4 Book Summaries

8/2/2019 4 Book Summaries

1/10

Book SummariesManaging Across Borders (1989)

The Borderless World (1990)

Competing for the Future (1994)


2/10

Sumantra Ghoshal & Christopher Bartlett

Managing Across Borders,

1989Three

types of organizational models:

1. Multinational model: Decentralized federation of localfirms, high degree of local responsiveness (Philips,Unilever)

2. Global model: Scale efficiency standardized products;

centralized control. Other nations mainly pipeline fordelivery - conduits to new market opportunities (Ford,Matsushita)

3. International model: Focus on technology transfer to less

advanced environments; fostered by superior know how atthe center of the organization.

4. TRANSNATIONAL MODEL: Combination of localresponsiveness with global efficiency; Network ofspecialized units. Signals demise of divisionalorganization. Contd..


3/10

Managing Across Borders (Contd..)

Porters theory is static. It focuses strategic thinking on gettingthe largest possible share of a fixed economic pie.

Ghoshal: Companies have to create value, not appropriate it.

Todays leading companies are built around three Ps:Purpose, Process & People.

Put people, creativity and innovation at the top.Keys to competitive advantage in a turbulent economy:

1. Company should innovate its way out of relentless marketpressures

2. Company should shift emphasis to creating value ratherthan acquiring it

3. Managers should shift focus from obedience, control &conformity to initiative, relationship building and

continuous challenge of status quo.


4/10

Kenichi OhmaeThe Borderless World, 1990

Takes account of globalization in strategic planning.

Focus less on competitive aspects of strategy (as promoted byPorter) and focus more on country and currency, whichare important to business strategy.

1. Country: Government created environments in whichglobal organizations must operate

2. Currency: Exposure of such organizations to fluctuations inforeign exchange rates.

Fluctuations in trade policy or exchange rates can affect anotherwise brilliant strategy.

Contd..


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The Borderless World, 1990

Strategy should create value for customers. Customers are nolonger driven by nationalistic considerations

Global business balances world-scale economies with productstailored to key markets. Countries are government

creations. Economies are interlinked.Central governments must change to allow individuals access

to the best and cheapest goods from anywhere in theworld, avoid abrupt changes in policies, coordinate with

other governments to minimize conflicts arising fromnarrow interests.


6/10

Gary Hamel & C. K. Prahalad

Competing for the Future, 1994

Companies are getting better & bigger through downsizing,delayering, reengineering & continuous qualityimprovement incremental improvements by mimicingbest practices. Cost efficiencies are squeezed to themaximum and there is nothing more to gain.

New forces are changing the nature of competition:

1. Deregulation & privatization

2. Increase in new entrants

3. Changing customer expectations4. Continuous technological development

5. Shifting boundaries of control & authority

6. Changes in traditional loyalties

7. Lowered value of experience Contd..


7/10


No view of the future can be perfect, but view of some sort isessential.

Shift focus from return on individual businesses to conditions,processes and competencies that enabled those returns.

CoreCompetencies collective learning in the organization,especially coordination of diverse production skills andintegration of multiple streams of technologies.

Organizations are portfolios of corecompetencies what theydo better than the others.

Contd..


8/10


Presents a new view of competitiveness, strategy andorganizations through the ideas of:

Strategic Intent, Core Competencies, Strategic Architecture

Strategic Intent: Way of creating an obsession for winning at alllevels and across all functions of the organization. Usesstretch targets to create competitive advantage.

Strategic Architecture: Framework for leveraging corporate

resources towards strategic intent. Identifies corecompetencies and provides a framework within whichinnovation can be planned and managed.

Contd..


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Core Competencies: (Not the same as core capabilities andcore technologies). Core competency is an ability thattranscends products and markets, and it results when anorganization learns to harmonize multiple technologies,

learning and relationships across levels and functions.Core competence provides access to markets and isdifficult for competitors to imitate.

Sony - miniaturization, Philips optical media, Black & Decker smallelectric motors.

Viewing the organization as a portfolio of competencies leadsto strategic advantage.

Contd..


10/10


Corporate Imagination: Four elements combine to quicken anorganizations imagination:

1. Escaping the focus on served markets (not at the expenseof new & lucrative markets)

2. Searching for new and innovative product concepts (newfunction to a successful product, etc.)

3. Overturning assumptions about price & performancerelationships (radical innovation unattainable dreamsthrough emerging technologies)

4. Leading customers rather than following (to where theywant to go, before they know it themselves)

Expeditionary Marketing: Being first to market provides

competitive advantage.

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