What is Management?

Planning (Choose appropriate organizational goals and courses of action to best achieve them) Organizing (Establish task and authority relationships that allow people to work together and achieve organization goals) Leading (Motivate, coordinate and energize individuals and groups to work together to achieve organizational goals Controlling (Establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals)

What is Organization? What are Resources? What is Strategy?

Transform resources into products or services, using production factors such as capital or labor Human resources, financial resources, physical resources, technological resources, reputation ... consists of the competitive moves and business approaches that managers are employing to compete successfully, improve performance and grow the business

... is the creation of a unique, valuable position in the market space, using a bundle of specific activities

What is Strategic Management?

Tries to provide answers regarding abnormal returns and firm success Why does some firm perform better than others? Firm success is result of the content of strategy but also the process of strategy The process of strategy concern developement and implementation

What is a business model?

Shows how the chosen strategy supports the generation of revenues and ensures the firms profitability How are revenues/profits created

What are the elements of a business model?

Customer Value Proposition How the company satisfies the consumers preferences while offering a reasonable price Price Formula How the company generates more revenues than costs External fit Does the strategy fit the competitive environment? Is it compatible with the present market conditions? Internalt fit How efficiently are the companys resources and competencies exploited? Does the strategy assess the companys strength and weaknesses? Dynamic fit Can the strategy be adapted to changing circumstances?

What is the Fit Test?

What is the competitive Sustaiable competitive advatage advantage test? Is it difficult for rivals to imitate the strategy? Is the competitive advantage durable What is the Performance test? Profitability and financial strength Does the strategy lead to profits? Is the financial strength of a firm enhanced? Competitive strength and market share

Does the strategy strengthen the competitive position of the firm compared to its rivals? Is the extension of market share supported by the strategy? What is Mission building? What is vision? Definition of a companys present state and purpose outline for the future direction and focus of the firm Describes a better future state; dream with expiration date Enemy focus, goal focused, change focused, role model focused What is Mission Statement? Describes the companys present state and purpose. Defining the business Who are our customors? What customor needs are being satisfied? How are we satisfying customer needs? Establishing Major Goals Provides the Organization with a sense of direction, strengthen the organization to higher level of performance, goals must be challenging but realistic Core values are beliefs, traits and behavioral norms (explicit or implicit) that serve as guidelines for employees behavior and company operations Should be part of the coporate culture and supported by the top management What are Objectives Should be specific, measurable and ambitious goals the management wants to fulfill at a fixed point in time stepts towards achieving the companys vision Financial Objectives: Key figures, performance targests Strategic Objectives: Competitive market position, not defined clearly c V and M Statement can be powerful tools: shape the strategy developement and execution process can help organizational members by reducing complexity and providing a common goal help to communicate with external stakeholders in a consistent way BUT effect will blow out if they are just written documents and do not correspond with existing core values within the orginization The often underestimated role of communication within organization What is Scheins Model? More differentiated view on values and corporated culture Artifacts: Visible structures and processes in the organization Values: Explicit goals, behavioral norms and philosophies Basic Assumptions: Subconscious, taken for granted views, thoughts, perception, feelings Pros: Orientation, Coordination, Motivation and loyality, faster decision making, Complexity reduction Cons: Lower degree of flexebility, thinking in stereotypes, private shere, fixation on success factores of the past

What are values?

Vision and Mission Statement just cheap talk?

Pros and cons of strong corporated culture? What is the Macro Environment? (external)

Demographics:The size, growth rate, and age distribution of different sectors of the population; geographic distribution, distribution of income across population and trends of these factors Social forces: Values, attitudes, cultural factors Natural environment: Ecological and environmental forces Political, legal and regulatory factors: Political policies and processes, regulations and laws Technological factors: Pace of technological change and technical developement Global forces: Conditions and change in global markets General economic conditions: Rates of economic growth, unemployment, inflation, interest, trade deficits or surpluses, savings Supplieres, Substitute products, buyers, new entrants, rival firms

What is the immediate Environment?

What are the new Shift from the West to the Developing world world economy trends? By 2020 the BRICs are projected to contribute twice as much global economic growth as the U.S.,Japan and Germany combined The indebtedness of the West and its loss of legitimacy will have staggering economic and political consequences Shift of energy, attention, investments to highest growth areas in developing world Frugal Innovation or Reverse Engineering trend

What is Stakeholder Analysis? What is the industry and competitve environment analysis?

