匯聚資訊《匯聚證券內(nèi)參》ppt課件

1、Global Strategies and the Multinational CorporationImplications of International Competition for Industry AnalysisAnalyzing Competitive Advantage within an International ContextApplying the Framework(1) International location of production(2) Foreign market entry strategiesMultinational Strategies:

2、Globalization versus National DifferentiationStrategy and Organization of the Multinational CorporationOUTLINE情趣內(nèi)衣 xinriaiPatterns of Internationalization Trading Global Industries Industries -aerospace -automobiles -military hardware -oil -diamond mining -semiconductors -agriculture -consumer elect

3、ronics Domestic Multidomestic Industries Industries -railroads -laundries/dry cleaning -retail banking -hairdressing -hotels -milk -consultingInternational TradeForeign Direct InvestmentLO WLOWHIGHHIGHImplications of Internationalizationfor Industry AnalysisINDUSTRY STRUCTURELower entry barriers aro

4、und national marketsIncreased industry rivalry- lower seller concentration- greater diversity of competitorsIncreased buyer power: wider choice for dealers & consumersCOMPETITION Increased intensity of competitionPROFITABILITY Other things remaining equal, internationalization tends to reduce an ind

5、ustrys margins & rate of return on capitalCOMPETITIVE ADVANTAGETHE INDUSTRY ENVIRONMENTKey Success FactorsFIRM RESOURCES & CAPABILITIES- Financial resources- Physical resources- Technology- Reputation- Functional capabilities- General management capabilitiesTHE NATIONAL ENVIRONMENT- National resourc

6、es and capabilities (raw materials; national culture; human resources; transportation, communication, legal infrastructure- Domestic market conditions- Government policies- Exchange rates- Related and supporting industriesCompetitive Advantage within an International Context: The Basic FrameworkNati

7、onal Influences on Competitiveness: The Theory of Comparative AdvantageA country has a relative efficiency advantage in those products that make intensive use of resources that are relatively abundant within the country. E.g.Philippines relatively more efficient in the production of footwear, appare

8、l, and assembled electronic products than in the production of chemicals and automobiles.U.S. is relatively more efficient in the production of semiconductors and pharmaceuticals than shoes or shirts.When exchange rates are well-behaved, comparative advantage becomes competitive advantage.Revealed C

9、omparative Advantage fora Certain Broad Product Categories USA Canada W. GermanyItaly JapanFood, drink & tobacco .31 .28-.36-.29-.85Raw materials .43 .51-.55-.30-.88Oil & refined products-.64 .34-.72-.74-.99Chemicals .42-.16 .20-.06-.58Machinery and trans- .12-.19 .34 .22 .80portation equipmentOther

10、 manufacturers-.68-.07 .01 .29 .40Note:Revealed comparative advantage for each product group is measured as: (Exports less Imports)/ Domestic productionPorters Competitive Advantage of NationsExtends and adapts traditional theory of comparative advantage to take account of three factors:Internationa

11、l competitive advantage is about companies not countriesthe role of the national environment is providing a home base for the company.Sustained competitive advantage depends upon dynamic factors- innovation and the upgrading of resources and capabilities The critical role of the national environment

12、 is its impact upon the dynamics of innovation and upgrading. FACTOR CONDITIONSDEMAND CONDITIONSRELATING ANDSUPPORTINGINDUSTRIESSTRATEGY, STRUCTURE,AND RIVALRYPorters National Diamond FrameworkFACTOR CONDITIONS“Home grown resources/capabilities more important than natural endowments.2. RELATED AND S

13、UPPORTING INDUSTRIESKey role of “industry clusters3. DEMAND CONDITIONSDiscerning domestic customers drive quality & innovation4. STRATEGY, STRUCTURE, RIVALRY. E.g. domestic rivalry drives upgrading.Consistency Between Strategy and National ConditionsIn globally-competitive industries, firm strategy

14、needs to take account of national conditions:U.S. textile manufacturers must compete on the basis of advanced process technologies and focus on high quality, less price-sensitive market segmentsIn the semiconduictor industry, CA-based firms concentrate mainly upon design of advanced chips, Malaysian

