Quais são as opções de estratégia global disponíveis para organizações

Quais são as opções de estratégia global disponíveis para organizações
Durante a última metade do século XX, muitas barreiras ao comércio internacional caíram e uma onda de empresas começou a buscar estratégias globais para obter uma vantagem competitiva. No entanto, algumas indústrias se beneficiam mais da globalização do que outras, e algumas nações têm uma vantagem comparativa sobre outras nações em certas indústrias. Para criar uma estratégia global bem-sucedida, os gerentes precisam primeiro entender a natureza das indústrias globais e a dinâmica da concorrência global.
Fontes de vantagem competitiva de uma estratégia global.
Uma estratégia global bem projetada pode ajudar uma empresa a obter uma vantagem competitiva. Essa vantagem pode surgir das seguintes fontes:
Eficiência Economias de escala do acesso a mais clientes e mercados Explotação de recursos de outro país - mão-de-obra, matérias-primas Estenda o ciclo de vida do produto - os produtos mais antigos podem ser vendidos em países menos desenvolvidos Flexibilidade operacional - produção de mudança como custos, taxas de câmbio, etc. Tempo Estratégico Avanço do primeiro movimento e único fornecedor de um produto para um mercado Subvenção cruzada entre países Preço de transferência Risco Diversificar riscos macroeconômicos (ciclos econômicos não perfeitamente correlacionados entre países) Diversificar riscos operacionais (problemas de trabalho, terremotos, guerras) Aprender Ampliar oportunidades de aprendizagem devido a Diversidade de ambientes operacionais Reputação Crossover clientes entre mercados - reputação e identificação de marca.
Sumantra Ghoshal do INSEAD propôs um quadro que abrange três categorias de objetivos estratégicos e três fontes de vantagem que podem ser utilizadas para alcançá-los. A montagem destes em uma matriz resulta no seguinte quadro:
A Natureza da Vantagem Competitiva nas Indústrias Globais.
Uma indústria global pode ser definida como:
Uma indústria na qual as empresas devem competir em todos os mercados mundiais desse produto para sobreviver.
Uma indústria em que a vantagem competitiva de uma empresa depende das economias de escala e das economias de alcance obtidas em todos os mercados.
Algumas indústrias são mais adequadas para a globalização do que outras. Os seguintes drivers determinam o potencial de globalização de uma indústria.
Localização de recursos estratégicos.
Diferenças nos custos do país.
Potencial para economias de escala (produção, P & D etc.) Curvas de experiência planas em uma indústria inibem a globalização. Uma das razões pelas quais a indústria de fac-símile tinha mais potencial global do que a indústria de móveis é que, para máquinas de fax, os custos de produção caem 30% -40% com cada duplicação de volume; A curva é muito mais plana para a indústria de móveis e muitas indústrias de serviços. As indústrias para as quais as despesas maiores estão em P & D, como a indústria aeronáutica, exibem mais economias de escala do que as indústrias para as quais as maiores despesas são alocadas e trabalhistas, como a indústria de limpeza a seco. As indústrias em que os custos diminuem em pelo menos 20% para cada duplicação de volume tendem a ser bons candidatos à globalização.
Custos de transporte (valor / volume ou relação valor / peso) = & gt; Diamantes e semicondutores são mais globais que o gelo.
As necessidades comuns dos clientes favorecem a globalização. Por exemplo, os clientes da indústria de fac-símile têm necessidades mais homogêneas do que as da indústria moveleira, cujas necessidades são definidas por gostos locais, cultura etc.
Clientes globais: se os clientes de uma empresa são outros negócios globais, a globalização pode ser necessária para alcançar esses clientes em todos os seus mercados. Além disso, os clientes globais muitas vezes exigem produtos padronizados globalmente.
Os canais globais exigem um programa de marketing globalmente coordenado. Os fortes canais de distribuição locais estabelecidos inibem a globalização.
Marketing transferível: se os elementos de marketing, como nomes de marcas e publicidade, exigem pouca adaptação local. As marcas mundiais com nomes não-dicionários podem ser desenvolvidas para se beneficiar de uma única campanha publicitária global.
Concorrentes globais: a existência de muitos concorrentes globais indica que uma indústria está madura para a globalização. Os concorrentes globais terão uma vantagem de custo sobre os concorrentes locais.
Quando os competidores começam a alavancar suas posições globais através de subvenções cruzadas, uma indústria está madura para a globalização.
A indústria da mobília é um exemplo de uma indústria que não se presta à globalização antes da década de 1960. Como a mobília tem um volume alto em comparação com seu valor, e porque os móveis são facilmente danificados no transporte, os custos de transporte tradicionalmente eram altos. As barreiras comerciais do governo também eram desfavoráveis. A empresa de móveis sueca IKEA foi pioneira em avançar para a globalização na indústria moveleira. O mobiliário da IKEA não foi montado e, portanto, poderia ser enviado de forma mais econômica. A IKEA também reduziu os custos envolvendo o cliente na cadeia de valor; o cliente levou os móveis para casa e o montou ele mesmo. A IKEA também tinha uma cultura frugal que lhe dava vantagens de custo. A IKEA expandiu-se com sucesso na Europa, uma vez que clientes em diferentes países estavam dispostos a comprar projetos similares. No entanto, depois de se expandir com sucesso para vários países, a IKEA encontrou dificuldades no mercado americano por várias razões:
Diferentes sabores em móveis e uma exigência para móveis mais personalizados.
Difícil transferir a cultura frugal da IKEA para os EUA
A coroa sueca aumentou em valor, aumentando o custo dos móveis fabricados na Suécia e vendidos nos EUA.
Stock-outs devido ao tempo de envio de um a dois meses da Europa.
Mais concorrência nos EUA do que na Europa.
Vantagens comparativas do país.
A vantagem competitiva é a capacidade de uma empresa transformar os insumos em bens e serviços com um lucro máximo de forma sustentada, melhor que os concorrentes. A vantagem comparativa reside nas dotações dos fatores e criou recursos de regiões específicas. As dotações de fatores incluem terra, recursos naturais, trabalho e o tamanho da população local.
Na década de 1920, os economistas suecos Eli Hecksher e Bertil Ohlin desenvolveram a teoria das proporções de fatores, de acordo com o qual um país goza de uma vantagem comparativa nos bens que fazem uso intensivo de fatores que o país tem em abundância relativa.
Michael E. Porter argumentou que uma nação pode criar suas próprias finanças para obter uma vantagem comparativa. Os recursos criados incluem trabalho qualificado, tecnologia e base de conhecimento, apoio governamental e cultura. O Diamond of National Advantage da Porter é um quadro que ilustra os determinantes da vantagem nacional. Este diamante representa o campo de jogo nacional que os países estabelecem para suas indústrias.
Tipos de Estratégia Internacional: Multi-doméstico vs. Global.
Produto personalizado para cada mercado Controle descentralizado - tomada de decisão local Efetivo quando existem grandes diferenças entre países Vantagens: diferenciação de produtos, capacidade de resposta local, risco político minimizado, risco de taxa de câmbio minimizado.
O produto é o mesmo em todos os países. Controle centralizado - pouca autoridade de tomada de decisão no nível local Efetivo quando as diferenças entre os países são pequenas Vantagens: custo, atividades coordenadas, desenvolvimento mais rápido de produtos.
Uma cadeia de valor totalmente multi-local terá todas as funções de P & D para distribuição e serviços executados inteiramente em nível local em cada país. No outro extremo, uma cadeia de valor totalmente global originará cada atividade em um país diferente.
A Philips é um bom exemplo de uma empresa que seguiu uma estratégia multidomestic. Esta estratégia resultou em:
Inovação de P & D local Espírito empresarial Produtos adaptados a países individuais Alta qualidade devido à integração para trás.
A estratégia multi-doméstica também apresentou a Philips com muitos desafios:
Custos elevados devido a produtos sob medida e duplicação entre países A inovação dos grupos locais de P & D resultou em produtos que foram conduzidos por P & D em vez de orientados para o mercado. O controle descentralizado significava que a adesão nacional era necessária antes da introdução de um produto - o tempo para o mercado era lento.
Matsushita é um bom exemplo de uma empresa que seguiu uma estratégia global. Esta estratégia resultou em:
Forte rede de distribuição global Declaração de missão em toda a empresa que foi seguida de perto Controle financeiro Mais aplicada R & D Capacidade de chegar ao mercado rapidamente e forçar os padrões desde que o buy-in do país individual não era necessário.
A estratégia global apresentou à Matsushita os seguintes desafios:
Problema de iene forte Depende demais de um produto - o VCR Perda de funcionários não-asiáticos por causa de tetos de vidro.
Uma terceira estratégia, que era apropriada para a Whirlpool, é uma customização em massa, discutida abaixo.
Análise de Estrutura de Custo Global.
Em 1986, a Whirlpool Corporation estava considerando expandir-se para a Europa ao adquirir a Divisão de eletrodomésticos principais da Philips. Do quadro de clientes, custos, concorrentes e governo, havia vários prós e contras para essa estratégia proposta.
Os componentes internos dos aparelhos podem ser os mesmos, oferecendo economias de escala.
O custo para personalizar a estrutura externa dos aparelhos foi relativamente baixo.
A indústria de eletrodomésticos era madura com baixo crescimento. A aquisição ofereceria uma avenida para continuar crescendo.
Rede de distribuição fragmentada na Europa.
Diferentes necessidades e preferências dos consumidores. Por exemplo, na Europa, os refrigeradores tendem a ser menores do que nos EUA, têm apenas uma porta externa e possuem tamanhos padrão para que possam ser incorporados ao armário da cozinha. No Japão, os refrigeradores tendem a ter várias portas para manter diferentes compartimentos a diferentes temperaturas e isolar odores. Além disso, porque as casas são menores no Japão, os consumidores desejam aparelhos mais silenciosos.
O Whirlpool já era o jogador dominante em uma indústria fragmentada.
Como a Philip's tinha uma participação de mercado relativamente pequena no mercado europeu de eletrodomésticos, é preciso analisar a estrutura de custos para determinar se a aquisição ofereceria à Whirlpool uma vantagem competitiva. Com a aquisição, a Whirlpool poderá reduzir custos com matérias-primas, depreciação e manutenção, P & D e custos gerais e administrativos. Esses custos representaram 53% da estrutura de custos da Whirlpool. Em comparação com a maioria das outras indústrias, esse percentual de custos que poderiam se beneficiar de economias de escala é bastante grande. Seria razoável esperar uma redução de 10% nesses custos, uma quantia que diminuiria o custo total em 5,3%, dobrando os lucros. Esse potencial justifica o risco de aumentar a complexidade da organização.
Devido às diferentes preferências dos consumidores em diferentes mercados, uma estratégia puramente global com produtos padrão não era apropriada. A Whirlpool teria que adaptar seus produtos aos mercados locais, mas manter uma integração global para obter benefícios de custo. Esta estratégia é conhecida como "customização em massa". & Quot;
A Whirlpool adquiriu a Divisão de Eletrodomésticos Principais da Philips, 47% em 1989 e o restante em 1991. Inicialmente, as margens duplicaram conforme previsto. No entanto, os concorrentes locais responderam melhor adaptando seus produtos e reduzindo os custos; Os lucros da Whirlpool começaram então a diminuir. A Whirlpool aplicou a mesma estratégia para a Ásia, mas a GE estava superando a Whirlpool ao adaptar seus produtos como parte de sua estratégia multi-doméstica.
Globalizando empresas de serviços.
As indústrias de serviços tendem a ter uma curva de experiência plana e economias de escala mais baixas. No entanto, uma economia de escala pode ser obtida através do compartilhamento de conhecimento, o que permite o custo do desenvolvimento do conhecimento em uma base maior. Além disso, em alguns setores, como serviços profissionais, a utilização da capacidade pode ser melhor gerenciada à medida que o escopo das operações aumenta. Do lado do cliente, porque os clientes de uma empresa de serviços podem estar operando internacionalmente, a expansão global pode ser uma necessidade. O conhecimento adquirido nos mercados estrangeiros pode ser usado para atender melhor os clientes. Finalmente, ser global também melhora a reputação de uma empresa, o que é crítico nas empresas de serviços.
