Index [assets.cambridge.org]assets.cambridge.org/97811070/27893/index/9781107027893_index.pdf · Index 3M 209, 552 3M Canada (case example) 47–8 3M core competencies case study

Index

3M 209, 5523M Canada (case example) 47–83M core competencies case study 91

capitalizing on the global network 94culture of innovation 91developing the spirit of innovation 91–2diversification 92–3formative years 93internationalization and globalpresence 93–6

troubled innovations 95

ABB 232Accenture 478Acer Inc. 23, 348, 349, 410, 411, 461

case example 28administrative (governance-related)

knowledge 6administrative heritage, MNE archetypes 16–24administrative (or institutional) distance 134, 135Advanced Micro Devices 117Aeon Co. 39Africa see Chinese business in AfricaAIA (American International Assurance Company

Limited) 436, 437AIG (American International Group) 181AIG case study 433–9

AIG bailout in 2008 437building relationships in China 435–6Chinese insurance industry (late 1970s and1980s) 434–5

expansion strategies 433–4filling the institutional voids in China 433from relationships to business in China 436–7impact of AIG in China 437opening the market in China 435–7origins 433–4recent challenges and opportunities 438–9

AIG General Insurance Company China Limited(AIG General) 436–7

airlines global alliances (case example) 54–5Alcan Aluminum Ltd. 29Alcatel-Lucent (case example) 43

Aldi 39, 152alliance-specific advantages (ASAs) 370Alstom 552Amelio, Bill 409American film producers, economic exposure (case

example) 256–7Anand, Jaideep 362–4Anderson, Erin 360–2Anglo-Australian Rio Tinto 29Anheuser Busch – InBev case study 284–90AB InBev global marketing strategy 289–90background 284Budweiser as American style lager 288–9

global marketing with social media 289history of Anheuser-Busch 288Interbrew develops global brands 285–6Interbrew’s local branding strategy 284–5launch of Stella Artois as global flagship brand

286–7switch to a new branding plan for

Stella 287–8AOL 441Apple Inc. 122, 216, 220, 410, 411–12, 441Arakis Energy 500, 502Arnold, David 278–80, 329–33,

424–6Artois, Sebastien 284ASDA 153ASEAN countries 410Asian financial crisis (1997/1998) 48Asian markets, cultural aspects 138–9Assicurazioni Generali 438AST Research 33Astron Group Ltd 232Asus 411automobile industry, Japanese and US approaches

compared 83–4Avon case study 255–64background 255–62financial options to manage exposure 262–3future outlook 264impacts of the 2008 recession 264impacts of volatile exchange rates 255–62

570

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internal communications to manage potentialrisks 263

managing exposure 262–4sources of operating exposure 262sourcing strategy 263transferring knowledge to manage exposure 263

back office tyranny 556–9Baidu.com 446, 456Bain & Co. 137Ballinger, Jeff 509Barrick Gold Corporation 29Bartlett, Christopher 157, 158–62, 311–13Bartmess, Andrew 84–6BASF 29Baukol, Ronald 95Bayer AG 42, 552Bechtolsheim, Andy 440Bell Laboratories 117Benetton 335benevolent preference reversal 57–8benevolent resource recombination 561Benmosche, Robert H. 437BestPrice Modern Wholesale 153Bharti Airtel 457Bharti Enterprises 153biotechnology clusters 30–1biotechnology industry 121Birkinshaw, Julian 200–2, 278–80Black, J. S. 303–7Blackman, Ian 251–3BMW case study 236–42acquisition of Rover Group 238–9background 236–7BMW’s role in Rover’s destruction 240–2challenge of the UK market 238–9end of Rover Group 240history of BMW 237impact of the First and Second World Wars 237managerial deficiencies at Rover 241–2motorcycle and automobile production 237–8position in the global marketplace 238–9post-war production 237–8production decisions at Rover 241Rover Group history 239

