...Global and Transnational Business: Strategy and Management Second Edition Global and Transnational Business: Strategy and Management Second Edition George Stonehouse Northumbria University David Campbell University of Newcastle-upon-Tyne Jim Hamill University of Strathclyde Tony Purdie Northumbria University Copyright # 2004 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (þ44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on www.wileyeurope.com or www.wiley.com All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or emailed to permreq@wiley.co.uk, or faxed to (þ44) 1243 770620. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional services...
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...organizations, the trafficking, trade in precursors for the production of coca, posters gasoline, counterfeiters, etc. There is very little agreement about what is organized crime. The various perspectives with which he has been treated show that protein is a highly changeable phenomenon, complex, and therefore difficult to apprehend in theoretical concepts and, even more, in criminal law. Several factors combine to pay in this difficulty. First, it is a relatively new phenomenon, or at least perceived in its social dimension does very little in regard to Europe. Second, it is a more abstract traditional criminal phenomena such as drug trafficking offenses, money laundering, human trafficking, etc.; methods of operation; criminal liability; transnational activities, and their respective political criminals, among others. Third, the work of the various countries is strongly influenced by their own national realities of action of organized criminal groups. Fourth, being a phenomenon of enormous complexity, it has been approached from different perspectives of analysis, such as economic, political, sociological, anthropological, legal, being more inclusive few works with visions...
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...MECHANISM FOR THE GOVERNMENT’S COMPREHENSIVE PROGRAM ON COMBATING TRANSNATIONAL CRIME* WHEREAS; the globalization of the world’s economies and advances in information technology have significantly contributed to the growing sophistication of transnational crimes and their continuing threat to our nation’s political, economic and socio-cultural stability and security; WHEREAS, the United Nationals Convention against Transnational Organized Crime, which the Philippines signed on 14 December 2000 and ratified on 28 May 2002 encourages the formulation of coordinated national policy, legislative, administrative, and law enforcement approaches to prevent and combat transnational crime more effectively; WHEREAS, The ASEAN Declaration on Transnational Organized Crime and its implementing instruments, the ASEAN Plan of Action to Combat Transnational Organized Crime and its Work Programme, call on all Member-States of the ASEAN to solidify governmental efforts in areas of information exchange, training, legislation, law enforcement, institution-building, and extraregional cooperation; WHEREAS, to address the range of transnational crimes affecting our country, Executive Order No. 62 issued on 15 January 1999 creating the Philippine Center on Transnational Crime to formulate and implement a concerted program of action of all law enforcement intelligence and other agencies for the prevention and control of transnational crime; WHEREAS, current realties demand a comprehensive, focused concerted...
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...This essay will first attempt to define globalisation and define neo-liberalism. There is a close interconnection between the two concepts, especially on an international level therefore their positive and negative impacts on crime and criminal justice will be discussed together and then a separate analysis of neo-liberalism and its effects on crime will be examined from a local perspective. Globalisation defined Globalisation is not static, but is rather a dynamic process which involves the growing interconnectedness of states and societies that enmesh human communities with each other, easy mobility of goods and services across countries, electronic communications transcending borders and creating independence from territorially confined units of political power (Massari 2003). These key tenets, which encompass the definition of globalisation, will be discussed with regard to their impacts on crime. Neo-liberalism defined Neo-liberalism can be defined as a set of political beliefs which include the idea that the role of the state in crime control should be minimal as the only legitimate purpose of the state is to protect the individual (O’Malley 2008). Neo-liberalism generally includes the belief that the most efficient way to organise all exchanges of goods and services in human society is through freely adopted market mechanisms leading to greater cost effectiveness, individual liberty and moral virtue (Thorsen & Lie 2000). Individuals in society are empowered...
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...is not a characteristic of the companies with centralized hub structure? C .Most of the manufacturing and product development is executed but the subsidiaries Which of the following statements regarding knowledge diffusion is correct? A In a decentralized federation, knowledge is developed in national subsidiaries and diffused Which of the following is not a characteristic of companies with a transnational strategy? Knowledge is developed centrally and adapted locally Isatis CO has successfully transitioned from a global strategy to a transnational strategy Which of the following descried the likely configuration of assets and capabilities that now most likely prevails at isatis C Dispersed, specialized and interdependent Which of the following describes the preferred sequencing of changes associated with implementing the typically more effective emerging change process model a.Change in individual attitudes and mentalities, then change in interpersonal relationships Which of the following strategic approach and strategic capabilities cannot be paired? d. global strategy and national responsiveness Frank is director of technology in an MNE in which most of the R& D Actives are performed The innovation process adoptedby Franks MNE is C .Center for global With responsibly for his company largely centralized R& D actives Frank worries that the center may not understand local market needs. To respond to these concerns Frank priory B. Ensure that several key...
