determine the strategies that would result in above average returns. 2. Firms competing within an industry or a certain segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources. 3. Resources used to implement strategies are assumed to be highly mobile across firms, so that any resource differences that might develop between firms will be short-lived. 4. Organizational decision-makers are assumed to be
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Authours: Susanne Göransson Angelica Jönsson Michaela Persson Abstract In the clothing industry firms compete successfully by applying different businessmodels. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses on outsourcing and ZARA’s business-model mainly focuses on in-house production. The problem is that the existing theories alone cannot explain why two firms competing in the same environment under the same conditions choose different business-models.
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Effective Global Strategy Implementation Structural and Process Choices Facilitating Global Integration and Coordination Attila Yaprak · Shichun Xu · Erin Cavusgil Abstract: 0 0 this article offers a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to address is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world
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Modes of Foreign Market Entry • • • • • Exporting Licensing/Franchising Management Focus: Tata Group: Foreign Entry Strategies pp.443-444 Joint Ventures Wholly Owned Subsidiaries Mergers & Acquisitions (M&A) 2 Exporting • Advantages – Avoids the substantial costs of establishing operations in the host country – Achieve experience curve and location economies • Disadvantages – High transportation costs, esp. for bulk products – Tariffs – Divided loyalties of local
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Capabilities of Firms Presented to: Dr. Sherif Delawar By Mohamed Antably March 2012 Cairo, Egypt. Abstract: From one hand the dynamic capabilities of firms are the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. Other hand, Human capital ultimate objectives are linking HR practices and knowledge with goals of the firm to achieve and develop Competitive advantages. Accordingly
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marks) B) Explanation of why an understanding of these elements is so important in managing costs and gaining or sustaining competitive advantage. Establish all important linkages in your answer. (12 marks) The value chain analysis is a useful tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. The core elements of a value chain analysis are the primary and secondary activities and cost. Companies use these primary and support activities
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GRANT CHAPTERS Chapter 16 – Diversification Strategy * Linkages are not enough, the key to creating value is the ability of the diversified firm to share resources and transfer capabilities more efficiently than alternative institutional arrangements * Companies in low-growth, cash-flow rich industries such as tobacco and oil have been especially susceptible to the temptations of diversification * Diversification does not reduce “systematic risk” * Porter has 3 essential tests
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analyzing why firms start to engage in foreign direct investments, the Eclectic Paradigm is a more integrated and general approach amongst the various, it explains how the multinational firms make their decisions and strategies by considering the Ownership Advantages (O), Location Advantages (L) and Internalizations factors (I). The theory incorporates ideas of market failure, location advantages and industrial organizations and is thus more holistic approach. The “O” paradigm explains why firms decide
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theories and firm-based theories. Country-based theories view business in a macro perspective from a point a view of a nation and focus on trading phenomenon particularly in exports and imports. While firm-based theories are modern theories that emerged after the Second World War as it views business in a micro perspective from the angle of a firm. Despite the different perspectives of firm-based theories and country-based theories, they are interlinked and complement each other. The firm-based theories
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STRATEGIES 5.3 Strategies In the previous section you have learnt the objectives for an organization and its key elements. However for an organization to achieve its objectives, the organization must craft or formulate strategies. The strategies are crafted for the purpose of achieving the objectives. In this way the organization will be able to achieve its mission and move closer to its vision. As you have learnt in the first module there are three levels of strategy. In this module
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