Produtos de serviços de alta qualidade geralmente dependem da cultura da empresa de serviços, e manter uma cultura consistente ao se expandir globalmente é um desafio.
Um bom exemplo de uma empresa de serviços que experimentou desafios de expansão global é a empresa de consultoria de gerenciamento Bain & Company, Inc. Na consultoria, o patrimônio estratégico mais importante da empresa é sua reputação, de modo que uma cultura firme consistente é muito importante. Bain enfrentou os seguintes desafios, que dependem da estratégia da empresa e que afetam a capacidade de manter uma cultura consistente:
Coordenação em escritórios e compartilhamento de conhecimento. Seja para contratar funcionários locais ou internacionais. Como compensar.
Modos de entrada no mercado externo.
Uma parte importante de uma estratégia global é o método que a empresa usará para entrar no mercado externo. Existem quatro modos possíveis de entrada no mercado externo:
Exportando Licenciamento (inclui franquia) Joint Venture Foreign Direct Investment.
Essas opções variam em seu grau de velocidade, controle e risco, bem como o nível requerido de investimento e conhecimento do mercado. A seleção do modo de entrada pode ter um impacto significativo no sucesso do mercado externo da empresa.
Questões em economias emergentes.
Nas economias emergentes, os mercados de capitais são relativamente ineficientes. Há falta de informação, o custo do capital é alto e o capital de risco é praticamente inexistente. Devido à escassez de instituições educacionais de alta qualidade, os mercados de trabalho carecem de pessoas bem treinadas e as empresas geralmente precisam preencher o vazio. Devido à falta de infra-estrutura de comunicação, é difícil construir uma marca, mas as marcas boas são altamente valorizadas devido à menor qualidade do produto das alternativas. Relacionamentos com funcionários do governo muitas vezes são necessários para o sucesso, e os contratos podem não ser bem executados pelo sistema legal.
Quando um grande monopólio do governo (por exemplo, uma empresa petrolífera estatal) é privatizado, muitas vezes há pressão política no país contra permitir que a empresa seja adquirida por uma entidade estrangeira. Considerando que uma grande empresa petrolífera dos Estados Unidos pode preferir aquisições, por causa das joint ventures anti-estrangeiras, muitas vezes são mais apropriadas para empresas externas interessadas em empresas de economia emergente recentemente privatizadas.
Gerenciamento de conhecimento em empresas globais.
Há muito valor na transferência de conhecimento e melhores práticas entre partes de uma empresa global. No entanto, muitas barreiras impedem que o conhecimento seja transferido:
Barreiras atribuíveis à fonte de conhecimento falta de motivação falta de credibilidade Barreiras atribuíveis ao próprio conhecimento - ambigüidade e complexidade Barreiras atribuíveis ao conhecimento receptor falta de motivação (não inventada aqui síndrome) falta de capacidade de absorção - precisa de conhecimento prévio para avançar para o próximo nível Barreiras atribuíveis ao processo existente do destinatário - rigidez do processo Barreiras atribuíveis ao ambiente e restrições externas do destinatário.
Além disso, mesmo quando a transferência é bem sucedida, muitas vezes há uma queda temporária no desempenho antes que as melhorias sejam vistas. Durante este período, existe o perigo de perder fé na nova maneira de fazer as coisas.
Para facilitar a transferência de conhecimento, uma empresa pode:
Implementar processos para identificar sistematicamente conhecimentos valiosos e melhores práticas. Crie incentivos para motivar a fonte de conhecimento e o destinatário. Desenvolver a capacidade de absorção no destinatário - conhecimento acumulado Desenvolver redes técnicas e sociais fortes entre partes da empresa que podem compartilhar conhecimento.
Gestão do País.
Os gerentes de país devem ter os seguintes conhecimentos:
Conhecimento da gestão estratégica Conhecimento específico da empresa Conhecimento específico do país Conhecimento do ambiente global.
As organizações nacionais podem assumir o papel de implementador, colaborador, líder estratégico ou buraco negro, dependendo da combinação de importância do mercado local e dos recursos locais.
O menos favorável desses papéis é o buraco negro, que é uma subsidiária em um mercado estrategicamente importante que tem poucas capacidades. Uma empresa pode encontrar-se nessa situação devido às tradições da empresa, ignorância das condições locais, condições de entrada desfavoráveis, mal interpretação do mercado, dependência excessiva de expatriados e relações externas precárias. Para sair de um buraco negro, uma empresa pode formar alianças, focar seus investimentos, implementar uma organização local de P & D, ou quando tudo falhar, saia do país.
Os gerentes nacionais assumem papéis diferentes (os gerentes de novos países, John A. Quelch, professor de administração de empresas, Harvard Business School).
Estrutura internacional: o gerente do país é um comerciante que implementa a política.
Estrutura Multinacional: o gerente do país desempenha o papel de um gerente funcional com responsabilidades de perda e lucro.
Estrutura Transnacional: O gerente nacional atua como um membro do gabinete (membro da equipe), uma vez que os sistemas de controle gerencial são padronizados e o poder de tomada de decisão é transferido para o gerente da região. O gerente do país desenvolve o principal mercado em seu país e transfere o conhecimento adquirido para outros mercados similares.
Estrutura global: o gerente do país atua como embaixador e administrador. Em uma empresa global, geralmente há diretores de negócios que supervisionam o marketing e as vendas. O papel do gerente do país torna-se um dos estadistas. Esta pessoa geralmente é um local com bons contatos do governo.
Bartlett, Christopher A. e Sumantra Ghoshal, Gerenciando através das fronteiras: a solução transnacional.
Ohmae, Kenichi, o mundo sem fronteiras: poder e estratégia na economia interligada.
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armazenados em um disco de computador, republicados em outro site ou distribuídos em qualquer um.

O que é estratégia global? E por que isto é importante?
& # 8216; Estratégia global & # 8217; é um termo abreviado que abrange três áreas: estratégias globais, multinacionais e internacionais. Essencialmente, essas três áreas referem-se às estratégias projetadas para permitir que uma organização atinja seu objetivo de expansão internacional.
No desenvolvimento da estratégia global # 8217 ;, é útil distinguir entre três formas de expansão internacional que surgem dos recursos, capacidades e posição internacional atual de uma empresa. Se a empresa ainda estiver focada principalmente em seus mercados domésticos, suas estratégias fora de seus mercados domésticos podem ser vistas como internacionais. Por exemplo, uma empresa de lácteos pode vender alguns dos seus suprimentos de leite e queijo fora do seu país de origem. Mas seu principal foco estratégico ainda é direcionado para o mercado doméstico.
Na Coreia do Sul, a estratégia global e global de refrigerantes envolverá a mistura de marcas globais como Coca-Cola e Sprite com as marcas locais como Pocara Sweat (e, não, eu não sei o que a marca gosta)!
No entanto, o iPod da Apple seguiu essencialmente a mesma estratégia em todo o mundo: neste caso, o outdoor publicitário estava na América do Norte, mas poderia ter sido em qualquer lugar.
Uma das decisões básicas na estratégia global começa por considerar quanta variação local, se houver, pode haver para uma marca.
Outra decisão mais básica pode ser a realização de qualquer marca. Branding é caro. Pode ser melhor fabricar produtos para outras empresas que, em seguida, empreenda a marca de marca caro. Os iPods da Apple são fabricados na China com a fabricação da empresa chinesa para a especificação da Apple. A empresa chinesa, em seguida, evita a despesa de construir uma marca. Mas enfrenta o problema estratégico que a Apple poderia deixar de renovar seu contrato com a empresa chinesa, o que pode estar em séria dificuldade financeira.
Importante, a estratégia global neste site é uma abreviatura para as três estratégias acima.
Implicações das três definições dentro da estratégia global:
Estratégia internacional: os objetivos da organização referem-se principalmente ao mercado interno. No entanto, temos alguns objetivos em relação à atividade no exterior e, portanto, precisamos de uma estratégia internacional. Importante, a vantagem competitiva & # 8211; importante no desenvolvimento de estratégias & # 8211; é desenvolvido principalmente para o mercado interno. Estratégia multinacional: a organização está envolvida em vários mercados além do seu país de origem. Mas precisa de estratégias distintivas para cada um desses mercados, porque a demanda dos clientes e, talvez, a concorrência, são diferentes em cada país. É importante ressaltar que a vantagem competitiva é determinada separadamente para cada país. Estratégia global: a organização trata o mundo como um grande mercado e uma fonte de abastecimento com pouca variação local. Importante, a vantagem competitiva é desenvolvida principalmente em uma base global.
Existem outras formas de estratégia global?
Em vários livros e documentos de pesquisa, você pode ver referência a outras formas de "estratégia global" # 8217; Por exemplo, você verá as estratégias multi-domésticas & # 8217 ;. Estes são úteis e podem ser explorados em seu contexto. No entanto, as três estratégias descritas acima cobrem as principais possibilidades.
Nós realmente temos (ou queremos) um & # 8216; global & # 8217; estratégia?
As empresas falam sobre o & # 8216; indo global & # 8217; quando o que eles realmente querem dizer é que estão se movendo internacionalmente, fora de seus países de origem. É importante esclarecer precisamente o que significa essa redação porque as implicações estratégicas são completamente diferentes.
Os recursos empresariais necessários para vender internacionalmente podem geralmente incluir uma equipe de vendas, brochuras de produtos em vários idiomas e uma equipe de escritório para lidar com pedidos de vendas no país de origem.
Os recursos empresariais em termos globais são muito maiores. Normalmente, as empresas precisam de uma fábrica em vários países de baixo custo trabalhista, branding e publicidade global, equipes de vendas em todos os principais países, registro caro de patente e propriedade intelectual em muitos países, etc.
Então, por que & # 8216; go global & # 8217; se os recursos necessários são muito maiores e, incidentalmente, mais complexos de gerenciar? Porque as recompensas empresariais devem ser muito maiores para uma estratégia global. E também os riscos!
Portanto, muitas empresas não possuem uma estratégia global & # 8217; da maneira como é definido na literatura de negócios internacionais. Mesmo algumas grandes multinacionais não possuem uma verdadeira estratégia global no sentido de produção completamente integrada, sem marcas localizadas, etc.
Por exemplo, a multinacional de grande sucesso PepsiCo domina os salgados em todo o mundo. No entanto, ainda tem marcas locais como Walkers Crisps no Reino Unido. Não usa a marca Lays no Reino Unido, mas emprega Lays em grande parte do resto do mundo. Por quê? Razões históricas que começaram com a aquisição da Walkers pela PepsiCo, que já era líder de mercado no Reino Unido.
Mesmo que as empresas tenham uma estratégia global, isso leva anos para se desenvolver e requer recursos substanciais. Ele precisa de muitos milhões de US $ e tempo e experiência de gerenciamento substanciais. Por exemplo, a Coca Cola levou muitos anos para desenvolver sua posição atual no mercado mundial de refrigerantes.
Para a maioria das empresas, incluindo muitas empresas menores, é mais realista desenvolver uma estratégia internacional ou multinacional.
Por que a estratégia global é importante?
Há pelo menos quatro respostas a esta questão, dependendo do contexto:
Do ponto de vista da empresa, a expansão internacional oferece a oportunidade de novas vendas e lucros. Em alguns casos, pode até ser a situação que a rentabilidade é tão pobre no mercado interno que a expansão internacional pode ser a única oportunidade de lucros.
Por exemplo, a fraca rentabilidade no mercado doméstico chinês foi uma das razões pelas quais a empresa chinesa de eletrônicos de consumo, a TCL, decidiu em uma estratégia de expansão internacional. Prosseguiu com novos escritórios no exterior, novas fábricas e aquisições para desenvolver sua posição de mercado nos dois principais mercados de eletrônicos de consumo, EUA e União Européia.
