(BQ) Part 2 book International business - Managing globalization has contents: International strategic planning and market screening; internationalization and globalization processes; market entry and servicing strategies; market entry and servicing strategies,...and other contents.
www.downloadslide.com C H A P T E R International Strategic Planning and Market Screening Global Planning in the Chemical Industry When three medium-sized European firms—Elf Atochem, Petrofina, and Total Chimie—combined their assets to form Atofina, they became the fifth-largest chemical company in the world, and their planning processes took on a global dimension First, Atofina looked at its prime businesses Its petrochemicals and commodity plastics comprised 38 percent of its $17 billion turnover, intermediates and specialty polymers 26 percent, and specialties (e.g., agricultural foodstuffs) 36 percent To streamline its activities, the company sold its metal and aviation unit ($100 million in sales) and its oleochemicat group (about $200 million in sales), and was looking to unload a further $1 billion in assets to focus on its mainstream businesses Geographically, 63 percent of sales were in slow-growth markets of Europe, and the company realized that it needed to focus on North America’s huge market, and in the fast-growing markets of Latin America, the Middle East, and Asia In North America, Atofina’s emphasis was on building up its polyethylene and propylene businesses, and increasing access to key specialty chemical users in the automotive, construction, and electronics sectors In Asia and the Middle East, the company had few assets, and was looking to expand through investment opportunities.1 A lmost all companies are planners In the chemical industry, like many other asset-intensive industries (e.g., autos, metals, industrial equipment), planning is all-important when production capacity expansions take years to execute and carry heavy penalties for failure As a result, global planning efforts occupy much of top management’s time Assets are scarce, and businesses not contributing to the firm’s international effectiveness are likely to be discontinued in favor of mainstream businesses Geographic strategies must be mapped out for global effectiveness and focused to achieve global balance across industries and regions Planning processes must therefore systematically evaluate corporate performance from business and market perspectives, and come up with viable objectives and strategies to guide future operations worldwide 321 www.downloadslide.com 322 M A N AG I N G G LO BA L I Z AT I O N Hence, in this chapter you will learn • How the international planning process is defined; how the complexity of worldwide planning has increased since 1945, and the ways companies have modified planning processes to respond to heightening competition in world markets • How international firms assess their internal orientations and their external marketplace situations • The ways that companies formulate international plans at the national, regional, and global levels, and the procedures they adopt for allocating global resources • The methods and criteria international companies use to screen and evaluate worldwide markets on a comparative basis, including emerging countries THE INTERNATIONAL PLANNING PROCESS Introduction International strategic planning is the process through which worldwide companies evaluate past results, assess their corporate strengths and weaknesses, and map out future resource allocation and strategies based on marketplace opportunities and threats The organizational complexity of international corporations, and the geographically far-flung nature of their commercial empires, make planning a complex process to manage For example, • Unilever, the Anglo-Dutch consumer products company, employs 223,000 people worldwide, and sells over 400 brands through subsidiaries in over 90 countries and sales in over 70 other nations • Toshiba is a $53 billion corporation employing 172,000 people in eight product divisions (power systems, semiconductors, display services, medical systems, home appliances, elevator and building systems, information and industrial systems, and digital media equipment) These are managed across 100 foreign subsidiaries, including 39 manufacturing facilities outside of the Japanese home market • IBM has worldwide revenues of over $90 billion and employs over 329,000 people making 40,000 products The challenge for international planners is to interactively blend together head office, regional, and subsidiary perspectives into a cohesive global plan At each level, management’s task is to • Evaluate the firm’s current position, its strengths and weaknesses • Assess how environmental factors will impact corporate strategies and performance over the short (1–3 years), medium (3–5 years), and long-term planning horizons • Identify key strategic objectives to be attained and performance benchmarks to ascertain progress www.downloadslide.com CHAPTER International Strategic Planning and Market Screening 323 General guidelines are established to unify strategic approaches at the worldwide, regional, and local levels This process is illustrated in Figure 7.1 The Changing Environment of International Planning: Historical Perspectives2 Strategic planning roles and philosophies have changed significantly since 1945 as companies have internationalized their operations and integrated them on a worldwide basis In the 1950s and early 1960s, international planning was a centralized activity Many countries were rebuilding their economies and planning FIGURE 7.1 The trouble with our times is that the future is not what it used to be Paul Valery, 19th- and 20-century French poet and philosopher International Strategic Planning and Market Screening International Strategic Planning Process • Introduction • Evolution Assessing the Corporate Position • Internal Influences –Planning processes –Corporate mission –Corporate competencies • External Influences –Current marketplace position –Industry position Market Screening • • • • • • • Planning Outputs • Goal setting • Strategy-crafting activities –Global/regional/local strategies –Resource deployments Political Risks Economic Risks Operational Risk Financial Risks Legal Risks Taxation Risks Security Risks www.downloadslide.com 324 M A N AG I N G G LO BA L I Z AT I O N activities were production-oriented Firms focused on what manufacturing levels were required, expected revenues, and what resources were needed to deliver products into an undersupplied marketplace Little “strategy” was necessary, and planning centered on budgets and outputs The situation changed during the 1960s and 1970s as European and Japanese firms entered the world marketplace and competition heated up Tools for assessing competitive strengths, weaknesses, and marketplace situation were developed (e.g., the GE matrix and the Boston Consulting Group’s competitive position matrix) Strategies were formulated to counter rivals’ activities Planning staffs grew as firms addressed the issues of escalating international competition and rapid geographic and business diversifications This trend continued during the 1980s when the global marketplace expanded away from the Triad countries of North America, Western Europe, and Japan to include big emerging markets in Latin America, Eastern Europe, and Asia As the 1990s progressed, heightened competition caused companies to reorient strategies based on scale economies back toward customizing output to suit individual countries and segments In Western companies, this has led to the decentralization of planning activities to product divisions and national subsidiaries Central planning departments were cut, and country subsidiaries were encouraged to “get close to customers.” Head offices took on new roles emphasizing coordination among divisions and subsidiaries and monitoring global competitor activities The Evolution of the International Corporate Planning Processes International planning processes