15、 firms concentrate upon fabrication of high volume, less technologically advanced items (e.g. DRAM chips)Dispersion of value chain to exploit different national environments (e.g. Nike conducts R&D in US, components in Korea and Thailand, assembly in Indonesia, China, and India, marketing in Europe

16、and North America)Power distance Uncertainty avoidanceKoreaIsraelUSAFranceNational cultures: “power difference & “uncertainty avoidanceDenmarkMexicoMalaysiaPhilippinesIndiaJapanIndividualist KoreaIsraelUSAFranceNational cultures: individualism/collectivismDenmarkMexicoPhilippinesIndiaJapanCollectivi

17、st UKAust.GermanyMalaysiaGuatemalaVenezuelaItalyInternational Location of Production3 considerations:National resource conditions: What are the major resources which the product requires? Where are these available at low cost?Firm-specific advantages: to what extent is the companys competitive advan

18、tage based upon firm-specific resources and capabilities, and are these transferable?Tradability issues: Can the product be transported at economic cost? If not, or if trade restrictions exist, then production must be close to the market.The Role of Labor CostsHourly Compensation for Production Work

19、ers, 1999 ($)Germany26.93Japan20.89U.S.19.20France19.98U.K.16.56Spain12.11Korea 6.75Mexico 2.12BUT, wages are only one element of costs:Cost of Producing a Compact Automobile U.S. MexicoParts & components7,7508,000Labor 700 40Shipping cost 3001,000Inventory 20 40TOTAL8,7709,180Location and the Value

20、 ChainComparative advantage in textiles and apparel by stage of processingHong Kong1-0.962-0.813-0.414+0.75Italy1-0.542+0.183+0.144+0.72Japan1-0.362+0.483+0.484-0.48U.S.A.1+0.962+0.643+0.224-0.73Country Stage Index of Country Stage Index of ofRevealed of Revealed Processing Comparative Processing Co

21、mparative Advantage AdvantageNote:1 = production of fiber (natural & synthetic)2 = production of spun yarn3 = production of textiles4 = production of clothingThe optimal locationof activity X consideredindependentlyWHERE TO LOCATEACTIVITY X?The importance of linksbetween activity X andother activiti

22、es of the firmWhere is the optimal locationof X in terms of the cost andavailability of inputs?What government incentives/ penalties affect the location decision?What internalresources and capabilities does the firm possess in particular locations?What is the firms business strategy (e.g. cost vs. d

23、ifferentiation advantage)?How great are the coordinationbenefits from co-locating activities?Determining the Optimal Location of Value Chain Activities Resource commitmentTRANSACTIONSDIRECT INVESTMENTSpot salesExportingForeignagent / distributorLicensingFranchisingJoint ventureMarketing & Distributi

24、on onlyLong-term contractLicensing patents & other IPFullyintegratedWholly ownedsubsidiaryMarketing& Distribution onlyFullyintegratedLowHighAlternative Modes of Overseas Market EntryAlliances and Joint Ventures: Management IssuesBenefits: -Combining resources and capabilities of different companies-

25、Learning from one another-Reducing time-to-market for innovations-Risk sharingProblems: -Management differences between the two partners. Conflict most likely where the partners are also competitors.Benefits are seldom shared equally. Distribution of benefits determined by:Strategic intent of the pa

26、rtners- which partner has the clearer vision of the purpose of the alliance?Appropriability of the contribution- which partners resources and capabilities can more easily be captured by the other?Absorptive capacity of the company- which partner is the more receptive learner? SUZUKIISUZUTOYOTAIBC Ve

27、hiclesLtd. (U.K.)GMNew United MotorManufacturingInc. (NUMMI)10% owned. Co-production49%owned. Co-production 40% investment60%owned50% owned50%owned(Makes vans in UK)(Makes cars in US)SAAB50%ownedFIAT20% owned (2000-5). Collaboration on technology and componentsFUJI20% owned; joint productionDAEWOO50

28、.9% owned; technical & production collaborationAVTOVAZRussian JV to produce carsSAICJV to produce cars in ChinaGeneral Motors Alliances with Competitors Multinational Strategies: Globalization vs. National DifferentiationNational preferences in declineworld becoming a single,if segmented, marketAcce

29、ssing global scale economiesin purchasing, manufacturing, product development, marketing.Strategic strength from global leverageability to cross- subsidize a national subsidiary with cash flows from other national subsidiaries Need to access market trends and technological developments in each of th

