Global Strategic Management

Transcription

1 Global Strategic Management Second Edition \ J^drzej George Frynas Professor of CSR and Strategic Management, Middlesex University Business School Kamel Mellahi Professor of Strategic Management, Warwick Business School, University of Warwick OXFORD UNIVERSITY PRESS

2 Preface v Acknowledgements vii List of exhibits xxi List of cases xxiv How to use this book xxvi How to use the Online Resource Centre xxviii PART I Introduction 1 1 Introduction to global strategic management 3 Learning outcomes 3 Opening case study: IKEA Introduction Defining the strategic management field Phases of global strategy Single-country strategy Export strategy International strategy Global strategy International strategy and global strategy: what is the difference? Defining global strategic management Drivers for a global strategic perspective Macro globalizing drivers Industry globalizing drivers Internal globalizing drivers Organization of the book 30 Key readings 31 Discussion questions, 31 Closing case study: Walmart v. LVMH two retailers, two different global strategies 31 References 35 PART II Global strategic analysis 37 2 Global business environment: the external macro environment 39 Learning outcomes 39 Opening case study: The Brazilian Embraer and the external business environment Introduction The external business environment 42

3 2.2.1 Identifying threats and opportunities Strategic fit and firm performance PEST analysis The political environment Regional integration Government legislation Political risk Corruption The economic environment Cost of production Currency exchange rates Cost of capital The social environment Social change Global convergence The technological environment Global technology scanning and technology clusters 57» The knowledge-based economy The spread of the Internet National environmental influences and the Diamond Model Factor conditions Demand conditions Related and supporting industries Firm strategy, structure, and rivalry Criticisms of the Diamond Model The Diamond Model for small nations The Diamond Model and globalization Response to criticisms Summary 66 Key readings 67 Discussion questions 67 Closing case study: Lockheed Martin from conquering Russia to 68 conquering space References 70 3 Global business environment: the industry environment 73 Learning outcomes 73 Opening case study: Global economic recession and super luxury cars Introduction Understanding and adapting to industry environment Market segmentation analysis Strategic group analysis * 77

4 3.3 The Five Forces Model Barriers to entry Bargaining power of buyers and suppliers Threat of substitutes Rivalry Criticisms of the Five Forces Model Static v. dynamic competition Industry profitability Response to criticisms Industry evolution The five phases of the International Product Life Cycle (IPLC) Criticisms of the IPLC model Anticipating the future Forecasting Scenario analysis Anticipating the future and globalization Summary 101 Key readings 102 Discussion questions 102 Closing case study: The rise oflinux the battle for the operating system market 103 References Global business environment: analysis of the internal environment 109 Learning outcomes 109 Opening case study: Google.com Introduction Positioning perspective v. resource-based perspective The positioning perspective The resource-based perspective Industry profitability v. firm profitability Analysing firm resources and capabilities Resources Capabilities Core competencies The VRIO framework Resources and capabilities in multinational firms Changing global markets and dynamic capabilities Global value chains and value systems Value added Value chain analysis Value system analysis Value analysis and cost advantages 128

5 4.4.5 Value analysis and strategic linkages Value analysis and global location decisions Comparative analysis Competitor intelligence Benchmarking Internal comparative analysis Comparative analysis in global markets Summary 137 Key readings 138 Discussion questions 138 Closing case study: Clothing industry supply chains and Zara's business model 139 References 141 PART ill Global strategic development Managing the internationalization process 147 Learning outcomes 147 Opening case study: Internationalization of a French retailer Carrefour Introduction Decision and motives to internationalize Organizational factors Environmental factors Motives for foreign investment The internationalization process Timing of market entry Obstacles to internationalization Perceptions of managers Psychic distance and internationalization The Uppsala Model Criticisms of the Uppsala Model Firms not following Uppsala Model The Born Global firm Response to criticisms Entry mode strategies Export Licensing International franchising Wholly-owned ventures Entry modes and risk v. control De-internationalization Summary 174