vary in complexity according to the degree of strategic analysis involved For example, Japanese planning processes have historically emphasized budgetary mechanisms, while American firms have tended to incorporate a wider variety of strategic elements into their plans.3 To understand the evolution of planning processes, four stages of corporate planning development have been identified.4 We should all be concerned with the future because we will have to spend the rest of our lives there Charles F Kettering, 19th- and 20th-century U.S engineer and inventor The art of prophecy is very difficult, especially with respect to the future Mark Twain, 19th-century U.S author Financial planning: In this phase, organizations set budgets and costs, and revenue and profits are forecasted, usually for the year ahead Companies know which product lines are profitable and limits are placed on all expenditures Because of the limited time horizon, little emphasis is given to market developments, except as they affect sales or profits Long-term (forecast-based) planning: Statistical techniques are used to forecast up to or years ahead for sales, costs, and profits Assumptions are laid out concerning the circumstances under which such forecasts should be accurate Longer-range www.downloadslide.com CHAPTER International Strategic Planning and Market Screening 325 planning enables firms to use broader sets of evaluative benchmarks, including productivity improvements, capacity utilization, and financial control objectives Planning is still primarily set out in financial terms Environmental planning: This stage brings in formal evaluations of external developments, with economic, sociodemographic, and technological trends influencing corporate and industry sales projections Competitor strategies are analyzed and formal account are taken of governmental policies as they affect infrastructures, social security, and environmental protection legislation Integrative strategic planning: This includes strengths-weaknesses-opportunitiesthreats analyses and it orients them toward strategic issues leading to sustainable competitive advantages The planning process becomes broader and involves more people “What if” scenarios are addressed Stakeholder participation is encouraged in the planning process to keep employees, suppliers, and distributors informed about marketplace developments, and to encourage entrepreneurial initiatives ASSESSING THE CORPORATE POSITION The first task for international planners is to take stock of the corporation’s current position This includes evaluations of internal environments (corporate missions and core competencies) and assessments of marketplace performance (individual businesses and sales by He who knows others is clever; he who knows region and by country market) External assess- himself is enlightened ments include industry and competitive perforLao Tzu, mance measures discussed in the previous 6th-century BC Chinese philosopher chapter Internal Assessments Effective planning occurs when firms have definite ideas about where they want to be and what has enabled them to get where they are To this end, mission statements and reviews of core competencies guide company efforts and provide continuity between past and future planning efforts The corporate mission The mission is “a statement of vision, or ambition that defines success and establishes the ground rules by which success is achieved for a particular company or institution; Always remember that this whole thing was started by a mouse Walt Disney, U.S film producer www.downloadslide.com 326 M A N AG I N G G LO BA L I Z AT I O N the articulation of management’s intent regarding the future of an organization, expressed in aspirational terms.”5 Most mission statements, particularly those of international corporations, are broad-based and encompass one or more of the following features:6 • Description of the business in terms of customers, products and services, and geographic locations • Strategic intent, i.e., the corporation’s long-term goals, often stated in competitive or performance terms (“to be a/the global leader in ”) • Perceived organizational strengths These list the marketplace and internal advantages that have led to organizational success, and include brand names, customer satisfaction levels, technology, corporate culture, quality orientation, and supply chain assets (dedicated suppliers, distributors, etc.) • Strategic elements such as how organizational strengths are being leveraged in the marketplace to make progress toward long-term goals • Organizational values describing key elements of corporate cultures and how they contribute to organizational performance Exhibit 7.1 provides sample mission statements from some major corporations Corporate mission statements provide a focal point for company priorities and activities They emphasize what firms should strive for (goals), the audiences they should strive to please (e.g., major stakeholders who can influence company performance), and what lasting impact firms should have on society at large Mission statements influence corporate culture (“the way we things around here”) and company values The challenge for international corporations is to make mission statements relevant to employees and stakeholders worldwide For example, it is not difficult for North Americans to appreciate stockholder and competitive orientations The United States is the bastion of global capitalism: money and corporate rivalries are the cornerstones of the nation’s economic system However, corporate materialism is less appreciated in Western Europe and in emergent nations, where profit making is only one of many corporate priorities Similarly, European stakeholder capitalism, with its broader obligations, has its skeptics as Western European firms invest in the USA Assessing corporate competencies: The major strength of international corporations is their ability to transfer winning strategies and management processes across national markets International companies are successful when they can develop core competencies for use on a worldwide basis Core competencies are bundles of organizational skills and corporate assets that produce winning marketplace formulas They have three characteristics: they contribute to perceived customer benefits, are difficult for competitors to imitate, and can be leveraged over a variety of markets.7 For international corporations, there are three major types of competencies,8 described below Superior technological know-how and product innovation: Companies such as Microsoft, Intel, Ciba-Geigy, Merck, Canon, and Toshiba have successfully leveraged their world-class expertise and technologies into innovative products that few rivals can match in the worldwide marketplace Reliable processes that produce consistent, efficient, quality products and services in world markets Examples include Beckton-Dickinson’s ability to manufacture low-cost but www.downloadslide.com CHAPTER EXHIBIT 7.1 International Strategic Planning and Market Screening 327 Mission Statements of Major International Corporations While some organizations have mission statements embracing all five characteristics, many emphasizejust one or two Some examples of different types of mission orientations follow: • Shareholder Orientations—Nike: To maximize profits to the shareholders through products and services that enrich people’s lives • Stakeholder Orientation—BP: To give the best possible return to all BP’s stakeholders: our shareholders, our customers, our employees, our suppliers, and our neighbors • Competitive Orientation—Gillette: To achieve or enhance clear leadership worldwide in the existing or new core consumer product categories in which we choose to compete • Internal Employee Orientation—Matsushita: The Seven Spirits of Matsushita—Spirits of service through industry, fairness, harmony and cooperation, struggle for the sake of progress, courtesy and humility, adjustment and assimilation, and gratitude • Societal Orientation—Rhone-Poulenc: