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Explore the managerial challenges facing both old and new multinationals in today's dynamic global economy. Discover strategies on how old MNEs can succeed in emerging markets while maintaining their positions in developed markets, and how new MNEs can build a global presence while excelling domestically. Learn about the different approaches needed for success, including building international presence, moving up the value curve, plugging competency gaps, staff management, and professionalizing operations. Delve into topics such as profitability, integration of foreign acquisitions, and maintaining independence and viability. Uncover the race between EMNEs and DMNEs in the competitive learning landscape.
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Managerial Challenges Facing Old and New Multinationals Ravi Ramamurti Northeastern University Session on: COST Panel session on Emerging Country Multinationals37th EIBA Annual Conference, Bucharest, Romania December 9, 2011
The Challenge • Old MNEs—how to win in emerging markets while retaining the lead in developed markets? • New MNEs—how to build presence in foreign markets while retaining the lead at home? • Each has to learn different things to succeed
Old MNEs Source: Adapted from Govindarajan & Ramamurti, Global Strategy Journal, 2011
New MNEs • Building international presence: Why do it, and how? (Ramamurti & Singh 2009) • How to move up the value curve? • How to plug competency gaps? • How to staff the growth, and create a global mind-set? • Professionalizing management (vs family control) • Integrating foreign acquisitions • Profitability, through the “loss valley” • How to remain independent and viable?
Who will win the learning race— EMNEs or DMNEs?