Bài giảng Các chiến lược quản trị kinh doanh quốc tế (International business management strategies) includes Global strategy, Entering foreign market, Global marketing, Global operation management, Global human resource management.
Bài giảng CÁC CHIẾN LƯỢC QUẢN TRỊ KINH DOANH QUỐC TẾ INTERNATIONAL BUSINESS MANAGEMENT STRATEGIES NGUYỄN MINH ĐỨC © Nguyễn Minh Đức 2009 International Business Management V Global strategy VI Entering foreign market VII Global marketing VIII Global operation management IX Global human resource management © Nguyễn Minh Đức 2009 I Global Strategy Strategy: “the action managers take to attain the goals of a firm” General purpose: maximize/make profit • Differentiate products, increase price: add value, features, quality, service • Achieve low cost Key means: allocation of scarce resources to attain goals © Nguyễn Minh Đức 2009 Activity Value Chain Firm as a chain of discrete value creating activities Primary • upstream activities, manufacturing • downstream activities: marketing, sales, after sales service Support • infrastructure (general and administrative) ã human resources ã research and development â Nguyễn Minh Đức 2009 Global Expansion Benefits Earn greater return from distinctive skills, core competences • inimitable or difficult to imitate skills in value chain Realize location economies (choice of FDI location) • create multinational network of activities (global web) Realize greater experience curve economies, which reduce the cost of value creation • learning effects, economies of scale Unit costs Experience curve B A Accumulated output © Nguyễn Minh Đức 2009 Pressures for Global Integration & Local Responsiveness High Ball bearings, wheat Cost Reduction (Global Integration) Pressures Cosmetics, food, household goods Low Low Local Responsiveness Pressures Differences in - consumer tastes/preferences - infrastructure/practices - distribution channels - host government needs © Nguyễn Minh Đức 2009 High Strategic Choice High “Global” Strategy “Transnational” Strategy “International” Strategy “Multidomestic” Strategy Cost Reduction (Global Integration) Pressures Low Low Local Responsiveness Pressures High © Nguyễn Minh Đức 2009 Multidomestic MNC HK UK Chile USA India Japan Mexico Decentralized Federation - Many key assets, responsibilities and decisions localized Personal Control - Informal HQ-Sub relationship, simple financial controls Multidomestic Mentality - Management sees overseas operations as portfolio of independent businesses Source: Bartlett and Ghoshal, Managing across borders, 1989 International MNC HK UK Chile USA India Japan Mexico Coordinated Federation - Many key assets, responsibilities and decisions localized Administrative Control - Centralized HQ control, formal planning and control, tight HQ-Sub linkage International Mentality - Management sees overseas operations as appendages to a domestic operation Source: Bartlett and Ghoshal, Managing across borders, 1989 Global MNC HK UK Chile USA India Japan Mexico Centralized Hub - Most strategic assets, resources, responsibilities and decisions centralized Operational Control - Tight HQ control of decisions, resources, information Global Mentality - Management sees overseas operations as delivery pipelines to a unified global market Source: Bartlett and Ghoshal, Managing across borders, 1989 Transnational MNC HK Chile UK USA Japan India Mexico Networked Organization - Distributed, specialized resources and capabilities Interdependent Units - large flows of components, products, resources, people, and information Transnational Mentality - Complex process of coordination and cooperation in an environment of shared decision making Source: Bartlett and Ghoshal, Managing across borders, 1989 International Strategic Alliances Cooperative agreements between potential or actual competitors from different countries Advantages • Facilitate entry into a foreign country • Allow fixed costs of new products and processes to be shared • Bring together complementary skills and assets that can not easily be developed independently • Help establish industry standards in technology • Allow reduction of operating costs,e.g., shared training, purchasing 12 © Nguyễn Minh Đức 2009 International Strategic Alliances Disadvantages • Give competitors a low cost route to new technology / markets • Disproportional benefit accrual to partners 13 © Nguyễn Minh Đức 2009 Slide 10-11 Making alliances work Which partner? A