Além de novas oportunidades de vendas, pode haver outras razões para expansão além do mercado doméstico. Por exemplo, empresas petrolíferas expandem para garantir recursos & # 8211; chamado de busca de recursos. As empresas de vestuário expandem para aproveitar os baixos custos trabalhistas em alguns países e # 8211; chamado de busca de eficiência. Algumas empresas adquirem empresas estrangeiras para melhorar sua posição de mercado em comparação com os concorrentes # 8211; chamou a busca estratégica de ativos. Esses problemas são identificados no filme que você poderá ver em breve na página # 8216; Como você constrói uma estratégia global? & # 8217;
Do ponto de vista do cliente, o comércio internacional deve & # 8211; em teoria pelo menos & # 8211; levam a preços mais baixos de bens e serviços por causa das economias de escala e alcance que resultarão de uma base global maior. Por exemplo, as fontes da Nike são sapatos esportivos de países com baixos custos trabalhistas, como Filipinas e Vietnã. Além disso, alguns clientes gostam de comprar produtos e serviços que tenham uma imagem global. Por exemplo, personagens de desenho animado da Disney ou "Manchester United & # 8217; camisas de futebol de marca.
Do ponto de vista das organizações governamentais internacionais & # 8211; como o Banco Mundial & # 8211; o pensamento dominante recente tem sido derrubar barreiras ao comércio mundial, ao mesmo tempo que oferece algum grau de proteção a alguns países e indústrias. Assim, a estratégia global é um aspecto importante de tais negociações internacionais.
Do ponto de vista de algumas organizações internacionais não-governamentais como Oxfam e Medicin sans Frontières, as estratégias globais de alguns & # 8211; mas não necessariamente todos os & # 8211; As empresas multinacionais são consideradas com alguma suspeição. Essas empresas foram acusadas de explorar países em desenvolvimento & # 8211; por exemplo em termos de recursos minerais naturais e # 8211; de forma prejudicial para esses países. Esse importante aspecto da estratégia global é explorado na seção separada da web sobre globalização.
Quais são os benefícios de uma estratégia global? E quais são os custos?
Benefícios de uma estratégia global.
O business case para alcançar uma estratégia global baseia-se em um ou mais dos fatores listados abaixo e # 8211; ver pesquisa acadêmica por Theodore Leavitt, Sumanthra Ghoshal, Kenichi Ohmae, George Yip e outros. Para obter as referências completas e detalhadas, vá até o final do Capítulo 19 em qualquer um dos meus livros, Estratégia Corporativa ou Gerenciamento Estratégico.
Economias de escopo: a economia de custos desenvolvida por um grupo quando compartilha atividades ou transfere capacidades e competências de uma parte do grupo para outra, & # 8211; por exemplo, uma equipe de vendas de biotecnologia vende mais de um produto da gama total.
Note-se que o professor George Yip argumenta que o argumento comercial para a globalização é reforçado por pressões competitivas: o medo de algumas empresas de que serão deixadas para trás outras empresas se não conseguirem se globalizar.
A empresa de automóveis japonesa, Toyota, construiu-se na maior empresa de automóveis do mundo. Desenvolveu isso através de uma estratégia global que inclui economias de escala e escopo, branding, reconhecimento de clientes e a recuperação de seus extensos custos de pesquisa e desenvolvimento em muitos mercados ao redor do mundo. No entanto, também tem sido cauteloso em sua estratégia global.
Por exemplo, sua estratégia na República Popular da China passou por joint ventures com as empresas locais de automóveis FAW e Guangzhou Auto. Considerando que as suas principais estratégias na Europa foram em parte através de empreendimentos de propriedade integral e, em parte, através da cooperação com outras empresas de automóveis europeias em alguma produção conjunta.
Para outros modelos como o Lexus, a Toyota ainda exporta diretamente de sua principal fábrica de produção no Japão. A razão é que é capaz de ganhar as economias de escala para a marca Lexus de baixo volume do mercado que não estaria presente se fosse produzir em quantidades menores em cada região mundial, como EUA e União Européia.
Custos de uma estratégia global.
Os custos de operar uma estratégia global podem ser maiores que os benefícios # 8211; veja pesquisas acadêmicas de Douglas e Wind, Rugman e Verbaeke, Ghemawat e outros. Para os detalhes completos, vá para o final do meu capítulo 19 na Corporate Stategy ou Strategic Management 5th edition.
Contra estes benefícios, existem pelo menos seis custos econômicos de estratégias internacionais e globais:
Falta de sensibilidade à demanda local: Leavitt argumentou que as pessoas estariam dispostas a comprometer seus gostos individuais se o produto fosse suficientemente barato, derivado de economias de escala e escopo. Isso é realmente correto? Outros escritores argumentaram que poderia haver custos na adaptação de produtos para corresponder aos gostos locais, condições locais como o clima e outros fatores locais, como leis especiais sobre questões ambientais. Custos de transporte e logística: se a fabricação ocorrer em um país, será necessário transportar os produtos acabados para outros países. Os custos de alguns produtos pesados, como barras de aço, podem ser maiores que as economias de escala da produção centralizada em um país. Os benefícios das economias de escala podem ser difíceis de obter na prática: a planta leva tempo à comissão, os concorrentes locais ainda estão usando plantas antigas e a mão-de-obra barata ainda pode ser competitiva. Por exemplo, veja o Tate & amp; Lyle Case no Capítulo 19 de Lynch. Os custos de comunicação serão maiores: a padronização de produtos e serviços precisa ser comunicada a todos os países. Em praticamente todos os casos, também será necessário monitorar e controlar o resultado. Tudo isso é demorado, caro e à mercê de gerentes locais que podem ter suas próprias agendas e interesses.
Na prática, o caso de negócios para uma estratégia global varia de acordo com a categoria do produto. A verdadeira questão para muitas empresas é o que as decisões são tratadas globalmente e o que localmente. Isso é explorado na seção separada neste site: & # 8216; Como você equilibra global e local? & # 8217;
Itens relacionados.
Estratégia global.
Gestão Estratégica.
O professor Lynch comenta sobre recentes problemas globais.
Copyright 2014 Richard Lynch. Todos os direitos reservados.

ESTRATÉGIA GLOBAL.
A estratégia global no nível micro pertence à alocação dos recursos de uma empresa de forma a aproveitar as oportunidades de lucro fora dos mercados domésticos. Na sua interpretação mais ampla, essa definição abrange atividades como fabricação no exterior, investimento estrangeiro e importação. Este texto, no entanto, vê a estratégia global principalmente no contexto de atividades relacionadas ao marketing, como exportação, licenciamento e parceria em países estrangeiros para vender bens e serviços no exterior.
Em geral, as estratégias de marketing global abrangem três áreas básicas de decisão enfrentadas por organizações individuais: (1) se querem ou não se envolver em comércio exterior; (2) quais mercados específicos devem ser atendidos, incluindo mercados de produtos, geográficos e demográficos; e (3) como participar em mercados escolhidos, incluindo estratégias relacionadas ao planejamento de produtos, financiamento, promoção, distribuição e preço.
No nível macro, a estratégia global é usada por regiões, países, parceiros comerciais e outras entidades para alcançar amplos objetivos econômicos relacionados ao comércio exterior e à concorrência. Por exemplo, a maioria dos países impõe uma variedade de tarifas, cotas e outras restrições aos bens recebidos. Likewise, groups of nations often form self-serving trade agreements that exclude other countries or global regions. And nations or states may engage in strategies, through tools such as tax incentives or government-sponsored promotions, intended to improve global competitiveness or help companies in their locale. All of these macro-level initiatives influence strategy at the micro level.
Discussed below are three basic theories of global trade, the chief benefits of global marketing, influences that dictate global strategies, and the four fundamental approaches to participating in foreign markets.
FROM MERCANTILISM TO FREE TRADE.
The international exchange of goods has been conducted for thousands of years through voluntary trade and by means of military conquest. However, the European mercantilist era, which lasted from about 1500 to 1750, laid the foundation for, and continues to have a strong influence on, the modem practice of international trade. It was during that period that the philosophy of nationalism began to emerge, thus diminishing tribal and regional rivalries and creating unified nation-states. Nationalism gave rise to the view that trade was integral to the national interest, and should therefore be controlled by the government. Foreign trade was generally viewed as a form of rivalry similar to war—one nation gained at the expense of another.
Another ideology that characterized mercantilism was that a nation's wealth is measured in gold and silver, which implied that more bullion should come into the country than should go out. This idea is reflected in modem trade theory by the notion that a country is succeeding in the global trade arena only if it has a favorable trade balance, or exports more than it imports. The contrasting creed, exemplified in the 20th century by both Soviet and Nazi regimes, held that a country should seek to import more goods than it exports as a means of increasing aggregate national wealth. A pivotal difference between the two tenets was that the triumphant mercantilist philosophy is more amenable to individual firms, which seek to maximize sales and thus benefit from increased exports.
Many of the specific prescriptions of mercantilism lost favor during the late 18th and 19th centuries. The belief that gold was the purest measure of wealth, for example, was debunked by the advent of modem economic theory. The superseding wisdom held that a nation's money, or gold, is less of a measure of wealth than it is a determinant of price levels. For instance, the quantity theory posited that as a country's trade balance improved, its prices would rise. As a result, exports would decline in volume and imports would rise because of their comparatively lower price, which would have a balancing effect. Such theories contributed to abandonment of the gold standard by the United States and other nations during the 20th century.
A tenet of mercantilism—that trade is adversarial by nature and necessitates government control—was largely obliterated by Adam Smith's Wealth of Nations. That treatise postulated the "invisible hand" theory of market forces, which essentially displaced mercantilism. Smith's theory called for the reduction of governmental control of foreign trade in favor of a less confrontational trade climate. In addition to evolving economic paradigms, global trade strategy was particularly impacted by the events of the middle 20th century that effectively made world markets more accessible—technological advances related to communications, transportation, refrigeration and preservatives, and manufacturing combined to reduce many of the logistical barriers to international trade. Technological advances also served to minimize cultural and political differences between countries.
Evidencing the notable trend toward trade cooperation have been the numerous efforts by European nations since the 1950s to form trade agreements and establish economic unity. These included the Organization for European Economic Cooperation (OEEC) of 1948, the European Coal and Steel Community (ECSC) in 1952, the European Free Trade Association (EFTA) in 1960, and, ultimately, the European Union today. Major initiatives highlighting this trend in other parts of the world included the Organization of Petroleum Exporting Countries (OPEC); the North American Free Trade Agreement (NAFTA); and the New International Economic Order (NIEO), a consortium of 77 developing countries. On a general level, the sweeping General Agreement on Tariffs and Trade (GATT), as revised in the mid-1990s, is possibly the single largest effort to reduce tariffs and other political trade barriers reminiscent of the mercantilist era.
As a result of overall trade trends, global strategy at the macro level became a vital link to safeguarding economies of scale for developed countries and to moving towards economic progress for many underdeveloped nations during the latter half of the 20th century. Furthermore, these trends were augmented in the 1970s and 1980s by a simultaneous slowdown in U. S. domestic market growth and the resurgence of manufacturing in Europe and Japan. The overall implications of these developments for the United States, and for many other industrialized nations, was a vastly heightened impact of imports and exports on lifestyles and living standards. Furthermore, the dramatic refinement and proliferation of global telecommunications and increasingly liberalized trade highlight the reality of the global economy. Thus, global strategy received greater emphasis on both the micro and macro levels.
Indeed, flows of foreign direct investment (FDI) into the United States reached a record high of $189 billion in 1998, more than double the amount in 1994. Similarly, FDI worldwide was rising briskly during the mid-1990s, growing from $226 billion in 1994 to $349 billion in 1996, a gain of 54 percent. Flows into developing countries in 1996 registered at $129 billion (37 percent of world FDI), with China and Latin America receiving a significant portion, and outflows from developing countries exceeded $50 billion (15 percent of the world total).
