international strategy. which is the american car? page 2 pontiac g8 bwm x5
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International Strategy
Which is the American car?
Page 2
Pontiac G8 BWM X5
Which is the American car?
Page 3
Pontiac G8 BWM X5
Manufactured in Australia
Manufactured in South Carolina
Page 4
Toyota Sequoia Jeep Patriot
Which is the American car?
Which is the American car?
Page 5
Toyota Sequoia Jeep Patriot
80% U.S. Content 66% U.S. Content
The Last “American” Car
Page 6
The Last “American” Car
Page 7
92% U.S. Content…but assembled in Canada
cars.com Most American Car
Touareg Passat Jetta Beetle Golf
EngineGermany
HungaryGermany
Poland
MexicoMexico Hungary
Transmission Japan JapanArgentina
Japan
Argentina
JapanArgentina
Final Assembly
Slovakia Germany Mexico Mexico Brazil
Country of Origin for VW Models Sold in U.S.:Major Components and Final Assembly
VW Jetta…just a little “German”
TransmissionsJapan
AssemblyMexico
EnginesPolandCustomers
Lexington
Globalization Drivers
o Market Driverso Cost Driverso Government Driverso Competitive Drivers
Low
Adapt
High
Standardize
Effective Standardization
Coca-Cola’s “global polar bears”
McDonald’s “Big Mac”
Effective Adaptationo P&G single-use shampoo packages in India
Effective Transnationalization
o Barbie is 51 years oldo Sold in 130 countrieso National adaptations:
• Physical features• Costumes• Activity sets
o Standardized physique:• Scaled to 6’2”, 110 lbs.
Value ChainLocation and standardization/adaptation
Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Value Chain
InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Headquarters
Value Chain
InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Upstream
Headquarters
Value Chain
InfrastructureInfrastructure
Technology DevelopmentTechnology Development
ProcurementProcurement
Human Resource ManagementHuman Resource Management
InboundInboundLogisticsLogistics OperationsOperations
OutboundOutboundLogisticsLogistics MarketingMarketing ServiceService
ProfitMargin
Upstream Downstream
Headquarters
Value Chain
MarketingMarketing
ProfitMargin
Upstream Downstream
HeadquartersHeadquarters
Manufacturing
Value Chain Configuration
o Geographic locationlocation of value chain activities around the world
VW Jetta…just a little “German”
TransmissionsJapan
AssemblyMexico
EnginesPolandCustomers
Lexington
Value Chain Coordinationo Cross-border linkageslinkages between dispersed value-
creating unitso CoordinationCoordination = Flows of:
– Money
– Product (finished and intermediate)
– Technology
– People
– Information (market data, strategic direction, etc.)
o Highly coordinated vs. only money flows
International Strategy:Managing Competing Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
International Strategy:Managing Competing Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
Export Strategy
U.S.
Germany
Mexico
Malaysia
Export Strategy
U.S.
Germany
Sweden
England
International Strategy:Managing Competing Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
Multidomestic Strategy
U.S.
Germany
Mexico
Malaysia
P&G Multidomestic StrategyP&G Multidomestic Strategy
UK
GermanyFrance
Italy
Neth.
International Strategy:Managing Competing Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
GlobalStrategy
Global Strategy(Textbook Variety)
U.S.
Germany
Mexico
Malaysia
International Strategy:Managing Competing Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
GlobalStrategy
TransnationalStrategy
Transnational Strategy (v.1)
U.S.
Germany
Mexico
Malaysia
P&G “Pan-Euro” StrategyP&G “Pan-Euro” Strategy
UK
GermanyFrance
Italy
Neth.
Spain
Zone 1
Zone 2
Surprising OutcomeSurprising Outcome VIZIR was precursor to “Liquid Tide” in US
– Great irony is: P&G’s struggle to develop “Euro-brand” first found success in a different large, integrated market…
Surprising OutcomeSurprising Outcome VIZIR was precursor to “Liquid Tide” in US
– Great irony is: P&G’s struggle to develop “Euro-brand” first found success in a different large, integrated market…
The U.S.The U.S.
Transnational Strategy (v.2)
U.S.
Germany
Mexico
Malaysia
Transnational Strategy (v.2)
U.S.
Germany
Mexico
Malaysia
Transnational Strategy (v.3)
U.S.Germany
Mexico
Malaysia
Engines
Final Assembly
Trim, seats,glass
Steel
VW International Strategy - Jetta
Germany
Japan
Mexico
Poland
Transmission
Final Assembly
Engine
Misc.
U.S.Marketing
McDonald’s Identity
McDonald’s Transnational MenuUS Brazil Canada India Germany
Big Mac French Fries Coca-Cola McNuggets McAloo Tikki McRib McBier McLobster McCalebresa PitaMac McFarmer
McDonald’s Site Selection and StoresUS -- Colorado
McDonald’s Site Selection and StoresMoscow, Russia
McDonald’s Site Selection and Stores
Bangkok,Thailand
Hamburger UniversityIllinois, USA
Hamburger University
Illinois
Sydney
London
Munich
Hong-Kong
Hamburger University Curriculumo 80 classroom hourso Topics – Fast food “the McDonald’s way”
• Restaurant operations, food preparation• Crew selection, training and team building• Marketing and promotion• Asset management• Corporate citizenship and ethics• Leadership, effective supervisory skills
Standardization of ProcessesStandardization of Processes
McDonald’sTransnational Strategy
U.S.
Singapore
Greece
Brazil