suitable partner Helps achieve strategic goals; brings needed, valuable capabilities Shares the firm’s vision for the alliance’s purpose Is not likely to exploit the alliance to its own ends To select a partner Do thorough background check from public sources Collect information from third parties who have personal experience with the likely partner(s) Spend a lot of face-to-face time with likely partner(s) 14 © Nguyễn Minh Đức 2009 Slide 10-12 Making alliances work What Structure? Protect technology/know-how that is not intended to be transferred Draw a solid contract with safeguards against opportunism Achieve equitable gain through agreed swaps of technology the other wants Seek creditable, clearly articulated commitment to partner “behavior” a-priori 15 © Nguyễn Minh Đức 2009 Making alliances work How to manage? Show sensitivity to cultural differences that explain different managerial styles Build trust Set up framework for formal and informal face-to-face meetings to create the opportunity for a common value system to emerge Build an informal network of personal relationships Learn from partners Apply the knowledge within your own organization Brief your employees on partner strengths 16 © Nguyễn Minh Đức 2009 II Enter the foreign markets Each country’s attractiveness to a particular firm as a particular market depends on: The firm’s objectives A balance of benefits, costs, and risks 17 © Nguyễn Minh Đức 2009 Slide 11-2 Timing of Entry Fist-mover advantages • Preempt rivals; establish strong brand name; capture demand • Build sales volume; ride down experience curve ahead of competitors; cost advantage • Create switching costs for that tie customers to 1st mover’s products • Establish social ties ahead of following foreign competitors – important in high-context cultures First-mover disadvantages; pioneering costs • • • • Time spent to learn dos-don’ts; competitors can learn from 1st mover If 1st mover introducing a new industry, it builds infrastructure 1st mover “trains” customers for followers Break through host country’s adjustment to “foreignness” issues – Regulations may change as a result of 1st mover’s entry 18 © Nguyễn Minh Đức 2009 Slide 11-3 Scale of Entry What level of resources to commit? What level of resources can firm afford to commit? A strategic commitment is difficult to reverse Has a long-term impact Means that the resources cannot be used elsewhere 1st mover advantages and large scale linked Small scale entry allows learning at low risk Entry in small or large potential market may require the same level of initial resources 19 Slide 11-4 © Nguyễn Minh Đức 2009 External or “arms-length” Modes of Entry Firm does business overseas without investing in owned assets and own human resources in target market Exporting • Sell “domestically” produced products into foreign markets through local independent agents or directly to customers Turnkey projects • Special case of exporting for firms that set up production plants or build facilities for others • The “exporting firm” builds the facility overseas, starts it up, turns it over to the host country owner, and then departs • Oil firms, construction firms, manufacturers 20 © Nguyễn Minh Đức 2009 Các yếu tố q trình truyền thơng 37 © Nguyễn Minh Đức 2009 Slide 12-8 International Marketing Mix: Promotion Determinants of push/pull strategies Product type and consumer sophistication Channel length Media availability Push vs pull strategies Push strategy: personal selling emphasis • Industrial products; complex new products • Short distribution channels • Few print or electronic media Pull strategy: mass media advertising • Consumer goods • Long distribution channels • Marketing message can be carried via print/electronic media 38 © Nguyễn Minh Đức 2009 Hiệu chi phí cơng cụ tiếp thị 39 © Nguyễn Minh Đức 2009 International Marketing Mix: Price 40 © Nguyễn Minh Đức 2009 Slide 12-9 International Marketing Mix: Price Price discrimination: demand elasticity Strategic pricing predatory (quick share-of-market focus): • lower prices to drive competitors out, then raise prices Multipoint pricing: • pricing in one market may have an impact in another market; subsidize low pricing in one market from profits in another experience curve: • use aggressive pricing to build volume and move firm down experience curve (lower marginal costs) Regulatory issues: • antidumping, monopoly restriction 41 Slide 12-10 © Nguyễn Minh Đức 2009 New Product