30、e worlds major economiccenters- N. America, Europe, East Asia.Hamel &PrahaladThesisKenichi Ohmaes“Triad PowerThesisTed Levitt“Globaliz-ation ofMarkets ThesisThe case for a global strategy:Globalization & Global Strategy What are they?GLOBALIZATION ? -Something to do with increasing interdependence b

31、etween countries. GLOBAL STRATEGY -At simplest level: Treating the world as a single market E.g. Japanese companies during the 1970s & 1980s, (YKK, Honda) standard products, developed & manfactured within Japan; distributed & marketed worldwide-At more sophisticated level: Strategy that recognizes a

32、nd exploits linkages between countries (e.g. exploits global scale, national resource differences, strategic competition)World assingle mkt.World asseparate national mkts.global strategyWorld as inter-related mkts.multidomestic strategyAnalyzing benefits/costs of a global strategyForces for localiza

33、tion / national differentiationMARKET DRIVERS-Different languages-Different customer preferences-Cultural differencesCOST DRIVERS-Transportation costs-Transaction costs -Economic & political risk -Speed of responseGOVERNMENT DRIVERS-Barriers to trade & inward inv.-RegulationsForces for globalization

34、MARKET DRIVERS-Common customer needs -Global customers-Cross-border network effectsCOST DRIVERS-Global scale economies-Differences in national resource availability -Learning COMPETITIVE DRIVERS-Potential for strategic competition (e.g. cross- subsidization)Benefits of national differentiation Benef

35、itsof global integrationCementTelecomequipmentJet enginesConsumerelectronicsAutosFuneralservicesRetailbankingInvestment bankingAutorepairRestaurant chainsSteelOnline C2C auctionsBeerDrycleaningBenefits of national differentiation Benefitsof global integrationCementTelecomequipmentJet enginesConsumer

36、electronicsAutosFuneralservicesRetailbankingInvestment bankingAutorepairPositioning industries in terms of benefits of globalization and national differentiationThe Evolution of Multinational Strategies and Structures: (1) 1900-1939Era of the EuropeansThe European MNC as Decentralized Federation :Na

37、tional subsidiaries self-sufficient and autonomousParent control through appointment of subsidiaries senior managementOrganization and management systems reflect conditions of transport and communications at the time e.g. Unilever, Phillips, Courtaulds, Royal Dutch/Shell. The Evolution of Multinatio

38、nal Strategies and Structures: (2) 1945-1970U.S. DominanceAmerican MNCs as Coordinated Federations :National subsidiaries fairly autonomousDominant role as U.S. parent- especially in developing new technology and productsParent-subsidiary relations involved flows of technology and finance, and appoi

39、ntment of top management.e.g. Ford, GM, Coca Cola, IBMThe Evolution of Multinational Strategies and Structures: (3) 1970s and 1980sThe Japanese ChallengeThe Japanese MNC as Centralized HubPursuit of global strategy from home baseStrategy, technology development, and manufacture concentrated at homeN

40、ational subsidiaries primarily sales and distribution companies with limited autonomy. e.g. Toyota, NEC, MatsushitaMarketing Global Strategies and Situations to Industry Conditions: Firm Success in Different IndustriesConsumer Electronics Branded, Packaged Telecommunications Consumer Goods Equipment

41、 - Global industry - Substantial national - Requires both global - Matsushita the most differentiation, few global integration and national successful scale economies differentiation. - Philips the survivor - Kao has limited success- NEC only partially - GE sold out outside Japan successful - Unilev

42、er and P&G most - ITT sold out successful- Ericsson most successfullocal responsiveness local responsivenesslocal responsivenessglobal integrationglobal integrationglobal integrationMatsushitaPhilipsGeneral ElectricKaoP&GUnileverNECEricksonITTReconciling Global Integration with National Differentiat

43、ion: The Transnational CorporationThe Transnational: an integrated network of distributed interdependent resources and capabilities.Each national unit and source of ideas, skills and capabilities that can be harnessed to benefit whole corporation.National units become world sources for particular products, components, and activities.Corporate center involved in orchestrating collaboration through creating the right organizational context.Tight complex controls and coordination and a shared strategic decision proces