Boeing Co. 138Bosch Telecom 232Boston Route 128 region (case study) 117,

118–23attitude towards entrepreneurs and risk 120corporate culture 119–20current situation 121educational infrastructure 118–19

factors in divergent performance betweenregions 119–21

foreign investment 122government funding as the catalyst 119influence of the dominant design 121influence of the initial leading firm 119replicating elsewhere 123self-sufficient corporations versus relationalnetworks 120–1

success factors 118–19venture capital 119

bounded rationality 8–9, 52–7airlines global alliances 54–5definition 52–3divergence in management decision-makingapproaches 55–7

Fuji Xerox 56–7Häagen-Dazs 53implications for international business strategy54–5

in mergers and acquisitions 388–9incomplete information problem 53information problems 52–3information processing difficulties 53international expansion and core competencies84–6

multifaceted information 55–6optimal entry mode problem 54use of due process principles 163–4Wal-Mart 53Xerox 56–7

bounded reliability 8–9, 57–9benevolent preference reversal 57–8definition 57good faith local prioritization 57, 58in mergers and acquisitions 388–9opportunism 57, 58scaling back on over-commitments 57, 58sources of 57–8use of due process principles 164use of governance mechanisms 58–9

Bowerman, Bill 508BP (British Petroleum Ltd) 20

Deepwater Horizon oil spill (2010) 546BPI (Beauté Prestige International) 125, 126–7Brabeck-Letmathe, Peter 175, 178, 179brand image, importance in Asian markets 139brand names 6

as location-bound FSAs 26for Asian markets 139

Brent Spar (Shell) controversy 538–41Brin, Sergey 440–1, 445Bristol-Myers-Squibb 528

Index

571






Buckee, Jim 499, 502Buckley, George 95Bulcke, Paul 179bullwhip effect 335Burggraeve, Chris 289Burroughs 183business incentives, location advantages 30Business Week 1

California Management Review (CMR) 1–2California Management Review articles

core competencies (Bartmess andCerny, 1993) 84–6

corporate environmental sustainability(Kolk and Pinkse, 2005) 527–9

corporate social responsibility (CSR) (Vachaniand Smith, 2004) 490–3

economic exposure (Rugman, 1980) 253–4emerging economies (Letelier, Flores andSpinosa, 2003) 427

emerging economy MNEs (EMNEs) (Tsai andEisingerich, 2010) 459–62

foreign distributors (Lee, 2002) 335–6home country location advantages(Teece, 1992) 108–9

host country location advantages (Schmitt andPan, 1994) 138–9

international innovation (Inkpen, 2005) 202–3international marketing (Arnold, Birkinshawand Toulan, 2001) 278–80

international sourcing and production(Galbraith, 1990) 226–7

management of subsidiary networks (Neghandi,Eshghi and Yuen, 1985) 164–6

managing expatriates (Bartlett and Ghoshal,1988) 311–13

mergers and acquisitions (Inkpen, Sundaramand Rockwood, 2000) 392–3

strategic alliance partners (Kale and Anand,2006) 362–4

Canada, natural resources (case example) 28–9Canon 82, 552Capretta, Tony 233Carlton, Richard 91Carrefour (case example) 39case examples

3M Canada 47–8Acer Inc 28airlines global alliances 54–5Alcatel-Lucent 43American film producers economicexposure 256–7

biotechnology clusters 30–1

BP (British Petroleum Ltd) 20Canada’s natural resources 28–9Carrefour 39Cisco 7–8Citibank 25–6, 48, 49–50ConocoPhillips 52Data General Corp. (DGC) 46–7Disney 19EnCana 52ExxonMobil 32FDI in China 33Federal Express 6–7Ford 18French perfume industry 30Fuji Xerox 56–7Germany’s skilled workforce 29Goodyear 45–6, 258Häagen-Dazs 53Honeywell 47Hong Kong hotels 26–7hotel industry 26–7HP (Hewlett-Packard) 46, 49India’s location advantages 30Japanese home appliances industry 29Jollibee 42–3Kao 25KFC (Kentucky Fried Chicken) in China 33Lafarge Group 22, 257Logitech 20–1, 34McDonald’s in China 33Montedison 51–2NEC 17Nippon Data General Corporation (NDG) 46–7North American Free Trade Association

