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Svend Hollensen
GLOBAL MARKETING4th Edition
1 Global maretin! in the "irm
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ISBN ,-*+)+(-.+-)/-*+/
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Globaliation is "or debate 23
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Learnin! obe'tives
+5hara'terie and 'om6are the
mana!ement st7le in SMEs and LSEs
+Identi"7 drivers "or !lobal inte!ration andmaret res6onsiveness
+E86lain the role o" !lobal maretin! in the
"irm "rom a holisti' 6ers6e'tive
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Learnin! obe'tives 9(:
+;es'ribe and &nderstand the 'on'e6t o"
the val&e 'hain
+Identi"7 and dis'&ss di""erent
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Internationaliation
=irms m&st de'ide
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=i!&re 131
Nine strate!i'
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>hat is this?
The "irm@s 'ommitment to 'oordinate its
maretin! a'tivities a'ross national
bo&ndaries in order to "ind and satis"7
!lobal '&stomer needs better than the'om6etition is no
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Hall@s Lo
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Hi!h+ and Lo
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$"ample o% Globali&ed 'rod(ction
)% the *+,-,,, sticker price o% a General otors
A(tomobile !eans/*0-,,, goes to South Korea- where the car was
assembled*1-,,, goes to Japan %or sophisticated high2tech
parts 3engines- transa"les- electronics4*5,, goes to Taiwan, Singapore- and Japan %or
small parts
*6,, goes to Great Britain %or advertising and
marketing services*7-,,, goes to Ireland %or data processing*8-0,, goes to GM and its e"ternal pro%essional
%irms in the nited States
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserve.
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%arent+5o&ntr7 Nationals 9%5N@s
Host+5o&ntr7 Nationals 9H5N@s:
Third+5o&ntr7 Nationals 9T5N@s:
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A66roa'hes to Sta""in!
=a'tors a""e'tin! a66roa'hes to sta""in!
General sta""in! 6oli'7 on e7 6ositions at
head&arters and s&bsidiaries
5onstraints 6la'ed b7 host !overnment
Sta"" availabilit7
Ethno'entri'
%ol7'entri'
Geo'entri'
Re!io'entri'
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Ethno'entri'
Strate!i' de'isions are made at
head&artersC
Limited s&bsidiar7 a&tonom7C
Ke7 6ositions in domesti' and "orei!n
o6erations are held b7 head&arters@
6ersonnelC%5Ns mana!e s&bsidiaries3
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Ethnocentric Approach
;isadvanta!esLimits the 6romotion o66ort&nitieso" H5Ns# leadin! to red&'ed
6rod&'tivit7 and in'reased t&rnover
amon! the H5Ns
Lon!er time "or %5Ns to ada6t to
host 'o&ntries# leadin! to errorsand 6oor de'isions bein! made
Hi!h 'ost
5onsiderable in'ome !a6# hi!h
a&thorit7# and in'reased standard
o" livin! ma7 relate to la' o"sensitivit7
Advanta!es
To ens&re ne<s&bsidiar7 'om6lies
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Geo'entri'
A !lobal a66roa'h +
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Geocentric Approach
Advantages/ Abilit7 o" the "irm to
develo6 an internationale8e'&tive team
Over'omes the"ederation dra
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%ol7'entri'Ea'h s&bsidiar7 is a distin't national
entit7
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Polycentric Approach
9isadvantages/
;i""i'< to brid!e the !a6 bet
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Re!io'entri'
Re"le'ts a re!ional strate!7 and str&'t&reC
Re!ional a&tonom7 in de'ision main!C
Sta"" move
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Regiocentric Approach
Advanta!es Allo< intera'tion bet
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>hat is this?
>hat term re"ers to the develo6ment
and sellin! o" 6rod&'ts or servi'es
intended "or the !lobal maret# b&tada6ted to s&it lo'al '<&re and
behavio&r 9thin !loball7# a't lo'all7:?
Glocali&ation
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=i!&re 13( Kno
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=i!&re 13.
5onver!en'e o" orientation
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$%& !omparison o" the global marketing
and management st'le o" SM(s and
)S(s # Re'o&rses
=ormation o"
strate!7
Or!aniation
Ris Tain!
=le8ibilit7
E'onomies o"
S'ale and s'o6ese o"
in"ormation
so&r'es
1+.)
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=i!&re 134
Intended and emer!ent strate!7
Realied
strate!7
I n t e n d e d s t r a t e ! 7
; e l i b e r a t e s t r a t e ! 7
nrealied
strate!7
E m e r !
e n t s t r
a t e ! 7
So&r'e Mintber!# 1,*-# 63 143 5o67ri!ht $ 1,*- b7 the Re!ents o" the niversit7 o" 5ali"ornia3 Re6rinted "rom the California
Management Review # Fol3 .)# No3 13 B7 6ermission o" the Re!ents3
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=i!&re 130 In'remental 'han!e
and strate!i' dri"t
E3!3
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=i!&re 13/ Entre6rene&rial
de'ision+main! model
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>hat is this?
