Bài giảng Các chiến lược quản trị kinh doanh quốc tế

1 © Nguyễn Minh Đức 2009 CÁC CHIẾN LƯỢC QUẢN TRỊ KINH DOANH QUỐC TẾ INTERNATIONAL BUSINESS MANAGEMENT STRATEGIES NGUYỄN MINH ĐỨC Bài giảng 2 © 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 3 © 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 4 © 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) • human resources • research and development 5 © 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 B Accumulated output Experience curveUnit costs A 6 © Nguyễn Minh Đức 2009 Pressures for Global Integration & Local Responsiveness High HighLow Low Cost Reduction (Global Integration) Pressures Local Responsiveness Pressures Differences in - consumer tastes/preferences - infrastructure/practices - distribution channels - host government needs Ball bearings, wheat Cosmetics, food, household goods 7 © Nguyễn Minh Đức 2009 Strategic Choice High HighLow Low Local Responsiveness Pressures “Global” Strategy “Transnational” Strategy “Multidomestic” Strategy “International” Strategy Cost Reduction (Global Integration) Pressures Multidomestic MNC 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 UK Chile India Japan USA HK Mexico Source: Bartlett and Ghoshal, Managing across borders, 1989 International MNC 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 UK Chile India Japan USA HK Mexico Source: Bartlett and Ghoshal, Managing across borders, 1989 Global MNC 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 UK Chile India Japan USA HK Mexico Source: Bartlett and Ghoshal, Managing across borders, 1989 Transnational MNC 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 UK Chile IndiaJapan USA HK Mexico Source: Bartlett and Ghoshal, Managing across borders, 1989 12 © Nguyễn Minh Đức 2009 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 13 © Nguyễn Minh Đức 2009 International Strategic Alliances  Disadvantages • Give competitors a low cost route to new technology / markets • Disproportional benefit accrual to partners 14 © Nguyễn Minh Đức 2009 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) Slide 10-11 15 © Nguyễn Minh Đức 2009 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 Slide 10-12 16 © 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 17 © 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 18 © Nguyễn Minh Đức 2009 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 Slide 11-2 19 © Nguyễn Minh Đức 2009 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 Slide 11-3 20 © 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 Slide 11-4 21 © Nguyễn Minh Đức 2009 External or “arms-length” Modes (cont.)  Franchising • Franchisor, grants franchisee use of intangibles under the condition that franchisee follow strict rules of operating the business  Licensing • Licensor grants rights to licensee for use of intangible property over a specified period in return for a fee • Intangible property: patents, inventions, formulas, processes, designs, copyrights, trademarks • Licensing agreement likely allows licensor quality assurance rights over actual use of intangible asset • If licensee sells to consumers using the licensor’s brand name, the license may also give the licensor rights to strategic brand control • Mode of operation is part of the brand image  International strategic alliances Slide 11-5 22 © Nguyễn Minh Đức 2009 “Internal” Modes of Entry
These involve Foreign Direct Investment  Wholly owned subsidiaries • Firms owned 100% by a company in a foreign country  International joint ventures • Firms that are owned jointly by two or more otherwise independent firms; most IJVs are between two firms • One (or more) parent firms are non-resident in the host market • Ownership % may vary from majority foreign owned, to 50%- 50% owned, to minority owned by the foreign firm Slide 11-6 23 © Nguyễn Minh Đức 2009 Entry Mode Advantage Disadvantage Wholly owned subsidiaries  Enables global strategic coordination  Protects technology  Realizes (potentially) location and experience economies  High costs and risks  Requires overseas management skills  May be slower to implement International Joint Ventures  Gives access to local partner's knowledge  Allows sharing of development costs and risks  May be more politically acceptable than 100% foreign ownership  Allows foreign parent do deploy resources across more national markets at once  Loss of control over technology and managerial know-how  May impede global coordination  May make realization of location and experience economies more difficult  Sharing of profit "pie" International Strategic Alliances  Similar to international joint ventures  May be more difficult to manage than international joint ventures Slide 11-7 Advantages and disadvantages of Modes of Entry 24 © Nguyễn Minh Đức 2009 Entry Mode Advantage Disadvantage Franchising  Low financial risk  Relatively low development costs  Lack of direct control over quality  Successful international franchising requires considerable start-up and ongoing presence overseas (cost)  Is likely to impede, make global coordination costlier than ownership  Growth may be slower depending on franchisee's intentions  Sharing of profit "pie"  Possible loss of know-how to potential competitor Licensing  Similar to franchising  Fewer "maintenance" costs than franchising  Similar to franchising Exporting  Ability to realize experience curve economies  Transport costs  Trade barriers  Motivation of local agents a challenge Slide 11-8 Advantages and disadvantages of Modes of Entry 25 © Nguyễn Minh Đức 2009 Exporting Promise and Pitfalls
Huge revenue and profit opportunities overseas “there for the pickings”
Large firms that are proactive about exporting may realize promise  Systematic effort backed by knowledge of overseas markets
Smaller firms are reactive and seek overseas markets as an afterthought  Ad-hoc effort on an opportunistic and often naïve basis
Exporting involves huge volumes of specialized paperwork Slide 11-9 26 © Nguyễn Minh Đức 2009 Export Performance Improvement
Government information sources  In US various parts of the Department of Commerce  In other countries similar organization  Embassies and consulates have commercial sections
Export management companies  Act as the export marketing department of firms  Experienced specialists  However, not exclusive
Focused export strategy Slide 11-10 27 © Nguyễn Minh Đức 2009 Export/Import Financing
Service that allows exporter to be assured of payment and importer to be assured of product
Banks offer financing intermediary service  Letters of credit: bank guarantee of payment to exporter “bought” by the corresponding importer  Draft or bill of exchange: instructions to bank to pay at a certain time based on certain documentation
Carriers also involved in the process  Bill of lading: is a receipt, a contract and a document of title issued to the exporter by the carrier Slide 11-11 28 © Nguyễn Minh Đức 2009 III. Global marketing
Globalization of Markets?
