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Globalization and Corporate Strategy

Global Corporate Strategy. Generic Strategy TypesMulti-divisionalGlobal. Generic Questions. Geographic markets in which to expand or contractProduct markets in which to expand or contractMode of expansion/contractionTiming. Assessment Criteria for Multi-Divisional MNC. Is the international mark

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Globalization and Corporate Strategy

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    1. Globalization and Corporate Strategy Steven Globerman Western Washington University

    2. Global Corporate Strategy Generic Strategy Types Multi-divisional Global

    3. Generic Questions Geographic markets in which to expand or contract Product markets in which to expand or contract Mode of expansion/contraction Timing

    4. Assessment Criteria for Multi-Divisional MNC Is the international market potentially profitable? Can a sustainable competitive advantage be created in that market? Will rents remain after entry?

    5. Assessment Criteria for Global MNC Will international expansion/contraction improve the profitability of the global organization? Can the firm create a sustainable competitive advantage relative to other global MNCs?

    6. Caterpillar Tractor Case Difficulties facing the company as a global competitor Characteristics of the industry Strategic issues and solutions

    7. Ericsson Case Difficulties facing the company as a global competitor Characteristics of the industry Strategic issues and solutions

    8. Honda Case Difficulties facing the company as a global competitor Characteristics of the industry Strategic issues and solutions

    9. Some Essential Insights Exploit available economies of scale (e.g., through commonality of design) Acknowledge important and enduring local preferences without unduly sacrificing scale economies Leverage strengths in individual markets to other markets Know your main competitors

    10. Some Essential Insights (cont.) Disadvantage main competitors using ties to suppliers and customers Manage the businesses in various countries as a single system Balance the needs of product and regional managements Adapt product evaluation

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