To use innovations in the areas of life science and chemistry to create products and services that make people’s lives better • Customer Orientation—Apple Computer: To help people transform the way they work, learn, and communicate by providing exceptional personal computing products and innovative customer services • Quality Orientation—Wendy’s International: To deliver total quality • Community Orientation—Abbott Laboratories: To improve lives worldwide by providing costeffective healthcare products and services And we so through much more than our products Abbott makes a difference in the community, through programs, through donations, through people Source: Most examples taken from Paul G Haschak, Corporate Statements (Jefferson, NC, and London: McFarland, 1998) high-quality medical products; the Toyota Production System, which consistently manufactures high-quality, reliable automobiles; Citicorps financial services network, which provides a multitude of banking services, anywhere, anytime, in any currency, without delays; and FedEx, whose worldwide delivery service has secured the company a global reputation for reliability Close external relationships with suppliers, regulators, professional organizations, distributors, and especially customers: Consumer goods firms such as Unilever, Proctor & Gamble, and Nestlé have established reputations worldwide for their customer orientations, and industrial companies such as Lockheed-Martin in the aerospace defense business and Siemens in the capital equipment field have capitalized on their external relationships to build world-class corporate reputations While transferring corporate competencies among international markets is a logical strategy, it is easier said than done As noted in Chapter 1, the diffusing of modern technologies, products, and ideas through world markets takes time, and national cultures can be highly resistant to change The competitive imperative makes international firms impatient, and one weakness of international corporations has been their failure to take full account of national www.downloadslide.com 328 M A N AG I N G G LO BA L I Z AT I O N market differences as they leverage products and services across foreign markets The most successful international businesses have been adept at building sufficient flexibility into worldwide operations to appeal to local tastes ABB (formerly Asea Brown Boveri), the Swedish-Swiss industrial conglomerate; Unilever, the Anglo-Dutch consumer products firm; IBM; and Toshiba have demonstrated this ability External Assessments: The Marketplace Situation The end product of planning is the allocating of corporate resources across markets, businesses, and product lines The front end of planning therefore involves evaluating corporate performance from a strategic business unit (SBU) and from a geographic perspective The managerial aim is to identify those SBUs and geographic regions where the company is strong, and those where corporate performance is weak The key dimensions to assess are • Contributions to group financial performance and • Competitive positions on a regional and market basis SBU evaluation Companies routinely divide their businesses or product lines into strategic business units For example, the U.S company GE has 13 business divisions worldwide The first step is to identify SBUs that contribute positively to group performance (i.e., by determining the above- and Nothing contributes so much to prosperity and below-average financial performers) and those that are happiness as high profits competitive within their industry sectors (again, by findDavid Ricardo, ing the above- and below-average performers in their 19th-century British economist respective industries For example, GE customarily requires its SBUs to be in the top in their industry sectors.) Figure 7.2 shows a hypothetical international firm with eight SBUs, with contributions to group performance and industry performance levels graphed against each other • Obviously, SBU2 and SBU3 are “winners”—above-average performers in their industries and excellent contributors to group profits • SBUs and contribute strongly to group profits but lag behind industry competitors in financial performance These SBUs would be benchmarked against industry rivals to determine how to improve competitive performance levels • SBUs and are competitively placed within their industries, earning aboveaverage returns on investment (ROIs) in their respective sectors, but they nonetheless pull down the group ROI average • SBUs and are prime candidates for divestiture They lag behind industry ROIs in their respective sectors and are drags on group performance In underperforming units, top-to-bottom analyses would be performed to evaluate their historical sales performances, future prospects, and strategic usefulness (e.g., as a supplier to other SBUs) External factors affecting SBU performance would be assessed (e.g., downturns in key markets, guerilla attacks by major rivals) Both internal and external factors would be evaluated and www.downloadslide.com CHAPTER FIGURE 7.2 International Strategic Planning and Market Screening 329 Group Assessments of SBUs: Contribution to the Group and Performance in Their Industry SBU1 Above Average SBU2 SBU4 SBU3 ROI Group Average SBU5 SBU6 SBU7 Below Average SBU8 Below A Industry P Above A strategic alternatives laid out (continue on present course, add/subtract resources, restructure, downsize, create new management team, sell the unit, etc.) In consumer goods industries, company brands are also often evaluated as SBUs, and decisions made about their future viability Worldwide/regional evaluations The assessment of geographic strategies is a key element in deciding where to allocate corporate resources on a worldwide basis The process begins with plotting regional corporate performances on a market size–market growth matrix Figure 7.3 illustrates how this is done The relative size of each regional circle indicates the proportion of corporate sales emanating from that region (the larger the circle, the greater the proportion of company sales occurring there) In Figure 7.3, Western Europe and North America account for major proportions of worldwide sales The pie-shaped wedges indicate the company’s market share (greater in Western Europe and North America) The horizontal axis shows regional growth rates for individual regions (the highest rates being in Latin America and Asia) From a resource allocation perspective, management would draw a number of conclusions For example, • Slow growth in Western Europe would likely result in increasingly competitive markets Sales gains would come primarily at the expense of rivals, from www.downloadslide.com 330 M A N AG I N G G LO BA L I Z AT I O N : B U S I N E S S S T R AT E G I E S cost-cutting measures to squeeze more profits from existing sales, or from acquisitions • The company’s position in North America is solid, with a dominant market share in a moderately expanding market • Corporate sales might be aggressively pursued in the Latin American and Asian regions to take advantage of expanding markets • The African, Middle Eastern, and Eastern European regions show slow growth in relatively small markets Proceeding with caution would be appropriate strategies in these areas Regional/country assessments Managing similar product lines across regions and markets has become increasingly important for international corporations, especially as free trade and technology transfers facilitate comparisons among country subsidiaries Executives can consolidate data from national subsidiaries into regional and worldwide contexts, giving them “bird’s eye views” of critical yardsticks such as market share, sales, costs, and margins Table 7.1 shows the framework for such a consolidation From these analyses, executives can • Identify subsidiaries and regions with successful track records (e.g., those with superior market shares, nationally and regionally) The strategies of these affiliates can then be scrutinized to