Lecture 2 Slide 16 1. Does the industry offer attractive opportunities for growth? 2. What kinds of competitive forces are industry members facing, and how strong is each force? 3. What factors are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability? 4. What market positions do industry rivals occupy who is strongly positioned and who is not? 5. What strategic moves are rivals likely to make next?

What is Growth? What is Industry/Product lifecycle? What are the Five competitive Forces? (Michael Porter)

What is the current market size in units or sale? What is the past, current and expected rate of growth for the market/industry? Lecture 2 Slide 19

Competition from rival sellers Competition from potential new entrants Competition from substitute product producers Supplier bargaining power Custumor bargaining power Lecture 2 slide 22-28

What is the environmental analysis? What is the strategic analysis of industry dynamics?

1. Identifying the Drivers of change 2. Assessing wheather the drivers of change are individually or collectively, acting to make the industry more or less attractive 3. Determining what strategy changes are needed to prepare for the impacts of the anticipated change Changes in the long-term industry growth rate, Increasing globalization, Changes in target group and usage, Technological change , Emerging new Internet capabilities and applications, Product and marketing innovation, Entry or exit of major firms, Diffusion of technical know-how across companies and countries, Improvements in efficiency in adjacent markets, Reductions in uncertainty and business risk, Regulatory influences and government policy changes, Changing societal concerns, attitudes, and lifestyles 1. Are the factors driving change causing demand for the industrys product to increase or decrease 2. Is the collective impact of drivers of change making competition less or more intense 3. Will the combined impacted of change drivers lead to higher or lower industry profitability?

Drivers of Industry Change?

What are the impacts of the factors Driving Industry Change?

What strategy adjustment 1. What adjustment must be made immidiately? will be needed to deal 2. What actions must we not take or should we cease to do now? with the impacts of 3. What can we do now to prepare for adjustment we anticipate making in the future? change in the industry conditions?

What is the Scenario Analyis?

Assessing possible change in the industry conditions Tool to consider different alternative scenarios and their consequences What is the worst/best developement? What actions would this particular scenario require?

What is a Strategic Group?

It is a cluster of industry rivals that have similar competitive approaches and market positions.

How do you construct 1. Identify the competitive characteristics that differentiate firms in the industry a Strategic Group map? 2. Plot the firms on a two-variable map using pairs of differentiating competitive characteristics 3. Assign firm occupying about the same map location to the same strategic group 4. Draw circels about each stratetig group, making the circels proportional to the size of the groups share of total industry sales revenues What are typical Price/quality range (high, medium, low) variable to differentiate Geographic coverage (local, regional, national, global) the market position of key competitors on Product-line breadth (wide, narrow) group map? Degree of service offered (no frills, limited, full) Distribution channels (retail, wholesale, internet, multiple) Degree of vertical integration (none, partial, full) Degree of diversification into other industries (none, some, considerable) What are Inferences from Group Map? Which strategic group is located in which market position? (favorable?) Which strategic group is likely to experience increased intra-group competition? Which groups are mostly threatened by the likely strategic moves of nearby strategic groups? Maps are useful in identifying which industry members are close ore distant rivals Not all map positions are equally attractive Prevailing competitive pressures in the industry and drivers of change favor some strategic groups and hurt others
What is Competitive Intelligence? What are Signal of the Likelihood of strategic moves? Questions to predict rivals actions

What can be learned from Strategic Group Maps?

Profit prospects vary from strategic group to strategic group

Information about rivals, that is useful in anticipating their next strategic moves

Rivals under pressure to improve financial performance Rivals seeking to increase market standing Public statement of rivals intentions Profile developed by competitive intelligence units Which competitors strategies are achieving good results? Which competitors are losing in the marketplace or badly need to increase their unit sales and market share? Which rivals are likely to make major moves to enter new geographic markets or to increase sales and market share in a particular geographic region? Which rivals can expand product offerings to enter new product segments where they do not have a presence? Which rivals can be acquired? Which rivals are financially able and looking to make an acquisition?

