Professional Documents
Culture Documents
Going
Going
Globalization
Are customers culturally/nationally diverse?
Large percent of foreign revenue?
Large percent of foreign assets?
Are competitors global?
Are owners, partners, suppliers global?
How big is globalization?
Who’s doing it? Why?
What are companies actually doing? Why?
Who is successful? Why?
Reasons to Go International
Proactive Reasons Reactive Reasons
Exploit factor-cost Competitive pressure
differences across Overcapacity
countries Declining domestic
Unique product
sales
Technological advantage
Saturated home market
Economies of scale Under attack from
Growing foreign markets foreign rivals
Exclusive information
Attack rivals on home turf
Going Global: Effect on Bottom Line
ROI
% Foreign Sales/
Total Sales
FDI in the U.S.
“The New American Challenge”
Attractiveness test?
Performance test?
Diagnosis of barriers to competitiveness
– Scale
– Entry mode
– Competitive response
FDI Modes and Choices
Scale Level
[Activity Type] None
Sales
Distribution
Full Scale
Majority
Minority
None
Factors/Issues of Globalization
Economic
Political Cultural
y v e
log t iti Legal
no p e
c h m
Te Co
Challenge to Global Managers
Vision,
Purpose,
Strategy & & Goals
Intelligence
Cultural
Interpreter
Learning,
Cross-Pollination,
Structure & & Change
Configuration
Competitive Forces
First-mover advantage eroding via local
competition in foreign markets
– Great Lakes’ Juicee and MingLang juice in China
– Wal-Mart/Seiyu stores in Japan
Market share dominance in U.S. under
continuous attack by foreign rivals located here
– Toyota, Honda, Nissan, Mercedes, BMW
– Nestles, Grand Metropolitan, Unilever
“Made in America…Who’s the Enemy?”