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...Strategies for Competing Internationally As a consequence of the two opposing pressures, reduction of costs and local adaptation, companies have four basic strategies for competing internationally: 1. home replication 2. multidomestic 3. global 4. transnational The strategy that would be most appropriate for a company, overall and for various activities in the value chain, depends on the amount of pressure the company faces to adapt to local markets and achieve cost reductions. Each of these strategies has its own set of advantages and disadvantages: 1) A home replication strategy centralizes product development strategy in the home country, and after differentiated products are developed in this home market, they are transferred abroad to capture additional value. This strategic choice is sometimes called international strategy. 2) A global strategy tends to be used when a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets. Strategy and decision making is typically centralized, and the company offers standardized products and services. Value chain activities are often located in only one or a few areas, to help achieve economies of scale. There is emphasis on close coordination and integration of activities across products and markets, and development of efficient logistics and distribution capabilities. Global strategies may confront challenges such as limited ability to adjust to changes in...
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...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 that companies need...
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...sciencedirect.com ScienceDirect Procedia Economics and Finance 6 (2013) 418 – 423 International Economic Conference of Sibiu 2013 Post Crisis Economy: Challenges and Opportunities, IECS 2013 Global Strategy: the Case of Nissan Motor Company Sorin-George Tomaa, Paul Marinescua * a Faculty of Administration and Business, University of Bucharest, Romania Abstract The concept of global strategy has become prominent in the international business and management literature in the 1980s. The aims of our paper are to render in brief the concept of global strategy and to highlight some of the main strategy. Our paper contributes to a better understanding of the global strategy concept, and its designing and implementation in the business corporate world. Further studies can be carried on in emphasizing the role played by global strategies in achieving high performance in a changing environment. © 2013 The Authors. Published by Elsevier B.V. © 2013 The Authors. Published by Elsevier B.V. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of Faculty of Economic Sciences, Lucian Blaga University of Sibiu. Selection and peer-review under responsibility of Faculty of Economic Sciences, Lucian Blaga University of Sibiu. Keywords: global strategy; corporation; business; Nissan. 1. Introduction As the process of globalization has entered a new phase in the 21st century, many corporations think of expanding to new locations because of different...
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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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...Procter and Gamble Strategic Plan Paper LTA MGT 498 April 8, 2016 Robert Shereda Procter and Gamble Strategic Plan Paper The business world changes as often as the earth rotates around the sun. The way businesses remain successful is by choosing to embrace change, but wanting change is not enough. To stay competitive, a business must foresee change and adapt in a way that maintains profit, customers, and shareholder loyalty. Ways this will be achieved is through a carefully planned and implemented strategic plan. The strategic plan and other considerations for Procter and Gamble (P&G) will be outlined and detailed throughout this discussion. Importance of Proctor and Gamble having Strategic Plan For a company to be successful there needs to be a set of plans to achieve success. Strategic planning is geared toward specific results that a company needs to achieve and establishes a specific direction of action for goal attainment. Good strategic plans ensure that different departments of Proctor and Gamble work together to align themselves with the goals set by the business. Preparing a strategic plan is not a difficult task, it takes thought from the top all the way down to the employees, especially feedback from consumers concerning the company. Thought out strategic plan will span two to five years and details how the company will develop and succeed over that planning period. Procter and Gamble have created four divisions within the company to ensure...
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...INBM 100’s Project International Strategic Marketing Plan This project will cover all the first semester courses of the International Business Management Program at St. Lawrence College. The students are required to form a group of three and the members should remain unchanged during the semester. Each group is required to choose a new or existing product or service offered by a company headquartered in Canada. STRUCTURE Overview of the Client Identify the various environment of the client • Business environment INBM 102 Henry summarize business and contract law in Canada describe the international regulatory framework INBM 103 Victor recognize the characteristics of a global marketplace How do you need to modify or create products and services designed for the local conditions? How can you build businesses across these global social networks? How can you build consumerism and use social networks to build markets for your products? What is the right balance of your products needed to connect with the market? How can you create the offerings and positioning to reach your youthful markets? How can you grow a large business by thinking small payments, packages, and products? How can you find opportunities in the holes in the infrastructure? How you create the technologies, or ride the technologies, to allow your business to jump with the market? How can you create the distribution networks to reach the market? Is...
