...everyone knows, Qantas is Australia’s largest airline, which is also one of the biggest global airlines in the world. It is committed to creating a reputation for safety, operational reliability and considerate customer service. All of these reputations have been playing a vital role in attracting increasing passengers to be loyal to Qantas. Consequently, Qantas has been becoming one of Australia’s most successful companies in aviation industry. With the rapid development of other competitors in aviation industry around the world, however, some challenges had been generated that Qantas has to overcome. Additionally, the key challenge for Qantas is about its global strategy, which is extraordinarily critical to determine the future of Qantas in the global aviation industry. To exactly and effectively understand Qantas’ global strategies, this report will be divided by five parts that could gradually make sense of the importance of global strategic management. Firstly, it will briefly introduce the history and growth of Qantas airline. Then this report will explain how Qantas’ global strategy operates. After that, it is going to analyze the nature and drivers of the company global strategies. Last but not the least, this report will analyze the challenges facing the global strategy and give some suggestions to overcome these challenges. More importantly, it emphasizes the importance of global strategic management for all companies in the world, not only for aviation industry. ...
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...NESTLE: GLOBAL STRATEGY 1. Does it make sense for Nestle to focus its growth efforts on emerging markets? Why? It does make sense for Nestle to focus its growth on emerging markets. It currently already has a significant presence in most segments of the market in developed markets, and further growth requires either taking market share from competitors or entering new product segments. Both of these are expensive undertakings that must be continually repeated to sustain growth above the level of economic growth. In contrast, if it gets a good foothold in emerging markets, it will be in a good position to grow with the market as the purchasing power of consumers’ increases. It can also progressively bring new products to these markets, accelerating its growth. 2. What is the company’s strategy with regard to business development in emerging markets? Does this strategy make sense? Nestle tries to enter emerging markets ahead of competitors, and build a substantial position in basic foodstuffs. As income levels rise, the company progressively moves from these niches into more upscale items. It very much focuses on developing local goods for local markets, and places relatively less emphasis on its global brands in emerging markets. It also localizes its distribution and marketing strategy to the requirements of the local market. When good opportunities are available, Nestle acquires local firms. Given significant differences in various developing markets, and different...
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...Worldwide Effectiveness: This article discusses how companies across the globe are trying to overcome the hurdles related with the overall global economy. Different corporate strategies do in fact have different tradeoffs. Responding only to the needs of a local community/culture suggest that companies cannot sell the same product globally. Companies that sell the same product globally, however, suggest their incapability to respond to their local environments. With this being said, the main takeaway from this article is that the most effective and successful worldwide corporations use a transnational organization for long-term sustainability. Transnational organizations strategically merge a centralized and decentralized structure together. • Matsushita - demonstrates a centralized organization. They manage this style through Multiple Linkages, Market Mechanisms, and Personnel Flows • Philips – demonstrates a decentralized organizational structure. They manage this style through a Dispersion of Responsibilities/Decentralized Assets, a Cadre of Entrepreneurial Expats, and a Tight Functional Integration. Tap Your Subsidiaries: The article uses two assumptions/theories known as the U.N Model and the Headquarters Hierarchy. P&G had a clash between both theories where they used a manager for the Europe strategy. Even though the Euro strategy was very successful, the effect was disadvantageous with regard to their international capacity. The main takeaway from this article is...
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...Global Warming Mitigation Strategies and Solutions David Zavala University of Phoenix/Axia College Our atmosphere took billions of years to develop into what we know today but technological advances have given today’s society the power to change the atmosphere in less than a century. The revolution that began in the late eighteenth century made it possible for inventors to create many energy-saving machines. The only energy these machines save is human energy and time because these machines use energy in the form of fossil fuels, which is made from large amounts of carbon. They were created when the organic remains of plants and animals were buried millions of years ago. Over time, heat and pressure changed the remains into coal, oil, and natural gas. When people burn fossil fuels, huge amounts of carbon dioxide and other gases are released into the atmosphere; which result in several changes to the make-up of the atmosphere. The most significant environmental problem this paper will focus on is Global Warming. People who grow flowers year-round often use a special building that has walls and a roof made of glass. The transparent glass allows insolation to enter but prevents heat loss by radiation; so when the insolation enters the green house, the sun’s energy is trapped and warms the house. This keeps the greenhouse warmer than its surroundings; carbon dioxide and water vapor are like the glass in a greenhouse. They allow insolation to reach Earth’s surface but they...