isolate key success factors that could be used in other countries as “best practices transfers.” Evaluating Corporate Regional Performance on a Market Size–Growth Matrix W Europe North America Large Regional Market Size FIGURE 7.3 Latin America Medium Asia E Europe Africa/Middle East Small −3 −2 −1 Contracting Slow Growth M Rapid Growth www.downloadslide.com 700 I N T E R N AT I O N A L B U S I N E S S Mercosur, 65, 68, 70, 162, 355, 443, 484, 499 Mergers and acquisitions (M & A’s), 413 corporate strategy and, 413–416, 415 (figure) evaluating prospects for, 416–419, 417–418 (exhibit) implementing, 416–422 operating environment differences and, 420–421 (exhibit) Merlot, 265 Merrill Lynch, 283 Metro, 121, 354, 562, 572 Mexico, 55, 68, 70, 80, 91, 160, 161, 199 Federal Labor Law (1969), 218 global and multimarket strategies, 456 internationalization and globalization, 387 Mexico City, 115, 564 Monterrey, Mexico, 484 national market analysis, 203, 219 as part of Latin America, 154 short case, 240 strategic planning and, 347, 353 supply chain management and, 486 Michelin, 373 Micronesia, 49 Microsoft, 254, 326, 425, 444, 481, 557, 615 “Middle class,” 441 Middle East, 88, 124, 126, 127, 130, 145, 355 cultural issues, 517, 519, 531, 544 geopolitical analyses, 154, 171–179, 172 (figure), 176–177 (table), 184, 188–190 global and multimarket strategies and, 443, 445, 460 globalization and (case), 124–132 global market analysis, 249 infrastructure development and, 58, 61, 69 intercultural negotiation with (Arab) people from, 540–541, 542 (table) international business challenge and, 11, 16, 30 internationalization and globalization, 321, 330, 336 localization strategies, 556, 561, 564, 567, 570, 574 market entry and servicing strategies, 401, 408 national market analysis, 193, 196, 222 supply chain management, 484, 496 See also individual names of countries Migration developmental effects on, 104, 115 globalization effects on, 85–86 Migros, 493 Mildara Blass, 266 Military Colonial Era, 17 free trade and, 60–61 in Middle East, globalization and (case), 128–129 Mill, Christopher, 182 Milo, 292, 295, 298 Ministry of Finance, Vietnam, 597 Ministry of Science, Technology, and the Environment (MOSTE), 604, 605 Minter Ellison, 392 Mintzberg, Henry, 362 Mission statements, strategic planning and, 326–328, 327 (exhibit) Mississippi River, 199 Mithra, 525 Mitsubishi, 182, 436, 442, 448, 457 Mitsui, 20, 403 Mitsukoshi, 493 Mitsushita, 413 Mobil, 599, 638 Model Light, 437 Modernization, 13 globalization effects on, 96 (table), 110–114, 111–113 (table) Pakistan and development effects (short case), 121–123 Mohammed (prophet), 526, 527 Moldova, 170 Mondavi, 266 Monenco AGRA, 409 Mongolia, 179 Monnet, Jean, 69 Monotheistic religions, 520, 525–527 Monro-Davies, Robin, 270–286 Monroe Doctrine, 157 Monsanto, 309, 557 Montejo, 437 Monterrey, Mexico, 484 Moody, John, 287 Moody’s Investors Service, 270, 271, 273, 276–277, 279, 283–284, 287 Morocco, 128, 162, 172 MOSOP See Movement for the Survival of the Ogoni People (MOSOP) MOSTE See Ministry of Science, Technology, and the Environment (MOSTE) Motorola, 246, 454, 458, 558 Mourinho, Jose, 614 Movement for the Ogoni People (MOSOP), 643–650 Movement for the Survival of the Ogoni People (MOSOP), 643, 648–649 MTV, 30, 38, 126, 366, 453 Mugabe, Robert, 91, 117 Muhammad, 126 Müller, Max, 523 www.downloadslide.com Index Muller, Ronald E., 21 Multi-country currency, 52 Multi-country warehousing system, 495 Multicultural managers, creating, 497–498 Multidisciplinary nature, of international business, 10–13 Multilingual website set-up (short case), 393–400 Multimarket standardization strategy, 28 Multimarket supply chains (short case), 511–513 Multinational marketing strategies See Localization strategies Multinational warehousing systems, 492–494, 494 (figure) Murdoch, Rupert, 612, 616, 624 Musharaff, General, 122 MUTV, 617 Myers, Douglas, 652, 669 NABB Brothers, 296 NAFTA See North American Free Trade Area (NAFTA) Namibia, 53 National Cash Register, 451 National Congress Party, India, 204 National Environmental Protection Regulations (Nigeria), 645 National Folk Theater of Ireland, 316 National Investment Bank (NIB), 289 National market analysis, 192 (figure), 222–224 balance-of-payments digest and, 207–209 (table) Brazil in Latin American context (short case), 229–230 business sector compositions and economic development, 195 (table) commercial analyses and, 214–221 cultural analyses and, 221–222 current position analysis and, 199–210 diffusion within national markets, 26 (figure) historical background, 193–199, 194 (figure) Japanese economy—historical perspectives and current situation (short case), 224–225, 225 (table), 226 (table), 227–228 (table) managers use of balance-of-payments data and, 213–214 political/economic factors and business activities, 202–203 (table)a retail and, 191–193 U.S balance of payments and, 210–213, 211–212 (table) U.S., Brazil, and China, compared (short case), 231–234 National Redemption Council, Ghana, 289 National Youth Council of the Ogoni People (NYCOP), 648 701 Native American, 99 Nautilus Hyosung, 462 NCR, 20, 451, 486 NEC, 246, 425, 452 Negra Modelo, 437 Nelson, Azumah, 298 Nembe Creek, Nigeria, 645 Nepal, 53, 71, 122 Nestlé, 20, 78, 166 Casa Buitoni Club, 449 global and multimarket strategies, 446, 448, 455, 462 internationalization and globalization, 357, 367 localization strategies, 560 market entry and servicing strategies, 413 Nestlé (Ghana), Ltd (case), 289–300, 291 (exhibit), 293–294 (exhibit), 297 (exhibit), 299 (exhibits) Nestlé S.A., 289 short case, 392 strategic planning and, 327, 349 supply chain management and, 486 Net errors and omissions, 210 Netherlands, 66, 164, 180, 188, 266, 486, 501 Neville brothers, 610 New Orleans, Louisiana, 513 Newsweek, 128 Newton Heath Lancashire and Yorkshire Football Club, 609 New York, 475 New York Times, 636 New Zealand, 179, 180, 181–182, 341, 391–392 case, 651, 652, 653, 661, 668, 669 global market analysis, 262 Nicaragua, 160, 161, 169 Nicholas II, Czar, 167 Nicholson, Ross, 605 Niebuhr, Reinhold, 30 Nietzsche, Friedrich W., 422 Niger, 83 Niger Delta, 644 Nigeria, 8, 73, 127, 153, 174, 197, 204, 343 case, 636–650 Civil Liberties Organization, 647 Liquefied Natural Gas, 644 Nigerian National Petroleum Corporation (NNPC), 638 Niger River, 644 Nike, 121, 406, 410, 482, 561, 589 case, 617, 619 global and multimarket strategies, 445, 451, 455 Nikkei, 188 Nintendo, 440, 444, 450 Nippon Investors Services, 272 www.downloadslide.com 702 I N T E R N AT I O N A L B U S I N E S S Nippon Telephone and Telegraph, 501 Nissan, 22, 182, 373, 436, 481, 562 Nixon, Richard M., 49 Nokia, 166, 246, 377, 425 global and multimarket strategies, 453, 454, 455 global brand rivalries (short case), 473–474, 553, 576 Nontheistic religions, 527–530 Nordica, 352 Nordisk Ratings AB, 287 Norman, Archie, 500 Nortel, 246, 410 North Africa, 16, 126, 130, 249, 355, 477 North America, 124, 273, 302, 319, 378, 386, 387, 568, 575, 583 cultural issues and, 519, 534, 544 defined, 154 geopolitical analyses, 154–158, 156 (figure), 184 global and multimarket strategies, 444 globalization and economic development, 114 global market analysis, 251, 258, 262 infrastructure development and, 44, 60 international business challenge and, 6, 8, 11, 13, 21, 22, 28, 39 internationalization and globalization, 321, 330 national market analysis, 193, 199 supply chain management, 484, 506 See also individual names of countries North American Free Trade Agreement (NAFTA), 80, 158, 484 North American Free Trade Area (NAFTA), 22, 41, 65, 70, 385, 443 Northern China, 670 Northern Europe, 191 Northern India, 126 North Kerry Milk Products, Ltd., 302 Norway, Novartis, 424, 425, 588 Nuie, 464 Nurske, Ragnar, 97, 125 NutriNex, 626, 628–629, 633–634 Objectives international joint ventures and, 413 market entry and, 428–429 strategic planning and, 340–341 Occupation, as segmentation base, 440–441 OECD See Organisation for Economic Cooperation and Development (OECD) Ogoni, 639, 640–641 Ogoni Bill of Rights, 