Organization of The Book: Part I: Foundations of Global Strategy

Organization of the Book
• Part I: Foundations of Global Strategy

 Chapter 1: Strategizing Around the Globe
 Chapter 2: Managing Industry Competition
 Chapter 3: Emphasizing Institutions, Cultures, and Ethics
 Chapter 4&5: Cultures, Communication and Negotiations (Deresky)
• Part II: Business-Level Strategies
 Chapter 5: Growing and Internationalizing the Entrepreneurial Firm
 Chapter 6: Entering Foreign Markets
 Chapter 7: Making Strategic Alliances and Networks Work
 Chapter 8: Managing Global Competitive Dynamics
• Part III: Corporate-Level Strategies
 Chapter 9: Diversifying, Acquiring, and Restructuring
 Chapter 10: Strategizing, Structuring, and Learning Around the World
 Chapter 11: Governing the Corporation Around the World
 Chapter 12: Strategizing with Corporate Social Responsibility
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 1
Strategizing
Around the
Globe
Global
Global Strategy
Strategy
Mike W. Peng
Mike W. Peng
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Outline
• A global global-strategy book
• Why study global strategy?
• What is strategy?
• Fundamental questions in strategy
• What is global strategy?
• What is globalization?
• Global strategy and globalization debate
Strategy Around the Globe
• What is Global Strategy?
Advantages and Disadvantages (e.g. CocaCola,
Volkswagen Golf, MTV)
• Domestic Companies, MNEs from Emerging Markets

(e.g. Cemex, Embraer, Foxconn, Tata)
• TRIAD (North America, Europe and Japan), while

emerging economies (e.g. BRICS) half of the worlds
GDP and FDI inflow
The Global Economic Pyramid
http://data.worldbank.org/indicator/NY.GDP.PCAP.CD
A Global Global-Strategy Book
• Text departs from traditional view of global strategy
• Important to respond to local needs
• Traditional view of global strategy is incomplete
and unbalanced
 Sacrifices local responsiveness and global learning
 Ignores how domestic firms compete with each other
and with foreign entrants
 Traditional global strategy is only appropriate for large
MNEs in developed countries
 It is dangerous to ignore less developed economies (
https://www.youtube.com/watch?v=aviPzXyiy8E)
Why Study Global Strategy?
What is Strategy?
• Origin-Greek word (strategos)-art of the general
 Sun Tzu, Chinese military strategist in 500 B.C. “know
yourself, know your opponents, encounter a hundred battels,
win a hundred victories”
 The application of the military strategy to business and
competition, known as strategic management, since 1960s
What Is Strategy?
Strategy in Action 1.1
German and French Military Strategy
• Schliefen Plan (prior to WW1), every day’s
schedule marsh fixed in advanced, e.g. Brussels
to be taken by 19th day, the French frontier
crossed on the 22nd, and Paris conquered by
39th.
• Plan XVII a total of five sentences from plan 17
was shown to the generals who would lead a
million soldiers into a battle (e.g. stipulating
“target Berlin, recover Alsace and Lorraine, and
the last sentence: good luck”)
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole
or in part.
Our definition: Strategy as theory
• Integrating both planning and action schools
• Leveraging the concept of “theory”
 A theory serves two purposes: Explanation and
prediction
• Requiring replications and experimentations
 To establish the temporal (time-related) and
geographic limits of an existing theory
• Understanding the difficulty of strategic change
What is Strategy?
• Plan versus Action - strategy is “explicit, rigorous formal
planning” versus “a set of flexible, goal-oriented actions”
• Strategy as Theory-how to compete successfully
 Firms have both intended and emergent strategies
 One firm’s strategies may not work in all situations
 Past success does not guarantee future success
 It is often difficult to change strategy
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole
or in part.
The Essence of Strategy
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned,
Figure 1.3
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Fundamental Questions in Strategy
• Why do firms differ?

 Cultural differences between Western firms and Japanese
companies
 Networks of relationships have powerful effect - keiretsu,
guanxi, chaebol, blat
• How do firms behave?
 Industry-based view - focus on competitive forces within an
industry that impact all firms
 Resource-based (capabilities) view - focus on internal strengths
and weaknesses, firm specific resources and capabilities
 Institution-based view - focus on government and societal forces
Fundamental Questions in Strategy
• What determines the scope of the firm?
• What determines the international success or
failure of firms?
 Industry-based view - degree of competitiveness in
the industry
 Resource-based view - firm specific differences in
capabilities
 Institution-based view - institutional forces, such as
economic reforms and government policy
The “Strategy Tripod”
Three Leading Perspectives on Strategy
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned,
Figure 1.4
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Is Global Strategy?
• Provide standardized products and/or services
on a worldwide basis (i.e., traditional view)
• Any strategy outside one’s home country
• Our definition of global strategy:
 Strategies of firms around the globe
 Both international and non-international (domestic)
 Both developed and emerging economies
What is Globalization?
• A new phenomenon since the late 20th century?
 Western companies exploiting and dominating the world
• A part of long-run human history?
 The Roman emperor Tiberius (1st century AD) imposed the
first known import quota on Chinese low-cost textiles
• A pendulum view: Transportation and
communication revolutions + breakdown of artificial
barriers in trade and investment
 A process similar to the swing of a pendulum: Postwar history
• Semiglobalization?
Global Strategy and Globalization at a
Crossroads
• Three Defining Events - have brought corporate
social responsibility, ethics, and governance to
the forefront of strategic decisions
 Anti-globalization protests - lost jobs, downward
pressure on wages for unskilled labor, environmental
destruction
 Terrorist attacks
 Corporate governance crisis (Asian financial crisis,
U.S. scandals)
Global Strategy and Globalization at a
Crossroads, Cont’d.
•Know Yourself, Know Your Opponents
 Understand strengths AND limitations
 Recognize the social, political, and environmental
costs associated with globalization
 Current business school students exhibit values and
beliefs different from the general public
 Be aware of bias and strategic blind spots
 Do not ignore non-government organizations (NGOs)-
view them as partners

Organization of The Book: Part I: Foundations of Global Strategy

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Organization of The Book: Part I: Foundations of Global Strategy

Uploaded by

Copyright:

Available Formats

Organization of the Book

• Part I: Foundations of Global Strategy

• Domestic Companies, MNEs from Emerging Markets

• TRIAD (North America, Europe and Japan), while

• Why do firms differ?

You might also like