Global and Transnational Business: Strategy and Management, 2nd Edition

Preface to the second edition xix

Acknowledgements xxi

PART I 1

1 Strategic and Management Issues in Global and Transnational Business 3

Learning objectives 3

Global and transnational business – an introduction 3

Global and transnational strategies and management – the issues 19

A framework for global and transnational strategic management 20

The approach to global strategy in this book 26

The global and transnational strategic management process 29

Conclusion 33

PART II 37

2 From National Culture to Global Vision 39

Learning objectives 39

Introduction 39

The concept of globalization 40

Causes of market and industry globalization 42

Globalization and environmental turbulence 47

Global mission, objectives and strategy 49

Culture and global business 52

Hofstede’s cultural dimensions framework 56

Trompenaars’ dimensions of culture framework 59

Tayeb – major cultural characteristics observed in various nations 62

The importance and determinants of culture in transnational business 62

Analysing organizational culture – the cultural web 66

3 Analysis of the Global Business 73

Learning objectives 73

Introduction 73

Analysis of the global organization 74

Competences, resources and capabilities 74

Global value chain analysis 80

The ‘global’ value chain 86

Global organizational culture and structure 87

Products, performance and portfolio analysis 91

Outside in or inside out? 99

4 Analysis of the Competitive Environment 103

Learning objectives 103

Introduction 103

The nature of the business environment 104

Industries and markets 106

Yip’s globalization drivers 109

Industry analysis 118

Globalization drivers and the five forces 123

Market analysis 125

Strategic group and competitor analysis 128

A resource-based approach to environmental analysis 131

Critical success factors (CSFs) and core competences 134

5 Analysis of the Global Macroenvironment 139

Learning objectives 139

Introduction 139

Change in the business environment 140

The macroenvironment 142

The role of national circumstances in international business 145

The analytical process 148

Summary – analysis of the global macroenvironment 151

PART III 155

6 Global and Transnational Strategy 157

Learning objectives 157

Introduction 157

Transnational strategies and global competitiveness 158

Strategies – the choice 161

Knowledge and competence-based strategy 163

Competitive positioning – Porter’s generic strategies 175

Knowledge, core competence and generic strategy – a synthesis 179

Global and transnational strategy 181

Total global strategy 187

7 Global and Transnational Market-servicing Strategies 197

Learning objectives 197

Introduction 197

Alternative foreign market-servicing strategies 198

Selection of mode of entry 209

Global market-servicing strategies 210

Collaborative arrangements 212

Appendix 7.1 Some additional notes on foreign market-servicing strategies 217

8 Global Production and Logistics Management 227

Learning objectives 227

Introduction 227

Production strategy and competitive advantage 228

Global production strategies 229

Research in global productions strategy 231

Plant location decision making 236

Procurement and transnational business 240

Global logistics 242

PART IV 247

9 Global Leadership and Strategic Human Resource Management 249

Learning objectives 249

Introduction 249

Leadership and management in transnationals 250

Strategic human resource management 257

European and American approaches to HRM 262

A transnational model of HRM 263

Porter’s global strategy and HR strategy 264

10 Global Technology Management 269

Learning objectives 269

Introduction 269

Technology and strategy 270

Technology as a strategic asset 271

Technology strategy 277

Comparisons of transnational technological performance 285

Information and communication technologies 287

11 Global and Transnational Marketing Management 297

Leearning objectives 297

Introduction 297

The role of marketing in global and transnational strategy 298

Globalization of markets and marketing research 301

Global marketing strategies 302

Global market segmentation and positioning strategies 308

Global marketing management 310

Global products 313

Global pricing 318

Global promotion 324

ICT and global marketing 331

12 Global Financial Management 339

Learning objectives 339

Introduction 339

Finance management and the global enterprise 340

Centralization versus decentralization of the finance function 343

Decision area 1: financing foreign operations 344

Decision area 2: resource allocation and capital budgeting 348

Decision area 3: operational policies 351

Decision area 4: remittance strategy 355

13 Organizational Structure and Control in Global and Transnational Business 361

Learning objectives 361

Introduction 361

Some essentials of organizational structure 362

Determinants of organizational structure 364

Types of international organizational structure 369

The development of global and transnational matrix structures 374

The development of the transnational organizational structure 376

Decision making and control in international business 382

Global and transnational strategies, organization and control 385

14 Managing Global Mergers, Acquisitions and Alliances 391

Learning objectives 391

Introduction 391

An overview of integrations and alliances 392

Transnational mergers and acquisitions 395

Collaborative ventures and strategic alliances 403

Types of strategic alliance and collaborative venture 405

Successful alliances 411

The strategic management of networks and alliances 412

15 Global Business – Present and Future Trends 419

Learning objectives 419

Introduction 419

The global business environment – limits of globalization 420

A global approach to strategy and management? 422

Global competitive advantage in the future 423

Appendix 1 McDonald’s and Its International Expansion 431

A brief history 431

McDonald’s and franchising 434

International growth 435

Appendix 2 Nike Inc. 439

Company development 439

The Nike product concept 440

Vertical linkages and outsourcing 441

Promotions and endorsements 443

Markets and structure 444

Changes in the 1990s 445

Nike at the end of the 1990s 446

Index 449