GLOBAL TRADE THEORY.
There are at least three major theories that explain the dynamics behind macro-level global strategies: classical, proportion, and product life cycle. The classical theory of international trade is based on the notion of economic advantage, which suggests that countries naturally emphasize foreign sales of products (and services) that they can produce cheaper or better—all other factors aside, a nation acting in its best interest will only export products that it has the greatest advantage in producing. And conversely, it will only import goods and services that it has the least advantage in producing itself. The three types of advantages encompassed by classical theory are absolute, comparative, and equal. These advantages are the impetus behind international trade and price differences, and demonstrate the role of exchange rates as defined by the quantity theory.
A nation has an absolute advantage over another country when it is able to produce a product at a lower price or higher quality level. Absolute advantages may be acquired, such as advanced technological abilities, or natural, such as access to natural resources. A comparative advantage exists when a country has an absolute advantage over a trading partner in many products, but the advantages are comparatively different. In this case, the country at a disadvantage may still be able to benefit (because of exchange ratio dynamics) by specializing in, and exporting, the product(s) in which it maintains the least disadvantage. Finally, an equal advantage exists when one country has an absolute advantage in all products. In this case, the countries cannot theoretically gain by trading because exchange ratios would cancel any economic gain.
The second global trade theory is factor proportion. It goes further than the classical theory in explaining the reasons behind prices and costs. It asserts that price levels differ among countries primarily because of factors related to the supply of natural resources. Thus, a country will generally export goods for which it has an abundant and accessible amount of an input, and it will import goods for which inputs are relatively inaccessible. This theory assumes relatively equal levels of production and technological prowess amongst competing countries.
The third trade theory, product life cycle, gained appeal relatively recently. It takes into account factors like technology and innovation to explain foreign trade forces, and places less emphasis on the role of prices and exchange rates. The product life cycle encompasses four phases. During the first, a new product is manufactured in the home country and succeeds partially because of local advantages, such as ease of distribution and marketing. During the second phase, the originating country benefits as the product gains familiarity in other countries (despite localized competitive disadvantages) because of its uniqueness. As a result, manufacturers in other countries begin copying the product. The third phase is characterized by competition, which increases as countries with competitive advantages, such as low labor costs, begin exporting the good or service. Finally, the country that originated the product succumbs to more competitive foreign producers that cannibalize its global and domestic market share. By that time, the product is often considered a commodity.
PRACTICAL GLOBAL BENEFITS.
While theories help to provide a framework for the causes and dynamics of global trade, most countries and companies engage in strategic global initiatives to take advantage of very tangible benefits. Nations and regions pursue global trade primarily to capitalize on opportunities related to specialization and advantages, as described above. Individual companies that strive to expand globally may do so for a number of reasons related to improving profits.
A primary and obvious benefit for companies that sell products in foreign countries is access to new markets. Indeed, when markets for many products in the United States began to mature and become saturated in the 1970s and 1980s, many producers found that they could continue to achieve steady sales and profit gains through cross-border sales. This provided relief not only from maturing domestic markets, but also from intensifying competition in the U. S. domestic market from Europe and Japan. Because markets in other countries are often less mature and, at least historically, less competitive, companies can typically achieve rapid sales growth and higher profit margins. For example, although Coca-Cola received less than 40 percent of its revenues from foreign sales in the early 1990s, nearly 60 percent of its total profits came from those sales.
Another impetus for firms to engage in a global strategy relates to product life-cycles. Goods that have become obsolete in U. S. markets, for example, can sometimes be marketed abroad very successfully. By increasing a product's life span, a company is able to reduce new product development costs and capitalize on learned efficiencies particular to the product related to production, distribution, and marketing. Likewise, global selling often provides various tax benefits. Many countries, in fact, strive to attract foreign business activity by offering reduced import, property, or income taxes. Furthermore, companies are often able to allocate revenues, costs, and profits in such a way that reduces their overall tax burden.
Another major benefit of an integrated multinational approach is market risk diversification. In other words, a company can generally lessen its vulnerability to cyclical economic downswings or regional disturbances by extending its geographic reach. For instance, companies that were active in both the United States and Western Europe during the late 1980s likely benefited from the lag between the U. S. recession and the European Community economic slump that peaked several months later, just when the United States was beginning to cycle out of its downturn. In addition, geographic diversification lessens risks affiliated with product cycles, seasonality inherent to some products (such as ski equipment), and increased competition in individual regions.
Besides benefits related to marketing goods and services, global strategy also offers benefits related to overseas manufacturing, partnering with foreign firms to develop or market products, foreign investing, hedging exchange rates, and importing goods or services to augment domestic efforts. For example, firms often profit by eliminating domestic workforces and moving their production facilities to areas that have lower labor costs, cheaper natural resources, less government regulation, more efficient access to neighboring export markets, or other advantages that bolster profitability. Or they may be able to benefit from the effects of diversification through foreign investments—an insurance company, for example, could potentially reduce its financial risk by investing surplus funds in Japan or Germany.
EXTERNAL INFLUENCES ON GLOBAL.
Three realms of influence outside of the control of a country or organization affect the determination of global strategy on both the micro and macro levels: economic and competitive, political and legal, and cultural.
ECONOMIC AND COMPETITIVE.
Among the most fundamental precepts of global strategy is market concentration. Companies and countries striving to develop a successful global trade or marketing strategy realize, sooner or later, that they should focus their efforts on a small segment of the global market. For instance, although they contain only 20 percent of the world's population, Japan, Europe, and the United States make up a hefty 75 percent of the global economy. Furthermore, within each of those countries the vast majority of the wealth is controlled by a small, tightening segment of the population. Therefore, a company can become truly dominant on a global scale by focusing on a few key markets. Conversely, it can easily fail by spreading its efforts too thin regionally.
Among the most important considerations for a company selecting regions to consider for trade is the stage of a region's economic development. Aside from political and social risks, countries at relatively mature stages of industrialization are most likely to offer healthy markets for imports. They generally have a more equitable distribution of buying power and are more amenable to new products and technologies. In addition, industrial and post-industrial nations offer other key benefits, such as a stable fiscal and monetary infrastructure; currency stability, which reduces risks associated with the rapid rise or fall of the value of investments in the host country; communication infrastructure, which eases marketing efforts; and transportation systems necessary for the efficient distribution of goods and services.
Influences ancillary to the economic environment include competitive forces that help to dictate global strategy. Although industrial societies typically offer better opportunities for global marketing, they also usually entail more acute competitive pressures. For instance, different countries may possess different levels of competition for various products ranging from a monopolistic country or product environment, which would be inaccessible, to pure competition. A company may also be able to compete, and even benefit from, a more oligopolistic environment in which a few major companies dominate the regional market.
Other competitive forces to consider include the threat of new entrants into the market. If barriers to entry are low and a company has few proprietary advantages, competitive risks may be elevated. The product or service is also vulnerable if it can be easily replaced by a substitute when market conditions change. For example, buyers might switch from boxed cereal to oatmeal to save money during a recession. Also important is the bargaining power of buyers and suppliers in the host country. If a company is in a relatively weak bargaining position, particularly in relation to its competitors, its profitability could become overly dependent on supply and distribution channels. Existing competition is also a concern, as established brands and products can wreak havoc on the profitability of a new entrant.
POLITICAL AND LEGAL INFLUENCES.
The chief consideration facing a company in choosing to enter a foreign market, or a country trying to determine trade policy, is the political stability and legal environment of the host country. A third-world nation with a history of revolt and instability, for example, would likely make a poor prospect for trade. Even an advanced industrialized nation could be a poor prospect, however, if its legal and political environment is generally hostile toward foreign competitors.
Most governments establish restrictions or trade barriers on foreign competition, most of which are designed to protect domestic industries and companies. These controls often dictate a firm's level of activity in an overseas market. A common control is license requirements, which force importers (exporters) to obtain a license before they can move the product into (or out of) a country. For instance, a country may restrict the exporting of goods deemed to have military value. Or, the host may refuse to license goods for import that compete with a domestic industry that it is trying to support.
A second type of control is tariffs, or taxes, on imports. Tariffs are often used to protect domestic companies and industries from competition. However, tariffs may also be used to ensure that the prices of imported goods are equivalent to domestic substitutes, or to gamer revenue for the government. In addition, tariffs are often used to penalize other countries for trade or political actions. The United States, for instance, may elect to impose a tariff on trucks from Japan to punish it for erecting a large tariff on rice imported from the United States.
A quota is simply a provision that limits the amount of a specific product that can be imported. Like tariffs, quotas may be established for a number of reasons. "Absolute" quotas provide a definite import quantity that can't be exceeded. "Tariff quotas subject import volumes above a specified level to increasingly higher tariffs. Finally, "voluntary" quotas, or voluntary export restraints (VERs), are used to protect domestic companies from a particular competitor or in a special situation in which an industry is trying to regain its ability to compete.
Besides licenses, tariffs, and quotas, other control mechanisms include special taxes, such as excise or processing taxes on certain products; qualitative restrictions, which specify minimum standards of quality or safety that must be achieved before the country will accept it for import or export (this is sometimes done for health and safety reasons in addition to economic purposes); and exchange controls, which effectively limit the amount of foreign currency that an importer can obtain to pay for goods purchased, or that an exporter can hold for goods sold to another country.
Most countries also engage in promotional activities designed to foster foreign exchange. These policies can hurt exporters competing against subsidized products, or help them if their country is doing the promotion. The two principal types of promotions are state trading and subsidies. State trading entails direct government involvement in buying and selling activities. Subsidies, like tariffs and quotas, are often used to help an industry. They include benefits such as lower taxes, lower transportation rates, manipulation of exchange rates in favor of the exporter, or even direct government grants.
CULTURAL INFLUENCES.
The third major external factor influencing macro and micro global strategy is the cultural and social environment, including elements such as social class, family structure and decision-making, market segmentation, and consumption patterns. Because a grasp of culture is so integral to the marketing process, companies that try to conduct business in a foreign country typically seek the counsel of someone close to that culture. Or, they will simply form some type of partnership or legal arrangement to have their product or service marketed by a local company.
Of primary concern to the global strategist is the level of material culture in each region considered. For instance, corporations seeking to invest in countries with less advanced material cultures, particularly non - or semi-industrialized nations, will generally demand more limited product lines, and will have to cope with less sophisticated distribution systems, simpler advertisements, and a greater amount of time to accept a new product or service. Likewise, language differences can pose another formidable barrier to multinationals. Even within a single diverse country, such as Spain or China, several different languages or dialects will impact a comprehensive sales strategy.
Another major cultural influence is aesthetics, which refers to a society's stylistic tastes. This element is particularly important for decisions related to advertising, packaging, and product design. Similarly, the general educational level of a society will dictate the sophistication of products, packaging, and promotions. But it may also impact strategy relating to supply and distribution channels that must be staffed by locals. Other social influences include religion, family organization, and consumer attitudes about risk-taking, material gain, and other factors.
Even when a company strives to assimilate its overall sales strategy into another culture, failure can result. Among the most blatant mishaps was General Motors Corp.'s attempt in the 1970s to market the Nova automobile in Mexico—the Spanish translation of "nova" is similar to "no go." A similar misadventure was undertaken by Braniff Airlines when it was advertising its leather-covered seats to Mexican travelers. Braniff s promotional slogan, "Sentando en cuero," translates into "sit naked." A less conspicuous error was Pepsodent's effort to market its teeth-whitening paste in Southeast Asia, where black or yellow teeth are often considered status symbols.
CORPORATE GLOBAL STRATEGIES.