(NAFTA) 31Office Depot 27–8Parke-Davis 44–5Peninsula hotel group 26–7Philips 21–2, 45Procter & Gamble (P&G) 50Ralph Lauren Polo brand 26Ranbaxy 42Samsung Electronics 33Statoil 259–60TRW Automotive 50–1US biotechnology clusters 30–1Wal-Mart 53Warner Bros. Pictures 17Warner-Lambert 44–5Whirlpool Corporation 44Xerox 56–7

case studiesAIG (American International Group) 433–9

Index

572






Anheuser Busch – InBev (internationalmarketing) 284–90

Avon (exchange rate exposure) 255–64BMW (internationalizing production) 236–42Boston Route 128 region 117, 118–23CEMEX (mergers and acquisitions) 397–403Chinese business in Africa 466–71Danone and Wahaha Group (strategic

alliances) 365–82Dell (foreign distributors) 344–50Flextronics (defining roles of manufacturing

plants) 228–36Four Seasons Hotels and Resorts (international

business strategy) 65–70Google (emerging economies) 439–49Haier Group (international marketing) 291–8Honda (international business strategy) 61–4IKEA (core competencies) 96–100industrial hot spots 117–23Infosys Limited (emerging economy

MNE) 472–8Lenovo (mergers and acquisitions) 404–12LVMH (managing expatriates) 318–23Nestlé (management of subsidiary networks)

175–9Nike (corporate social responsibility) 508–14Porsche (economic exposure) 265Shell (corporate environmental sustainability)

536–46Shiseido (home country location advantages)

124–8Siemens (globalizing R&D) 208–11Silicon Valley 117–23Sony (international innovation) 211–16Starbucks (host country location advantages)

142–9Talisman Energy (corporate social

responsibility) 499–507Tata Group (management of subsidiary

networks) 180–8Wal-Mart in Germany (cultural distance effects)

149–54Castiglioni, Camillo 237CEMEX 23, 427CEMEX case study 397–403background 397developing ‘the CEMEX way’ 398–9global cement industry 397–8integration of acquired companies 399–400learning to acquire abroad 399–400new areas of international expansion 401–2Rinker Group acquisition in 2007 402–3struggle with the recession since 2007 402–3

systemizing the acquisition process 400–1centralized exporter MNEs 16–17

approach to expanding abroad 136core competencies 82dealing with foreign distributors 334distance factor in foreign markets 140–2, 144economic exposure challenge 256–7in globalized markets 273–4marketing strategy in emerging economies 427moving away from MNE archetypes 311,312, 313

NEC 17Pattern I 40–1Porter’s view 110product standardization 280relationship with emerging economies 431–2strategic positioning 35–8subsidiary management 158, 162, 166Warner Bros. Pictures 17

Cerny, Keith 84–6Chandrasekaran, Natarajan 185Chartis Inc. 436–7Chartis Insurance Company China

Limited 436–7, 438Chattopadhyay, Rita 210Chemical Manufacturers Association 525Chevron Petroleum 32, 500, 546China

cultural distance for Western firms 135foreign direct investment (FDI) 33importance of guan’xi (good relationships) 435

China National Offshore Oil Corporation(CNOOC) 466–7

China National Petroleum Corporation(CNPC) 466–7

China Pacific Insurance Company 435China Petroleum and Chemical Corporation

(Sinopec) 466–7Chinese business in Africa, case study 466–71

African perspective on Chinese investments 470China’s energy security strategy 467–8China’s motives for internationalization 468–9China’s primary oil and gas firms 466–7history of Sino-African relations 468idiosyncratic features of Chinese energyfirms 471

Western perspective and concerns 470–1Chinese insurance industry see AIGChristian Dior 127Chrysler 82Cisco Systems 7–8, 229, 336Citibank 252

case examples 25–6, 48, 49–50

Index

573






Clean Air Act (US, 1970) 61Clinton, Bill 510CMR see California Management ReviewCoca-Cola 425, 552Cognizant 478Colgate-Palmolive 307collectivist nature of Asian societies 139competency carriers 81–2complementary resources of external actors 8, 51–2