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...INTERNATIONAL STRATEGIES (Jay B Barney) Summary International Strategies can be seen as a special case of diversification strategies. Firms implement international strategies when they pursue business opportunities that cross country borders. Like all diversification strategies, international strategies must exploit real economies of scope that outside investors find too costly to exploit on their own in order to be valuable. Five potentially valuable economies of scope in international strategies are: 1. To gain access to new customers for a firm’s current products or services 2. To gain access to low-cost factors of production, 3. To develop new core competencies 4. To leverage current core competencies in new ways and 5. To manage corporate risk. To be a source of sustained competitive advantage, a firm’s international strategies must be valuable, rare and costly to imitate and the firm must be organized to realize the full potential of its international strategies, these strategies can still be rare, for at least two reasons : 1. Given the broad range of international opportunities, firms may not compete head to head with other firm pursuing the same international strategies that they are pursuing and 2. Firms may bring valuable and rare resources and capabilities to the international strategies they pursue. Both direct duplication and substitution can affect the imitability of a firm’s international strategy. Direct duplication is not likely when firms bring...
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...quality packaging service in a competitive market. The company is also innovative with unique selling point of 24 hours delivery as well as having new model of machinery allow the company to take complex orders which makes it a high regarded firm. Although CBC has already got established network overseas with overseas clients, the firm is looking for further expansion and transforming the company on a global platform. In order to expand globally, careful planning and strategic analysis is needed to carry out to foresee potential opportunities and risks as the implications not only may affect on a global level but also has influence on the domestic market. There are three types of global strategy to be applied in general which is international strategy, multinational strategy and global strategy which is useful to distinguish from company’s resources, capabilities and current global position. Strategic analysis of expansion to new market There are a few basic steps to be carried out in order to profoundly write a comprehensive strategic analysis. First thing first, a concise goal has to be set in order to help to guide the effort into the right direction. This could be set by separate portion of the firm instead of the entire company, setting goals for each departments could be more relevant and specific. Second of all is to collect the relevant information to assess the company’s strength and weaknesses in order to seek for a solution for the problem arouse for the expansion...
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...presence-through modes such as exports, licensing, joint ventures, wholly-owned subsidiaries, or some other means? 3. How will the management mentalities – their embedded attitudes, assumptions, and beliefs- that they bring to their international ventures affect their chances of success? Operating in an international rather than a domestic arena presents managers with many new opportunities. Having worldwide operations not only gives a company access to new markets and low-cost resources, it also opens up new sources of information and knowledge and broadens the options for strategic moves that the company might make to compete with its domestic and international rivals. However, with all these new opportunities come the challenges of managing strategy, organization, and operations that are innately more complex, diverse, and uncertain. What is multinational enterprise? * Multinational enterprise has substantial direct investment in foreign countries (Not just the trading relationships of an import-export business), and actively manage and regard those operations as integral parts of the company, both strategically and organizationally. (They are engaged in the active management of these offshore assets rather than simply holding them in a passive investment portfolio. ) What’s different about MNE management? 1. Multiple operating environment * Diverse patterns of consumer preferences, channels, legal frameworks, etc. 2. Political demand and risks * Need to mesh corporate...
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...any industry revolve in the fraternity of globalization. Globalisation in business is the worldwide movement toward economic, financial, trade, and communications integration (Frank, 1998). It implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. Drivers in the business concept are critical forces which can be built within business strategy to enable a company to attain its set goals (Gilbert, 1994). Barriers to industry development are forces that deters the business organization from attaining the desired goals and these are encountered both in the internal as well as external business environment (Hough et al 2011) It is therefore imperative to evaluate key drivers and barriers affecting development in a bid to craft strategic tools that can stimulate strategic thinking, generate strategic foresight, provide a basis for testing existing strategies, explore and understand complexities of the future (Trompenaar et al, 2003). This can aid decision making and contribute to preparation for the future. As such, this essay seeks to explore key issues in strategic management and key theoretical models in the South African (SA) Wine Industry and that of the United Kingdom (UK) in order to stimulate strategic thinking and conversations, pave the way for new ideas and approaches and encourage innovation. This can prepare both the industry...
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