6 Key readings 174 Discussion questions 175 Closing case study: Internationalization of a Chinese firm the Haier Group 175 References International strategic alliances: partnership and cooperation 183 Learning outcomes " 183 Opening case study: Fiat the quest for global leadership Introduction The concept of international strategic alliances International strategic alliances: external drivers and internal motives External drivers of alliance formation Internal motives for alliances Types of alliance International expansion alliance Vertical integration alliance Diversification alliance Complementary alliance Shared supply alliance Quasi-concentration alliance Selecting partners Partner selection criteria Optimal business partner Strategic alliances in emerging economies Control in strategic alliances Control mechanisms Focus of control Control and performance International strategic alliances: balancing risks and trust Risks in strategic alliances Trust in strategic alliances Summary, 205 Key readings 206 Discussion questions 206 Closing case study: Tyrian Diagnostics dancing with the big pharmas 206 References The subsidiary-level strategy 211 Learning outcomes 211 Opening case study: Dell in China: will the direct sales model crack in China? Introduction Global strategy levels 216

7 7.3 Strategic role of subsidiaries Types of subsidiary-level strategy Support and implementation Autonomous subsidiaries Global generic strategies Cost leadership strategy Differentiation strategy Focused low-cost strategy Focus differentiation strategy Integrated strategy or 'stuck in the middle' Criticisms of generic strategies Summary 230 Key readings 231 Discussion questions 231 Closing case study: Managing the melamine contamination crisis by Nestle China 232 References Headquarter-level strategy 237 Learning outcomes 237 Opening case study: The house of Tata Introduction The role of the corporate parent Headquarter-level control strategies Types of control Focus of control Control and global values Barriers and challenges to headquarter-level control Diversification strategies Industrial diversification Types of industrial diversification Global diversification Global sourcing strategies Vertical integration Outsourcing Managing global portfolios Summary 270 Key readings 271 Discussion questions 271 Closing case study: Lufthansa's diversification strategy 272 References 273

8 PART IV Global strategic implementation Global structures and designs 279 Learning outcomes 279 Opening case study: Procter & Gamble (P&G) Introduction Organizational structures: what are they? Domestic organizational structures Strategy and structure of multinational firms Functional structures International division structure Area or geographical division structure Product division structure The matrix structure Balancing integrations and local responsiveness: broad forms of international strategy The export firm The multi-domestic firm The global firm The transnational firm Summary 303 Key readings 304 Discussion questions 305 Closing case study: Restructuring Sony 305 References Global management of change 315 Learning outcomes 315 Opening case study: Shanghai Volkswagen Introduction Types of change Incremental change Transformational change Types of change and national cultures Organizational change and national culture People involved in the change process The change agent The role of subordinate and subsidiary managers The change process A model of the change process, People's reaction to change Appropriate styles of change management 331

9 10.6 Implementing change Project teams Moving people Expatriates Communication issues Difficulties in discussing issues linked to change The role of language Business implications Overcoming language problems Negotiation with outside parties Summary 339 Key readings 340 Discussion questions 340 Closing case study: LG global rebranding 341 References 343 PARTV Global strategic innovation Global management of innovation and knowledge 347 Learning objectives 347 Opening case study: Innovating the Google way Introduction What is innovation? Innovation within the life cycle Innovation and competitive advantage Competing in technological markets Managing knowledge ' Knowledge creation Knowledge transfer within multinationals Global R&D networks Outsourcing innovation globally Summary 371 Key readings 372 Discussion questions 372 Closing case study: Outsourcing innovation in the pharmaceutical industry 373 References Corporate Social Responsibility (CSR) and innovation 377 Learning outcomes 377 Opening case study: Two crises influence the strategy ofroyal Dutch/Shell Introduction Corporate Social Responsibility (CSR) and corporate objectives. 380

10 Companies and profit maximization Changing views on the role of companies in society National differences Corporate Social Responsibility (CSR) and stakeholders Stakeholder view of the firm Stakeholder mapping Problems in stakeholder mapping Which stakeholders should the firm focus on? Critique of stakeholder mapping Issue analysis CSR strategies and innovation Generic strategies of social responsiveness Benefits of CSR strategies CSR strategies and innovation Innovation and core competencies Levels of social innovation Non-traditional partnerships and innovation Summary 396 Key readings 397 Discussion questions 397 Closing case study: BP tackles climate change and innovation 398 References 400 Index 403