643 Ogoniland, Nigeria, 640–641, 645–647 Ogoni people, 642–650 Oil, Middle East and globalization (case), 129–131 Oil Mineral Producing Areas Development Commission (OMPADC), 641 Oil of Olay, 446 Oki Industries, 462 Okuntimo, Maj Paul, 647 Old Trafford stadium, 609, 612, 613, 619 Old Trafford’s Theater of Dreams, 622, 624 Olobiri, Nigeria, 641 Olsen, Ken, 599 O’Mahony, Jim, 651, 666, 668, 671–676 Oman, 129, 130, 131 On a Darkling Plain (Saro-Wiwa), 642 One United Cafes, 624 Oneworld Alliance, 462 Opavia, 473 OPEC See Organization of Petroleum Exporting Countries (OPEC) Opium War, 182 Oracle Corporation, 461, 499 Orage, Samuel, 648 Orage, Theophilus, 648 Orben, Robert, 453 Organisation for Economic Cooperation and Development (OECD), 73 Organizational brands, 448 Organizational memory systems (OMSs), 370–371 Organization of African Unity (OAU), 196 Organization of American States (OAS), 196 Organization of Petroleum Exporting Countries (OPEC), 175 Oriflame, 171 O’Sullivan, Dick, 301 Ouchi, William, 577 Outsourcing deintegrating global supply chain and, 501–508, 505 (table) evaluating decisions of (short case), 513–514 Ovaltine, 296 Overall Market Opportunity Index, 348 Ovid, 46 Owen, Michael, 613 Pacific Islands, 116, 179, 520 Pacifico, 437 Packard, David, 601 Page, Arthur W., 450 Pakistan, 121, 127, 128, 588 geopolitical analyses, 174, 180 globalization and economic development, 113 www.downloadslide.com Index infrastructure development and, 71 international business challenge and, internationalization and globalization, 341, 348 localization strategies and, 560, 572 national market analysis, 197, 199, 203, 218 Palau, 49 Palestine, 8, 36, 173 Palestinian Authority, 37 Palmer, Robert, 599 Pampers, 566 Panama, 49, 160 Panasonic, 182, 367 Pánek, Zdenek, 133, 135, 138, 140, 143–147 See also Královopolská (case) Pantene, 501, 566 Pantene V, 560 Paraguay, 70 Parle, 572 Partnership phase, 485 Patagonia, 160 Patak Foods, 357 Patent Cooperation Treaty, 47 “Patrons,” 538 Patton, George S., 253, 346 Payment mechanisms, for exporting, 406 (exhibit) PC World, 452 Pechiney, 382, 551 PEFINDO, 272 Pele, Abedi, 298 Pentagon, 36 Pentair, 410 Pepsi, 366, 430, 451, 454, 455, 619 PepsiCo, 566, 652 Peregrine Group, 604 Perry, Admiral, 181, 224 Persia, 165, 173 Persius, 367 Pert Plus, 446 Peru, 160, 217, 218, 279, 346, 409, 456, 571 Peter, John, 591 Peters, Thomas J., 489, 495 Peter the Great, 167, 169 Petrofina, 321 Petroleo Brasileiro, 21 Petróleos de Venezuela, 21 Petronas, 599 Pfizer, 392, 401, 425, 557 Pharmaceutical industry (short case), 79–80 Pharmaceutical Manufacturers Association (PMA), 79 Philip Morris, 444 703 Philippines, 274, 386, 559, 601, 603, 624 geopolitical analyses, 179, 182 global and multimarket strategies, 443 globalization and economic development, 116 infrastructure development and, 70 international business challenge and, 21 internationalization and globalization, 341, 347 national market analysis, 199 Philips, 166, 447, 449, 454, 458, 459 Phu My, 598 Phuong Dong, 434 Phuong Dong Soap, 460 Pierre, Charles, 289, 298–299 Pinot Grigio, 265 Pinot Noir, 265 Pizza Hut, 366, 408, 441, 447, 485, 556 Planning See Strategic planning Plato, 536 Playboy, 453 Playlife, 352 PlayStation, 444, 613 Poland, 66, 78, 121, 141, 167, 169, 170, 387, 571 Polaroid, 500 Political institutions changes to, and globalization effects, 91, 92 (table) communism and Královopolská (case), 133–148, 135 (exhibit), 136 (exhibit), 139 (exhibit), 142 (exhibit) developmental effects on, 117 global market analysis and, 249 global segmentation criteria, 443 high-low context classification of behaviors and, 521 (figure), 531–533 international franchising and, 409 market screening and risk assessments, 343–344 Middle East and globalization (case), 126–127, 129–131 national market analysis and, 193, 196, 199–204, 202–203 (table) See also Geopolitical analyses; individual names of countries Political integration, 66, 67–68 Political Risk Services, 344 Political science, 10 Polo, Marco, 16 Polycentric operations, 384 Polytheistic religions, 520 Population diversity, 1–2 geopolitical analyses of, 154, 155 (table) in Middle East, globalization and (case), 129 www.downloadslide.com 704 I N T E R N AT I O N A L B U S I N E S S national market analysis and, 197 regional development and, 154, 155 (table) (See also Geopolitical analyses) See also Culture; Migration; Sociological perspective Porsche, 166, 442, 449, 615 Porter, Michael, 616 Portfolio investments, 209–210 Portugal, 66, 163, 262, 347 Positioning assessment of corporate position, 325–336 Potosi, 161 Power distance, 379 Prahalad and Doz, 364 Prescott, Charles, 277–280 Presley, Elvis, 440 Preussag Hoell, 146 Pricing, 573–574 in Ghana (Nestlé case), 298 global and multimarket financial strategies, 463–465, 463 (figure), 465 (figure) strategies, 453 See also Localization strategies Primal religions, 520 Prince, 352 Princeton University, 425 Printemps, 493 Printing technologies, 17 Privatization infrastructure development and, 71–74 Královopolská transition to market economy (case), 134–135, 135 (exhibit) PR Newswire, 283 Proagro, 588 Procter & Gamble, 121, 246, 254, 327, 372, 384, 423, 652, 672 global and multimarket strategies, 440, 446, 454, 460 international joint venture in Vietnam (short case), 434 localization strategies and, 560, 565, 571 Product development adaptation strategies and localization, 567–568 development, and global/multimarket strategies, 447 global alliances and, 461, 461 (figure) global/multimarket supply chain management for, 499–501 global segmentation criteria, 442–443 outsourcing and, 505 (table), 507 supply chain integration and, 495–501 See also Branding strategies Product division analysis, 332 (table) Production coproduction agreements, 411 global alliances and, 461 (figure), 462 global trends: machine tool industry, 238 (table) Lion Nathan Limited (case), 669–670 localization and, 564 localization and supplier management issues, 561 plotting geographic strengths/weaknesses in sales/production, 337 (figure) Product mix, localization and, 565–566 Promotion in Ghana (Nestlé case), 296–298 localization strategies and, 569 Protectionism debate (free trade), 58–62 Protestantism, 525–526 Provence, 565 Provisional National Defense Council, Ghana, 290 Prussia, 20 Public relations, localization strategies and, 560 Puerto Rico, 161 Pullman International Hotels, 598 Qantas, 462 Qatar, 129, 130, 540 Quality control contract manufacturing and, 411 localization and supplier management issues, 562 Quebec, 191 Rainforest Alliance, 560 Ralph Lauren, 455 Ramada, 408 Rand, Ayn, 379 Range brands, 448 Raquib, Shlomo, 483 Raquib, Zaki, 483 Ratan Tata, 476 Rating Agency Malaysia (RAM), 272 “Rat race,” 97, 98 (figure) Rawlings, President, 289–290 Raw material outsourcing, 504, 505 (table) Reade, Charles, 10 Real Madrid, 609, 611, 613, 616, 619 Red Cross, 557 Red River Delta, 594 Reeb, 654 Reebok, 369, 404, 410, 451, 572, 589 Reed, 414 Regiocentric operations, 384–385 Regional competitive strategies, 456–457 Regional development See Geopolitical analyses www.downloadslide.com Index Reliance Industries, 475 Relich, Vladimir, 140–141 Religion, 11–13 defined, 519–520 economic development effects on, 94 globalization and regional markets, 151–152 global market analysis and technology, 251 global segmentation criteria, 443 high-low context classification of behaviors and, 519–531, 521 (figure) localization and management style, 577 localization and marketing, 565, 566 Middle East and globalization (case), 125–129, 129–131 See also Geopolitical analyses Renault, 352, 373 Repatriation process, for managers, 498 Republic of South Africa, 171 Research and development (R&D) internationalization and globalization, 362 siting capabilities of, for market entry, 424–426 Reserves, 210 “Resolved” phase, 485 Resource deployment, 22–24 company resource deployments, 336, 341, 342 (figure) developmental effects on, 115–116 global alliances and, 461 (figure), 462 internationalization and globalization, 363 market entry and, 429–430 national