ConocoPhillips 52EnCana 52Montedison 51–2

ConocoPhillips (case example) 52Contreras, Michael 48copyright 135core competencies

3M case study 91acquisition through external alliances 82bounded rationality problem of internationalexpansion 84–6

CMR article (Bartmess and Cerny, 1993) 84–6competency carriers 81–2context of Prahalad and Hamel article 82creation of end products 80definition 79developing strategic architecture 81–2HBR article (Prahalad and Hamel, 1990) 79–82Honda example 80identifying 80–1IKEA case study 96–100Japanese and US firms compared 82–4learning objectives 79management insights 87management takeaways 88–91need for co-location of activities 84–6production of core products 80risks associated with outsourcing 82significance of 79–82SMR article (Egelhoff, 1993) 82–4weaknesses in Prahalad and Hamel’sanalysis 89–90

core products 80corporate environmental sustainability

automobile industry 525chemical industry 525CMR article (Kolk and Pinkse, 2005) 527–9context of Porter and van der Linde’sarticle 523–4

Dow Chemical 521Dutch flower industry 522environmental performance of energyfirms 546

General Electric (GE) example 523–4

HBR article (Porter and van der Linde, 1995)519–22

impact of government-imposed environmentalregulations 519–22

learning objectives 519limitations of Porter and van der Linde’s analysis

530–5management insights 529management takeaways 530patterns of environmental FSA development

532–4pollution havens 532pulp and paper industry 522resource productivity model of environmental

regulation 520Shell case study 536–46SMR article (Hart and Milstein, 1999) 524–7social activist perspective 524–7strategies that firms can use 527–9trigger for innovation 521

corporate image, importance in Asian markets 139corporate name, for Asian markets 139corporate social responsibility (CSR)CMR article (Vachani and Smith, 2004) 490–3context of Dunn and Yamashita’s article 487–8doing well by doing good 483–7drug pricing in developing countries 490–3HBR article (Dunn and Yamashita, 2003) 483–7HP (Hewlett-Packard) example 484–7improving labour standards in developing

countries 488–90learning objectives 483limitations on the analyses in the articles 494–8management insights 494management takeaways 495Nike case study 508–14SMR article (Locke and Ramis, 2007) 488–90Talisman Energy case study 499–507Tata Group initiatives 185

Corrigan, Wilf 120Corus Group 181Coty Inc. 264cross-border location advantages 31cultural distance 134, 135, 138–9Starbucks case study 142–9Wal-Mart in Germany 149–54

customer interface resources 6

Daewoo Commercial Vehicle Company 181Dairy Queen, in China 33Danone and Wahaha Group case study 365–82beginning of cooperation 375–6Danone’s international expansion 365–74

Index

574






Danone’s joint ventures and acquisitions inChina 374–5

dispute related to strategic alliance 365history of Danone 365–74history of Wahaha Group 375–6long-term conflicts become public 376–7unfolding and outcome of the dispute 380–2what went wrong (commentators’

view) 379–80what went wrong (Danone’s view) 378–9what went wrong (Wahaha’s view) 377–8

Data General Corp. (DGC) (case example) 46–7Dauch, Richard E. 83Dell, Inc. 410, 411Dell, Michael 344–5, 349, 350, 408Dell case study 344–50characteristics of the mainland China PC

market 346Dell’s retail move in China 349–50direct model in China (1998–2004) 346direct model with minor adaptations for

China 346–7direct sales model 344–5distribution strategy in China 344dual system model (1998–2004) 347–8exporting to China (pre-1998) 345–6growth of the Chinese PC retail market

(after 2004) 348–9history of Dell 344–5international expansion (pre-1998) 345–6rethinking retail in China 350

Delta airline 55Deng Xiaoping 434Digital Equipment 220Digital Equipment Corporation