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...expanded into the global arena. Hines (2000) identifies that this phenomenon is a result of “the ever-increasing integration of national economies into the global economy through trade and investment rules and privatization, aided by technological advances.” Globalisation facilitates a more liberated flow of trade across nations, expands economic freedom and spurs competition, thereby increasing the yield in the marketplace. As for developing countries, globalization offers access to foreign capital, increasing the involvement of multi-national conglomerates that capitalises on comparative advantage, enhances quality standards and facilitate the maximisation of their profits. (Hines, 2000) As a result of global economic integration, international interdependence has increased the complexity level of enterprise management. It is imperative for organisations aspiring to sustain a competitive edge by expanding into other countries to determine the correct global strategy. Uniform Global Strategy Hill (2008) describes the globalisation strategy as organisations focused on “increasing profitability by reaping the cost reductions that come from experience curve effects and location economics”. Levitt (1983) commented that organisations aspiring to be competitive in the global arena should swing their focus from locally-customised products to globally uniform solutions that are practical, consistent, and economical. Product offerings and placement strategies are not customised...
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...Chapter 11 Global Strategy and Organization International Business Strategy, Management & the New Realities by Cavusgil, Knight and Riesenberger International Business: Strategy, Management, and the New Realities 1 Learning Objectives 1. The role of strategy in international business 2. The integration-responsiveness framework 3. Distinct strategies emerging from the integration-responsiveness framework 4. Organizational structure 5. Alternative organizational arrangements for international operations 6. Building the global firm 7. Putting organizational change in motion International Business: Strategy, Management, and the New Realities 2 What Is Strategy? • Strategy is a plan of action that channels an organization’s resources so that it can effectively differentiate itself from competitors and accomplish unique and viable goals. • Managers develop strategies based on the organization’s strengths and weaknesses relative to the competition and assessing opportunities. • Managers decide which customers to target, what product lines to offer, and with which firms to compete. International Business: Strategy, Management, and the New Realities 3 Strategy in an International Context • Strategy in an international context is a plan for the organization to position itself vis-a-vis its competitors, and resolve how it wants to configure its value chain activities on a global scale. • Its purpose is to help managers create an international vision, allocate resources...
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...Pattraporn Jaowatana Global strategy class3 January 19, 2015 Five Forces Model of Industry Environment 1. Threat of new entrants 2. Threat of substitute. * Availability of a product that the consumer can purchase instead of the industry’s product. * Substitute products are goods or services from outside a given industry that perform similar products and services. 3. Bargaining power of customers (buyers) 4. Bargaining power of suppliers 5. Intensity of competitive rivalry. What lesson do you learn from this video in light of strategic management? (Context of substitute) * Focus too much on yourself that you may miss out opportunities. * Company is priorities their products than the competitor. * Gorillized (different category that you might never interested), it could bring you the threat. * There is a goal and procedures to follow but in some case if there is no directive, employees could be more innovative and creative. * External factors may help company to fight with the substitute. Sometimes company doesn’t see yourself, you need some external people for guidance. What are the possible reasons that Kodak did not pay attention to digital camera? * Biggest part of the Kodak products and it well known for the film. If changing to the digital camera, it will contradict their core products. * It will change the mode of the company that they are well known since the beginning of the establishment of company...
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...Global Strategy: An Organizing Framework Sumantra Ghoshal Strategic Management Journal, Vol. 8, No. 5. (Sep. - Oct., 1987), pp. 425-440. Stable URL: http://links.jstor.org/sici?sici=0143-2095%28198709%2F10%298%3A5%3C425%3AGSAOF%3E2.0.CO%3B2-L Strategic Management Journal is currently published by John Wiley & Sons. Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/journals/jwiley.html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. The JSTOR Archive is a trusted digital repository providing for long-term preservation and access to leading academic journals and scholarly literature from around the world. The Archive is supported by libraries, scholarly societies, publishers, and foundations. It is an initiative of JSTOR, a not-for-profit organization with a mission to help the scholarly community take advantage of advances in technology. For more information regarding...
