...07-079 Innovation through Global Collaboration: A New Source of Competitive Advantage Alan MacCormack* Theodore Forbath** Peter Brooks ** Patrick Kalaher** *Harvard Business School, Boston, MA **Wipro Technologies, Product Strategy and Architecture Practice, Boston, MA Copyright © 2007 by Alan MacCormack, Theodore Forbath, Peter Brooks, and Patrick Kalaher. Note: This is one of two papers reporting the results from this research. The other is “From Outsourcing to Global Collaboration: New Ways to Build Competitiveness,” HBS Working Paper 07-080. Working papers are distributed in draft form for purposes of comment and discussion. It may not be reproduced without permission of the copyright holders. Copies are available from the authors. Innovation through Global Collaboration: A New Source of Competitive Advantage Date: August 14th 2007 Alan MacCormack* Harvard Business School, Soldiers Field, Boston, MA 02163 Theodore Forbath, Peter Brooks, Patrick Kalaher Wipro Technologies 75 Federal Street, Boston, MA 02110 * Corresponding Author Abstract Many recent studies highlight the need to rethink the way we manage innovation. Traditional approaches, based on the assumption that the creation and pursuit of new ideas is best accomplished by a centralized and collocated R&D team, are rapidly becoming outdated. Instead, innovations are increasingly brought to the market by networks of firms, selected for their unique capabilities, and operating in a coordinated...
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...maximize their profit while maintaining a well planed and followed expansions/global strategy. One important fact is to focus on the main objective of any firm; “Maximizing shareholder value” any strategy is mostly designed and built around this objective. To evaluate and review the strategies presented in this chapter two current events are visited at the end of the paper; Nokia’s cost reduction strategy and Hollywood’s Global Expansion strategy. Hollywood for one is focused on the global market and the ability to successfully expand through these markets, since 1980s as mentioned by Jeff Kleeman the executive producer of “The Change-Up” (Lang, 2011) Hollywood were targeting the global market but now they are more focused on the how rather than just the revenues from these global markets. Nokia’s global strategy on the other hand is aligning workforce with site operations. Nokia is one of the successful telecommunication companies worldwide with more than a billion users worldwide. (Nokia Corporation, 2011) Chapter Summary The Strategy of International Business chapter reviews some basic principles of international business strategies and how these strategies can be used to profit from international expansions. The chapter defines strategy as “the actions managers take to attain the goals of the firm” (Hill, 2011, p. 402). The chapter is divided in few sections as follows: Strategy and the Firm, in which the author discusses how a firm’s profitability can be maximized...
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...Successful Product Adaption NAME Strayer University MKT320: International Marketing Professor Michael Tustin World economies are becoming more global; therefore, non-tariff and tariff barriers are becoming less relevant in most economies. International marketers have been attracted to the similarities and openness of global markets and are pursuing opportunities aggressively. Although distance is no longer a perceived problem, an international marketer has to consider factors such as culture and economic conditions as they play a pivotal role in the adaptation of products and their offerings. International marketers that are focused on products have to consider a great deal of things before entering or selling products abroad. For example, government regulations, customer preferences and expectations are variable and influential as products are introduced into the global marketplace. Other factors that a marketer must take into consideration are: product readiness for the international market entry; brand name, packaging, and appearance (Czinkota and Ronkainen, 2010). International marketers will have to pay close attention to these as they may call for adaptation. A firm’s successful venture of introduction a product internationally, depends on how good its product and its offerings are and how well the firm is able to differentiate the product from the offerings of other competitors (Czinkota and Ronkainen, 2010). This is what gives a company a competitive...
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...Global marketing strategies Chapter 1 Introduction to global marketing Question for discussion 1. Expalin the scope for global marketing. * Global marketing is a process of conceptualizing and then conveying a final product or service worlwide with the hopes of reaching the international marketing community. In today business world the scope of global marketing is extending far and wide all over the world. The good and servies developed in one place can be extended to all over the world through global marketing, for eg. Coca-cola which is also the world largest soft drink company in the world has use the benefit of global marketing . In the same way mac donald which is the world largest chain of fast food resturant enjoy the benefit of global marketing. Global markeing is especially important to those companies that provide good and servies that have a universal demand such as automobiles, soft dring and fastfood. Different strategies are implemented based on the region to make the best use of global marketing for example the menu at mac donald varies based on the location of the resturant. The company focuses on marketing popular items within the country. In today world whole range of service industries are involved in global marketing for eg, banks, airlines, hotel chains, consulting companies, major advertising agencies and many more market their service worldwide. So the scope of global marketing is unlimited. 2...