(DEC) 118, 119Disney 19distance between countries, types of 134distribution see foreign distributorsDonaldson, John E. 262dot-com bubble 137double diamond model 110–13, 200, 532Dow Chemical 521downstream knowledge 6Doz, Yves 308–11, 355–9Drew, Dick 91dual branding strategy 459due process (procedural justice) approach to

subsidiary management 163–4Duke, Mike 153Dunn, Debra 483–7DuPont 525Durex Corporation 93

Eastman Kodak 56eBay 456economic clusters, location advantages 30–1economic distance 134, 136economic exposure

assessing economic exposure 246–8Avon case study 255–64capability to adjust inputs 248–50CMR article (Rugman, 1980) 253–4context of Lessard and Lightstone’s article 251definition 246exchange rate pass-through strategy 248–50HBR article (Lessard and Lightstone,1986) 245, 246–51

impact on location advantages 248impacts of exchange rate fluctuations 245,246–51

Laker Airways example 249–50learning objectives 245limitations of Lessard and Lightstone’s analysis254–61

management approaches 250–1management insights 254–61management takeaways 255Motorola example 251–3Porsche case study 265real versus nominal exchange rates 247–8role in MNE strategy formation 253–4SMR article (Holland, Lockett, Richard andBlackman, 1994) 251–3

sources of economic exposure 246–8educational system, location advantage 29efficiency, motivation for FDI 33–4Egelhoff, William G. 82–4Eisingerich, Andreas B. 459–62Eitel, Maria 511

Electrolux 220Eli Lilly 198–9emerging economies

AIG case study 433–9challenges and opportunities for MNEs 417–26CMR article (Letelier, Flores and Spinosa,2003) 427

context of Khanna et al.’s article 424definition of emerging economy 418Google case study 439–49HBR article (Khanna and Palepu, 1997) 418HBR article (Khanna, Palepu and Sinha, 2005)418–24

intellectual property rights (IPR) 422learning objectives 417limitations of Khanna et al.’s analysis 430–2management insights 428–32

Index

575






emerging economies (cont.)management takeaways 429–33marketing strategy for MNEs 424–6presence of institutional voids 418–24role in the world economy 417–24SMR article (Arnold and Quelch, 1998) 424–6

emerging economy MNEs (EMNEs) 23–4Chinese business in Africa (case study) 466–71CMR article (Tsai and Eisingerich, 2010) 459–62context of Ghemawat and Hout’s article 458dual branding strategy 459‘good enough’ market segment 458–9HBR article (Ghemawat and Hout, 2008)455, 456–8

Huawei Technologies example 458–9Infosys Limited case study 472–8international expansion challenges 457–8internationalisation strategies 459–62learning objectives 455limitations of Ghemawat and Hout’sanalysis 464–5

management insights 462management takeaways 463predicting future global giants 455, 456–8response to home country entry by foreignMNEs 457

rise of Chinese MNEs 458–9smiling curve concept 461–2SMR article (Gadiesh and Vestring, 2008) 458–9

EMI 159EnCana (case example) 52entry mode decision making, bounded rationality

problem 54entry modes see foreign distributors; mergers and

acquisitions; strategic alliance partnersEresman, Randy 52Ericsson 122, 457Eriksson, Håkan 122Erskine, Alex 48Eshghi, Golpira 164–6European Union (EU) 4, 112–13exchange rate pass-through strategy 248–50expatriate managers see managing expatriatesExxonMobil 546

case example 32

Facebook 120, 448–9Fairchild Semiconductor 117, 119, 120Federal Express 6–7, 277Felice, Steve 350Ferdows, Kasra 219–24Ferreira, Jose, Jr 263financial resources 5