market analysis and, 197 Reuters, 283 Revlon, 449 Revson, Charles, 442, 455 Rewe Zentrale, 492 Rheineck, 654, 667, 673 Rhine River, 199 Ricardo, David, 328 Richoco, 295, 296 Ries, Al, 385 Riesling, 265 Rimet, Jules, 614 Risk assessment/management evaluation methodologies, 346–347 market screening and, 343–350 translation risk management, 466 Ritz Carlton, 401 Rivalries, in global industries, 454–457, 472–474 See also Competition Rivers State, Nigeria, 640–641 705 Roberts, Kevin, 652, 674 Rockefeller, John D., 74 Rodae, 393 Rogers, Will, 447, 555 Rollerblade, 352 Rolling Stones, 440 Rolls Royce, 166, 442 Romania, 66, 120, 169, 170, 571 Romulus, Michigan, 484 Ronald McDonald House, 448 Ronaldo, Christiano, 611 Rooney, Wayne, 611, 613 Roosevelt, Franklin D., 161, 169 Roosevelt, Theodore, 105, 559 Rothmans of Pall Mall, 607 Roundup, 586 Rover, 414 Royal Dutch/Shell Group, 20, 22 case, 636–650 strategic planning and, 349 Ruby Tuesday, 409 Runner’s World, 453 Russia, 121, 137, 141, 145, 273, 347, 355, 356, 387, 388 geopolitical analyses, 167 global and multimarket strategies, 439, 451, 464 globalization and economic development, 117 infrastructure development and, 69, 80 intercultural negotiation with people from, 541–543 localization strategies and, 561, 571 market entry and servicing strategies, 425 national market analysis, 197 Russian Federation, 169, 409 Rwanda, 48 RWE, 439 Saab, 166, 457 Saatchi & Saatchi, 674 “Sacred canopy,” religion as, 531 Sada, Federico, 439 SAFTA See South Asian Free Trade Area (SAFTA) Saha, Louis, 611 Saigon, 592 Saigon-Intershop, 607 Sainsbury’s, 492 St Marc, 473 Sales Lion Nathan Limited (case), 670–672 localization strategies and, 569–574 personal selling and sales management strategies, 452 plotting geographic strengths/weaknesses in sales/production, 337 (figure) www.downloadslide.com 706 I N T E R N AT I O N A L B U S I N E S S Samsung, 21 global brand rivalries (short case), 473–474 rivalries of, 454 Samuel, Marcus, 637 S&P See Standard & Poor’s (S&P) S&P-ADEF, 287 S&P Information Group, 287 S&P Ratings Group, 287 Sankyo, 401 San Marino, 49 San Miguel, 658, 667 SAP AG, 435 Sarah (Abraham’s wife), 525 Sarnoff, David, 377 Saro-Wiwa, Ken, 636–650 Saudi Arabia cases, 128, 129, 130, 189 culture and, 526, 527, 540, 541 geopolitical analyses, 171, 173 international business challenge and, 8, 36 Sauvignon Blanc, 265 Sayre, Morris R., 458 SBC, 568 S.C Johnson, 500 Scandinavia, 18, 538, 575 Scholes, Paul, 610 Schopenhauer, Arthur, 97, 441 Schrempp, Jürgen, 435 Schwinn, 410 Science and Technology University of China, 557 Scottish Football Association, 615 Sculley, John, 62, 438 Seagram, 266 Seattle, Washington, 513 Securities and Exchange Commission (SEC), 273 Sega, 450 Segmentation issues identifying cross-national customer similarities, 440–444, 441 (figure) national market analysis and, 215 Seiko Epson, 501 Seiyu, 493, 573 Selfridge, H Gordon, 368 Sematech, 458 Sephora, 573 September 11, 2001 terrorist attacks (short case), 36–38 Setanta, 612 Shah, Pravin M., 252 Shah of Iran, 188 Shakespeare, William, 503, 539 Shanghai, China, 671 Shanghai-Jahwa, 459 Shared production, global alliances and, 461 (figure), 462 Shareholders, internationalization and globalization, 378–379 Share/momentum chart, consumer goods, 333, 334 (figure) Sharia, 127–128 Sharif, Nawaz, 122 Sharp, 182, 277, 613 Shaw, George Bernard, 10, 25, 117, 367, 443 Sheen, Bishop Fulton J., 533 Shell, 166, 449, 455, 599 Shell Canada, 636 Shell International Petroleum, 348–349 Shell Nigeria, 637–638 Shell Petroleum Development Corporation, 647 Shin-Etsu Chemical, 411 Shinto, 524–525 Shipping, infrastructure development and, 64 Siemens, 20, 22, 246, 327, 377 Financial Services, 469 global and multimarket strategies, 449, 459, 462 localization strategies, 553, 557 market entry and servicing strategies, 410, 425 Sight drafts, 406 (exhibit) Sigma Engineering, 146 Silicon Valley, California, 215, 424–425 Silk Road, 16, 17, 124, 126, 180, 182 Simon, William E., 249 Singapore, 273, 274, 386, 391 cases, 594, 597, 601, 603 culture and, 528 geopolitical analyses, 154, 179, 180, 182 global and multimarket strategies, 469 globalization and economic development, 101 infrastructure development and, 53, 70 international business challenge and, 21 internationalization and globalization, 347, 348 market entry and servicing strategies, 409 supply chain management, 484, 486 Sisley, 352 Sky network, 617 Slovakia, 66, 137, 141 Slovak Republic, 167, 170 Slovenia, 66, 170 Smith, Adam, 104, 205 Smith, Huston, 523 SmithKline Beecham, 382 SNC-Lavalin, 409 www.downloadslide.com Index Snickers, 451 Soccer See Manchester United (case) Social Accountability International, 560 Social class, 532–533 Societa Metallurgica Italiana (short case), 551–552 Societa Metallurgica Italiana (SMI), 551 Society, religion and, 530–531 See also Culture; Religion; Sociological perspective Society for Worldwide Interbank Financial Telecommunications (SWIFT), 600 Sociological perspective, 11 economic development effects on social behavior, 94 globalization effects and, 101 global market analysis and, 250 high-low context classification of behaviors and, 521 (figure), 531–533 of international business challenge, 12 (exhibit) internationalization and globalization, 377 localization strategies and, 570, 581 Middle East and globalization (case), 127–128 psychographic issues, 442 Soft (inconvertible) currency, 9, 49, 56, 219, 428, 496 Solectron, 483 Solvay, 459 Somalia, Sonae, 353, 570 Sony, 65, 254, 277, 386, 413 global and multimarket strategies, 449, 450, 452, 455 market entry and servicing strategies, 425 supply chain management and, 486, 572 Sourcing strategies, supply chain trends and, 482–484, 483 (table) South Africa, 273, 568, 573 geopolitical analyses, 174 global market analysis, 262, 265, 266 infrastructure development and, 58, 78 international business challenge and, 21 internationalization and globalization, 346, 347, 348 national market analysis, 204 South African Development Community (SADC), 179 supply chain management, 490 South America, 22, 58, 116, 199, 356, 382, 536 global market analysis, 262 supply chain management, 484 See also individual names of countries South Asia, 249, 523 South Asian Free Trade Area (SAFTA), 71 Southeast Asia, 126, 258, 520, 559 Southeast Asia Customer Support Organization, 603 707 South Korea, 273, 353, 369, 386, 391, 392, 624 auto globalization (short case), 392–393 Benetton Korea, 352 geopolitical analyses, 154, 182 global market analysis, 240 infrastructure development and, 59, 60, 70, 74, 80 international business challenge and, 25 internationalization and globalization, 347, 348 national market analysis, 204 See also Korea South Pacific, 181 Southwest Asia, 124 Soviet Union, 136, 167, 169, 593 Sozaboy: A Novel in Rotten English (Saro-Wiwa), 642 Spaeth, Duncan, 165 Spain, 66, 126, 130, 163, 262, 512 global and multimarket strategies, 450, 460 localization strategies and, 567 Spanish and intercultural negotiation, 540 supply chain management, 477 Specialized Bicycle Components, 410 Spirit of the Ogoni (Nigerian god), 642, 648 Splenda, 450 Sri Lanka, 71, 122, 180, 204, 528 Stakeholders internationalization and globalization, 378–379 localization strategies and, 556–560 Stalin, Joseph, 168–169, 170 Standard & Poor’s (S&P), 270, 271, 273, 276–277, 279–281, 283–284, 287 Standard Oil, 637 Stanford, Leland, 56 Stanford University, 425 Starbucks, 82, 447, 560 Star TV, 30 State Bank of Vietnam, 597 State Committee for Cooperation and Investment, Vietnam, 595 State-owned enterprises (SOEs), 75 (exhibit) Steinlager, 651, 652, 667, 673 Stella Artois, 437 Stephen Jaques, 392 Stetson, 384 Steyr-Daimler-Puch, 435 Strategic business units (SBUs) assessing geographic performance, 333 (figure) group assessments of, 329 (figure) See also Strategic planning Strategic planning, 321–322, 323 (figure), 350–351 assessing corporate position and, 325–336 assessing SBU geographic performance, 333 (figure) www.downloadslide.com 708 I N T E R N AT I O N A L B U S I N E S S at Benetton (short case), 351–353 chemical industry example, 321 evaluating corporate regional performance, market size-growth matrix, 330 (figure) formulation of, 336–343 geopolitical analyses and, 184–185 global industry/competitor analysis inputs into strategy crafting/decision making, 260 (table) global market analysis and, 258–261, 259 (table), 260 (table) group assessments of SBUs, 329 (figure) integrating subsidiary forecasts into regional plans, 339 (table) internationalization and globalization, 360–361 international joint ventures and, 412 Kerry Group plc (case), 314 Lion Nathan Limited (case), 666–668 managing risk in emerging markets (short case), 354–356 market screening and risk assessment, 343–350 mission statements of major corporations, 326–328, 327 (exhibit) planning process, 322–325 plotting company resource deployments, market size-growth matrix, 342 (figure) plotting geographic strengths/weaknesses in sales/production, 337 (figure) plotting subsidiary performance vs key national competitors, 335 (figure) product division analysis across countries/regions, 332 (table) share/momentum chart, 334 (figure) subsidiary-level planning, 338 (table) traditional-modern societies/effects on strategy formulation/implementation, 29 (figure) Wal-Mart and market screening (short case), 353–354 Stress phase, 485 “Strivers,” 442 Stuart, Graham, 668–669 Sub-Saharan Africa, 7, 25, 129, 355 Subsidiaries assessing contributions to group performance, 331 global cash management, 466–467, 468 (figure) greenfield operations, 422–424 individual analysis of, 331–335 integrating forecasts into regional plans, 339 (table) integrating suppliers into global manufacturing networks, 485–486 plotting performance of, vs key national competitors, 335 (figure) subsidiary-level planning, 337, 338 (table) See also Strategic planning Sudan, 6, 8, 71, 116, 153, 172, 174, 344 Suez Canal, 131, 174 Sukarno, 122 Sullivan, David, 665, 669, 674 Sumner, William G., 384 Sun Brewing, 170 Sun Interbrew, 170 Sun Jihai, 624 Sun Microsystems, 369, 574 Sunsilk, 567 Suntory, 654 Sun Yat-sen, 181 Suppliers integration of, and supply chain trends, 482, 484–486 localization and, 561–562 Supply chain management, 30, 478, 478 (figure), 508–511 benefits of localization and, 560–561 constructing/evaluating (short case), 511–513 developmental effects on, 101, 102–103 (table) evaluating outsourcing decisions (short case), 513–514 global market analysis and, 240–245, 240–246 IBM and Zara example, 477 integration mechanisms, 495–501 integration options, 479–495, 480 (figure), 483 (table), 487 (table), 491 (exhibit), 494 (figure) internationalization and globalization, 372–373 localization and human resource issues, 574–579 localization and management-worker relations, 579–582 localizing marketing operations and, 564–574 managing local manufacturing operations and, 562–564 national market analysis and, 216–217 outsourcing strategies, 501–508, 505 (table) supplier management and localization, 561–562 trading companies, 404–405 Sure Deodorant, 446 SurePay, 39 Suzhou Brewery, 669 Suzhou Industrial Park, 652, 666 Swatch, 456, 553 Swatch Collectors’ Club, 449 Sweden, 66, 331, 490, 512 Swift, Jonathan, 3, Switzerland, 165, 198, 246, 359, 367, 443, 465 Syrah/Shiraz, 265 www.downloadslide.com Index Syria, 36, 129, 131, 137 Syrus, Publilius, 341, 448, 574 System of Central American Integration, 161 Taco Bell, 485 Taihushui Brewery, 654, 665, 667, 673 Taiwan, 273, 386, 574, 592, 601, 670 cultural issues and, 528 geopolitical analyses, 154, 182 globalization and economic development, 101 global market analysis, 239, 246 infrastructure development and, 80 internationalization and globalization, 331, 347, 348 national market analysis, 196, 221 supply chain management, 490 trading companies, 403 Taj Group of Hotels, 475 Tajikistan, 169 Takashimaya, 493 Takeover Code (Thailand 1995), 220 Takeuchi, Hiroyuki, 216 Takoradi, Ghana, 296 Tamale, Ghana, 296 Tang, Edward, 626–635 Tang, Joyce, 626–635 Tan Thuan, 594 Tanzania, 36, 71, 153 Taoism, 525, 527, 530 Tapsell, 146 Tata, J R D., 476 Tata Consultant Services, 475 Tata Group, 401, 474–476, 563 Tata Information Technology, 475 Tata Steel, 401, 476 Tata Tea Limited, 401, 475 Taxes market screening and risk assessments, 346 national market analysis and, 218–219 Taylor Nelson Sofres, 216 Technoexport, 137 Technology e-commerce, 218 global alliances and, 461, 461 (figure), 462 global market analysis and, 250–251 global media and, 24 international joint ventures and, 412 localization and, 563 localization strategies and, 557 modernization, Westernization, Americanization, 14 (exhibit) satellite technology, 64–65 709 technological developments, 19–20 (table) technology transfers, positive and negative effects, 89, 90 (table) trade and industrialization, (figure) Telecommunications industry global market analysis and, 245 (table), 246, 247 (table) mergers and acquisitions in, 414 Telefonaktiebolaget-Ericsson, 246 Telefonica, 414 Telefonica Moviles, 414 Telerate, 283 Televisa, 460 Tenglemann, 492 Terry, John, 613 Tesco, 354, 404, 469, 492, 573 Tetley Group, 475 Tevez, Carlos, 611 Texas, 155 Texas Instruments, 425 Thailand, 273, 274, 277, 386, 391, 594, 603 geopolitical analyses, 179, 180, 182 global and multimarket strategies, 451 infrastructure development and, 70, 78 international business challenge and, 13 internationalization and globalization, 341, 347 localization strategies and, 567 national market analysis, 220 Thai Rating and Information Service (TRIS), 272 Thai Securities and Exchange Commission, 220 Thomson BankWatch, 271, 273, 276, 288, 572 Thomson Corporation, 288 Thomson-CSF, 459 Thomson Financial Services, 288 3M, 340, 425, 500 Three Star Environmental Engineering, 146 Thurston, Vince, 448 Tide, 566 Tiger, 586, 667 Tilburg, Netherlands, 484 Timberland, 589 Time drafts, 406 (exhibit) Timotei, 445 TNT, 64 Toda, Kazuyuki, 624 Tokyo, 274 Toledo, Ohio, 590 Tonga, 53 Topography, national market analysis and, 197–198 Toshiba, 182, 322, 326, 328, 425, 454, 455 Total, 22 www.downloadslide.com 710 I N T E R N AT I O N A L B U S I N E S S Total Chimie, 321 Total Quality Management (TQM), 489–490, 491 (exhibit) Totemism, 520–521 Toyota, 367, 386, 436 geopolitical analyses and, 182 global and multimarket strategies, 442, 455, 456 global market analysis, 251 GM-Toyota, 482 international business challenge and, 22 localization strategies and, 559, 564 supply chain management, 490, 504 Toyota Production System, 327, 362, 488 Toys ‘R’ Us, 367, 452, 492 Tracy, M E., 359 Tradacoms, 495 Trade balance-of-payments data and, 213 developmental effects on policy, 101 policy and national market analysis, 206 See also Exporting; Importing Trade blocs, 22 global segmentation criteria, 443 infrastructure development and, 72–73 (exhibit) regional economic/political integration and infrastructure development, 65–71 TradeNet, 370 Trafilerie e Laminatoli di Metalli SpA (TLM) (short case), 551–552 Trang, Nguyen, 606 Transaction risk management, 465–466 Trans-Atlantic Free Trade Area (TAFTA), 68 Transfer pricing issues, 463–465, 463 (figure), 465 (figure) Transit warehousing system, 493 Translation risk management, 466 Transnationality Indices (TNI), 359–362, 360 (table), 361 (table) Transportation, 479 Colonial Era, 17–18 national market analysis and, 198–199 See also Technology Treaty of Bern, 1874, 46 Treaty of Paris, 66 Treaty of Rome, 66, 166 Trefimetaux, 551 Triad Nations, 44, 424 Tricon Global Restaurants, 485 Trotsky, Leon, 167 Trudeau, Garry, 575 Truman, Harry S, 457 TRW, 64 TSS&P, 406 Tull, Jethro, 18 Tunisia, 527 Turenne, Vicomte de, 459 Turkey, 84, 171, 174, 175, 347, 527, 567, 581 Turkish Ottoman Empire, 173 Twain, Mark, 94, 324, 388, 460, 559 25 largest corporations, 23 (table) Twingo Benetton, 352 UAE See United Arab Emirates (UAE) Ubuntu, 579 Uganda, 71, 198, 522, 573 UK See United Kingdom Ukraine, 170, 199, 571 Ulyanov, Vladimir Ilyich, 167 Umbro, 406 (exhibit) Umuechem, Nigeria, 645 Uncertainty avoidance, 379 UNCITRAL See UN Commission on International Trade Laws (UNCITRAL) UN