Ib2 Grpb L3 International Sequential Advantages - Tan Xiaolian
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- Words: 425
- Pages: 9
International sequential advantages and network flexibility By Kogut, B., (edited by Bartlett, Doz and Hedlund) in Managing the Global Firm Done by: Xiaolian
Framework
Overview of article
Introduction
Multinationality and Competitive Advantage
Sequential Strategy and Organizational Evolution
Conclusion
Introduction
Initial motivations for FDI vs Sequential advantages of co-ordinated multinational system Initial motivators:
Access to raw material Exploit cost & skill differentials across countries Markets penetration
Int’l sequential advantages
The subsequent advantage generated over time due to establishment of int’lly dispersed assets thru co-ordination of individual subsidiary
Introduction
Convergence of technological capabilities among countries Expanding use of subsidiaries to gain strategic leverage
US firms:
From transfer of technology & superior organizational abilities to overseas market to strengthening already established subsidiary positions
What is the competitive advantage of a MNC in a mature market?
Multinationality
Multinationality and Competitive Advantage
Strategy of firm shifts increasingly to the exploitation of country differences thru 4 sources of competitive advantage:
Economies of scale
Economies of scope
Honda Motors
Learning
Canon AE-1 Camera
P&G
Operating flexibility
General Motors
Can be found in p.49 to 56 of article
Sequential Strategy and Organizational Evolution
Persistence of traditional organizational structures may impaired creation of multinational flexibility
The organizational capability of MNC to exploit the sequential advantages can be impaired by structural changes and differences in management system
E.g. Moving from domestic to international firm
MNCs move from hierachical control to a more cooperative relationship between HQ and subsidiaries
Sequential Strategy and Organizational Evolution
Organizational structure does not only channel information and delegate authority, in fact, it should provide a system by which information and organizational knowledge are created
To achieve sequential advantages thru network co-ordination
Duplication Differentiation
Conclusion (1)
How much value a firm can benefit from an international network depends heavily upon the integration of functions across border
US and European MNCs can no longer depend on their technological and organizational skills to dominate world market as previously
Central source of advantage lies in the cumulative experience of operating dispersed multinational resources
Conclusion (2)
I agree. Whether or not a firm are able to make use of their multinationality as a competitive advantage usually depend on how efficient it can tap on to the strengths of each subsidiary and achieve int’l sequential advantages thru learning, experiencing each unique operation that take place in each context.
Framework
Overview of article
Introduction
Multinationality and Competitive Advantage
Sequential Strategy and Organizational Evolution
Conclusion
Introduction
Initial motivations for FDI vs Sequential advantages of co-ordinated multinational system Initial motivators:
Access to raw material Exploit cost & skill differentials across countries Markets penetration
Int’l sequential advantages
The subsequent advantage generated over time due to establishment of int’lly dispersed assets thru co-ordination of individual subsidiary
Introduction
Convergence of technological capabilities among countries Expanding use of subsidiaries to gain strategic leverage
US firms:
From transfer of technology & superior organizational abilities to overseas market to strengthening already established subsidiary positions
What is the competitive advantage of a MNC in a mature market?
Multinationality
Multinationality and Competitive Advantage
Strategy of firm shifts increasingly to the exploitation of country differences thru 4 sources of competitive advantage:
Economies of scale
Economies of scope
Honda Motors
Learning
Canon AE-1 Camera
P&G
Operating flexibility
General Motors
Can be found in p.49 to 56 of article
Sequential Strategy and Organizational Evolution
Persistence of traditional organizational structures may impaired creation of multinational flexibility
The organizational capability of MNC to exploit the sequential advantages can be impaired by structural changes and differences in management system
E.g. Moving from domestic to international firm
MNCs move from hierachical control to a more cooperative relationship between HQ and subsidiaries
Sequential Strategy and Organizational Evolution
Organizational structure does not only channel information and delegate authority, in fact, it should provide a system by which information and organizational knowledge are created
To achieve sequential advantages thru network co-ordination
Duplication Differentiation
Conclusion (1)
How much value a firm can benefit from an international network depends heavily upon the integration of functions across border
US and European MNCs can no longer depend on their technological and organizational skills to dominate world market as previously
Central source of advantage lies in the cumulative experience of operating dispersed multinational resources
Conclusion (2)
I agree. Whether or not a firm are able to make use of their multinationality as a competitive advantage usually depend on how efficient it can tap on to the strengths of each subsidiary and achieve int’l sequential advantages thru learning, experiencing each unique operation that take place in each context.
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