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Managing Differences

Managing Differences

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Published by raqi148
This is about Manging Differences in International firms
This is about Manging Differences in International firms

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Categories:Types, Research
Published by: raqi148 on Oct 29, 2009
Copyright:Attribution Non-commercial

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12/18/2012

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MANAGING
D
I
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EN
CESMANAGING
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Harvard Business Review, March 2007
Presentation of Article
Professor of Global Strategyat IESE Business School
 
Professor of Global Strategy atIESE Business School,Barcelona, Spain.
B.A. degree in AppliedMathematics from HarvardCollege
Ph.D. in Business Economicsfrom Harvard University.
Then worked as a consultant atMcKinsey & Company London
 Join the Harvard BusinessSchool (HBS) faculty in 1983.
He spent 25 years on the full-time faculty at HarvardBusiness School.
In 1991, he was appointed theyoungest full professor in HBS’shistory. He joined the IESEfaculty in 2006.
Professor of Global Strategy atIESE Business School,Barcelona, Spain.
B.A. degree in AppliedMathematics from HarvardCollege
Ph.D. in Business Economicsfrom Harvard University.
Then worked as a consultant atMcKinsey & Company London
 Join the Harvard BusinessSchool (HBS) faculty in 1983.
He spent 25 years on the full-time faculty at HarvardBusiness School.
In 1991, he was appointed theyoungest full professor in HBS’shistory. He joined the IESEfaculty in 2006.
 
SummarySummary
In the article Prof. Ghemawat describe thatthere are two wrong assumption about the GlobalStrategy’s challenges. In his opinion the biggest challengeis “Managing differences that arises at borders. To solvethat he presented his famous concept “AAA-Triangle”. Inhis AAA model “Adaptation, Aggregation & Arbitrage” , hediscussed Adaptation & Aggregation, Aggregation &Arbitrage, Adaptation & Arbitrage & at the last all the AAAat the same time.According to him, managing any AA or AAAstrategy is very difficult. So the MNC’s should have aComprehensive strategy to deal with it. AAA triangle has aframework that provides a basis for considering globalstrategies which encompasses all three effectiveresponses to the large differences that arise at nationalborders. Clear thinking about the full range of strategyoptions should broaden the perceived opportunities,sharpen strategic choices & enhance global performance.In the article Prof. Ghemawat describe thatthere are two wrong assumption about the GlobalStrategy’s challenges. In his opinion the biggest challengeis “Managing differences that arises at borders. To solvethat he presented his famous concept “AAA-Triangle”. Inhis AAA model “Adaptation, Aggregation & Arbitrage” , hediscussed Adaptation & Aggregation, Aggregation &Arbitrage, Adaptation & Arbitrage & at the last all the AAAat the same time.According to him, managing any AA or AAAstrategy is very difficult. So the MNC’s should have aComprehensive strategy to deal with it. AAA triangle has aframework that provides a basis for considering globalstrategies which encompasses all three effectiveresponses to the large differences that arise at nationalborders. Clear thinking about the full range of strategyoptions should broaden the perceived opportunities,sharpen strategic choices & enhance global performance.

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