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Global Strategies

Global Strategies. Concepts, Models & Discussion Questions. Examples. Finland vs. U.S. (60x) & China (250x) Cell phones Soft drinks Shampoo Fast food PCs Video games Labor costs: U.S. vs. China. Why globalize?. Expand global market share Restructure value chain on a global scale

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Global Strategies

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  1. Global Strategies Concepts, Models & Discussion Questions

  2. Examples • Finland vs. U.S. (60x) & China (250x) • Cell phones • Soft drinks • Shampoo • Fast food • PCs • Video games • Labor costs: U.S. vs. China

  3. Why globalize? • Expand global market share • Restructure value chain on a global scale • Ultimate goal

  4. What changes do global companies have to face? • Market size • Complexity of foreign markets • Buyers • New entrants • Rivalry

  5. What are the two potentially conflicting dimensions in global strategies? • Global integration • National differentiation

  6. How are markets different across borders and what are the implications? Pankaj Ghemawat’s CAGE Model: • Cultural distance • Administrative and political distance • Geographic distance • Economic distance

  7. Three types of global strategies: What are they? • Global strategy • Multi-domestic strategy • Transnational strategy

  8. Why are there clusters of companies in certain industries and countries? Porter’s Diamond Model of Competitive Advantage of Nations • Demand Conditions • Factor Conditions • Related and Supporting Industries • Strategy, Structure and Rivalry

  9. What are the common market entry modes? • Exporting • Licensing • Strategic alliances • Greenfield investments • M&As

  10. What are the appropriate organizational structures for global companies? Bartlett and Ghosal’s Classifications: • Decentralized federations • Centralized hubs • Coordinated federations

  11. Group discussion: Answer 2 questions 1. What has been CEMEX’s competitive advantages in the global cement industry? How transferable are these competitive advantages across borders? 2. What has been CEMEX’s primary entry mode in international markets? Explain the logic behind the use of this entry mode. 3. What has been the path of CEMEX’s international market expansion. Explain the logic. 4. What challenges and opportunities does CEMEX face in the global cement industry? What would you recommend to the company in order to survive and thrive in the competition with other global competitors? (Required)

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