The Main Arguments of Evolution Theory

foreign Management Prof. dr. Niels Noorder subscriben Lecture 1 Agenda 1. 2. 3. Introduction and organizational takes Does multinational still matter? abstract foundations of international business dodging (1) Case Honda in the USA writings Text adjudge chapter 1 (pp 13-33 + 59-62) Team Lectures Niels Noorderhaven Cases Fons Naus Ana Aranda Gutierrez Zhengyu Li Teaching strategy Complementarity of lectures readings unmarried case participation Each lecture, one or several cases from the countersign will be expanded to put the theory into practice grandness of research articles Grading 70% MC exam See matter manual for correction formula Exam dates December 13, 2012 and April 12, 2013 30% 2 Interactive lectures individual participation Interactive lectures grades of 2010 and 2011 idler be transferred account book http//www. cambridge. rg/features/ centering/verbeke/ Does international still matter? 7 Transportation &038 colloquy costs fall 17 September 2012 8 Tariffs fall, anti-dumping measures rise anti- 17 September 2012 9 Globalization Theory Linguistic, trade and cultural barriers run less important Stateless MNCs Within MNCs worldwide diffusion of technologies, association and information Convergence of world economies 17 September 2012 10 wherefore is nationality important to people? Individual individuation and social identity cardinal processes of social identity formation social categorization social par social identification (Self-)categorization what is the salient category? 17 September 2012 11 Why is nationality important to people? Positive stereotyping of in-group, negative stereotyping of out-group Nationality differences are curiously salient when people have no common history Nationality wherefore becomes a source for ones own identity and for the ascribed identity of the other 7 September 2012 12 Does international still matter? Yes, because . Cultural , institutional and language differences per sist Leading to differences in (business) ending making Nationality forms an important basis for social categorization processes Leading to shortcuts want cultural attribution and stereotyping With the effect that doing business a bulls eye borders is different than domestic business 13 Conceptual foundations of international business strategy 4 Definition of international business strategy International business strategy means effectively and efficiently matching a multinational green lights (MNEs) internal strengths (relative to competitors) with the opportunities and challenges found in geographically dispersed environments that cross international borders. Such matching is a precondition to creating value and welcome stakeholder goals, both domestically and internationally. 15 mesa OF CONTENTS (1) Introduction and overview of the books framework Part one Core concepts (1) Conceptual foundations of international business strategy (2) The critical role of firm- precise e xpediencys (3) The nature of home land jam advantages (4) The problem with host country location advantages (5) Combining firm-specific advantages and location advantages in an MNE ne dickensrk 16 TABLE OF CONTENTS (2) Part two Functional issues (6) (7) (8) (9) (10) International innovation International sourcing and production International finance International trade Managing managers in the multinational enterprise 7 TABLE OF CONTENTS (3) Part three Dynamics of global strategy (11) approach mode kinetics 1 foreign distributors (12) Entry mode dynamics 2 strategic alliance partners (13) Entry mode dynamics 3 mergers and acquisitions (14) The role of emerging economies (15a) International strategies of corporate social responsibility (15b) International strategies of environmental sustainability 18 The seven concepts of the unifying framework Internationally transferrable (or non-location bound) firmspecific advantages (FSAs) Non-transferable (or location-bound) FSAs Location advantages Investment in and value creation through recombination completing resourcefulnesss of external actors bound rationality Bounded reliability The MNEs crotchety resource base Physical resources (natural resources, buildings, plant equipment). Financial resources (equity and loan capital) humanity resources (individuals and teams, entrepreneurial and operational skills). Upstream fellowship (sourcing companionship, product and process-related technological knowledge). downriver knowledge (marketing, sales, distribution and after sales service). Administrative knowledge (organizational structure, finish and systems). Reputational resources (brand names, reputation for honest business dealings). International transferability of FSAs? Paradox If the FSA consists of easily codifiable knowledge (i. e. , if it can be articulated explicitly, as in a handbook or blueprint), then it can be cheaply transferred abroad, but it can in any case be easily imita ted by other firms.Though expensive and time-consuming to transfer tacit knowledge across borders, the benefit to the MNE is that this knowledge is also difficult to imitate. It is often a key source of competitive advantage when doing business abroad. Some FSAs are not transferable abroad location-bound locationFSAs (1) intravenous feeding main types Stand-alone resources linked to location advantages (privileged retail locations). Local marketing knowledge and reputational resources, such as brand names (may not be applicable to a host country context, or valued to the alike(p) extent). Local best practices (i. e. routines), such as incentive systems or buyer-supplier traffic (may not work abroad). Domestic recombination capability (may not work in foreign markets e. g. , because co-location of resources is needed). Some FSAs are not transferable abroad location-bound locationFSAs (2) yet if transferability of the relevant resources were technically possible, this does no t mean potential for profitable deployment, i. e. the resource bundles that may be transferable from a technical perspective (e. g. , the focus n which a product is marketed at home), do not micturate an FSA abroad. Location advantages Entire set of strengths of a location, and accessible by firms in that location. Should always be assessed relative to the strengths of other locations. Instrumental to FSAs Motivations for foreign expanding upon Natural resource pursuit Verbeke physical, financial or human resources grocery store seeking Strategic resource seeking e. g. , knowledge, finance Efficiency seeking E. g. , low labor cost Case Honda in the USA compass Prior to 1970s exports of motorcycles and cars Drivers of foreign production Rising value of the hurt against US$ Fear of import restrictions The Clean Air Act in the US First oil crisis Motivation for expansion (natural resource, market, strategic resource, talent seeking? ) Hondas approach After four -year decision process Honda of the States Manufacturing established in Marysville, Ohio, in 1978 Top priority attain japanese-level look and efficiency Selection of employees Training program Fly in managers and workers from Japan Develop lean supplier network Upgrade supplier flavor level 1980 start production of cars Present 9 production plants in USA Hondas FSAs Non-location bound FSAs Know-how four-strike engines with optimal power-to-weight ratio Management principles spirit systems Employee selection processes Training and knowledge transfer routines Manufacturing expertise Supplier management approach Location-bound FSAs in the host country High demand for specific products Resource recombination Use four-strike engines in many products (motorcycles, small cars, generators, ) Design and manufacturing skills + knowledge of consumer preferences in USA Melding existing and new resources through management put back program Exploit new capabilities worldw ide Complementary resources of external actors chance to study American way of production at Ford commodious use of American experts and consultants (especially for selecting location) Critical role of suppliers Bounded rationality issues neediness of knowledge local conditions Suppliers lack of familiarity with Honda New employees lack of familiarity with The Honda Way Bounded reliability issues Moral hazard/adverse selection employees American managers have local priorities Deliberate strategy? Agenda for next lecture 1. 2. 3. 4. 4 types of MNEs Recombination Bounded rationality &038 reliability Firm-specific advantages (FSAs) Cases 3M &038 IKEA Literature Textbook chapter 1 (pp 33-76) + chapter 2 NB Class will be in SZ 31