Beugelsdijk, Brakman, Garretsen, and van Marrewijk International Economics and Business
© Cambridge University Press, 2013
Chapter 7 – Managing across borders
Table 7.1: Brand name and technology as firm-specific advantages
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Reputation as a resource
Top 20 Most valuable global brand name
Apple
Technology
IBM
Technology
Google
Technology
McDonald’s
Fast food
Microsoft
Technology
Coca-Cola
Soft drinks
Marlboro
Tobacco
AT&T
Telecoms
Verizon
Telecoms
China Mobile
Telecoms
General Electric
Conglomerate
Vodafone
Telecoms
ICBC
Financial
Wells Fargo
Financial
VISA
Financial
UPS
Logistics
Walmart
Retail
Amazon
Retail
Facebook
Technology
Deutsche Telekom Telecoms
Technology as a resource
Top 20 Patents per company
IBM
5,866
Samsung
4,518
Microsoft
3,121
Hitachi
2,852
Canon
2,656
Panasonic
2,536
Toshiba
2,212
Sony
2,130
Siemens
1,743
Intel
1,652
Fujitsu
1,646
Hewlett-Packard
1,596
General Electric
1,516
LG electronics
1,488
Seiko-Epson
1,438
NEC
1,283
Oracle
1,222
Ricoh
1,198
Cisco
1,114
Honeywell
1,074
Source: patents per company: US Patent and Trademark Office (www.ipo.org); brand name ranking:
MillwardBrown, a global marketing consultancy firm (www.millwardbrown.com).
Beugelsdijk, Brakman, Garretsen, and van Marrewijk
© Cambridge University Press, 2013
International Economics and Business
Chapter 7 – Managing across borders
Table 7.2 Multinationals as a special case of the multi-locational firm
Number of locations
Number of countries
Single
Multiple
Single
Domestic firm
Multi-locational domestic firm
Multiple
-
Multinational firm
Beugelsdijk, Brakman, Garretsen, and van Marrewijk
© Cambridge University Press, 2013
International Economics and Business
Chapter 7 – Managing across borders
Table 7.3 Integration-responsiveness framework
Pressure for global
integration
Low
Pressure for local responsiveness
High
High
Global standardization
strategy
Transnational strategy
Low
International strategy
Localization
(multi-domestic strategy)
Source: based on Bartlett and Ghoshal (1989)
Beugelsdijk, Brakman, Garretsen, and van Marrewijk
© Cambridge University Press, 2013
International Economics and Business
Chapter 7 – Managing across borders
Table 7.4 International cultural diversity in four dimensions (index scores)
Mexico 81
India 77
Singapore 74
:
power distance
:
Denmark 18
Israel 13
Austria 11
highest three
Belgium 94
USA 91
Japan 92
Australia 90
France 86
UK 89
:
:
uncertainty avoidance
individualism
:
:
Greece 11
Singapore 20
Portugal 10
S. Korea 18
Singapore 8
Pakistan 14
lowest three
Japan 95
Austria 79
Italy 70
:
masculinity
:
Netherlands 15
Norway 8
Sweden 5
Source: Hofstede (2001); ranking for a subset of 30 countries: Argentina, Australia, Austria, Belgium,
Brazil, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Ireland, Israel, Italy,
Japan, Mexico, Netherlands, New Zealand, Norway, Pakistan, Portugal, Singapore, S. Korea, Spain,
Sweden, Switzerland, UK, and USA.
Beugelsdijk, Brakman, Garretsen, and van Marrewijk
© Cambridge University Press, 2013
International Economics and Business
Chapter 7 – Managing across borders
Table 7.5 Effectiveness of downsizing
Objective
Reduced spending
Increased profit
Increased cash flow
Improved productivity
Increased return on investment
Increased competitive strength
Reduced bureaucracy
Improved decision making
Increased customer satisfaction
Increased sales volume
Increased market share
Improved product quality
Increased technological progress
Increased innovativeness
Avoided acquisition
Firms not able to reach the objective (%)
54
68
76
78
79
81
83
86
86
87
88
91
91
93
94
Source: Wyatt (1991), reported in Cameron (1994).
Beugelsdijk, Brakman, Garretsen, and van Marrewijk
© Cambridge University Press, 2013
International Economics and Business
Chapter 7 – Managing across borders
Table 7.6 Stock exchange reactions to downsizing announcements
Company
IBM
Sears
Xerox
US West
McDonnell Douglas
RJR Nabisco
Du Pont
Source: Cameron (1994).
Downsizing announcement
60,000
50,000
10,000
9,000
8,700
6,000
4,500
Next day share price change (%)
+ 7.7
+ 3.6
+ 7.0
+ 4.6
+ 7.9
+ 4.0
+ 3.4
Beugelsdijk, Brakman, Garretsen, and van Marrewijk
© Cambridge University Press, 2013
International Economics and Business
Chapter 7 – Managing across borders
Table 7.7: Nature, motives, strategies and modes of international business activity
Nature of activity
(chapter 2)
Motives
(chapter 6)
Strategies
(this chapter)
Modes
(this chapter)
Trade
(export / import)
Market seeking
International global
standardization
Exporting
Multinational
(horizontal / vertical)
Efficiency seeking
Natural resource
seeking
Strategic asset
seeking
Localization /
multidomestic
transnational
Licensing
Franchising
Greenfield
Acquisition
Joint venture