Financial Times 1firm-specific advantages see FSAsfirms, resource base available 5–6FirstEnergy 527flexible manufacturing systems 225–6Flextronics 230, 552Flextronics case study 228–36acquiring a global presence 232–3activities in Asia 235–6aggressive acquisitions strategy 232background 228–32global network of manufacturing plants 232–3industrial parks focus 233–4production in China 233–4, 235–6restructuring the global network of

plants 234–5Flores, Fernando 427Foggio, Richard 263Foo Piau Phang 347Ford 18, 181, 220, 558purchase of Land Rover 240, 241

foreign direct investment (FDI)definition 32efficiency seeking 33–4ExxonMobil 32in China 33Logitech 34market seeking 32–3motivations for 31–4natural resource seeking 32Samsung Electronics 33strategic resource seeking 33

foreign distributorsbullwhip effect 335CMR article (Lee, 2002) 335–6context of Arnold’s article 333–4Dell case study 344–50HBR article (Arnold, 2000) 329–33learning objectives 329

limitations of Arnold’s analysis 340–3management insights 337management takeaways 338–44role in international strategy 329–33seven guidelines for MNEs 332–3SMR article (Thomas and Wilkinson,

2006) 334–5supply chain management 335–6

foreign investmentRoute 128 122Silicon Valley 122

Fortune 1Four Seasons Hotels and Resorts case studybackground 65

Index

576






building on the four pillars in internationalexpansion 67–8

defining international core operatingstandards 69–70

defining international service culturestandards 69–70

developing the four pillars of success 65–7digital media strategy as an essential pillar 70exceptional luxury hotels as first pillar 66Four Seasons George V, Paris 68, 69–70intuitive and caring culture as third pillar 67medium-sized Four Seasons hotel with a French

flavour 68, 69–70specializing in hotel management as

fourth pillar 67uncompromising service as second pillar 66–7

France, perfume industry (case example) 30freestanding companies 22–3Friends of the Earth 545Fry, Nick 200–2FSAs (firm-specific advantages) 5–8development patterns see patterns of FSA

developmentrecombination capacity as highest-order FSA

39–40see also unifying framework

Fuji Xerox (case example) 56–7Fujino, Michimasa 64

Gadiesh, Orit 458–9Galbraith, Craig 226–7GAP 511Gates, Bill 443Gateway 410Geely 405Genentech 171General Electric (GE) 138, 386, 560ecoimagination initiatives 523–4

General Motors (GM)learning about the Toyota Production System

202–3NUMMI alliance 202–3

geographic (or spatial) distance 134, 135–6Germany, educational system (case example) 29

see also Wal-Mart in GermanyGhadar, Fariborz 385–90Ghemawat, Pankaj 134–7, 385–90, 455, 456–8Ghoshal, Sumantra 157, 158–62, 311–13Gifford, Kathie Lee 510Gillette 459Glenn, T. Michael 7global corporate successavoiding the tragedy of the commons 559, 560

back office activities vs front office needs 556–9benevolent resource recombination 561dominance of regional over global strategies552–4

escaping from back office tyranny 556–9key building blocks 551limitations of most models 551‘new forms’ of international expansion 554–5radical innovation vs internal coherence 555–6respect for social justice 561rising importance of recombination capabilities559–61

themes related to 551–2Global Manufacturing Futures Surveys project 220globalization, and the dot-com bubble 137Godfrey, Vivian P. 53Gome 350Gonzalez, Fernando 403‘good enough’ market segment in China 458–9good faith local prioritization 57, 58Goodyear (case examples) 45–6, 258Google 122, 456Google Android operating system 412, 441,

446, 447–8Google case study 439–49

adaptation to censorship in India 448–9challenges for Chinese Googlers 443–5core principles 441–2core principles challenge in China 442–3cost of maintaining its principles in China 443culture of Google 440–2decision to comply with censorship in China443–5

end of cooperation with China 445Google India 447government control of the Internet inChina 442–3

growth potential in India 447–8hacking of information about Chineseactivists 445

history of Google 440–1international expansion strategy 439–40issues limiting Internet use in India 446–7life as a Googler 441–2life as a Googler in India 447limits to democracy on the web 448–9price of principle in China 446renewed presence in China (2012) 446reverse innovation 440success of Google India 447–8troubled relationship with the Chinesegovernment 443–5