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...Global Strategy and Leadership is the capstone segment for the CPA Program professional level. This segment consolidates your learning in the other three compulsory segments, Ethics and Governance, Financial Reporting and Strategic Management Accounting. In the increasingly complex business environment in which organisations operate, characterised by change, uncertainty and escalating competition, the disciplines of strategy and leadership have become critical to successful organisational performance. The aim of this segment is to link the knowledge of management and financial accounting to the concepts of strategy and leadership. Accountants use a variety of technical information to make decisions for the future of the business within an ethical framework of operation. This segment shows that accounting information, ethics, strategy and leadership are applicable to accountants working throughout the world in diverse organisations. As discussed in Ethics and Governance, accounting as a profession is respected internationally and CPAs are employed worldwide. The segment materials address the needs of candidates operating in different international markets in varying roles. This segment builds upon knowledge gained in the other three compulsory segments of the professional level. The concepts of professional ethics and good governance underpin the segment. Candidates who have previously undertaken the Advanced Audit and Assurance or Strategic Management Accounting segments will...
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...Hard Rock Café’s Global Strategy Hard Rock Café’s Global Strategy Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971. Hard Rock brings the concept of the “experience economy” to its café operation. The strategy incorporates a unique “experience” into its operations. (Heizer & Render, 2014, p. 53). According to Heizer and Render (2014), providing an experience or theme at the different Hard Rock Café’s that cannot be found anywhere else in the world is a succeeding strategy. Even though many other restaurants have not survived Hard Rock continues to grow. They have done this by catering to local tastes and have expanded to “destination” cities since 70% of its guests are tourists. Another strategy used is having added music venues worldwide since they feel music is universal. Collection memorabilia has also been added and is changed throughout the corporation to provide a fresh experience to its visitors. The music and collection angle is used to target different age demographics and has been successful. (Amer, 2004) Merchandising shops with logos specific to that location is an excellent strategy. Customers can only get a specific shirt from a specific place. Consumers may view the shirts as a collector’s item and this in turn generates revenue for Hard Rock since 48 % of its revenue is made from merchandising alone. (Amer, 2004) Hard Rock is always researching new sites and new markets and takes a lot into consideration...
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...As defined in the “Cultural Foundations of Global Business” [need appropriate citation], culture is defined as the “collection of beliefs, values, behaviors, customs, and attitudes that distinguish the people of one society from those of another” (page 121). Pierre Marcolini (“Pierre” or the “Company”) will face three primary cultural challenges in entering the Chinese market. First, and most significantly, Pierre will face culture differences with respect to modes of communication and expression. In terms of the Hall framework, cultures differ in the “extent to which the context of a message is as important as the message itself” (page 132). In China, the content of a message is often much less important than the person delivering the message, body language, gestures, and various other social cues. In Belgium’s contrasting, “low-context” culture, however, the content of the message is paramount; therefore, in entering the Chinese market and dealing with partners, employees, and customers, Pierre’s managers must pay close attention to the non-verbal, contextual means of communication inherent in Chinese society if they wish to communicate effectively with their Chinese counterparts. Second, Pierre will face culture difference with respect to the expectation of hierarchy within firms, or in the terms of the Hofstede framework, the power distance inherent in organizations. While leaders in Belgian and Northern European firms need not have substantial amounts of power compared...