>hen a''&m&lated vol&me in
6rod&'tion res<s in lo
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=indin! e'onomies o" s'ale
Red&'in! o6eratin! 'osts 6er &nit and s6readin!
"i8ed 'osts over lar!er vol&me d&e to
e86erien'e '&rve e""e'ts@
%oolin! !lobal 6&r'hasin! !ives the o66ort&nit7
to 'on'entrate !lobal 6&r'hasin! 6o
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>hat is this?
>hen reso&r'es 'an be re&sed
"rom one b&siness'o&ntr7 in
additional b&siness'o&ntries#
o''&r3
$conomies o% scope
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%rod&'tion orientation
vs maretin! orientation
:1 $"plain the %orces %or global
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:1+ $"plain the %orces %or globalintegration and market
responsiveness;
Globalinte!ration
Maretres6onsiveness
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=i!&re 13- Global inte!ration
maret res6onsiveness !rid
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=or'es "or !lobal
'oordination inte!ration
Removal o" trade
barriers
Global '&stomers
Relationshi6
mana!ement
Standardied
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:(estion/ #ow globali&ed is Unilever;;Unilever =orldwide 2 A (lti2local (ltinational
nilever is dedi'ated to meetin! the ever7da7 needs o" 6eo6le
ever7
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O&r dee6 roots in lo'al '<&res and marets aro&nd the # to
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To s&''eed also re&ires#
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*h' is nilever Interested in (ngaging
with +alue !hain artners?
Applies Up and 9own the Val(e Chain e.g. 9oes not have speci%ic competencies. 9oes not wish to invest b(t wishes to e"pand. 9oes not see s(%%icient added val(e.
9oes not have scale o% operations. 9oes not have geographic reach. =ishes to be %le"ible2partic(larl> in innovation c>cle. Activit> not core to b(siness.
?isk not acceptable. Seek s>nergies with local partner.
:@ $"plain the Val(e Chain as a %ramework %or
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:@ 2$"plain the Val(e Chain as a %ramework %oridenti%>ing international competitive advantage;
Str&'t&re Strate!7
S7stemsShared
Fal&esSt7le
Sills Sta""
So&r'e M'Kinse7 -S =rame aterman# r3 5o67ri!ht $ 1,*( b7 Thomas 3 %eters and Robert H3 >aterman# r3 Re6rinted b7 6ermission o"
Har6er5ollins %&blishers# In'3
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=i!&re 13, The val&e 'hain
Inbo&nd
lo!isti'sO6erations
O&tbo&nd
lo!isti's
Maretin!
and salesServi'e
'rimar> activities
6stream val&e a'tivities ;o
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=i!&re 131) A sim6li"ied val&e 'hain
Resear'hand develo6ment
%rod&'tion Maretin! Salesand servi'e
Upstream 9ownstream
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Im6ortant Terms
+alue !hain A 'ate!oriation o" the"irm@s a'tivities 6rovidin! val&e "or the
'&stomers and 6ro"it "or the 'om6an73
-eglobalization Movin! a
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=i!&re 1311 Strate!i' 67ramid
Resear'hand develo6ment
%rod&'tion Maretin! Salesand servi'e
13 Strate!i'
(3 Mana!erial
.3 O6erational
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=i!&re 131. 5entraliation
in the val&e 'hain
E8hibit 134 %o'o7o
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%o'o7o sold to
1)) 'o&ntries
9be!innin! o" ())-:
inia Entertain+
ment# Madrid
Granada
Fent&res# K
Upstream 9ownstream
=i!&re 1 14 Fal&e sho6
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=i!&re 1314 Fal&e sho6
and the servi'e 'hain
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>hat is this?
>hat term re"ers to an e8tension o"
the 'onventional val&e 'hain#
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=i!&re 1310 Firt&al val&e 'hain
;e"inein"ormation
6roblem
Or!anie#
sele't#!ather
in"ormation
S7nthesiein"ormation
;istrib&te in"ormation
R; %rod&'tion Maretin! Sales
and servi'eFal&e
Fal&e
%h7si'al val&e 'hain
Firt&al val&e 'hain
5 i l
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5reatin! val&e
b7 &sin! in"ormation
Mana!in! riss
Red&'in! 'osts
O""erin! 6rod&'ts and servi'es
Inventin! ne< 6rod&'ts
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=or dis'&ssion 9(:
>hat are the main di""eren'es bet
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CAS$ SU9 7.7/Vermont edd> Bear
Sho&ld Fermont Tedd7 Bear !o abroad?
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:(estions/
13 >hat ind o" di""i'<ies
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