Development New product development High risk / high return Technological innovation Creative destruction Location of R&D Disperse R&D to trend/technology leading markets • High investment on basic and applied research • Strong underlying demand; affluent consumers ã Intense competition 42 â Nguyn Minh Đức 2009 Slide 12-11 New Product Development Integrate R&D, marketing and Production; ensure: • Product development driven by customer needs • New products can be manufactured efficiently/effectively • Time to market is minimized Use of cross-functional, multinationally diverse teams • Span: initial concept development to market introduction • Team composition critical – Assign heavyweight project manager » High status in organization; high power and authority » Dedicated to fullest possible extent to project – Team should have representative from each function – Physical co-location to build team culture, communication and conflict resolution processes • Clear plan, goals, milestones, budgets 43 Slide 12-12 © Nguyễn Minh Đức 2009 Marketing Research Measurement Issues Functional Equivalence Similar observable phenomena/activities may not have the same function across cultures (shopping: Japan also a social event; US mostly a chore) Conceptual Equivalence Non-observable assumptions/concepts/ideas/constructs may not have the same meaning across cultures Instrument Equivalence must use measures that correctly measure the same phenomenon in each culture; language key measurement equivalence: “summer” in Australia different from UK, “middle-aged” in Somalia (life expectancy 45 - 50 yrs) not same in Scandinavia (life expectancy 80-85yrs) metric equivalence: weights and measures 44 © Nguyễn Minh Đức 2009 Slide 13-1 IV Manufacturing and Materials Management Production: activities that involve Service and manufacturing converting inputs to a product Materials management: activities that Control the transmission of physical materials through the value chain: procurement –> production –> distribution Logistics Procurement and physical transmission of material through the supply chain suppliers –> customers 45 © Nguyễn Minh Đức 2009 Slide 13-2 Quality and Costs Quality Increases Productivity Improves Performance Reliability Lowers Rework and Scrap Costs Lowers Warranty Costs Lowers Manufacturing Costs Lowers Service Costs Increases Profits Fig 13.1 46 © Nguyễn Minh Đức 2009 Slide 13-3 ISO 9000 European Unions standards for quality Set by code Firm must be certified “ISO 9000” before it is allowed access to the EU marketplace 47 Slide 13-4 © Nguyễn Minh Đức 2009 Manufacturing Location Decision Country Factors Favorable economic, political, cultural conditions Technological Factors Fixed costs relatively low Minimum efficient scale • Scale of output a plant needs to realize scale-economies • Market demand must be sufficient to reach this scale Flexible manufacturing-lean production-mass customization Product features Value-to-weight ratio Universal needs 48 © Nguyễn Minh Đức 2009 Slide 13-5 Where to Locate? Concentrate manufacturing if: Costs of manufacturing are responsive to country environment (one location best) Trade barriers are low Exchange rates among currencies with impact on your business are stable Production technology • Has high fixed costs • Has high minimum efficient scale • Exists in flexible manufacturing format Product value-to-weight ratio is high Product serves universal needs – minor difference in customer needs, consumer preferences 49 Slide 13-6 © Nguyễn Minh Đức 2009 Where to Locate? Decentralize manufacturing if: Country environment does not affect costs much Trade barriers are high Production technology • Has low fixed costs • Has low minimum efficient scale • Does not exists in flexible manufacturing format Product value-to-weight ratio is low Product does not serve universal needs – significant difference in customer needs, consumer preferences 50 © Nguyễn Minh Đức 2009 Slide 13-7 Make-or-Buy? “Make” advantage Lower costs in-house? Are specialized assets needed? • Investment issue Is proprietary technology needed? • Know-how protection issue (Dunning) “Buy” advantage Strategic flexibility needed? Lower costs by buying? Offsets a possibility by? In either case “improved scheduling” just as important 51 Slide 13-8 © Nguyễn Minh Đức 2009 Other Issues Strategic alliances with suppliers Just-in-time inventory system management The role of information technology 52 © Nguyễn Minh Đức 