Exercie 3 Strategic answers to strong rivalary? Try to avoid competiton over prices Differentiate through product characteristics Acquisition of competitors Concentrating on single market segments Invest in stronger brand image and customer loyalty Strengthen entry barriers Create alliances with producers of complementary products Increase switching costs for customers Self entry into market for substitute Strengthen perceived and actual differences to substitute Establish partnerships Increase supplier dependency Backward integration Providing additional value to customoer Setting other preferences than price Crossing over distributors Assumption of free markets (today more regulations) Fits industries with low complexitiy, hard to visulize complex dependencies Unstable market conditions and dependencies are hard to tackle

Strategic answers to strong entry threats? Strategic answers to upcoming Strategic answers to strong bargaining power of suppliers? Strategic answers to strong bargaining power of buyers Critique of Porters Five Forces?

Lecture 3 What are indicators of a well-executed strategy? What are components of a Single-Business Companys Strategy? What are Key financial Ratios? The company is achieving its stated financial and strategic objectives The company is an above-average industry performer Growth in firm sales and market share

Lecture 3 Slide 7

Profitability ratios Profit margin Return on Equity: how efficient a firm uses its stockholders equity Return on Investment: how efficient a firm uses its capital Liquidity ratios current ratio: firms ability to meet its short-term financial obligations Working capital: how much capital is shortly available (in cash) Leverage ratios Debt-to-equity ratio Debt-to-capital ratio Aktivity ratios average collection period Other measures of financial performance dividend yield on common stock

What is a resource? What is a capability? What are tangible resources? What are intangible resources?

It is a productive input or competitive asset that is owned or controled by a company. It is a capacity of a firm to perform some activity proficiently (e.g. superior skills in marketing). Physical, financial, technological and organizational resources. Human assets and intellectual capital; Brand, company image and reputational assets; Relationships (joint ventures or alliances); Company culture and incentive system

What is an organizational capability?

It is a intagnible but observable capacity of a firm to perform a critical activity proficiently using a related combination of it resources It is a knowledge-based, residing in people and in a firms intellectual capital or in its organizational processes and functional systems, which embody tactic knowledge. Rivals providing better substitute over time Capabilities decaying from benign neglect Disruptive competitive environmental change Identify the firms resources and capabilities Test the competitive power of these resources and capabilities Is it competitively valuable Is it rare something that rivals lack? Is the resource hard to copy? Are there good substitute available for the resource?

What are threats to capabilities and resources? What is the resource and capability analysis?

What means managing capabilities dynamically?

Is the process of creating new and/or updating existing resources/capabilities to obtain durable value in both resources types in syncing their support of a resourcebased competitive strategy Lecture 3 Slide 19

What is SWOT Analysis?

Is a tool for seizing up a firms: Internal Strength Internal weaknesses (competitive deficiencies) Market opportunities External threats A competence Is an activity that a company has learned to perform proficiency a capability A core competence Is a proficiently performed internal activity that is central to a firms strategy and competitiveness A distinctive competence Is a competitively valuable activity that a firm performs better than its rivals

How do you identify a companys internal strengths

How do you identify a companys weaknesses?

A weakness is something a firm lack or does poorly or a condition that puts it at a competitive disadvantage in marketplace. Types of weaknesses: Inferior skills, expertise or intellectual capital Physical, organizational or intangible assets defiencies Missing or inferior capabilities in key areas must pursue market represents much potential but is hidden in fog of future marginally interesting market presents high risks and questionable profit potential unsuitable/mismatched market the firms strengths are not matched to market factors best avoided Types of threats: normal course-of-business threats sudden-death threat Considering threats: Identify the threats to the companys future prospects Evaluate what strategic actions can be taken to neutralize or lessen their impact

What are characteristics of marlet opportunities? What are threats to a companys future profitability?

Conclusion of SWOT Analysis What are signs for a firms competitive strength?

Lecture 3 Slides 26/27 Its prices and costs are in line with rivals Its customer-value proposition is competitive and cost effective Its bundled capabilities are yielding a sustainable competitive advantage

What are tools for analyzing competitive strength? What is a Value chain?

