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Module8-Globalizingbusiness.pptxGlobalizing Business
Module 8
Today’s class
What is business mindset?
What is global business mindset?（CAGE）
How to form global business model? (AAA framework)
Business Mindset
Fulfilling ecosystem values through purposeful technological advantage, and strategic organization of opportunities across markets
MOST
Mission: “Sony is pioneer”, being pioneer is fulfilling value
Objective: Technological advantage goals
Strategy： Opportunities across markets that we will pursue to achieve goals
Tactics： How will we strategically organize these opportunities at business unit level (responsibility centers)
Failing to live joyfully - know your enemy, know thyself, and you shall not fear a hundred battles
3R of business mindset: resources, relationships, and routines
Business Mindset Analysis: Market Opportunity
Local Business Mindset
Growth markets opportunity
Industrial market opportunities
Globalizing strategy opportunities
Emerging markets opportunities
Strategic Planning
Ex. creating new community value
Conducting failure tests
(3R,
market opportunity)
Needs (ex)change?
ex. low cost strategy?
Articulation of Strategic Goal
Evaluation
Strategic Options
Communication
Selection
Execution
China is factory (for technology) or market (for organization)?
China is factory (for organization) and market (for technology)!
Local for local
Export
(traditional global business)
Off-shore production
Why global mindset is different? (CAGE)
Cultural Distance: language, customs, religion, cultures etc.
Administrative Distance: regional integration administration (FTAs), currency, common suzerain state, political dispute
Geographic Distance： physical distance, time zone,
Economic Distance： per capital GDP, wages, living costs
Value Creation by combining
Adaptation, Aggregation, Absorption
India vs China from US viewpoint
Ghemawat(2007)
AAA: How to manage “distance”?
Adaptation：Learning from local market: McDonald’s vegi-burger in India, soundless and compact fridge in China (by Panasonic)…
Aggregation：Learning from multiple local markets: Toyota’s pickup trucks for SE Asia, Apple i-phone…
Arbitrage：Learning from global markets and making profit out of distance：Infosys
AAA Triangle by P. Ghemawat
Shift of global strategies
Ghemawat(2007)
Value Chain and Global Strategy
Local for local Off-shore R&D
HQ for local HQ for global
AAA and value chain
Arbitrage
Production
Off shore site
Aggregation for global customer
Adaptation for local customer
Mother
factory
Sales, services for local customers
R&D
HR, marketing and technology strategy, procurement
Customer type and global strategy
| B2C | B2B | B2L | |
| Goods | Automobile TVs, cosmetics | Parts Ind. Robots Steel | |
| Services | Financial Retail | HR service BPO | |
| Package (system integrator) | IT System integrator | Subway, Water |
Basically, adaptation to the customer
Some arbitrage, but some not
TBD
Case material: China and India
India: factory or market? Please provide at least one example in each Quadrant of factory or market matrix.
Pick up one industry of your favorite. Discuss attractiveness in India over China by CAGE framework.
Then develop your global strategy plan based on AAA framework (which “A” should you put your focus on?)
