international entry modes and strategy. touaregpassatjettabeetlegolf engine germany hungary germany...
TRANSCRIPT
![Page 1: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/1.jpg)
International Entry Modes and Strategy
![Page 2: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/2.jpg)
Touareg Passat Jetta Beetle Golf
EngineGermanyHungary
GermanyPolandMexico
Mexico Hungary
Transmission Japan JapanArgentina
JapanArgentina
JapanArgentina
Final Assembly
Slovakia Germany Mexico Mexico Brazil
Country of Origin for VW Models Sold in U.S.:Major Components and Final Assembly
![Page 3: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/3.jpg)
VW Jetta
TransmissionsJapan
AssemblyMexico
EnginesPoland
CustomersU.S.
![Page 4: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/4.jpg)
Reasons to “Go Global”Proactive Reasonso Exploit factor-cost
differences across countries
o Unique producto Technological advantageo Economies of scaleo Growing foreign marketso Exclusive informationo Attack rivals on home turf
Reactive Reasonso Competitive pressureo Overcapacityo Declining domestic
saleso Saturated home marketo Under attack from
foreign rivals
![Page 5: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/5.jpg)
Going Global: Effect on Bottom Line
ROI
% Foreign Sales/Total Sales
![Page 6: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/6.jpg)
Foreign Market Entry Modes
Export Licensing Joint Venture WOS
Acquisition Greenfield
![Page 7: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/7.jpg)
Entry Mode Framework
Mindset Country-market opportunity/cost analysis
Stand-alone Attractiveness Strategic Importance
Resources-Control-Risk tradeoff
![Page 8: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/8.jpg)
Mindset and International Activity International
Overseas activities support / subordinate to domestic activities
Multinational Flexibly adapting value-creating activities on
country-by-country basis; nationally-responsive Global
The world is the market; standardization Transnational
“Glocalization” – Some value-creating activities standardized/globalized, others localized
![Page 9: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/9.jpg)
Entry Mode Decision Matrix
Hi
Lo
HiLo
Str
ateg
ic I
mpo
rtan
ce
of C
ount
ry
Stand-alone Attractivenessof Country
Lo
Hi
Resource
s,
Control,
Risk
![Page 10: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/10.jpg)
Country-Market AnalysisStand-alone attractiveness:
–Size–Growth–Product acceptance / segmentation–Cultural similarity–Risk–Policy incentives–Other factors? ….MNC “power”?
![Page 11: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/11.jpg)
Country-Market AnalysisStrategic importance:
–Home market of global customer–Home market of global rivals–Significant market of global rivals–Major source of innovation–Demanding/sophisticated customers–Factor-cost advantages
![Page 12: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/12.jpg)
Resources-Control-Risks Resources
$$, time, technology, machinery, people, organizational, strategy
Control Operational and strategic discretion over
value-creating activities Risks
Political, F/X, economic, cultural, dissemination
![Page 13: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/13.jpg)
Control Extent of involvement:
Channel control / ownership:
Ship Product
Marketing
Distribution
After-salesSupport
Mfg.
ExportAgent
ImportAgent
RegionalWhsle.
LocalWhsle.
Retail
![Page 14: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/14.jpg)
Entry Mode Decision Framework
Licensing
Exporting Intermediaries
Direct
Joint Venture
Wholly-owned Subsidiary
Control Resources Risk Dissem. Low LowLow
High HighHigh Low
High
![Page 15: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/15.jpg)
Entry Mode Decision Matrix
Hi
Lo
HiLo
Str
ateg
ic I
mpo
rtan
ce
of C
ount
ry
Stand-alone Attractivenessof Country
Lo
Hi
Resource
s,
Control,
Risk
![Page 16: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/16.jpg)
General Electric and International Involvement
GE Product Divisions: Light bulbs Aircraft engines Appliances Power-generation
GE Market Opportunity: North America Europe Pacific rim / Asia Emerging markets
![Page 17: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/17.jpg)
GE’s Markets, Entry and Strategy ChoicesP
rodu
ct L
ines
Country-Markets Internatio
nal
Strateg
y
4
3
2
1
A B C D
![Page 18: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/18.jpg)
Entry Mode Decision Matrix
Hi
Lo
HiLo
Str
ateg
ic I
mpo
rtan
ce
of C
ount
ry
Stand-alone Attractivenessof Country
Lo
Hi
Resource
s,
Control,
Risk
![Page 19: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/19.jpg)
Procter & Gamble
Pan-European Brand Development
![Page 20: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/20.jpg)
P&G Multidomestic Strategy
UK
GermanyFrance
Italy
Neth.