Commission on International Trade Laws (UNCITRAL), 42, 47 Unilever, 121, 309, 357, 368, 384, 392, 587 geopolitical analyses and, 166 global and multimarket strategies, 454 global market analysis, 246, 253, 254 international business challenge and, 20 internationalization and globalization, 322, 327, 328 localization strategies and, 557, 565, 567, 568, 572, 581 market entry and servicing strategies, 413 Union Camp, 306 Union of European Football Associations (UEFA), 609 Unisys, 596, 600, 604 United Arab Emirates (UAE), 83, 129, 130, 171, 527, 540 United Colors of Benetton, 352 United Kingdom, 39, 66, 203, 359, 379, 443, 512, 575 See also individual names of countries and cities United Nations (UN), 42, 44, 62, 136 agencies of, and infrastructure development, 44–48, 45 (figure) (See also individual names of agencies) Conference on Trade and Development (UNCTAD), 359 UNICEF, 78 UNICEF and AIDS in Africa (short case), 78–80 United Nations Trade Data Yearbook, 240 United Parcel Service (UPS), 64, 430, 568, 570 United States, 131, 359, 367, 379, 469, 588 www.downloadslide.com Index balance of payments (2001-2005), 211–212 (table) cultural issues and, 517, 534, 538 geopolitical analyses, 155 global and multimarket strategies, 465 globalization and economic development, 93, 99, 104 global market analysis, 245, 246, 265, 266 infrastructure development and, 49, 54, 55, 60, 61, 69 intercultural negotiation with people from, 533–534, 537 (table) international business challenge and, 21, 26 internationalization and globalization, 326 localization strategies and, 567, 570, 575, 580, 581 market entry and servicing strategies, 401, 403 national market analysis, 203, 210, 212, 213, 217 responses to global competition by, 458 supply chain management, 477, 496 trading companies and associations, 403 See also individual names of agencies; individual names of cities Universal Postal Union (UPU), 42, 46 University of California at Berkeley, 425 UNIX, 444, 602 Unrepresented Nations and Peole Organization (UNPO), 643 Unrepresented Nations and Peoples Organization (UNPO), 643 Unrequited (one-time) transfers, 207–209 (table), 209 Upstream relationships, 481–486 UPU See Universal Postal Union (UPU) Uruguay, 70, 161, 279 U.S Department of Agriculture, 627 U.S Department of Commerce, 547 U.S Supreme Court, 588 US Fortune, 627–628 USS Cole, 36 USSR, 21, 44, 571 Utility industry (short case), 392 Vale Rio Doce, 21 Valentine, 473 Valery, Paul, 323 Values economic development and, 94–96 globalization effects on, 96 (table) Vance, Alabama, 557 Veba, 576 “Vegetarians,” 413–414 Venezuela, 117, 160, 161, 277–279, 347, 348, 387 Venkateswarlu, Doctor, 588 VeriSign, 39 Verity, George M., 105 711 Viacom’s MTV Networks, 447 Victoria, 437 Vietnam, 70, 169, 220, 341, 347, 434, 464, 528 Education Research and Development Network (VERDNet), 597 Hewlett-Packard Asia Pacific (HPAP) (case), 591– 608, 593 (tables), 594 (table), 598 (exhibit), 599 (table), 602 (table) international joint venture in (short case), 434 localization strategies and, 567, 572 Vietnamese Communist Party (VCP), 592 Vietnamese Political Bureau, 592 Vietnam Mobile Telecom Services (VMS), 605 Vietnam Post and Telecommunications Department, 598 Virgin, 451 Virgin Mary, 525 Vitkovice, 146 Vitro, 439 Vivendi, 38 Vivendi Water (short case), 392 VNU, 216 Vodafone, 414, 619 Volkswagen, 22, 166, 499, 558 Volvo, 166, 446, 457, 562 Wada, Sadami, 581 Wages, free trade and, 59–60 See also Labor Walkman, 450 Wall’s Ice Creams, 572 Wall Street Journal, 48, 440, 449, 453 Wal-Mart, 22, 62, 367, 376, 457, 483, 492, 501, 562, 571, 573, 589 market screening and (short case), 353–354 Wang, Tommy, 671 Ward, Artemus, 388 Warehousing (multinational) systems, 492–494, 494 (figure) Warner-Lambert, 401 Washington, D.C., 475 Watson, Thomas J., 237 Wearnes, 604 Webb-Pomerene Associations, 403 Webster, Daniel, 217 Welch, Jack, 373 Wells, H G., 204 Wenger, Arsene, 614 Wertkauf, 354 Wesley, John, 526 West African Economic and Monetary Union, 52 www.downloadslide.com 712 I N T E R N AT I O N A L B U S I N E S S West Bank, 36, 124, 131, 173, 189 Western Europe, 8, 11, 13, 16, 21, 26, 28, 39, 40, 124, 319, 359, 551–552, 583 cultural issues and, 519, 532, 544 geopolitical analyses, 162–167, 163 (figure) geopolitical analysis, 154, 162–167, 184 globalization and economic development, 93, 99, 105, 114 global market analysis, 239, 249, 251, 258 infrastructure development and, 44, 60, 62, 66, 69 intercultural negotiation with people from, 538–540 internationalization and globalization, 326, 336, 382, 386, 387 localization strategies and, 563, 569, 570, 575–576, 580, 581 national market analysis, 193, 199, 204 supply chain management, 503, 506 See also individual names of countries West Germany, 169 West Ham United, 614 Which?, 559 Whirlpool, 442, 447, 459, 481, 500, 501, 553 Whitehead, Alfred North, 17 “White hunters,” 414 Whitton, Charlotte, 93 Wilde, Oscar, 157, 460 William Peel, 473 Wilson, Woodrow, 116 Windolf, 146 Wine industry (short case), 262–266, 263 (table), 264 (table), 265 (figure) WIPO See World Intellectual Property Organization (WIPO) “With a Little Help From My Friends,” 41 Wiwa, Owens, 649 WMO See World Markets Online (WMO) Woodward, Joan, 382 World Bank, 38, 41, 195, 291, 594, 636, 644, 664 globalization and economic development, 88 infrastructure development and, 42, 48, 62, 63 (exhibit), 82 World Economic Forum, 82 World Health Organization, 249 “World in a Nutshell, The” (Meadows), World Intellectual Property Organization (WIPO), 42, 47 World Markets Online (WMO), 346–347 World Trade Organization (WTO), 22, 37, 38, 41, 42, 48, 57–58, 60, 82, 665 global and multimarket strategies, 457 globalization and economic development, 101, 114 globalization effects and, 101 global market analysis and, 272 internationalization and globalization, 368, 369 national market analysis and, 195 World Trade Towers, 36 Worldwide functional structures, 382 Worldwide product structures, 382 WPP, 414 Wright, Bill, 626–635 Wright, Frank Lloyd, 530 Wrigley, 572 Writing, 17 WTO See World Trade Organization (WTO) Wuxi Little Swan, 553 Wyeth-Ayerst, 78 Xerox, 455, 458 Yalta Conference, 169, 170 Yamaha Motorcycles, 235 Yangtze River, 199 Yangtze River Delta, 652–653, 660, 667, 669 Yathrib, 126 Yeboah, Tony, 298 Yemen, 36, 131, 171 Yokohama Specie Bank, 20 Yoplait, 571 Yoruba, 639 Yugoslavia, 169, 204, 344 Zambia, 71 Zara, 477 Zen Buddhism, 524 Zeneca, 500 Zetsche, Dieter, 435 Zhang, Rong, 633 Zhu, Steven, 671 Zhu Rongji, 664 Zia, General, 121 Zimbabwe, 91, 116 Zinfandel, 265 Zurich, Switzerland, 385 www.downloadslide.com About the Author John S Hill is the Miller Professor of International Business at the University of Alabama in Tuscaloosa Born and bred in England, he completed his bachelor’s and master’s degrees at the University of Aston in Birmingham and the University of Lancaster, respectively, before obtaining his doctorate in international business at the University of Georgia in the United States Prior to coming to the United States, he worked in the rubber and plastics industry, as a market researcher, and as a financial analyst Professor Hill has published in over 30 journals, including the Harvard Business Review, the Columbia Journal of World Business, the Journal of International Business Studies, Long Range Planning, European Journal of Marketing, International Marketing Review, and the Journal of International Marketing 713 www.downloadslide.com ... I Z AT I O N TA B L E Subsidiary-Level Planning With 3-Year Projections Product Line Sales Costs Current Historical 20 05 20 06 20 07 20 08 Projections 20 09 20 10 20 11 Gross Margins Expenses Net Margin... 12 (July 20 01): 76–79 14 R Phelps, C Chan, and S C Kapsalis, “Does Scenario Planning Affect Performance? Two Exploratory Case Studies,” Journal of Business Research 51, (March 20 01): 22 3 23 2... 35% 53% 40% 65% Western Europe 21 % 11% 25 % 10% Eastern Europe 6% 2% 3% 0% Middle East/Africa 3% 0% 2% 0% Latin America 15% 15% 10% 15% Asia 20 % 19% 20 % 10% Subsidiary-Level Planning Planning at