Posted On: Nov. 3, 2017
History COURSE PAPER: “REDEFINING GLOBAL STRATEGY: CROSSING BORDERS IN A WORLD: WHERE DIFFERENCES STILL MATTER” by Pamkaj Ghemawat. Due March 21, 2011. (15-20 pages) POINTS: 100 points “Why do so many global strategies fail--despite companies' powerful brands and other border-crossing advantages? Seduced by market size, the illusion of a borderless, "flat" world, and the allure of similarities, firms launch one-size-fits-all strategies.” This is premise for many best selling books about globalization. In "Redefining Global Strategy," Mr. Ghemawat proposes that “differences still matter.” He proposes that “most economic activity--including direct investment, tourism, and communication--happens locally, not internationally. In this "semi-globalized" world, one-size-fits-all strategies don't stand a chance. Companies must instead reckon with cross-border differences.” PART ONE: COUNTRY ANALYSIS • Similarities and differences between countries: Chile, Argentina, and the United States • Implications for Doing Business between the United States, Chile and Argentina Using the tools provided in Ghemawat book and the results of your Snap Shot of Life research, discuss the global market expansion opportunities and challenges in Argentina or Chile for your industry’s products or services. Please consider the industry of your employment or one of interest to you such as beverage, automotive segment, retail, fast food, footwear, IT, pharmaceuticals, healthcare, etc. Cultural Influences Population Demographics: Age, Income, Education, etc. Values: History, Religion, Family, National preferences, Ethnicity, Gender Issues Lifestyles: Traditional/Social Norms, Urban vs Rural, Work and Leisure time, etc. Language: National, Regional, etc. Government and Administrative Issues Government: Type, Power Structure, Current Situation Political History Political Climate: Internal, World Connections, Nationalism Trade Agreements Easy of Doing Business: Open or Closed Markets Currency Legal Environment Geographic Considerations Advantages and Disadvantages Location and Neighbors, Land Mass and Topography Time Zones and Distance, Climate and Environments Economic Factors Financial Resources: Country Situation (External Debt, GDP, per capita Income) Population Economic Differences Natural Resources: Cost and Quality Imports and Exports Human Resources Infrastructure: Transportation and Communications Information and Knowledge Sustainability Environmental and Economic Future PART TWO: GLOBAL VALUE CREATION The ADDING Value Scorecard as outlined in “Redefining Global Strategy” addresses the question “Why Globalize?” Decisions to expand to cross-border markets are often made without careful and realistic consideration of the organization’s strategic marketing goals. Based on your Country Analysis, please consider each of the ADDING Value Scorecard value components and discuss why each is or is not an appropriate strategy for your organization (or a company you have identified for this study): • Adding Volume or Growth • Decreasing Costs • Differentiating or Increasing Willingness-to-Pay • Improving Industry Attractiveness or Bargaining Power • Normalizing Risk • Generating Knowledge PART THREE: STRATEGIES FOR GLOBALIZTION Based on your Country Analysis and with consideration of the Adding Value Scorecard cross-border strategies proposed by Pankaj Ghemawat in “Redefining Global Strategy,” discuss how your organization (or one you have identified for this study) would approach expansion to Chile and or Argentina using each the AAA Strategies: • Adaption: Adjust to differences across countries. • Aggregation: Overcome some differences among countries by grouping them based on similarities. • Arbitrage: Exploit selected differences across countries instead of treating them all as constraints. PART FOUR: RECOMMENDATION – Executive Summary Consider the following: • What country analysis factors do you view as the most influential to your decision? • In your opinion, which ADDING Value strategy or strategies are most appropriate to achieve your organization’s goals? • Which AAA strategy or strategies would you consider for your organization? • Are Chile and Argentina possible markets for your organization (or the company you have identified for this study)?