![Page 21: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/21.jpg)
Product Characteristics MapHigh Washing Temp
FabricSoftener
BleachAdditives
EnzymaticStain
Removers
![Page 22: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/22.jpg)
Product Characteristics MapHigh Washing Temp
FabricSoftener
BleachAdditives
EnzymaticStain
Removers
Italy
Spain
ItalyExcludedcountries
![Page 23: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/23.jpg)
P&G “TransEuro” Strategy
UK
GermanyFrance
Italy
Neth.
Spain
Zone 1
Zone 2
![Page 24: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/24.jpg)
No problem taking a sack.
I’ll just use Vizir after the game.
![Page 25: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/25.jpg)
Gotta keep this sweaty Tarheel off
my clean uniform…
I’m out of Vizir.
![Page 26: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/26.jpg)
Epilogue VIZIR was precursor to “Liquid Tide” in US
– Great irony is: P&G’s struggle to develop “Euro-brand” first found success in another large, integrated market…the U.S.
– The VIZIR experience facilitated learning/cross-fertilization w/in P&G worldwide
– Developed “world-class” technology and product development capabilities worldwide
![Page 27: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/27.jpg)
Industry Globalization
o What is a global industry? Why?o Which drivers/factors most important?o How does a global industry compare with a multi-
domestic one?o How is the extent of globalization “measured”?o What are the implications for firms’ international
strategies?
![Page 28: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/28.jpg)
Globalization Drivers
o Market Driverso Cost Driverso Government Driverso Competitive Drivers
Low
Multi-domestic
High
Global
![Page 29: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/29.jpg)
Definitions
Multi-domestic –Many-country view of the international
marketplace–Value chain activities are performed in the
local country-market and are adapted to local tastes, preferences, needs, etc.
![Page 30: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/30.jpg)
DefinitionsGlobal
–A whole world-level view of the international marketplace, the world is the market
–Value chain activities are standardized and are performed in country locations according to efficiency, favorable policies, knowledge, resources, etc.
![Page 31: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/31.jpg)
DefinitionsTransnational
–A “glocal” level view of the international marketplace – has some global, some local elements
–Some value chain activities are standardized and are performed in country locations others are nationally-adapted and performed in the local market
![Page 32: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/32.jpg)
Market Globalization Drivers
o Common customer needso Global customerso Global market channelso Transferable marketing
![Page 33: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/33.jpg)
Strength of Market Drivers
Low High
Baked Goods
Book Publishing
Retail Banking
Toothpaste
Soft Drinks
Automobiles
Computers
Aircraft
Multidomestic Global
![Page 34: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/34.jpg)
Cost Globalization Drivers
o Global scale economieso Sourcing efficiencieso Factor of production differenceso High product development costso Rapidly changing technology
![Page 35: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/35.jpg)
Strength of Cost Drivers
Low High
Baked Goods
Retail Banking
Toothpaste
Soft Drinks
Automobiles
Computers
Aircraft
Pharmaceuticals
Multidomestic Global
![Page 36: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/36.jpg)
Government Globalization Driverso Unrestrictive trade and investment policieso Compatible technical standardso Common marketing regulations
![Page 37: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/37.jpg)
Strength of Government Drivers
Restrictive Loose
Baked Goods
Retail Banking
Toothpaste
Soft Drinks
Automobiles
Computers
Airlines
Pharmaceuticals
Multidomestic Global
![Page 38: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/38.jpg)
Competitive Globalization Driverso High two-way trade / cross-border FDIo Global competitorso Interdependence among countries
o Trade/Investment PoliciesoRole of WTO, etc.
![Page 39: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/39.jpg)
Strength of Competitive Drivers
Low High
Baked Goods
Retail Banking
Toothpaste
Soft Drinks
Automobiles
Computers
AircraftPharmaceuticals
Multidomestic Global
![Page 40: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/40.jpg)
International StrategyoGlobalization drivers – Assess dual
pressures:• Global efficiency - standardization• National/local responsiveness - adaptation
oLocation/configuration of value-creating activities
o Integration/coordination of value-creating activities
![Page 41: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/41.jpg)
Effective Standardization
Coca-Cola’s “transnational polar bears”
McDonald’s “Big Mac”
![Page 42: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/42.jpg)
Effective Adaptationo Campbell’s non-condensed soups in
the UK
o P&G single-use shampoo packages in India
![Page 43: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/43.jpg)
Effective “Transnationalization”
o Barbie is 51 years oldo Sold in 130 countrieso National adaptations:
• Physical features• Costumes• Activity sets
o Standardized physique:• Scaled to 6’2”, 110 lbs.
