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Universit degli Studi di Padova GLOBAL STRATEGY Padova, May 2010

Session IV. . 2. Strategy of the firm (international business strategy)The environment strongly influences what kind of strategy the firm should useThe scope of the firm (international corporate strategy)The environment strongly influences in which countries and markets the firm should be active

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Universit degli Studi di Padova GLOBAL STRATEGY Padova, May 2010

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    1. 1 Università degli Studi di Padova GLOBAL STRATEGY Padova, May 2010 The turnaround in the competitiveness of American firms in the 1980s associated with the introduction of hyper-competition. Possible drivers of this change Integral product designs replaced by modular product designs. Large US vertically integrated corporations replaced by network organizations. The turnaround in the competitiveness of American firms in the 1980s associated with the introduction of hyper-competition. Possible drivers of this change Integral product designs replaced by modular product designs. Large US vertically integrated corporations replaced by network organizations.

    2. Session IV 2

    3. Who cares whether the world is flat or spiky ?

    4. Very complex situation inbetween global market integration and national insulation: „semiglobalization“ … which will be quite persistent Degree of integration different for different dimensions, i.e. product and factor markets Any clustering based on geographic regions seem quite artificial and with limited appeal despite regional political integration such as EU, NAFTA, etc. ? but that might be a convenient and dominating way of clustering ? it might be very costly to find the optimal fit situation (one way to reduce complexity) ? maybe firms are pushed by analysts and stakeholders ? Semiglobalization opens up the space to think about the environment – strategy link (contingency theory) The semiglobalization concept is close to the concept of „transnational“ environments Wrap-up from last session 4

    5. Who cares whether the world is flat or spiky ?

    6. MNC STructure 6

    7. The firm‘s organizational architecture 7

    8. Let‘s start with Alan Rugman… the crazy „everything is regional guy“ 8

    9. Rugman‘s conclusion: Cells 2,5,8 and 4,6 become more important 9

    10. Regional Headquarters (RHQs) – the dominating form of regional management centers – have to manage two relationships/pressures 10

    11. Why do firms operate with regional structures ? The Stopford / Wells contingency framework and information –processing theory 11

    12. Work using information – processing theory added to Stopford and Well‘s findings (Egelhoff)

    13. RHQs and Control and Coordination in MNCs

    14. Goold / Pettifer / Young 14

    15. The more the corporate center is doing…. the bigger it is 15

    16. Lasserre’s idea of how RHQs add value

    17. Lasserre: The life cycle of RHQs / different types of regional management centers 17

    18. Lehrer / Asakawa: Increasing “unbundling” of RHQs

    19. Classic contingency theory suggests regional structures under conditions of regional environments and/or high international complexity (macro-level of the organization) …

    20. RMCs wrap-up

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