Activity systems/ bundles Value chain analysis Identifies the primary internal activities that create customer value and the related support activities. Permits a deep look at the firms cost structure and the ability to offer low prices Reveals the emphasis that a firm places on activities that enhance differentiation and support higher prices

What is the concept of Lecture 3 Slides 32/33 a company value chain? What is the Value Chain Analysis? What is the Value Chain Analysis Process? What is a Industry Value Chain? What are Effects of the Industry Value Chain? Facilitates a comparison, activity-by-activity, of how effectively and efficiently a company delivers value to its customers, relative to its competitors Segregate the firms operations into different types of primary and secondry activities to identify the major components of its internal cost structure Use activity-based-costing to evaluate the activities Do the same for significant competitors

The firms internal value chain, value chain of industry suppliers, value chains of channel intermediaries Costs and margins of suppliers and channel partners can affect prices to end consumers Activities of channel partners can affect industry sales volume and customer satisfaction Lecture 3 Slide 35 Involves improving a firms internal activities based on learning other companies best practices Assesses wheather the cost competitiveness and effectiveness of a firms value chain activities are in line with its competitors activities Report, trade groups, analysts, customers Visits to benachmark companies Data from consulting firms The firms own activity segments The suppliers part of the overall value chain The distribution channel portion of the chain

What is Benchmarking?

What are sources of Benachmarking information? How can a firm improve their efficiency and effectiveness in the total value chain? What are ways to improve efficiency and effectiveness? What is business process reengineering?

Lecture 3 Slide 41/42/46

best practice for improving efficiency and effectiveness of internal value chain activities The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance Boosts efficiency by directing efforts to activities that add value to the good or service produced Top managers must support efficiency improvements for them to be accepted by workers Enhancing Differentation Engage in cooperative advertising and promotions with forward channel allies. Use exclusive arrangements with downstream sellers or other mechanisms that increase their incentives to enhance delivered customer value. Create and enforce standards for downstream activities and assist in training channel partners in business practices.

What are DistributionRelated Value Chain activities?

Achieving cost based competitiveness Pressure forward channel allies to reduce their costs markups so as to make the final price to customers more competitive Collaborate with forward channel allies to identify win-win opportunities to reduce costs Change to a more economical distribution strategy, including switching to cheaper distributino channels Ability to effectively and efficiently bundle resources and capabilities Achieving a high rank on each key success factor Having a net competitive advantage over its rivals

What are competitive advantage indicators? What is a competitive strength assessment?

1. Make a list of the industrys key success factors and measures of competitive strength or weakness 2. Assign a weight to each competitive strength measure based on its perceived importance 3. Rate the firm and its rivals on each competitive strength measure and multiply each measure by its corresponding weight The higher a firms overall weighted strength rating, the stronger its overall competitiveness versus rivals. The rating score indicates the total net competitive advantage for a firm relative to other firms. Firms with high competitive strength scores are targets for benchmarking. The ratings show how a company compares against rivals, factor by factor (or capability by capability). Strength scores can be useful in deciding what strategic moves to make.

What are strategic implications of the competitive strength assessment?

Critical Remarks? What are key factors that distinguish one strategy from another? What are the five generic competitive strategies?

Lecture 3 Slide 54/55 1. Is the firm target market broad or narrow? 2. Is the competitive advantage pursued linked to low costs or product differentiation? 1. Low cost provider: 2. Broad differentiation: 3. Focused low-cost: 4. Focused differentiation: 5. Best-cost provider: Lecture 4 Slide 7! Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers Differantiating the firms product offering from rivals with attributes that appeal to a broad spectrum of buyers Concentration on an narrow price-sensitive buyer segment and on costs to offer a lower-priced product Concentration on a narrow buyer segment by meeting specific tastes and requirements of niche members Giving the customer more value for the money by offering upscale product attributes at a lower cost than rivals

Lecture 4 - The five generic competitive strategies

What are effective low cost approaches?

Pursue cost savings that are difficult to imitate but avoid reducing product quality to unacceptable levels competitive advantage: Selling products at prices comparable to rivals with larger profit margins Underpricing competitors and attract new customers: Total profits can be greater through increased market share Lecture 4 Slide 9-12 A firms cumulative costs for its overall value chain must be lower than its rivals cumulative costs (Slide 14) Revamp the firms overall value chain to eliminate or bypass cost producing

What is a low cost advantage? How to gain a low cost

advantage? What are risks? What is a cost driver? What are ways to secure a cost advantage?

activities Invest in process innovations Invest in up to date equipment Risks: not enough new buyers; price war with rivals A factor with a strong influence on a firms costs Use lower inputs and hold minimal assets Offer only essential product features or services Offer only limited product line Use low-cost distribution channels Lecture 4 Slide 19 Bypass the activities and cost of distributors and dealers by selling directly to consumers Coordinate with suppliers to bypass activities, speed up their performance or otherwise increase overall efficiency Reduce handling and shipping costs by locating suppliers close to the firms own facilities Prive competition among rival sellers in vigorous Products are readily available from many sellers poor differentiation switching costs are low Large buyers have to power to bargain down prices New entrants can use introductory low prices to attract buyers

How revamping the value chain system to lower costs?