![Page 44: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/44.jpg)
Globalization Drivers
o Market Driverso Cost Driverso Government Driverso Competitive Drivers
Low
Multidomestic
High
Global
![Page 45: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/45.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
![Page 46: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/46.jpg)
Value ChainLocation and standardization/adaptation
Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
![Page 47: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/47.jpg)
Value Chain
Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Headquarters
![Page 48: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/48.jpg)
Value Chain
Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Upstream
Headquarters
![Page 49: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/49.jpg)
Value Chain
Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Upstream Downstream
Headquarters
![Page 50: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/50.jpg)
Value Chain Sub-functions (Marketing)Infrastructure
Technology Development
Procurement
Human Resource Management
InboundLogistics Operations
OutboundLogistics Marketing Service
ProfitMargin
Advert. Pricing Distrib. Packaging
![Page 51: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/51.jpg)
Value Chain Configuration
o Geographic location of value chain activities – Concentrated/centralized vs.
dispersed/decentralized
![Page 52: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/52.jpg)
Value Chain Coordinationo Cross-border linkages between dispersed value-
creating unitso Coordination = Flows of:
– $– Product (finished and intermediate)– Technology– People– Information (market data, strategic direction, etc.)
o Highly coordinated vs. only money flows
![Page 53: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/53.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
![Page 54: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/54.jpg)
Export Strategy(same as Export entry mode)
U.S.
Germany
Mexico
Malaysia
![Page 55: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/55.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
![Page 56: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/56.jpg)
Multidomestic Strategy
U.S.
Germany
Mexico
Malaysia
![Page 57: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/57.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
GlobalStrategy
![Page 58: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/58.jpg)
Global Strategy(Textbook Variety)
U.S.
Germany
Mexico
Malaysia
![Page 59: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/59.jpg)
International Strategy:Managing Dual Pressures
Pre
ssur
es f
or G
loba
l Eff
icie
ncy
Pressures for Local Responsiveness
High
Low
HighLow
ExportStrategy
??
MultidomesticStrategy
GlobalStrategy
TransnationalStrategy
![Page 60: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/60.jpg)
Transnational Strategy (v.1)
U.S.
Germany
Mexico
Malaysia
![Page 61: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/61.jpg)
Transnational Strategy (v.2)
U.S.
Germany
Mexico
Malaysia
![Page 62: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/62.jpg)
Transnational Strategy (v.3)
U.S.Germany
Mexico
Malaysia
Engines
Final Assembly
Trim, seats,glass
Steel
![Page 63: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/63.jpg)
VW International Strategy - Jetta
Germany
Japan
Mexico
Poland
Transmission
Final Assembly
Engine
Misc.
U.S.Marketing
![Page 64: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/64.jpg)
![Page 65: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/65.jpg)
McDonald’s Identity
![Page 66: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/66.jpg)
McDonald’s Transnational MenuUS Brazil Canada India Germany
Big Mac French Fries Coca-Cola McNuggets McAloo Tikki McRib McBier McLobster McCalebresa PitaMac McFarmer
![Page 67: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/67.jpg)
![Page 68: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/68.jpg)
McDonald’s Site Selection and StoresUS -- Colorado
![Page 69: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/69.jpg)
McDonald’s Site Selection and Stores
Bangkok,Thailand
![Page 70: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/70.jpg)
McDonald’s Site Selection and StoresMoscow, Russia
![Page 71: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/71.jpg)
Hamburger UniversityIllinois, USA
![Page 72: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/72.jpg)
Hamburger University Curriculum
o 80 classroom hourso Topics – Fast food “the McDonald’s way”
• Restaurant operations, food preparation• Crew selection, training and team building• Marketing and promotion• Asset management• Corporate citizenship and ethics• Leadership, effective supervisory skills
![Page 73: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/73.jpg)
Hamburger University
Illinois
Sydney
London
Munich
Hong-Kong
![Page 74: International Entry Modes and Strategy. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e5f5503460f94b598f6/html5/thumbnails/74.jpg)
McDonald’sTransnational Strategy
U.S.
Singapore
Greece
Brazil