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...Companies globalize in order to target a larger market. With a larger market, companies can increase their profit from the services and products that that would be accessible to a higher number of consumers. To go global, companies must begin with a strategic plan and then move on to full implementation. They must also develop a knowledge base through marketing research to ensure that that the right choices are being made. Companies must also concentrate on market entry through exporting and other low-cost, low-risk international expansions alternatives. With globalization comes great opportunity for growth but also the many challenges of entering brand new markets. CEO’s and marketing executives face marketing decisions that can affect the future of the company for many years to come. They must employ strategic planning to match new markets with products and corporate resources more effectively and efficiently to strengthen the company’s long term competitive advantage (Czinkota & Ronkainen, 2010). Daily decisions then fit into the company’s overall strategic marketing goals. Companies that implement a formal strategic planning process will increase profitability as well as improve various nonfinancial objectives. The first step of the strategic planning process is assessment and adjustment of core strategy. This begins by defining the business that the strategy is being developed for. Companies must understand exactly the business that is being conducted before...
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...address penetrating the global marketplace and broaden the area of operations and sales for ToolsCorp Corporation. This paper will include the overall evaluation of this corporation and the long term strategic plan development. It will also include the corporation’s mission and vision statements. ToolsCorp Introduction ToolsCorp Corporation, a company out of Tennessee that builds power tools, lawn mowers, lawn furniture, microwaves, and ranges. Currently these products are sold in retails such as Sears, Best Buy, and Wal-Mart. Their products are manufactured locally and have a promising business within the US and Canada. The plan is to introduce ToolsCorp into the global market place to become one of the largest establishments in its field. By gaining this large establishment and the global market place, ToolsCorp can overcome their competitors in sales to dominate the market. Mission Statement The nine components of a mission statement are customers, products / services, markets, technology, concern for survival, growth, and profitability, philosophy, self-concept, concern for public image, and concern for employees. These nine components look at who the firm’s customers are; what the firm’s major products or services are; geographically speaking, where the firm competes; is the firm technologically current; is the firm committed to growth and financial soundness; what the basic beliefs, values, aspirations, and ethical priorities of the firm are; what the firm’s...
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...NEW PRODUCT INNOVATION No. 9 in a Series of Papers Reference Paper by: Teresa Jurgens-Kowal PhD, PE, NPDP Global NP Solutions 2323 Clear Lake City Blvd., #180 Suite 177 Houston, TX 77062 PHONE: 281-280-8717 FAX: 281-280-8689 www.globalnpsolutions.com page 1 © Copyright 2010 Global NP Solutions, LLC changes in the market or technology environments. In this paper, we present four idealized case studies, representing one view of innovation strategy types. These were first described by Raymond Miles and Charles Snow in 1978 Miles & Snow’s structures, response characterization and to in changes (1) THE ENTREPENEURIAL PROBLEM As with any strategy assessment, a choice must be made regarding the market arena, the technology, and the products or services to be offered. Miles & Snow identify this as “The In short, how . Despite the intervening thirty or so years, of in management management’s particular Entrepreneurial Problem.” should the company manage share? it market technology or markets, remains as a dominant theory for Innovation Strategy. Many other papers have evaluated Miles & Snow strategy typologies (2) (3) (4) , yet few In NPD terms, we would say that The Entrepreneurial Problem should be addressed is Stages 1 and 2, or the Fuzzy Front End, such that we have identified a clear and present market need for our new product, service, or program. authors have specifically address how each would approach and implement the...