When does a low cost provider strategy work best?

What are pitfalls of a low cost provider strategy

1. Investments to reduce costs may be higher than extra profits due to cost reduc. 2. Rivals might be able to copy cost reduction and the market price falls due to competition 3. Lowering selling prices results in gains that are smaller than the increases in total costs 4. Neglect quality: Becoming to fixated on cost reduction poor quality/ no buyer appeal Carefully stuy buyer need and behaviours, values and willingness to pay a unique product or service Incorporate features that both appeal to buyers and create a sustainably distinctive product offering Use higher prices to recoup differentiation costs

What are effective differentiation approaches?

What are advantages of Premium prices for products differentiation? Increased unit sale Brand loylity A Uniqueness Driver can...? ...have a strong differentiating effekt ...be based on physical as well as functinal attributes of a firms products ...be the result of superior performance capabilities of the firms human capital ...create a perception of value (brand loyality) in buyers where there is little reason for it to exist Lecture 4 Slide 32 Coordinating with channel allies to enhance customer perception of value Coordinating with suppliers to better adress customer needs Diversity of buyer needs and uses for the product Many ways that differentiation can have value to buyers Few rival firm follow a similiar differentiation approach Rapid chance in technology and product features Relying on attributes easily copied by rivals Introducing product attributes that do not evoke an enthusiastic buyer respnse Eroding profitability by overspending on efforts to differentiate the product

What are approaches to enhanceen differentiation? What are market circumtances that favor differentiation? What are pitfalls of a differentiation strategy?

 When is a focused lowcost or focused differantiation strategy atrractive? What are the risk of a strategy? What is best cost provider strategy? What favours a best cost provider strategy?

range Adding frills and features that the product exceeds the needs of consumers The target market niche is big enough to be profitable It is costly of diffucult for multisegment competitiors to meet the needs of target market niche buyers Rivals have little or no interest in the target segment Competitors will find ways to match the focused firms capabilities in serving the target niche The specialized preferences and need of niche members to shift over time towards the product attributes desired by the majority of buyers As attractiveness of niche increases, it draws in more competitors reduces/ splits profits

Differentiation: Providing desired quality/ features/ services/ performance Low cost provider: Charging a lower price than rivals with similar product offerings Product differentiation is the market norm large numers of value-conscious buyers, who prefer midrange products There is competitive space near the middel of the market for a competitor with either a medium-quality product at a below-average price or a highquality product at an average or slightly higher price

Risk of a best cost provider strategy Summary Exercise 6 How to choose the basis for a competitive attack?

Lecure 4 Slide 43 Lecture 4 Slide 48-51 Avoid to attack competitors where they are best The offense may not yield immediate results if rivals are strong competitors Be prepared for a counter-response Use the firms strongest strategic assets to attack a competitors weaknesses Adopt and improve on the good ideas of other firms Lowers the firms risks of being attacked Weaken the impact of an attack that does occur Influence challengers to aim their efforts at other rivals Publicly announcing its commitment to maintaining the firms present market share Maintaining a war chest of cash and marketable securities. Making a strong counter-response to the moves of weaker rivals to enhance its tough defender image.

What are purposes of defensive strategies? Why is signaling an effective defensive strategy?

What are First-movers advantages? What are First-movers disadvantages? What are strategy alliance factors? How to capture the benefits from strategic alliances?

First movers customers face significant switching costs Firts mover can set the technical standard for the industry Being first in the market creats brand loyality Pioneering is more costly than imitating When the products of an innovator do not meet customers expectations Market uncertainties

Excerice 6 Slide 13 Picking a good partner: complementary strengths use synergies have common goals Being sensitive to cultural differances Recognizing that the alliance must benefit all sides: trustful relationships, information must be shares,

Ensuring all partners keep their commitments: division of work has to be fair, benefits have to be shared adequately Structuring the decision making process for swift actions efficient internal and external decision making process Adjusting the agreement over time to fit new circumstances Adapting the nature and structure of the alliance to be responsive to changing market conditions, emerging technologies, changing customer requirements