Market Segmentation
International Marketing
New Product Development 29 © Nguyễn Minh Đức 2009 Globalization of Markets?
“A powerful force drives the world toward a converging commonality, and that force is technology” (Levitt, 1983)  “Converging commonality” may not have happened universally  Consumer product tastes may have converged less than industrial product specifications  Media, communications means have • made consumers world-wide more aware of their mutual preferences and • have contributed to creation of world brands • have caused certain market segments to emerge across national market that have indeed converged--inter-market segments Slide 12-1 30 © Nguyễn Minh Đức 2009 Market Segmentation
The process of identifying distinct groups of consumers whose purchasing behavior differs from other groups in important ways  Demography, geography, social-cultural factors, psychological factors  Firms adjust their marketing mix to meet the particular needs of different market segments
Marketing mix variables: product-price-place (distribution)-promotion Slide 12-2 31 © Nguyễn Minh Đức 2009 International Market Segmentation
Across national markets, companies may try to  Offer the same products and marginally adjust the balance of the marketing mix to appeal to market segments with similar needs across markets • Market segments that transcend national borders -- also known as intermarket segments -- allow companies to offer standardized products  Adapt their products and the balance of the product mix to appeal to market segments with differing needs across markets • Market segments that have materially different needs force companies to customize -- adapt -- their products Slide 12-3 32 © Nguyễn Minh Đức 2009 International Marketing
Marketing Strategy  Standardization (Global Integration Pressures) • intermarket segments • efficiencies through integrated R&D, Production, Marketing • control implications  Adaptation (Local Responsiveness Pressures) • buyer behavior (cultural, economic influence, brand perception--country of origin idea) • laws regulations • local environment needs/development • responsive to local condition shifts
Standardization-adaptation implications on marketing mix: Product-Pricing-Promotion-Place Slide 12-4 33 © Nguyễn Minh Đức 2009 International Marketing Mix: Product
Product: a bundle of attributes  Hamburger: meat type, taste, texture, size  Automobile: power, design, quality, performance, comfort, size/capacity
Attributes need to be adapted to a greater or lesser extent to satisfy  Consumer preferences/tastes due to culture  Economic development levels affect consumer behavior  National product/technical standards mandated by state Slide 12-5 34 © Nguyễn Minh Đức 2009
Optimal channel a company chooses to deliver the product
Most locally responsive element of marketing mix because distribution channels vary dramatically across countries  retail system: concentrated-fragmented  channel length: long, short  Channel exclusivity International Marketing Mix: Place Slide 12-6 35 © Nguyễn Minh Đức 2009 Các kênh phân phối chính 36 © Nguyễn Minh Đức 2009 International Marketing Mix: Promotion
How firm communicates the product attributes / benefits to customers
Barriers to international communication  Cultural barriers  Source effects (country of origin effects)  Noise levels
Standardized advertising strategy possible; standardized advertising strategy execution more difficult (culture, laws) Slide 12-7 37 © Nguyễn Minh Đức 2009 Các yếu tố chính trong quá trình truyền thông 38 © Nguyễn Minh Đức 2009 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 Slide 12-8 39 © Nguyễn Minh Đức 2009 Hiệu quả chi phí của từng công cụ tiếp thị 40 © Nguyễn Minh Đức 2009 International Marketing Mix: Price 41 © Nguyễn Minh Đức 2009 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 Slide 12-9 42 © 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 • Intense competition Slide 12-10 43 © Nguyễn Minh Đức 2009
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 New Product Development Slide 12-11 44 © 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 Slide 12-12 45 © Nguyễn Minh Đức 2009 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 Slide 13-1 46 © Nguyễn Minh Đức 2009 Quality and Costs Improves Performance Reliability Increases Productivity Lowers Rework and Scrap Costs Lower