International Business take-home exam

Internationalization

BUAD 841 Fall 2017

Kurt Norder, Ph.D.

Internationalization and Starbucks

Agenda

2

� Today we will… � Brief recap of midterm

� Discuss Vernon’s product cycle

� Pace, Rhythm, and Scope of Internationalization

� Team exercise to present connections between the readings

� Present Starbucks (and Discuss)

Internationalization and Starbucks

Product cycle

� Stage 1: New product � Develop at home for home market … communication in flux

� Advanced market willing to pay for advanced tech

� Stage 2: Maturing product � Exports toward FDI/licensing in developed

� Stage 3: Standardized product � Licensing/FDI for imports from developing

Internationalization and Starbucks

International product life cycle

Internationalization and Starbucks

Product cycle ... Vernon’s MNE Types

� “Mythical” Global Scanner

� Global

� Multidomestic (or International)

Internationalization and Starbucks

Product cycle ... Deviations

� MNEs are more and more global/dispersed � More knowledge, so distance from what point?

� Advanced countries are reaching parity � Not just the US… Europe and Japan … now others

� Developing countries are still lagging � Are they?

Internationalization and Starbucks

Pace, Rhythm, Scope, Sequence

Lu & Beamish, AMJ 2004, International Diversification and Firm Performance: S-Curve

Internationalization and Starbucks

Pace, Rhythm, Scope, Sequence

� Pace � speed that you include more international growth

� Rhythm � consistency over time

� Scope � span or range of geographies included

� Sequence � order in which you enter different types

LEARNING TAKES TIME

Internationalization and Starbucks

Rhythm

Internationalization and Starbucks

Administration before the case

� For next class… � Ch 17 – International Marketing

� Coca-cola articles on diversification (case)

� Quiz 7 (on Marketing) opens tomorrow and is due before class next week.

Internationalization and Starbucks

Starbucks Internationalization

� Strategy? Why and how?

� Why stop? Correct?

� Resume? Why, how, where? � Pace, Rhythm, Scope, Sequence?

� How match with Vernon’s product cycle?