Lecture 5 - Strengthening a companys competitiv position How to maximize the power of a strategy considering defensive and offensive strategies? What is an offensive move? What is an defensive move? What about timings importance? Sustainable competitive advantage can be reached only by developing dynamic capabilities in order to create a constant stream of innovation Managers constantly have to consider the surrounding factors on develop. Offensive strategies to augment market share or access new markets Defensive strategies to protect their position against competitors With an offensive move a company attacks an existing market or creates a new market With a defensive move a company defends its existing market position To be a first mover or not? Knowing when to make a strategic move is as crucial as knowing what move to takec Moving first is no guarantee for success or competitive advantage The risk of moving first to stake out monopoly position must be carefully weighted Does market takeoff depend on complementary products or services that currently are not available? Is new infrastructure required? Must buyers learn new skills or adopt new behaviours? Will buyers encounter high switching costs?

How to maximize the Decisions regarding the scope of a firm focus on which activities a firm will power of a strategy perform internally and on which it will not considering redefinding Managers have to consider: the scope of Broaden the scope of a firm by vertical and horizontal mergers and operations? aquisitions Focusing on core competencies by outsourcing activities Gaining competitive advatage by engaging into strategic alliances with other companies What are dimensions of Lecture 5 Slide 14 firms scope? Potential benefits of increasing horizontal scope? ...can strengthen its business and increase its profitability by: Heightening its product differentiation and widening its geographical scope Reducing market rivalry Increasing the firms bargaining power over buyers and suppliers Gaining quick access to new technologies or complementary resources or capabilites A vertical integratet firm participates in multiple segments or stages of and industrys overall value chain A vertical integration strategy expands the firms range of activities backward into its sources of supply and/or forward toward end users of its products Reduction of supplier power Reduction in cost of major inputs Assurance of the supply and flow of critical inputs

What are vertical integration strategies?

What are reasons for integrating backward?

 What are reasons for integrating forward? What are disadvantages of vertical integration strategy?

Protection of proprietary know-how To lower overall cost by increasing channel activitiy efficiency relative to competitors To increase bargaining power through control of channel activities To gain better access to end users To strengthen and reinforce brand awareness Increased business risk due to large capital investment Loss of operation flexibility through dependence on internally self-produced parts and components Less flexibility in meeting buyer preferenes Requirements for new skills and business capabilities

What are Mergers: The combining of two or more firms into a single corporate entity Mergers&Acquisitions? Acquisitions: A combination in which one firm, the acquirer purchases and absorbes the operations of another firm What is horizontal M&A? What is vertical M&A? Horizontal M&A involve combining the operations of firms within the same general industry and provide an effective means for firms to rapidly increase the scale and horizontal scope of their core business Vertical M&A can expand the firm s range of activities backward into sources of supply and/or forward towards end users

Why does M&A sometimes do not produce anticipated results?

Strategic Issues Cost savings may prove smaller than expected Gains in competitive capabilities take longer to realize Organizational Issues Loss of key employees at the acquired firm Corporate cultures, operating systems and management styles fail to mesh due to resistance to change from organization members

What is outsourcing? Outsource an activity when it...

Farming out value chain activities to outside vendors ...can be performed better or more cheaply by outside specialists ...improves organizational flexibility ...reduces risks due to new technology and/or buyer preferences ...allows a firm to concentrate on its core business Loss of control Lack of incentive for outside parties to make investments specific to the needs of the outsourcing firms value chain Hollowing out the resources and capabilities that a the firm needs to be a master of its own destiny Minimizes the problems associated with vertical integration, outsourcing and m&as Useful in extending the scope of operations via international expansion and diversification strategies Offers greater flexibility should a firms resource requirements or goals change over time

What are risks of outsourcing value chain activities?

What are benefits of strategic alliances and partnerships?

Lecture 6 What is globalization? The shift toward a integrated and interdependent world economy Globalization of markets separet market into one global market standarized products Globalization of products increased outsourcing of service activites

Refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost or quality of

production factors What are global insitutions? What is driving globalization? Lecutre 6 Slide 10 Lecture 6 Slide 12

What does globalization Low barriers to trade view the whole world as their market; base production in mean for firms? the optimal location for that activity Technological change Lower transportion costs; Lower communication costs; Global communication network What is the dynamics of global competition? Globalization debate? Culture Analysis Exercise 6 Hofstedes cultural dimensions Exercise 6 Slide 10ff Lecture 6 Slide 17 Lecutre 6 Slide 20-23 Rest Lecture 6