Google Play 446, 447–8

Index

577






Gopalakrishnan, Kris 473Goulding, Ken 438governance mechanisms, to control bounded

reliability 58–9governance-related knowledge 6Grameen Bank 427Greenberg, Maurice 434, 435–6, 438Greenpeace 538–9, 540Gregersen, H. B. 303–7GTE 82guan’xi (good relationships) 435Guo, Charles 409

Häagen-Dazs (case example) 53Haas School of Business, University of California,

Berkeley 1–2Haier 24Haier Group case study 291–8

background 291diversification through joint ventures andM&A 292–3

early years 291–2Haier’s strategy 297–8improving product quality and reputation

291–2internationalization 293–6product portfolio and market share 296–7Zhang Ruimin 291–8

Hamel, Gary 79–82, 355–9Harada, Setsuo 214Harris, John 178Harrisons & Crosfield 22–3Hart, Stuart 524–7Harvard 118Harvard Business Review (HBR) 1–2Harvard Business Review articles

core competencies (Prahalad and Hamel,1990) 79–82

corporate environmental sustainability (Porterand van der Linde, 1995) 519–22

corporate social responsibility (CSR) (Dunnand Yamashita, 2003) 483–7

economic exposure (Lessard and Lightstone,1986) 245, 246–51

emerging economies (Khanna and Palepu,1997) 418

emerging economies (Khanna, Palepu and Sinha,2005) 418–24

emerging economy MNEs (EMNEs) (Ghemawatand Hout, 2008) 455, 456–8

foreign distributors (Arnold, 2000) 329–33home country location advantages (Porter, 1990)103–6

host country location advantages (Ghemawat,2001) 134–7

international innovation (Kuemmerle, 1997)195, 196–9

international marketing (Levitt, 1983) 273–5international sourcing and production (Ferdows,

1997) 219–24management of subsidiary networks (Bartlett

and Ghoshal, 1986) 157, 158–62managing expatriates (Black and Gregersen,

1999) 303–7mergers and acquisitions (Ghemawat and

Ghadar, 2000) 385–90strategic alliance partners (Hamel, Doz and

Prahalad, 1989) 355–9Harvard Business School, Tata donation

in 2010 186HBR see Harvard Business ReviewHCL 478Helstab, Susan 70Hennessy see LVMHHercules (polypropylene producer) 51–2Hewlett-Packard see HPHirai, Kazuo 216Hiran, Ashvini 186Hitachi 215Hofstede, Geert 308Holcim 397, 398, 399Holland, Christopher 251–3home country location advantagesBoston Route 128 region (case study) 117,

118–23CMR article (Teece, 1992) 108–9context of Porter’s diamond approach 106–7dangers of relying on natural factor

endowments 104HBR article (Porter, 1990) 103–6industrial hot spots (case study) 117–23learning objectives 103management insights 110management takeaways 111Porter’s diamond 103–7Shiseido (case study) 124–8SMR article (Kuemmerle, 2005) 107–8weaknesses in Porter’s diamond model 110–16

Home Depot 334, 424Honda 82core competencies 80stake in BLMC 239

Honda, Soichiro 61, 64Honda case studydeveloping the US supplier network 63environment in the early 1970s 61

Index

578






first US feasibility study 61–2Honda’s legacy 64initial approach to the US market 61–2international business strategy

formation 61–4motorcycle manufacturing in the US 63move into aircraft manufacturing 64second US feasibility study 62selecting and training US employees 63start of car manufacturing in the US 63–4

Honda of America 306Honeywell 119case example 47

Hong Kong and Shanghai Bank 22–3Hong Kong hotels (case example) 26–7Hoover 275host country location advantages 31–4administrative (or institutional) distance

134, 135categories of distance between countries 134CMR article (Schmitt and Pan, 1994) 138–9context of Ghemawat’s analysis 137cultural distance 134, 135, 138–9distance analysis and foreign market

potential 136–7economic distance 134, 136geographic (or spatial) distance 134, 135–6HBR article (Ghemawat, 2001) 134–7learning objectives 133limitations of Ghemawat’s analysis 142–5management insights 140management takeaways 142outsourcing/offshoring for cost

reduction 137–8risks and costs associated with ‘distance’