There are four basic avenues that companies can take to market their products or services globally: exporting, contractual agreements, joint ventures, and manufacturing. The combination of routes a company elects to pursue is contingent on internal industry and company influences, as well as the external factors described earlier. Important internal company influences include corporate goals, product lines, size and financial strength, knowledge of and access to specific foreign markets, and proprietary competitive advantages and technological strengths.
Exporting can represent a relatively inexpensive, low-risk means of participating in foreign markets because it is not very hard to initiate, provided local distributors can be found, and may only require minimal up-front capital investment. It can also be a complex endeavor, depending on the type of exporting in which a firm engages: indirect or direct.
Indirect exporting entails simply selling goods for resale in foreign countries, and involves relatively little management or strategy. A common indirect exporting method is selling goods in the home country that the buyer then ships and markets to a foreign market. For instance, a mining company in South Africa might maintain a procurement office in the United States to export its heavy equipment. Similarly, a domestic dealer might act as a middleman, buying the equipment and then selling it to overseas customers. Although it entails little risk or investment, this technique offers at least modest expansion opportunities.
Another common indirect means of exporting is utilizing intermediate exporters, such as export management companies (EMCs). EMCs are trading entities that specialize in exporting goods for domestic suppliers, either through commission arrangements or by purchasing and then reselling the goods. EMCs can give a company slightly more control over its global marketing efforts, provide instant access to knowledge about foreign markets, and offer entry to established distribution channels. The EMC may even use the company's letterhead, serve as a proxy in negotiations, process orders, and handle credit and exchange matters.
Direct exporters sell products directly to companies or consumers in foreign countries. They enjoy greater control over the marketing and distribution of their products than do indirect exporters, and they avoid the cost of paying an EMC. However, the company usually must coordinate research, distribution, marketing, pricing, legal, and other efforts in-house, which typically involves a significant financial commitment. Some of the responsibilities may include establishing a direct sales force, financing customers and hedging exchange rates, packaging and shipping, providing technical support, establishing prices, and dealing with taxes, tariffs, quotas, and other restrictions.
CONTRACTUAL AGREEMENTS.
A viable option or complement to exporting is contracting, whereby a multinational reaches an agreement with a company in the host country to handle one or several facets of its strategy in that nation or region. A common type of agreement is contract manufacturing, in which a manufacturer in the host country agrees to manufacture goods at the discretion of the multinational firm. This type of agreement is most advantageous for firms whose competitive advantage lies in marketing or distribution. Importantly, it cuts costs related to shipping goods and building manufacturing facilities, and effectively lowers some investment-related risks. In addition, contract manufacturing may allow the multinational to bypass certain trade restrictions because it is bringing money and jobs into the host country. The main drawback is that the multinational often loses control over the production process (i. e. quality), and may even find itself training its future competitor.
A second popular contract agreement is licensing, whereby a multinational company (the licensor) gives a local firm (the licensee) the rights to trademarks, patents, copyrights, or proprietary information. In return, the licensee typically agrees to produce and market the licensor's products, and to pay the licensor a fee, which is usually based on sales volume. The chief delineation between licensing and contracting is that the licensor's role is much greater than that of the contractor. Licensing works well for firms, particularly smaller ones, that want to enter a market quickly and inexpensively and are seeking to avoid exacting trade restrictions erected by the host government. Nonetheless, the company granting the license maintains ultimate control and can revoke the license if the licensee fails to uphold its side of the agreement. Still, licensing entails some loss of control over the product, and often results in the licensee becoming the licensor's prime competitor when the agreement expires.
Other types of contractual agreements include turnkey agreements, wherein a company in the host country agrees to build a manufacturing facility, train personnel, and execute initial production runs for another company. Similarly, under coproduction agreements a contractor in the host country agrees to build a factory in exchange for some of the output. Those agreements are most common in command economies where multinationals are forced to barter for goods and services in the host nation. Finally, management contracts represent a type of service export; a company agrees to export its expertise to another country, to build and operate a hospital for example, until local people acquire the expertise to assume control of the operation. In return, the company receives a fee.
Examples of U. S. companies that utilize contractual agreements include tobacco manufacturers. Because many overseas countries, particularly in Europe, maintain tobacco monopolies, they are forced to license their brand names to the monopolistic producer. Another example that demonstrates the potential detriments of licensing is Westinghouse. In the 1970s, Westinghouse licensed Framatome, a relatively insignificant French concern, to use its patents to engage in the atomic power industry. When the agreement expired, Framatome became Westinghouse's second strongest global competitor by utilizing processes designed around Westinghouse patents.
JOINT VENTURE.
After exporting, joint ventures are the next most common means of getting goods into foreign countries. In a joint venture, a multinational teams up with a company in a host country to share risks and complementary capabilities. Although contractual agreements are similar to joint ventures, the latter differ in the amount of input and control the companies share. The company in the host country may provide important access to local channels of distribution, government contracts, and supply sources. Or, it may bring technological or marketing skills to the table, or serve as a source of capital. Often times, a joint venture allows the multinational to bypass trade restrictions and overcome nationalistic barriers to success in the foreign country.
The primary risk inherent to joint ventures, in additional to normal market risk, is that the interests of both parties might conflict. This usually occurs because the local company is viewing the operation within a local context, while the multinational is looking at the venture as just one element of an overall global program. Discrepancies often arise over how much profit to plow back into the operation, how to handle transfer pricing issues (how much affiliated companies should charge each other for various goods and services), and product and market decisions. In a worst-case scenario, the partnership deteriorates to the point where one or both partners fail to benefit. For this reason, most successful joint ventures have a definite leader that maintains more control, and assumes more risk, in the venture.
An example of a successful joint venture that later soured involved Xerox Corp. In an effort to broaden its global presence, Xerox entered into a 50-50 joint venture in the 1950s with Rank Organization of the United Kingdom. Xerox signed an agreement that essentially gave Rank-Xerox the exclusive rights to manufacture and sell Xerographic machines outside of North America. As time progressed, Xerox outgrew its markets in North America and wanted to sell its machines in other countries. Because it had signed away its valuable rights to conduct business overseas, it was forced to slowly buy back those rights at an estimated cost of $300 million over 20 years.
FABRICAÇÃO.
The fourth approach to getting goods into foreign markets is through wholly owned manufacturing facilities, a form of foreign direct investment. This route represents the most comprehensive and risky avenue to global trade. It usually entails a large investment and leaves the company much more vulnerable to the whims of the government in the host country. However, it can also provide the biggest payoff and ensure the greatest degree of control over production activities.
Two cardinal options are acquisition and construction. A multinational that acquires existing facilities in the host country benefits from faster access and existing management that is familiar with local supply and distribution channels. On the other hand, building a new production facility is often necessary because the government will not allow a company to sell existing operations or because the multinational cannot find a company willing to sell. Sometimes the host country simply does not possess facilities of the magnitude or sophistication needed by the multinational.
LEITURA ADICIONAL:
Craig, C. Samuel, and Susan P. Douglas. "Developing a Global Marketing Strategy." Chemtech, April 1997, 44-49.
Rosenberg, Jeffrey A. Winning the Global Game. New York: The Free Press, 1998.
Wong Chee, Harold, and Rod Harris. Global Marketing Strategy. London: Financial Times Management, 1998.

STRATEGY IN THE GLOBAL.
Globalization was the buzzword of the 1990s, and in the twenty first century, there is no evidence that globalization will diminish. Essentially, globalization refers to growth of trade and investment, accompanied by the growth in international businesses, and the integration of economies around the world. According to Punnett (2004) the globalization concept is based on a number of relatively simple premises:
Technological developments have increased the ease and speed of international communication and travel. Increased communication and travel have made the world smaller. A smaller world means that people are more aware of events outside of their home country, and are more likely to travel to other countries. Increased awareness and travel result in a better understanding of foreign opportunities. A better understanding of opportunities leads to increases in international trade and investment, and the number of businesses operating across national borders. These increases mean that the economies around the world are more closely integrated.
Managers must be conscious that markets, supplies, investors, locations, partners, and competitors can be anywhere in the world. Successful businesses will take advantage of opportunities wherever they are and will be prepared for downfalls. Successful managers, in this environment, need to understand the similarities and differences across national boundaries, in order to utilize the opportunities and deal with the potential downfalls.
The globalization of business is easy to recognize in the spread of many brands and services throughout the world. For example, Japanese electronics and automobiles are common in Asia, Europe, and North America, while U. S. automobiles, entertainment, and financial services are also common in Asia, Europe, and North America. Moreover, companies have become transnational or multinational-that is, they are based in one country but have operations in others. For example, Japan-based automaker Honda operates the largest single factory in the United States, while U. S. based Coca-Cola operates plants in other countries including France and Belgium—with about 80 percent of that company's profits come from overseas sales.
During the early1990s, there were reasons to feel that globalization was working. The economic success of Singapore, the rapid economic growth in the Asian Tigers (as the Asian countries that grew rapidly were called), the industrializing of countries, such as Brazil and Mexico, and a variety of other positive economic events around the world suggested that the results of globalization were indeed good for development in poorer countries, as well as in richer ones. During the 1990s, the United States experienced one of its most sustained periods of growth as well, and there was much talk of a "new economy", based on globalization, which was immune to economic shocks and recession.
Unfortunately, this rapid growth was not without consequences. The Seattle meetings of the World Trade Organization turned into a fiasco, with anti-globalization groups demonstrating against globalization on all fronts—from animal rights to environmental concerns, poverty alleviation, and jobs for Americans. The anti-globalization forces have not coalesced into a coherent whole because they represent such diverse and often contradictory views. The vehemence of their protests, however, make it clear that globalization is not a panacea for the world's problems. In addition, the Asian Tigers suffered major economic setbacks in the late 1990s. In 2002, Argentina's economy, which had been one of the stars of the 1990s, crashed, when the country could no longer maintain its currency at par with the U. S. dollar.
Further problems occurred in the Triad economies. Japan, Europe, and the United States, often referred to as the Triad, dominated international trade and investment for much of the second half of the twentieth century. The Japanese economy went into a severe period of recession and deflation in the late 1990s, and in 2001 both the European and the U. S. economies took a downward turn as well. In turn, the rest of the world was negatively affected by the economic situation in the Triad. The terrorist attacks in the United States in September, 2001, exacerbated this already negative economic situation.
In developing appropriate global strategies, managers need to take the benefits and drawbacks of globalization into account. A global strategy must be in the context of events around the globe, as well as those at home.
International strategy is the continuous and comprehensive management technique designed to help companies operate and compete effectively across national boundaries. While companies' top managers typically develop global strategies, they rely on all levels of management in order to implement these strategies successfully. The methods companies use to accomplish the goals of these strategies take a host of forms. For example, some companies form partnerships with companies in other countries, others acquire companies in other countries, others still develop products, services, and marketing campaigns designed to.
Differences Between Domestic and International Strategy.
appeal to customers in other countries. Some rudimentary aspects of international strategies mirror domestic strategies in that companies must determine what products or services to sell, where and how to sell them, where and how they will produce or provide them, and how they will compete with other companies in the industry in accordance with company goals.
The development of international strategies entails attention to other details that seldom, if ever, come into play in the domestic market. These other areas of concern stem from cultural, geographic, and political differences. Consequently, while a company only has to develop a strategy taking into account known governmental regulations, one language (generally), and one currency in a domestic market, it must consider and plan for different levels and kinds of governmental regulation, multiple currencies, and several languages in the global market.
The most recent wave of globalization by U. S. companies began in the 1980s, as companies began to realize that concentrating on the domestic market alone would lead to stagnant sales and profits and that emerging markets offered many opportunities for growth. Part of the motivation for this globalization stemmed from the lost market share in the 1970s to multinational companies from other countries, especially those from Japan. Initially, these U. S. companies tried to emulate their Japanese counterparts by implementing Japanese-style management structures and quality circles. After adapting these practices to meet the needs of U. S. companies and recapturing market share, these companies began to move into new markets to spur growth, enable the acquisition of resources (often at a cost advantage), and gain competitive advantage by achieving greater economies of scale.