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...(1994) more than a decade ago and attracted so much attention is in regard to young firms and their growth in the global marketplace. In their article, they were able to bring to fore the importance of International New Ventures (INVs), internationalization and their advantages to the global marketplace. SHENKAR, O. and LUO, Y. (2008, p.11) describes INVs as firms that target the international market as they are launching their operations while according to SHENKAR, O. and LUO, Y. (2008, p.534), Oviatt and McDougall (1994) defined INVs as a business organization from its start off, seeks competitive advantage from the use of resources and the sale of output from different countries. Oviatt and McDougall (1994) asserted that age at internationalization was critical to its successful survival, expansion and performance whereas ZAHRA, S.A. (2005) was of the view that variation could impact on the clarity of an organizations essence to internationalization. They also opined that for a firm to internationalize, it is influenced by its production capacity, the size of its home market, economic and cultural forces as well as traditional firms that enter into the international market. Of note also was the issue and importance of International Entrepreneurship (IE), which has received scholarly attention in the past. In her article, ZAHRA, S.A. (2005) was able to identify some factors that give new firms the competitive advantage in the globalized economy though she was quick to add that...
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...Becoming a Global Firm Abstract The global business law firm DLA Piper did not arrive at its position as the recognized leader in its industry without a strategic plan to integrate and align it various regional entities. In fact, it was the vision of integration and alignment by its executive team that led to making DLA Piper the pre-eminent global business law firm today. This case study analysis will describe the setting & environment leading up to, during, and post-merger, then identify the stakeholders involved, and analyze the case context. In addition, Adler & Gundersen (2008) applications, along with options, decision factors and recommendations will be addressed. Setting and Environment In early 2005, two leading firms, DLA and Piper Rudnick, merged in the largest ever in the legal market. DLA, based in the UK, and Piper Rudnick, based in the USA, came together in order to establish a global platform and a foundation for accelerating growth. The two firms, along with US West Coast firm Cray Cary Ware and Freidenrich, became the merged DLA Piper. Initially, the firm would be led by three joint CEO’s who would have to address the issues that would make it a leading business global law firm. In order to achieve its strategic goal, the leadership of the new firm recognized that it must become aligned across its strategy, people, systems, structure, culture, and management. To achieve its express goal of becoming a global business law firm, several...
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...Export Readiness Analysis 2XU is an Australian sports apparel company established in 2005, the firm employs 45 full time employees making the firm a SME (Small and Medium Sized Enterprise) (Global Execellance, 2013). The firm specialises in producing compression clothing in the growing international sportswear market, which is worth US$244 billion (Heathcote, 2013). 2XU began as born global, with goals to establish itself as a global brand from conception. These goals were achieved in 2007, with direct exports to distributors based in the United States. Since, 2007 the firm has established itself as a gloabal brand with exports to 57 countries world wide (Heathcote, 2013). A crucial aspect of 2XU establishing itself as an international firm, has been the successful application of Export Market Development Grants from Austrade totalling $500,000 (Australian, Business Financing Centre, 2013); with the EMDG, reducuing the initial costs of exporting. While 2XU, has already established itself as a global firm, the company needs to continue its expansion into new markets, if it is to achieve is goal of $1 billion of sales within the next 10 to 15 years. Therefore it must be asked, is 2XU is ready to begin exporting to a new market? Export readiness measures how prepared a firm is to conduct its business within a new export market. An Export ready firm must fufill three criteria, it must have; a competitive advantage, suitable and adequete resources and have a clear strategy...
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...Question 1 Japan's NEC and U.S. based AT&T most likely formed a strategic alliance in order to ________. Answer | | reduce political and cultural risks | | | avoid licensing requirements | | | access new technology and new markets | | | develop a mutually useful infrastructure | 2 points Question 2 A firm that uses an international division structure may experience conflict among all of its divisions because ________. Answer | | the structure type is not very efficient | | | the international division fails to respond to cultural differences | | | more resources tend to be provided to the international division | | | fewer resources tend to be provided to the international division | 2 points Question 3 A global firm's success or failure is increasingly dependent upon ________, which cannot be duplicated. Answer | | human resources | | | raw materials | | | Technology | | | Capital | 2 points Question 4 A global leader's role is an interaction of which two sets of variables? Answer | | content and context | | | cultural and societal | | | internal and external | | | personal and professional | 2 points Question 5 A merit-based reward system would be ineffective in Taiwan because such a system would most likely ________. Answer | | disturb workplace harmony | | | embarrass senior employees | | | conflict with political norms | |...
