The Main Arguments of Evolution Theory

outside(a) Management Prof. dr. Niels Noorderhaven Lecture 1 Agenda 1. 2. 3. fundament and organizational matters Does global still matter? Conceptual foundations of international art system (1) Case Honda in the the States Literature Textbook 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 Individual case involution Each lecture, one or several cases from the book will be expanded to put the theory into practice Importance of research articles judge 70% MC exam See Study manual for field of study formula Exam dates December 13, 2012 and April 12, 2013 30% 2 Interactive lectures one-on-one participation Interactive lectures grades of 2010 and 2011 can be transferred Book http//www. cambridge. rg/features/management/verbeke/ Does international still matter? 7 Transportation & communication costs resignation 17 September 2012 8 Tariffs fall, an ti-dumping measures rise anti- 17 September 2012 9 Globalization Theory Linguistic, trade and cultural barriers become less master(prenominal) Stateless MNCs Within MNCs worldwide diffusion of technologies, knowledge and information converging of world economies 17 September 2012 10 Why is nationality principal(prenominal) to tribe? Individual identity and social identity Three processes of social identity formation social categorization social comparison social naming (Self-)categorization what is the salient category? 17 September 2012 11 Why is nationality substantial to masses? Positive stereotyping of in-group, negative stereotyping of out-group Nationality differences are particularly salient when people have no common history Nationality consequently becomes a first 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 persist Leading to differences in (business) decision making Nationality forms an important basis for social categorization processes Leading to shortcuts like cultural attribution and stereotyping With the effect that doing business across borders is different than domestic business 13 Conceptual foundations of international business strategy 4 Definition of international business strategy International business strategy means efficaciously and efficiently matching a multinational enterprises (MNEs) internecine strengths (relative to competitors) with the opportunities and challenges found in geographically dispersed environments that cross international borders. much(prenominal) matching is a precondition to creating value and satisfying stakeholder goals, both domestically and internationally. 15 TABLE OF CONTENTS (1) Introduction and overview of the books manikin segment one Core concepts (1) Conceptual foundations of international business strategy (2) The critical role of fi rm-specific advantages (3) The nature of home country location advantages (4) The problem with host country location advantages (5) Combining firm-specific advantages and location advantages in an MNE profits 16 TABLE OF CONTENTS (2) Part two Functional issues (6) (7) (8) (9) (10) International innovation International sourcing and production International finance International merchandising Managing managers in the multinational enterprise 7 TABLE OF CONTENTS (3) Part three Dynamics of global strategy (11) Entry mode kinetics 1 foreign distributors (12) Entry mode dynamics 2 strategical alliance partners (13) Entry mode dynamics 3 mergers and acquisitions (14) The role of rising economies (15a) International strategies of corporate social responsibility (15b) International strategies of environmental sustainability 18 The seven concepts of the unifying frame survey Internationally transferable (or non-location bound) firmspecific advantages (FSAs) Non-transferable (or location-bound) FSAs Location advantages enthronement in and value creation through recombination Complementary choices of external actors leap understanding Bounded reliability The MNEs unique resource foundation Physical resources (natural resources, buildings, plant equipment). Financial resources (equity and loan capital) Human resources (individuals and teams, entrepreneurial and operable skills). Upstream knowledge (sourcing knowledge, product and process-related technological knowledge). Downstream knowledge (marketing, sales, dispersal and after sales service). Administrative knowledge (organizational structure, culture and systems). Reputational resources (brand names, reputation for candid 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 also be easily imitate d by other firms.Though expensive and time-consuming to transfer silent knowledge across borders, the benefit to the MNE is that this knowledge is also difficult to imitate. It is much a key source of competitive advantage when doing business abroad. rough FSAs are not transferable abroad location-bound locationFSAs (1) Four main types complete resources linked to location advantages (privileged retail locations). Local marketing knowledge and reputational resources, much(prenominal) as brand names (may not be applicable to a host country context, or valued to the same extent). Local ruff practices (i. e. routines), such as incentive systems or buyer-supplier relations (may not work abroad). Domestic recombination capability (may not work in foreign markets e. g. , because co-location of resources is needed). whatever FSAs are not transferable abroad location-bound locationFSAs (2) Even if transferability of the relevant resources were technically possible, this does not mean potential for profitable deployment, i. e. the resource bundles that may be transferable from a technical perspective (e. g. , the way n which a product is marketed at home), do not constitute an FSA abroad. Location advantages unblemished 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 expansion Natural resource seeking Verbeke physical, financial or human resources Market seeking strategical resource seeking e. g. , knowledge, finance Efficiency seeking E. g. , low get the picture cost Case Honda in the USA Background Prior to mid-seventies exports of motorcycles and cars Drivers of foreign production Rising value of the yen against US$ guardianship of import restrictions The C range Air Act in the US jump oil crisis Motivation for expansion (natural resource, market, strategic resource, efficiency seeking? ) Hon das approach After four-year decision process Honda of America Manufacturing established in Marysville, Ohio, in 1978 Top priority attain Japanese-level quality and efficiency endurance of employees instruction program Fly in managers and workers from Japan Develop lean supplier network Upgrade supplier quality level 1980 live 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 Quality 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 phthisis 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 exchange progra m do work new capabilities worldwide Complementary resources of external actors Opportunity to study American way of production at Ford Extensive use of American experts and consultants (especially for selecting location) Critical role of suppliers Bounded rationality issues lack of knowledge local anesthetic conditions Suppliers lack of familiarity with Honda New employees lack of familiarity with The Honda Way Bounded reliability issues honourable hazard/adverse selection employees American managers have local priorities hash out strategy? Agenda for next lecture 1. 2. 3. 4. Four types of MNEs Recombination Bounded rationality & reliability Firm-specific advantages (FSAs) Cases 3M & IKEA Literature Textbook chapter 1 (pp 33-76) + chapter 2 NB human body will be in SZ 31