The globalization of U. S. companies has not been without concerns and detractors. Exporting U. S. jobs, exploiting child labor, and contributing to poverty have all been charges laid at the doors of U. S. companies. These charges have been accompanied by demonstrations and consumer boycotts.
Nor have U. S. companies been the only ones affected. Companies in the rest of the developed world have globalized along with U. S. companies, and they have also faced the sometimes negative consequences.
Interestingly, in the late twentieth and early twenty-first century, there has also been a growth in international companies from developing and transitional countries, and this trend can be expected to continue and increase. Exports and investment from the People's Republic of China are a notable example, but companies from Southeast Asia, India, South Africa, and Latin America, to name some countries and regions, are making themselves known around the world.
TYPES OF GLOBAL BUSINESS ACTIVITIES.
Businesses may choose to globalize or operate in different countries in four distinct ways: through trade, investment, strategic alliances, and licensing or franchising. Companies may decide to trade tangible goods such as automobiles and electronics (merchandise exports and imports). Alternatively, companies may decide to trade intangible products such as financial or legal services (service exports and imports).
Companies may enter the global market through various kinds of international investments. Companies may choose to make foreign direct investments, which allow them to control companies and assets in other countries. In addition, companies may elect to make portfolio investments, by acquiring the stock of companies in other countries in order to gain control of these companies.
Another way companies tap into the global market is by forming strategic alliances with companies in other countries. While strategic alliances come in many forms, some enable each company to access the home market of the other and thereby market their products as being affiliated with the well-known host company. This method of international business also enables a company to bypass some of the difficulties associated with internationalization such as different political, regulatory, and social conditions. The home company can help the multinational company address and overcome these difficulties because it is accustomed to them.
Finally, companies may participate in the international market by either licensing or franchising. Licensing involves granting another company the right to use its brand names, trademarks, copyrights, or patents in exchange for royalty payments. Franchising, on the other hand, is when one company agrees to allow a company in another country to use its name and methods of operations in exchange for royalty payments.
OVERVIEW OF INTERNATIONAL.
Generally, a company develops its international strategy by considering its overall strategy, which includes its operations at home and abroad. we can consider four aspects of strategy: (1) scope of operations, (2) resource allocation, (3) competitive advantage, and (4) synergy. The first component encompasses the geographic locations—countries and regions—of possible operations as well as possible markets or niches in various regions. Since companies have limited resources and since different regions offer different advantages, managers must select the markets that offer the company the optimal opportunities.
The second component of the global strategy focuses on use of company resources so that a company can compete successfully in the chosen markets. This component of strategy planning also determines the relative importance of various company functions and bases the allocation of resources on the relative importance of each function. For instance, a company may decide to allocate its resources based on product lines or geographical locations.
Next, management must decide where the company can achieve competitive advantage over other companies in the industry. Management can identify their competitive advantage by determining what the company does better (or can do better) than its competitors. Companies may realize this advantage through a host of techniques such as using superior technology, implementing more efficient organizational practices and distribution systems, and cultivating well-known brands. This component of the strategy involves not only identifying existing or potential areas of competitive advantage but also developing a plan for sustaining areas of competitive advantage. Finally, global strategy should involve establishing a plan for the company that enables its various functions and operations to benefit one another. For example, a company can use one line of products to encourage sales of another line of products and thereby enabling different parts of a business to benefit from each other.
Many companies are now outsourcing many of their operations internationally. For example, if you call to get information on your credit card, you may well be talking to someone in India or Mexico. Equally, manufacturers often outsource production to low labor cost countries. Concerns over ethical issues, such as slave and child labor, have led to companies outsourcing under controlled conditions—offshore production may be subject to surprise visits and searches and outsourced factories are required to conform to specific criteria.
STAGES OF INTERNATIONAL.
Strategy development itself generally takes places in two stages: strategy formulation and strategy implementation. When planning a strategy, companies identify their international objectives and put together a strategy that will enable them to realize their goals. During the planning stage managers propose, revise, and finally ratify plans for entering new markets and competing in them.
After a strategy has been agreed on, managers must take steps to have it implemented. Consequently, this stage involves determining when to begin global operations as well as actually starting operations and putting into action the other components of the global strategy.
More specifically, the first stage—strategy formulation—entails analysis of the company and its environment, establishing strategic goals, and developing plans to achieve goals as well as a control framework. By assessing itself and the global business environment, a company can determine what markets, products, services, etc. offer opportunities for growth. This process involves the collection of data on a company and its environment, including information on global markets, regulation, productivity, costs, and competitors. Therefore, the collection of data should supply managers with economic, financial, political, legal, and social information on various countries and their markets for different products or services. Based on this information, managers can determine what markets and products offer economically feasible opportunities for global expansion.
Once this analysis is complete, managers must establish strategic goals, which are the significant goals a company seeks to achieve through a particular pursuit such as entering a new regional market. These goals must be practicable, measurable, and limited to a specific time frame. After the strategic goals have been established, companies should develop plans that allow them to accomplish their goals, and these plans should concentrate on how to implement strategic plans. Finally, strategy formulation involves a control framework, which is a process management uses to help ensure that a company remains on the right course when implementing its strategic plans. The control framework essentially responds to various developments while the strategic plans are being implemented. For example, if sales are lower than the projected sales that are part of the strategic goals, then a company might increase its marketing efforts and temporarily lower its prices to stimulate additional sales.
INTERNATIONAL MARKET EVALUATION.
While many aspects of international strategy and its formulation are similar to their domestic counterparts, some key aspects are not, and hence call for different methods and different kinds of information. Gaining knowledge of international markets is one of these key differences—and a crucial part of developing an international strategy. In order for a company to enter a new market, capture market share, and thereby increase sales and profits, it must know what that market is like. At a basic level, a company must examine different markets, evaluate the advantages and disadvantages of entering each, and select only the markets that show the greatest potential for entry and growth.
When examining different international markets, a company should consider the market potential, competition, regulation, and cultural factors of each. Company managers can assess market potential by collecting data on the gross domestic product (GDP), per capita GDP, population, transportation, and other figures of various countries. This kind of information will enable managers to determine the spending power of the consumers in each country and determine if that spending power allows them to purchase a company's.
Differences Between Domestic and.
products or services. Managers also should consider the currency stability of the different markets, which can be done by using documents from the home countries to determine currency value and fluctuation over a period of years.
To select the best markets for entry, managers also should consider the degree of competition within different markets and should anticipate future competition in them as well. Determining the degree of competition involves the identification of all the companies competing in the prospective markets as well as their sizes, market shares, and prices. Managers then should evaluate a prospective market by considering the number of competitors and their characteristics as well as the market conditions—that is, whether the market is saturated with competition and cannot support any new entrants.
Next, managers should evaluate the regulatory environment of the prospective markets, since knowing tax, trade, other related policies is essential for a successful international business. This step entails determining the respective tariffs and trade barriers of prospective markets. Different types of trade barriers may influence the kind of business activity a company chooses for a particular market. For example, if a prospective market has trade barriers that restrict the entry of foreign-made goods, a company might decide to access the market through foreign direct investment and manufacture its products in that country itself. Ownership restrictions also may limit a company's interest in a particular market; some countries permit foreign companies to set up local operations only if they establish a partnership with a local company. In addition, managers should find out if prospective countries charge foreign companies higher taxes or if they offer tax breaks and incentive to encourage economic development. A final consideration companies must make concerning government is stability. Since some countries have rough government transitions resulting from coups and uprisings, companies must countenance the possibility of political turmoil that could substantially disrupt business.
The last step in international market evaluation is the assessment of cultural factors. To avoid difficulties associated with cultural differences, some managers look for new markets that have cultural similarities to their home market, especially for initial international market penetration endeavors. Unlike market potential, competition, and regulation, cultural differences are more difficult to evaluate. Nevertheless, managers must try to determine the consumer needs and preferences in the prospective markets. Managers must also account for cultural differences in labor relations such as worker motivation, compensation, hours, etc. if planning foreign direct investment in an overseas company. Moreover, a thorough understanding of a prospective country's culture will greatly facilitate any kind of global business enterprise. This cultural knowledge should include a basic understanding of a prospective country's beliefs and attitudes, language and communication styles, dress, food preferences and customs, time and time consciousness, relationships, values, and work ethic. This kind of cultural information is essential for developing an effective and realistic global strategy.
Since conducting primary research is labor intensive and time consuming, managers may obtain preliminary information on prospective markets from books such as Dun & Bradstreet's Guide to Doing Business Around the World and Business Protocol: How to Survive and Succeed in Business, or the Economist's "Doing Business in…" series, which list potential trade opportunities, policies, etiquette, taxes, and so on for various countries.
After examining the prospective markets in this manner, managers are ready to evaluate the advantages and disadvantages of each potential market. One way of doing so is the determination of costs, advantages, and disadvantages of each prospective market. The costs of each market include direct costs and opportunity costs. Direct costs are those a company pays when establishing a business in a new market, such as costs associated with purchasing property and equipment and producing and shipping goods. Opportunity costs, on the other hand, refer to the costs associated with the loss of other opportunities, since entering one market rules out or postpones entering another because of a company's limited resources. Hence, the profits that could have been earned in the alternative market constitute the opportunity costs.
Each prospective market usually has a variety of advantages, such as the possibility for growth, which will lead to greater revenues and profits. Other advantages include relatively low material and labor costs, new technology gaining strategic advantage over competitors, and matching competitors' ações. However, each prospective market also usually has a number of disadvantages, including opportunity costs, greater business complexity, and potential losses stemming from unforeseen aspects of prospective markets and from currency fluctuations. Other disadvantages might result from potential losses associated with unstable political conditions.
ANALYSIS OF TWO INTERNATIONAL.
In the late 1990s after a significant amount of globalization had taken place, business analysts began to examine the success of various strategies for doing business in other countries. This examination led to the distinction between various orientations of international strategies. The main distinction was between multi-domestic (also called multi-local) international strategies and global strategies. Multi-domestic international strategies refer to those that address competition in each country or region on an individual basis, whereas global strategy refers to addressing competition in an integrated and holistic manner across country and regional boundaries. Hence, multi-domestic international strategies attempt to appeal to the needs of customers in different countries or regions, while global strategies attempt to standardize products and marketing to work across boundaries. Instead of relying on one of these strategies, multinational companies might adopt a different strategy for different products or services. For example, a company might use a global strategy for its electronics and a multi-domestic strategy for its appliances.
Critics of the standardization approach argue that it makes two questionable assumptions: that consumers' needs are becoming more homogenous throughout the world and that consumers prefer high quality and low prices over advanced features and functions. Nevertheless, standardized global strategies have some significant benefits. Companies can reduce their marketing expenditures, for example, if they use the same ads in all their markets. PepsiCo, for example, uses the same televisions ads in all of its national markets, saving an estimated $10 million a year. Besides marketing savings, global strategies can lead to other kinds of benefits and advantages in areas such as design, packaging, manufacturing, distribution, customer service, and software development.
Some people argue that companies must customize their products or services to meet the needs of various international markets, and hence must use a multi-domestic strategy at least in part. For example, KFC planned a standardized approach to its foray into the Japanese market, but the company soon realized it had to change its strategy to meet the needs of Japanese consumers and customize its operations in Japan. Consequently, KFC introduced smaller pieces of foods to cater to a Japanese preference, and located restaurants in crowded areas along with other restaurants, moving away from independent sites. As a result of these changes, the fast-food restaurant experienced stronger demand in Japan.
