Cross-border strategic affiances are becoming increasingly common as innovative - companies seek rapid entry into foreign markets and as they try to reduce the risks of going it alone in complex environments. Those companies which do well are those which do their homework and pick complementary stra.... readmore
With subsidiaries, suppliers, distributors, manufacturing facilities, carriers, brokers and customers all over the globe, global trade is complicated and fragmented. Shipments cross borders multiple times a day. Are they compliant with all the latest trade regulations? Are they consistently classifi.... readmore
- “Americans see themselves as the world's leading country, and it's not easy for them to accept having a European in charge.”
“It is difficult for Americans to develop a world perspective. It's hard for them to see that what may optimize the worldwide position may not optimize the US. activi.... readmore
Culture is one variable which is often overlooked when deciding on entry strategies and alliances, particularly when we perceive the target country to be familiar to us and similar to our own. However, cultural differences can have a subtle and often negative effect.
As many of Europe's large.... readmore
There are many areas of influence by host governments on the strategic choice and implementation of foreign firms. The profitability of those firms is greatly influenced, for example, by the level of taxation in the host country and by any restrictions on profit repatriation Also important influence.... readmore
committee approval for specific decisions and budgets. These studies show that a variety of mechanisms are available to parent companies to monitor and guide IJV performance.
The extent of control exercised over an liv by its parent companies seems to be primarily determined by the decision-m.... readmore
Of course, we cannot assume equal ownership of the W partners; where ownership is unequal, the partners will claim control and staffing choices proportionate to the ownership share. The choice of the IT'! general manager, in particular, will influence the relative allocation of control because that .... readmore
Much of the world's international business activity involves IJVs, in which at least one parent is headquartered outside the venture's country of operation. IJVs require unique controls; ignoring these specific control requisites can limit the parent company's abifity to efficiently use its resource.... readmore
IMPIEMENTATION McDONAID'S STYLE
Form paradigm-busting arrangements with suppliers.
Know a country's culture before you hit the beach.
• Hire locals whenever possible.
• Maximize autonomy.
• Tweak the standard menu only slightly from place to place.
• Keep pr.... readmore
Choose the Right Partner The primary reason for IJV failure is a poor match between partners - because of lack of compatible goals or strategy, because the CIS partner company is unreliable, or because it lacks the necessary licenses to either produce a product or to export it or be involved in deve.... readmore