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...May 15, 2012 Sharon Rao-Farista Arcor: Global Strategy Local Turbulence (Case 9- 704-427, Harvard Business School) 1. Based on the data available, to which extent was the CAGE model relevant for the decisions taken by ARCOR until the crisis started in 1999? The CAGE model is relevant to the decisions taken by ARCOR up until the crisis in 1999, in the following ways: 1. ARCOR identified that Brazil had a fairly similar culture in chocolate and candy consumption to Argentina, hence in 1976, Arcor established itself in Brazil. 2. ARCOR also may have chosen to enter Brazil because of it sharing a border with Argentina. There was little geographic distance 3. With Brazil’s large population, Arcor had access to the economic benefit of a larger market 4. Arcor entered the US in 1993, since consumers accounted for one third of the global confectionary market. Again, there was economic benefit for Arcor. 2. Based on the AAA strategies, develop at least 2 different strategies for Pagani in 2002 in order to further develop ARCOR’s business strategy. Explain which is your preferred option The two strategies that I would propose are Adaptation and Aggregation. - Adaptation has worked so far for Arcor since it has identified differing tastes and consumer behaviour linked to chocolate and candy across different markets. - Aggregation has also proved useful to Arcor, since the cost of setting up plants and procuring raw materials in each new market proves to be costly. In terms of...
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...Walmart’s Global Strategies Jennifer D. Wright National American University: Management Across Cultures 1 March 2015 Abstract Walmart is one of the world’s largest and most well-known retailers in the world today. It has achieved great success in areas like Mexico and Canada; however it has also seen failures in other areas like Germany and Hong Kong. This paper will discuss a brief history of Walmart’s global expansions and the strategies it chose to enter these markets. It will answer the following specific questions: When did Walmart enter the global expansion? What international markets did Walmart enter? What cultural challenges has Walmart faced? How did Walmart overcome these challenges? Where future expansions and opportunities are possible? To answer these questions, this paper will have four basic sections: A brief history of Walmart’s global expansion, what was their strategy with each expansion, cultural differences they faced, and where is Walmart going in the future. This paper will attempt to examine the strategies of its global expansion and how it used the challenges to continue success in future expansions. Walmart is the most well-known and largest retailer in the world today; with sales worth more than $200 billion, $35 billion of that from Walmart’s International Division. The company grew incredibly fast both in the United States and abroad. By tweaking entry modes, and studying the cultural differences and local threats...
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...Global strategy and management Chapter 1: Understanding Global Strategy What is global strategy? Traditional global strategy is treating different countries as one worldwide all global market. Some companies are considering the world as one big country. For example Coke is distributed around the world. But that strategy has backfired repeatedly. For example, the Toyota Camry is the best-selling car in the U.S., but not even top five best-selling cars in Japan. A more balanced view covering both global and local (non global) aspects is necessary. Keys to a successful total global strategy: The total global strategy three separate components: 1. Developing the core strategy: developing the fundamental purpose of the organization and getting everybody and everything lined up to support that purpose. 2. Internationalizing the core strategy: it is the international expansion of activities and the adaptation of the core strategy. Companies need to have mastered the basics of international business before they can attempt the global strategy. 3. Globalizing the international strategy: by integrating the strategy across countries. Developing the core business strategy: Each separable business in a company needs its own core strategy. The core business strategy includes several key elements: * Type of products or services that the business offers * Types of customers that the business serves * Geographic markets served * Major sources...
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...SMR001 rP os t MIT Massachusetts Institute of Technology Summer 1985 Designing Global Strategies: Comparative and Competitive Value-Added Chains No Bruce Kogut tC op yo Volume 26 Number 4 Do Reprint 2642 This document is authorized for use only by Fernando Juarez until October 2010. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860. PDFs I Reprints I Permission to Copy I Back Issues Electronic copies of MIT Sloan Management Review articles as well as traditional reprints can be purchased on our web site: www.mit-smr.com or you may order through our Business Service Center (9 a.m.-5 p.m. ET) at the phone numbers listed below. op yo To reproduce or transmit one or more MIT Sloan Management Review articles by electronic or mechanical means (including photocopying or archiving in any information storage or retrieval system) requires written permission. To request permission, use our web site (www.mit-smr.com), call or e-mail: rP os t MITSloan Management Review Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 e-mail:smrpermissions@mit.edu To request a free copy of our reprint catalog or order a back issue of MIT Sloan Management Review, please contact: MIT Sloan Management Review 77 Massachusetts Ave, E60-100 Cambridge, MA 02139-4307 Do No tC Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 Fax:...
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