The development of regional trading blocs has promoted an emphasis regional strategies as companies develop plans to take advantage of the conditions within various trading blocs such as the North American Free Trade Agreement (NAFTA), the European Union, the Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN). In addition, the United States has signed 16 different trade agreements with South American countries, creating a foundation for a trading bloc consisting of all North and South American countries. Consequently, companies have been establishing regional strategies designed around these trading blocs. Nike, for example, established central warehouses for its European distribution, just as it has a central warehouse for its U. S. distribution. This strategy has enabled Nike to reduce its inventory, cut down on redundancy, reduce costs, and enhance availability. In addition, News Corporation originally relied on a global strategy with its STAR-TV satellite television network; attempting to provide the same television shows across Asia in English. The company quickly switched to a multi-domestic strategy, providing programming in local languages after receiving low ratings and advertising dollars with its first approach.
A variety of corporate collapses, and the revelation of unethical and illegal practices in many international companies, has led to a focus on Corporate Governance and Ethics in the early twenty first century. Issues of what constitutes socially responsible behavior are likely to be a major part of global strategy for the coming years.
LEITURA ADICIONAL:
Bartlett, C. A. and S. Ghoshal. "What is a Global Manager?" In Annual Editions: International Business. Dubuque, IL: Dushkin Publishers.
Feffer, J. Power Trip: U. S. Unilateralism and Global Strategy after September 11. New York: Seven Stories Press, 2003.
Florini, A. "Business and Global Governance." Brookings Review, Spring 2003, 5–8.

What is strategic management?
Global Strategy is just one part of the larger subject of Strategic Management. Typically in many strategic management textbooks, International and Global Strategy appears as one of the chapter alongside many others – for example, it’s chapter 19 in my book.
Take the Blackberry RIM range of mobile phones. This Canadian company has been very successful, so far, in terms of its international and global strategy. But it began by using the basic principles of strategic management – customer focus on the business customer, competitive advantage through its focus on the easy email access, resource-based analysis based on its patented technology – rather than anything specific to global strategy.
But then Blackberry RIM added a global strategy – for example, its co-operation with the Reliance mobile network in India shown right – to add to the basic strategy.
What this means is that many of the basic principles of Strategic Management – customer focus, competitive advantage, resource-based analysis, etc. – are also fundamental to the development of International and Global Strategy. The purpose of this section of the website is therefore to offer a brief summary of some of the main elements. Clearly, it is not possible to cover all the material set out in an 800-page text. Here, we highlight some key areas and principles.
First, we summarise the two main strategic processes – prescriptive and emergent – and mention some of the background theories that underpin them.
Second, we present video summaries of some selected chapters from my book Strategic Management 5th Edition which explore the main areas in more depth. You may like to know that the four previous editions of the book were called Corporate Strategy: we changed the title for the fifth edition to reflect changes in strategy thinking since the publication of the first edition in 1997.
Background to strategic management development.
In reality, strategic management is a relatively young subject. It has its roots in the economic and social theories of the 1930s and 1940s – perhaps even earlier. But it only really began to emerge as a separate topic in the 1960s and 1970s. Even today, there is only partial agreement on the fundamental principles of strategic management with many views, ideas and concepts. This makes the topic interesting and challenging.
But it also means that there is no fully accepted body of knowledge unlike, for example, mechanical engineering or organic chemistry. According to one recent authoritative survey amongst academic strategists (Nag et al, Strategic Management Journal , 2007, Vol 28, pages 935-955), there are two main streams of thought related to strategic process: prescriptive (or intended) strategic processes and emergent strategic processes.
The authors produced the following definition from their survey over the period 1983-2004: ‘The field of strategic management deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.’
This website uses the word prescriptive in place of intended in the above definition.
The website accompanying my book Strategic Management 5th edition has a film that explores in depth the differences between prescriptive and emergent strategic processes. It’s called ‘The Battle for the European Breakfast Cereal Market.’ It’s available here: pearsoned. co. uk/HigherEducation/titlesby/Lynch/
Prescriptive Strategy Processes.
To quote from my own textbook, ‘A prescriptive strategy is one whose objective is defined in advance and whose main elements have been developed before the strategy commences.’
Such an approach usually begins with an analysis of the outside environment and the resources of the company. The objectives of the organisation are then developed from this. There then follows the generation of strategic options to achieve the objectives, from which one (or more) may be chosen. The chosen option is then implemented.
This full range of activities is called the prescriptive strategy process. There are a number of strategy theories that explain elements of this process within prescriptive strategy and these are highlighted in the model above right.
The video films below explore prescriptive strategy in more depth.
Emergent Strategy Processes.
An emergent strategy does not have the same fixed objective. The whole process is more experimental with various possible outcomes depending on how matters develop.
To quote again, ‘An emergent strategy is one whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceeds.’
Thus the early stages of emergent strategy may be similar to prescriptive strategy – analysis of the environment and resources. But then the process becomes more circular, learning and experimental.
Again, there are a number of strategy theories that fall under the general heading of emergent strategy. Some of these are highlighted in the emergent strategy process model shown above right.
The free video films below provide more depth, particularly on the differences between prescriptive and emergent strategic processes.
Examining some strategic concepts in more depth: video films from selected chapters of my book, Strategic Management 5th edition.
To help fill out some of the detail, here are some video films from my book Strategic Management. This website has ten free films summarising ten selected chapters from the book.
Published in 2009, the full Strategic Management 5th edition actually has 20 chapters. You can hear audio summaries for all the remaining ten chapters by logging into the book’s website: pearsoned. co. uk/lynch. This material is downloadable onto an iPod. The book’s website also has video summaries of some of the cases, self-assessment questions and electronic flashcards for revision. There is also the much longer case video that explores an actual strategy example in more depth mentioned earlier on this page. But you will need an Access Code that comes with each copy of the text.
Chapter 1 Introducing Strategic Management.
The film sets out the main topics associated with the subject of Strategic Management. This is important when developing international and global strategies because the main topic headings are the same both for companies focused on one home country and for those engaged in international activities.
You can download the slides from this film here.
Chapter 3 Analysing the strategic environment.
Analysing the environment surrounding the organisation is a crucial early first step in the development of international and global strategies. The film outlines the main areas that need to be covered. However for international and global strategies, there are some specialist extra areas – like relationships with government and national competitors – that would need to be explored in more depth.
You can download the slides from this film here.
Chapter 4 Analysing resources and capabilities.
Any organisation planning to go outside its home country needs to think carefully about its resources. International and global activity will stretch the resources of many organisations, even those that are already deeply involved internationally. This film sets out a structure for analysing the current strategic international or global position of the organisation – crucial for those planning future international activity.
You can download the slides from this video here.
Chapter 6 Prescriptive purpose delivered through mission, objectives and ethics.
Because international expansion has both benefits and costs, it is vital to define clearly the general reasons for international and global expansion – otherwise the costs might be greater than the benefits! This video provides structures some of the issues that need to be explored when setting international and global objectives.
The film also briefly identifies some of the importance corporate social responsibililty and ethical issues that may well arise in international expansion.
You can download the slides from this video here.
Chapter 7 Purpose emerging from knowledge, technology and innovation.
Innovation is often crucial to successful international and global expansion. But there is no ‘magic formula’ for this outcome. This means that simply defining the purpose in terms of some rigid international objectives is highly likely to fail. There needs to be a more open-ended and experimental approach to the whole process of moving globally. This is most likely to arise from exploring knowledge and technology alongside the innovation process itself. The chapter explains the main issues and sets out some of the key ways that innovation can be directed to achieve international success.
You can download the slides from this video here.
Chapter 8 Building strategic options at the business level.
Any organisation planning international and global expansion will have a large number of options – perhaps by lowering its costs, perhaps by a joint venture or an acquisition. The chapter helps to structure the process of developing options for an individual business area.
Chapter 10 Choosing between strategic options.
After developing strategy options, the next logical step is to choose between them – whether for an organisation in one country or an organisation planning international expansion. The chapter provides a logical and structured way of selecting the best option (or options in some cases). This is an important step in developing an international or global strategy for an organisation from a prescriptive process perspective.
Chapter 11 Finding the Strategic Route Forward.
Many of the recent successes in international and global strategy have not come from prescriptive strategic planning – just look at Google and Facebook, for example. This chapter explores some alternatives, focusing particularly on the Learning-based strategic route forward. The basic principles are the same for one country or for many. But the added complication of international expansion makes such learning strategy even more crucial. Strategic Management 5th Edition (and the earlier editions under the title of Corporate Strategy) is one of the few textbooks – possibly even the only one – to explore this route in depth.
Chapter 13 Implementing the strategy.
International and Global strategies need to be implemented. But how do you go about this task? What are the important elements of such a process? This video summarises some of the main issues, including an outline of the Balanced Scorecard.
Chapter 15 Managing Strategic Change.
When new international and global strategies are developed and introduced, there are typically people issues. Some people will like the strategies and support them while others will resist changes that threaten their roles and responsibilities. How do we manage such opportunities and problems? There is extra complexity in dealing with such issues on an international or global basis: this is explored in the section on ‘Global Management’ on this website.
Global Strategy.
Gestão Estratégica.
Professor Lynch comments on recent global issues.
Copyright 2014 Richard Lynch. Todos os direitos reservados.

Global Strategy - GLOBAL STRATEGY OVERVIEW Objective To.