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...Statement of the Problem We don’t know the best strategy to successfully merge and capitalize on the competencies of EDS and A.T. Kearney to help the new entity reach its maximum potential and to “significantly differentiate the new enterprise from its competition” (Spiro, Rich & Stanton, 2008, p.524). This must be achieved while ensuring that A.T. Kearney not be “viewed as a front end for EDS by its current and potential customers” (Spiro, p. 533). Summary of the Facts A.T. Kearney, one of the largest global management consulting firms was acquired by Electronic Data Systems (EDS), a leader in global information services, in 1995 for an estimated $600 million. The acquisition would allow EDS/ A.T. Kearney to be a “one stop shop” (p. 525) that could offer a broad range of services to their clients. This potential opportunity would be challenged by the potential difficulty of merging the two companies together. A.T. Kearney conducted a survey of “senior executives at Global 1000 companies to explore their attitudes towards the role of information technology in their businesses” (p. 525). The survey revealed that information technology was evolving. It was no longer being viewed as just a tool to increase productivity. Technology was being recognized as an important part of an organization’s strategic objectives because it could be used to “help solve problems, set new levels of service and create new distribution” (p. 525). The study reached the following main conclusions: ...
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... a. MNEs may be headquartered anywhere in the world. b. MNEs are often owned by a mixture of domestic and foreign stockholders. c. Ownership in a MNE may be so dispersed internationally that they may be known as transnational corporations. d. MNEs are often managed from a global perspective rather than from the perspective of any single country. e. The term enterprise is used rather than corporation because as business move into many emerging markets, they will enter into business arrangements with various types of enterprises that are not corporations such as joint ventures, strategic alliances, or simply operating agreements with enterprises that may not be publicly traded or even privately owned, but are actually extensions of the government. Domestic firms may export their products or not. Domestic firms may license foreign firms to conduct the domestic firm’s foreign business. Domestic firms are not protected from international competition. Purely domestic firms must understand the multinational nature of business today. Globalization and Creating Value in the Multinational Enterprise To become a successful multinational enterprise requires (1) an open marketplace, (2) high quality strategic management (the ability to manage people and see profitably productive opportunities) and (3) access to capital. (See Exhibit 1.1). An Open Marketplace is another term for Free Trade or free movement of labor, capital...
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...“The global factors influencing on business strategy” Content 1. Abstract 4 2. Introduction 4 3. Literature review 5 4. Research metrology 6 5. Strategy 7 5-1 - Export Markets 8 5-2 - International Markets 8 5-3 - International Competitiveness 9 5-4 - International trade 9 5-5 -Trade blocs 10 5-6- International strategy 10 5-6-1 Mergers and acquisitions 11 5-6-2 Alliance 12 5-6-3 Cost leadership 13 5-6-4 Joint venture 13 6. Global Factors: 14 6-1 -Political 14 6-2 -Social 15 6-3 -Economic 17 6-4 -Technological 18 6-5 - Legal 19 7. Conclusion 20 8. Reference 21-22 1-Abstract Successful global business strategy addresses the operational and executive issues enterprise face when looking internationally for few opportunities. Attend successful global operations to develop an action plan...
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...Management (2012-08-MAN-372-OL011) Management Strategies and Building a more Successful Global Business Introduction Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan for tax exposures, business model alterations, and international corporate structure in advance, then you’re setting yourself up for an uphill battle at best — and failure at worst. With the increasing trend of globalization, industries are rapidly expanding into the international market. With no exception, many U.S.-based companies are expanding beyond the home country despite the risks. Why is international expansion important? A company can grow by exploiting overseas market opportunities and imperfections through internationalization, and growth has a positive impact on the firm performance. In short, international expansion can be profitable to companies. Moreover, why is the relationship between international expansion and firm performance important? Ultimately, a company’s performance is the objective and outcome...
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