1. GLOBAL STRATEGIES Session 6

2. TOP15 TRANSNATIONAL COMPANIES BY FOREIGN ASSETS 2005 SOURCE: UNCTAD 3. TOP 10 COMPANIES INDEX OF TRANSNATIONALITY (2005) Index: Average of foreign to total assets, foreign to total sales and foreign to total employment.SOURCE: UNCTAD 4. TOP 12 COMPANIES DEVELOPING ECONOMIES INDEX OF TRANSNATIONALITY (2005) SOURCE: UNCTAD 5. Drivers of Globalisation

Market access

Market opportunities

Industry standards

Sourcing

Products & services

Technology

Customer requirements

Competition

Cooperation

Distribution

Communication

Companys strategy, business programmes and processes

6. BENEFITS OF GLOBAL SOURCING

Cheaper labour rates

Better or more uniform quality

Access to the best technology, innovation and ideas

Access to local markets

Economies of scale advantages

Lower taxes and duties

Potentially lower logistics costs

More consistent supply

7. THE INTERNATIONAL COMPETITIVE POSTURE MATRIX Source:Adapted from Gogel, R and Larreche, JC (1989) 8. ALTERNATIVE WORLD WIDE STRATEGIES 9. DEGREES OF STANDARDISATION OR ADAPTION

Marketing Objectives and Strategies

• More readily standardised

Marketing Mix

• Products most easily standardised

• Promotion less so

• Distribution and pricing difficult to standardise

Operational activities

• The more operational the decision, the more likely it will be differentiated

10. CONTINUUM OF STANDARDISATION Pricing Distribution Sales Force Sales Promotion Product Image Objectives Strategy Differentiation Standardisation 11. GLOBALISATION PUSH & PULL FACTORS Source: Meffet and Bolz (1993) in Hallibuton and Hunerberg (eds)European Marketing Readings and CasesAddison Wesley 1993 12. FORCES DRIVING A MULTI-DOMESTIC APPROACH

Industry standards remain diverse

Customers continue to demand locally

Being an insider remains critically important

Global organisations are difficult to manage

Management myopia

13. TRANSNATIONAL STRATEGIES

Transnational companies aim to build three strategic capabilities:

• Global scale efficiency and competitiveness

• National level responsiveness and flexibility

• Cross market capacity to leverage learning on a world wide basis

14. ACHIEVING GLOBAL COMPETITIVE ADVANTAGE

Simple and complex individual product and market policies

Customer segments specific and unique to specific market or transnational group

Working closely with firms and simultaneously ensuring that values of company are maintained and demonstrated to stakeholders

Maintaining / building added value in the supply chain

15. BUILDING A GLOBAL PRESENCE

Responding to the changing basis of competitive advantage

Increasing global appeal by building the global brand

Creating a global presence by achieving global reach

Management of diverse and complex activities

16. THE CONCEPTUAL FRAMEWORK OF A FIRM 17. Functions Of Different Management Levels 18. DEVELOPMENT OF STRATEGY Organisational Structures & the Head Office - Subsidiary Relationship 19. INTERNATIONAL PLANNING PROBLEMS 20. A GOOD INTERNATIONAL MANAGER

Able to cope with cognitive complexity

• Understand issues from variety of complicated perspectives

Have cultural empathy

• Including sense of humility and power of active listening

Have emotional energy

• Capable of adding depth and quality to interaction

Demonstrate psychological maturity

• Curiosity to learn, orientation to time, personal morality

Wills and Barham (1994)