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Unformatted text preview: GLOBAL STRATEGY OVERVIEW Objective ! To discuss the strategies available to organisations that choose to become global. GLOBAL STRATEGY MARKET ENTRY STRATEGIES ! E-COMMERCE Ways in ! ! ! GLOBAL STRATEGY ! ! ! ! ! ! ! Planning Brands Structure Orientation Cross-cultural management Price competition Case study Copyright Accountancy Tuition Centre Ltd 2001 2201 History & growth Impact Types GLOBAL STRATEGY 1 MARKET ENTRY STRATEGIES 1.1 Introduction This section looks at the different ways organisations might begin to enter a new foreign market. There are no standard solutions for developing and implementing globalisation strategies in international competition. Each organisation must recognise its own potential for success and define the globalisation strategy/implementation. Success will depend on flexibility, willingness, capacity, open-mindedness to think in terms of global competition. 1.2 Ways to enter foreign markets There are a number of different entry methods that an organisation might use to enter a foreign market: ! ! ! ! ! exporting licensing franchising direct investment subsidiary operations The last two of these are often referred to as Foreign Direct Investment (FDI). 1.2.1 Exporting Exporting is the most conventional, and the most common, method of entering a new overseas market. An organisation has two options for the organisation of its “field sales” – those who sell the product or service to the customer: ! ! Allow local agencies to sell products on a commission basis. Set up local sales offices to sell the home produced goods overseas. 1.2.2 Licensing In licensing, resources and product/service ideas are sold under licence to overseas companies to allow them to produce products similar to those of the licensor. The goods are therefore produced locally, or bough in at various levels of sub-assembly and finished locally. A licence is often granted exclusively, to give the licensee some sort of “sole supplier” status. 1.2.3 Franchising This is a particular type of licensing agreement whereby a complete package of resources is made available to the franchisee. It is most usually employed for branches of retail or service organisations (eg Body Shop or McDonalds), where a brand name and entire formula are “sold” to the franchisee. The franchisor (parent company) maintains strict controls over all aspects of the business. Copyright Accountancy Tuition Centre Ltd 2001 2202 GLOBAL STRATEGY 1.2.4 Investment in overseas production This can be done by direct investment in foreign manufacturing or, occasionally it may be a joint venture. 1.2.5 Overseas manufacturing subsidiary A wholly owned or local participation subsidiary is set up to sell and produce overseas. This may be a result of internal generation (a “green field” development) or the purchase of a company already established in the new market. Copyright Accountancy Tuition Centre Ltd 2001 2203 GLOBAL STRATEGY 2 GLOBAL STRATEGY 2.1 Introduction There is a very wide literature on the activities of small and medium enterprises in relation to exporting, internationalisation and cross border market development. This is surprising given that it is estimated that only 2-3% of small firms are export-active. The question for most small (particularly growing) firms should not be whether or not they need to globalise, but how they should do it and what form it can take so that it is successful. It might be argued that globalisation is not an appropriate term, because many multinationals are still managed at the top by nationals in their own country. Furthermore much of the value is created (added) in the home country through research and development. Finally the home market will still constitute a significant proportion of the companies revenue. 2.2 Global planning The international trade that we are aware of today simply as casual observers of everyday business life, is not a new phenomenon. We could regard ourselves as part of a second era of globalism. During the period between 1870 and 1914 the movement of goods and materials was just as significant as it is today. The First World War followed shortly afterwards by the great depression, forced economies into protectionism and regionalism. It has taken decades to return to the degree of international integration that existed at the close of the nineteenth century. The difference between this first remarkable period of trade and today is the type, extent and depth of transactions. It would also be wrong to assume that globalism is the best term to use or that this process will continue into the twenty-first century. The progression towards world wide free trade despite the last GATT agreement is constantly jeopardised by regionalism which exists in a variety of forms in Asia, the Americas and Europe. Organisations planning to operate globally should consider the following: ! The need to develop a global vision or image of the world (regardless of size, age of firm), which means not only developing an awareness and consciousness of the world but also sensitivity (and adaptation of market strategy, product and service) so as to be able to respond to customer needs in key international markets. ! Levels of internationalisation vary between sectors and sub sector. This means keeping up to date with market trends, competition, rivals, merger, and joint venture activity within the industry segment. ! The importance of a visionary leader or person to champion the internationalisation process. In addition, a clear statement of international mission/objectives/goals, commitment by top management team and serious evaluation of the company’s international orientation, resources and experience in foreign markets. ! There should be a commitment to international management training (not in the sense of formal training necessarily) but in terms of second and third Copyright Accountancy Tuition Centre Ltd 2001 2204 GLOBAL STRATEGY order learning (or double loop learning) whereby experience of international business should be cross-fertilised back into the company. But also, this will develop an understanding of the rigours of international business and direct organisational thinking (understanding and sensitivity) towards the needs of customers overseas. However, greatest success will be in cases where there is a fusing of corporate organisational culture and international activity. ! Internationalisation proceeds by an incremental growth process whereby experience and learning is gained in different stages and steps in different markets at different times. The success of incremental learning (and double loop learning) will also determine modes of entry (ie spread or concentration) into key markets. ! The importance of contracting, subcontracting or cooperative activity in a cross border context. Also, close examination of inter-organisational networks in both home and cross border contexts can provide wide resources in terms of contacts, information and opportunities. These should be exploited more fully. 2.3 Global brands Consumers have characteristics that are becoming more widespread. One look at the globe will tell you that in your lifetime Beijing will have enormous consumer similarities to Boston, Berlin, Birmingham and many other mainstream cultures. Example 1 What do you think are the aims of a global brand? ! ! To achieve worldwide acceptance and recognition manufacturers are constantly doing the following: ! Re-positioning their brands - they do this by seeking out ways of getting universal values into their marketing mix. A popular way of doing this is “to get them young”. So, food and drink companies concentrate on attracting a young audience and getting them to consider their product as the only drink, chocolate bar or snack range that really satisfies their needs. The producer aims to connect consumer patterns from across the globe and refine these into an understandable image/reputation that the “early adopters” (you) will transmit to peers, younger people and maybe even those older than you. ! Global advertising campaigns - these are often centred on major events, such as the Olympics or World Cup Finals. Consumers are “informed” as often as possible of the values possessed by the product ! Use as much point of sale advertising as possible. This allows for both local customs/cultures to be included and world values of the product to be spread and re-enforced. Copyright Accountancy Tuition Centre Ltd 2001 2205 GLOBAL STRATEGY ! Design and presentation - a global brand must have a global visual identity. Harmonised designs increasingly use the same typefaces and graphics. This improves product recognition. ! Establishing a product range - you may already have heard of the “world car range” being developed by both Ford and General Motors. Others may well do the same. They are aiming for cohesion, so packaging becomes identical regardless of location. Icons, logos etc are used universally, though after careful research that they do not offend any particular culture. ! Customer communication is carefully evolved to present similar messages. Big companies now sponsor events that complement the message/image they want to portray. Firms recognise their social and ethical responsibilities and let consumers know how they meet them. 2.4 Global structure As corporate strategies move increasingly to multinational corporations (MNCs), some organisational theorists have questioned the ability of traditional designs - functional, divisional or even hybrid and matrix designs - to effectively control activities and help implement the MNC's strategy. Even contingency theories of design, predicting a performance-design “fit” with moderators in increasingly complex environments, have been called into question. Some researchers argue that different combinations of products, market approaches and cultural distinctiveness make it difficult to create an organisational design in the traditional sense of the term that is sophisticated and flexible enough to meet the requirements of a multinational strategy. Rather, these authors present a radically different approach to the topic of design. Whether it is called a “trans-national integrated network” (Bartlett & Ghoshal) or a “heterarchy” (Hedland & Rolander), what characterises these approaches is their emphasis on internalised forms of control. 2.5 Global orientations Harold Perlmutter suggested that organisations operating globally could do so by adopting one of three orientations or cultures. 2.5.1 Ethnocentric This management style is characterised by a bias in favour of the home country's way of doing things and a tendency to place managers from the home country in positions of authority to run the overseas operation. 2.5.2 Polycentric In this case the home country favours the practices and values of the host country in running its operation. Copyright Accountancy Tuition Centre Ltd 2001 2206 GLOBAL STRATEGY 2.5.3 Geocentric This orientation takes the view that there is an emerging world culture which transcends nationalities by blending. In such a firm neither the home nor host country dominate but seek to exploit the best of both. 2.6 Cross-cultural management Globalisation has lead to a change in the way in which companies are organised. The traditional hierarchical bureaucracy is inappropriate for the dispersed networks that now span the world. The move has been from: ! hierarchies which represent lines of command (power) and control to networks between peers based on mutual trust and co-operation; ! fixed sites of mass production (Fordism) to flexible production, where component manufacture and assembly can be relocated to suit the current economic circumstances; ! vertically integrated capitalist enterprises to disintegrated enterprises organised in networks more akin to a horizontal structure; ! activity centred round one identifiable and unequivocal central point to widely dispersed power groups. 2.7 Price competition The biggest threat that a local provider faces to domestic customers is pricing. Overseas competitors, will compete on price rather than local knowledge or expensive customer support, therefore a business has two strategies available to it. ! Concentrate on survival by defending the home market. ! Have a strategy of attack, by aggressively marketing overseas. This is a very risky strategy because there will be competition from the home market and other global players. The third position of an indecisiveness which leads to combination of both of the above will produce an unfocused approach which will lack world dominating brands to compete abroad, and no significant defence strategy for the home market. This is a weak competitive position. Unfortunately this is an easy trap to fall into. 2.8 Case study – the motor industry Some industries operate on an international scale more readily than others. The motor industry has to operate on a global scale to find the new markets which offset the mature declining markets. In the US, Europe and Japan there is over capacity, with high costs and strong competition, where the demand is for replacement cars only. There is little or no potential for future growth. Other international markets have much Copyright Accountancy Tuition Centre Ltd 2001 2207 GLOBAL STRATEGY more potential for growth, for example, China, south east Asia, south America and eastern Europe. This needs a strategic approach which can be flexible, moving production across boundaries in relatively short periods of time. Demand in a new region might necessitate a dealer network to import and act as an agent. Some countries which are supported by strong political will from the government (China and India) will justify alliances which will lead to the establishment of assembly plants. The stagnant car market in Japan has prompted manufacturers there to move more and more production abroad. In 1955 Honda produced more cars abroad than it did at home. These opportunities in this industry have prompted Malaysia, Indonesia and South Korea to establish their own can industries. The threat of exports from these countries to Europe is forcing car manufacturers there to cut costs and increase productivity, through restructuring, worker relations, automation, marketing and product development. European manufacturers can no longer sustain a full product range, so alliances between competitors are leading to the re-badging of vehicles, for example off-road models and people carriers which involve costly R&D but only have a limited market. The manufacturers are re-negotiating their relationships with the suppliers of components, who are being forced to re-locate to meet the demands of just-in-time production requirements. In addition the component manufacturers are having to take on a great share of the R&D burden by providing complete sub-assemblies which contain much more technology than the traditional individual parts. Contract are getting bigger and the risks greater. Finally the industry is being squeezed in the long term by the green lobby which is pressing for zero emissions to deal with the ozone problem. Copyright Accountancy Tuition Centre Ltd 2001 2208 GLOBAL STRATEGY 3 E-COMMERCE 3.1 Introduction One of the most exciting effects of the Internet on business has been the development of Electronic commerce (E-commerce). This gives organisations the opportunity to become “virtually” global, without any overseas investment. 3.2 History and growth E-commerce is a relatively new phenomenon. In 1990 there were estimated to be only about 150 commercial organisations using the Internet to attract business. Now it is estimated that 150 new E-commerce sites are opened every day! These sites are predominantly established by organisations that were formed to exploit the power of the Internet, they are not sites relating to existing organisations. As an indication of the growth in popularity of E-commerce, credit card companies predict that, by 2005, over 30% of credit card applications and balance enquiries will be received via the Internet. 3.3 Impact of global e-commerce 3.3.1 Pressures ! More choice for consumers ! More opportunities for competitors (as barriers to market entry removed) 3.3.2 Opportunities ! Compliance neutral technological – legislation and taxation should not disadvantage businesses engaged in e-commerce ! Network economy – employing network technology to connect employees, partners and customer ! Cutting red tape – e-information is more convenient and far faster than in paper-based systems. 3.3.3 Threats (and how they are being addressed) ! Lack of industry (ie e-commerce) regulation – in December 1999 the EU agreed a legal framework for a directive to regulate e-commerce ! Intellectual property rights (IPR) – counterfeiting and theft of copyrights and trademarks. ! Integrity (eg security of payment methods) and confidentiality (eg of personal details) – safeguards include digital signatures and encryption. Copyright Accountancy Tuition Centre Ltd 2001 2209 GLOBAL STRATEGY 3.4 Types of e-commerce Organisations can use the Internet to develop their business in three different ways: ! Public relations. The organisation can create a website with basic details such as a description of the organisation and its products, financial performance and contact details. The objective of this approach is to stimulate enquiries of a very general nature. This approach is appropriate to all organisations. ! Brochuring. The next development of the website is to add a detailed description of the features and performance of an organisation”s products or services. This is similar to a product brochure, and the objective is to stimulate specific enquiries from potential purchasers, relating to individual products. This approach is appropriate for all organisations whose products can be fully described using the multi-media facilities of the Internet. ! Retailing. The ultimate E-commerce approach is to add facilities to the website to enable customers to order and pay for goods electronically. This type of approach can only be used by organisations whose products are of relatively low value and where the retailer would be willing to refund the price of returned goods without too much hesitation. Any organisation that can sell by mail order can sell on the Internet, but the multi-media features of the Internet allow more innovative delivery of product features. FOCUS You should now be able to: ! evaluate market entry strategies ! explain internationalisation strategies ! compare standardisation versus customisation ! discuss international channel management ! analyse the development of global brands ! describe the international planning process ! assess ethnocentric, polycentric and geocentric orientation ! explain cross cultural management and leadership ! evaluate field sales force ! evaluate implications for organisational success ! evaluate electronic commerce. Copyright Accountancy Tuition Centre Ltd 2001 2210 GLOBAL STRATEGY EXAMPLE SOLUTIONS Solution 1 – Aims of a global brand Normally, the names we accept as “household” aim to: ! ! ! make their brand represent the same values to everyone, regardless of location reach new users and motivate them into product loyalty in a variety of ways keep consumers both interested and loyal by various marketing tricks Copyright Accountancy Tuition Centre Ltd 2001 2211 GLOBAL STRATEGY Copyright Accountancy Tuition Centre Ltd 2001 2212 .
TERM Winter '17 TAGS Globalization, Accountancy Tuition Centre Ltd, Accountancy Tuition Centre, Copyright Accountancy Tuition.
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