2009 Global Human Resource Management Staffing and International Strategy Expatriate Managers Other IHRM Issues 53 Slide 14-1 © Nguyễn Minh Đức 2009 Human Resource Management Activities carried out by a firm to use its human resource effectively Staffing, management development, performance evaluation, compensation Across national borders the process increases in complexity Environmental differences of: labor markets, culture, legal systems, economic systems HR differences: compensation practices, labor laws, motivation issues 54 © Nguyễn Minh Đức 2009 Slide 14-2 Staffing and International Strategy Staffing Philosophy Strategy Fit?? Ethnocentric International • key overseas positions staffed by home managers Polycentric Multidomestic • key overseas positions staffed by local managers Geocentric Global and • best for job gets Transnational it 55 Slide 14-3 Pros • puts qualified managers in place • creates global culture • transfer of core competences • alleviates cultural myopia • inexpensive to implement Cons • local manager resentment • cultural myopia • immigration barriers • costly • limits career mobility • isolates HQ from overseas subs • uses HR efficiently • costly • builds strong global • immigration culture and informal barriers management network © Nguyễn Minh Đức 2009 Expatriate Managers Managers assigned to a unit in country other than that of their national origin High failure rates for US MNCs (in order of importance) • Spouse cannot adjust culturally • Manager cannot adjust culturally • Other family adjustment problems • Manager’s lack of personal or emotional maturity • Manager’s inability to cope with broader responsibility overseas High failure rates for Japanese firms (in order of importance) • Manager’s inability to cope with broader responsibility overseas • Manager cannot adjust culturally • Manager’s lack of personal or emotional maturity • Lack of technical competence • Spouse cannot adjust culturally 56 © Nguyễn Minh Đức 2009 Slide 14-4 Expatriate Success Predictors Mendenhall and Oddou Self-orientation Strengthen self-esteem, self-confidence, mental well-being Adapt to food, music, sport, outside interests Superior technical competency Others-orientation Enhance ability to interact effectively with host nationals Relationship development, willingness to communicate Perceptual ability Understand why people in other countries behave the way they Non-judgmental, non-evaluative in interpreting others’ behavior Cultural toughness How tough is host culture to adjust to? 57 Slide 14-5 © Nguyễn Minh Đức 2009 Career Development for Expatriates Pre-departure, on-site training Cultural training Language training Practical training Repatriation Many repatriating expatriates lost to MNCs because suitable positions not available at home Autonomy, span of control, compensation Repatriation strategy failure makes recruitment of competent expatriates difficult 58 © Nguyễn Minh Đức 2009 Slide 14-6 Other Expatriate Issues Performance appraisal Two groups with conflicting perspectives/cultures appraise the expatriate: home managers, host managers Compensation Different national standards Expatriate pay issues: base pay, cost-of-living, housing, education, hardship, foreign-servicepremium, double-taxation, medical/pension benefits, home leave 59 Slide 14-7 © Nguyễn Minh Đức 2009 Other IHRM Issues International labor relations Concerns of organized labor: cultural and legal differences affect attitudes towards • Better pay, job security, working conditions • Bargaining power with management Strategy of organized labor • Establish international, cross-border labor organizations • Lobby national governments to restrict MNC activities Approach to labor relations • Degree to which MNC labor relations are centralized or decentralized (integration vs responsiveness ) 60 © Nguyễn Minh Đức 2009 ... relationship, simple financial controls Multidomestic Mentality - Management sees overseas operations as portfolio of independent businesses Source: Bartlett and Ghoshal, Managing across borders,... Slide 13-1 IV Manufacturing and Materials Management Production: activities that involve Service and manufacturing converting inputs to a product Materials management: activities that Control the... alliances with suppliers Just-in-time inventory system management The role of information technology 52 © Nguyễn Minh Đức 2009 Global Human Resource Management Staffing and International Strategy Expatriate