Local Market Saturation-Competition
Market Seeking Behavior
Technology – Vernon Product Life Cycle
EMERGING MOTIVATIONS
Economic, Technological, Social Developments
Amortization of R&D Expenditures(public telephone switching systems)
Shortening Product Life Cycle
Scanning & Learning Capabilities
Competitive Positioning (Cross Subsidization)
PM 4.4 Natural and technological environments
NATURAL ENVIRONMENT
Energy costs Geography
TECHNOLOGICAL ENVIRONMENT
RegulationImprovement
InfrastructureKnow howChange
Raw materials Pollution
Spending patternsEconomic
PM 4.3 Demographic and economic environments
ECONOMIC ENVIRONMENT
Age
DEMOGRAPHIC ENVIRONMENT
PopulationFamily Education
PM 4.5 Political and cultural environments
POLITICAL ENVIRONMENT
Interest groupsEnforcementLegislation
CULTURAL ENVIRONMENT
ShiftsSubculturesValues
LEGAL ENVIRONMENT
• Public International Law: International conventions, custom
International Court of Justice (ICJ) • Private International Law:
Common Law-tradition-precedent (English) US, India, Singapore- detailed contracts
Civil law(Codified) (Napoleonic Code) Thailand, Japan China. US Uniform Commercial Code.
• Theocratic law : Islamic law Sha’riah
EstablishmentJuridiction of Host-Home Country
Intellectual Property Paris Union, Right of Priority
Antitrust: US Sherman Act (1890) EU Competition law
Licensing:
Law-Competition/ Competitors
Champagne perfume (YSL)France-US Counterfeiting
Bribery: Foreign Corrupt Practice Act (197)7
Patent Cooperation Treaty(PCT) 39 European Patent Office
ORIENTATION OF MANAGEMENT & COMPANIES
Ethnocentric
Home Country Superior, Similarities
Regiocentric Geocentric
Similarities & Differences Similarities & Differences
In a world region In home & host Countries
Polycentric
Each Host Country is Unique, Differences
Domestic
International
Multi-domestic, Multi National
Global
Transnational
INTERNATIONAL STRATEGIES
INTERNATIONAL STRATEGY-EXPORTS
• Local Distinctive Competence
Raw Material
Know how
Manpower
• International risks
Knowledge protection
Investment protection
STAGES OF DEVELOPMENT
Strategy/ Stage
DomesticInternationalMultinationalGlobalTransnational
ModelCoordinatedDecentralizedCentral hub
Integrated
Network
View of the World
Home Country
Extension markets
National markets
Global markets or resources
Global markets and resources
OrientationEthnocentricEthnocentricPolycentric MixedGeocentric
INTERNATIONAL STRATEGY OF SELECTED FIRMS
GlobalMultidomesticTransnational
Ethnocentric Ikea 1 Danone Coca Cola
Polycentric Ikea2 Unilever
Regiocentric Toyota
Geocentric
PM 11.2 The generic value chain
(Source: Michael E. Porter, Competitive Advantage (New York: Free Press, 1985), p.37.)
ILLUSTRATIVE CONFIGURATION ActivitiesUS Canada UK France Germany Japan
Inbound logistics
Operations
Components
Assembly
Outbound logistics
Order processing
Physical distribution
Marketing
Advertising
Sales force
Promotion materials
x x x x
x x x x x
xx x x x x x
x x x x x x x x x x x x x
ILLUSTRATIVE CONFIGURATION
ActivitiesUS Canada UK France Germany Japan
Service
Procurement
Technology Dvt
Human resource
Management
Firm structure
x x x x x x x xx x
x x x x x x
x
ILLUSTRATIVE COORDINATION
ActivitiesConfiguration Coordination
Operations
Marketing & Sales
Service
Procurement
Technology Dvt
Location of Tasks allocation,production Networking, Technology transfer Product line Brand worldwideCountry Sales coordinationAdvertising\Promotion Similar channels Pricing coordination
Location Similar standards
Location Managing suppliersLocation Tasks allocation Knowledge transfer Sequence of products
CONFIGURATION OF ACTIVITIES
High
Low
Coordination
of Activities
Geographic Dispersed Geographic Concentrated
Extensive Coordination among subsidiaries
Simple Global
Strategy
Country-centered strategy by multinationals operating in one country
Export-based strategy, decentralized marketing
PORTER’S DIAMOND
Factor Demand
Conditions Conditions
Chance Firm Strategy
Structure &
Rivalry
Related &
Supporting Government
Industries
PORTER’S DIAMOND DISCUSSION
Factors Conditions• Human, Physical resources, Capital,
Knowledge, Infrastructure
•Hierarchy, factors: Basic-Advanced
• Factor Creation
Demand Conditions• Demand Composition
• Demanding Buyers
• Anticipatory Buyers
• Pattern Growth
Firm Strategy, Structure& Rivalry• Style of Management & Structure
• National Norms
• Rivalry
Supporting & Related Industries• Supplier Industries & Development
• Related Industries & Market
• Related Industries & Production
ITALIAN SUPPLIER INDUSTRIES TO FOOTWEAR
Leather Footwear
Parts of Design Footwear Services
Leather Processed working Leather Machinery
ITALIAN INDUSTRIES RELATED TO FOOTWEAR
Parts of Footwear
Leather Processed working Leather Machinery
Design Services
Leather Leather Leather Athletic Clothing Handbags Footwear Footwear
PARTIAL CLUSTURING IN DANISH ECONOMY
Barley, Malt Food Processing Refrigeration Yeast Equipment Equipment
Pork Beer Dairy Industry
Trypsin Fermentation Purification (Enzyme) Insulin Equipment Technology
Fermented Insulin Fermented
Enzymes