133, 134–7selling to Asian markets 138–9SMR article (Vestring, Rouse and

Reinert, 2005) 137–8Starbucks (case study) 142–9Wal-Mart in Germany (case study) 149–54

hotel industry (case example) 26–7Hounsfield, Godfrey 159Hout, Thomas 455, 456–8HP (Hewlett-Packard) 117, 120, 209, 220, 228, 349,

350, 410–11case examples 46, 49corporate social responsibility (CSR) 484–7

HSBC Banking Group 171Huawei Technologies 122, 458–9hub and spoke concept, Federal Express 6–7human resources 5Hydro Aluminum 220

Iacocca, Lee 62IBM 56, 183, 215, 220, 457, 552

launch of the personal computer (PC) 404sale of PC business to Lenovo 404, 407–8

Ibuka, Masaru 211IKEA case study 96–100

background 96–8designing for children 98development of the IKEA formula 96–8diversification 98flat packaging 97learning and adapting in internationalmarkets 98–9

low-cost in-house design 97low-cost materials and designs 98low-cost service focus 97low-cost supply strategy 97–8managing international operations 99–100mobilizing staff intuition and learning 98showroom/warehouse idea 97structural changes in the early 1990s 99–100

Immelt, Jeff 523–4InBev see Anheuser Busch – InBev case studyInco Limited 29India, location advantages 30industrial hot spots (case study) 117–23

attitude towards entrepreneurs and risk 120corporate culture 119–20current situation 121educational infrastructure 118–19factors in divergent performance betweenregions 119–21

foreign investment 122government funding as the catalyst 119influence of the dominant design 121influence of the initial leading firm 119regional network 120–1replicating elsewhere 123self-sufficient corporations versus relationalnetworks 120–1

success factors 118–19venture capital 119

Infosys Limited 209Infosys Limited case study 472–8

alliances 474building tomorrow’s enterprise 474company background 472–3future prospects 478history of Infosys 472human resources management 476–7India’s location advantages 477–8major Indian IT competitors 478sustainability 475–6

Index

579






Inkpen, Andrew C. 202–3, 392–3innovation

driven by local market demands 29radical innovation vs internalcoherence 555–6

see also international innovationinstitutional distance 134, 135institutional voids in emerging economies 418–24Instrumentation Engineering Inc. 235Intel 117, 404, 552intellectual property rights 135, 422Interbrew see Anheuser Busch – InBev case studyinternational business publications 1–2

need for a unifying framework 2international business strategy

definition 4Four Seasons Hotels and Resorts case study65–70

Honda case study 61–4implications for MNE performance 253major business publications 1–2seven key questions for managers 60strategic linkages 34–8takeaway messages for managers 60

international coordinator MNEs 19–21approach to expanding abroad 136BP (British Petroleum Ltd) 20distance factor in foreign markets 144economic exposure challenge 258–60international diffusion of FSAs 314–16joint ventures 363–4Logitech 20–1Pattern I 40–1Porter’s view 110recombination of internationally dispersedresources 200

relationship with emerging economies 431–2strategic positioning 35–8supply chain management 336

international distribution see foreign distributorsinternational expansion, ‘new forms’ of 554–5international finance see economic exposureinternational innovation

CMR article (Inkpen, 2005) 202–3context of Kuemmerle’s article 199–200decentralizing R&D 195, 196–9development of foreign R&D units 196–8Eli Lilly example 198–9external subsidiary initiatives 201General Motors (GM) example 202–3HBR article (Kuemmerle, 1997) 195, 196–9home-base-augmenting R&D sites 196, 197,198, 201, 204

home-base-exploiting R&D sites 196, 197,198–9, 204–5

influence of the corporate immune system 201–2internal subsidiary initiatives 200–1learning objectives 195limitations of Kuemmerle’s analysis 205–7management insights 204–7management takeaways 205–8Matsushita example 199Siemens case study 208–11SMR article (Birkinshaw and Fry, 1998) 200–2Sony case study 211–16types of host country R&D facilities 196Xerox example 198

international marketingAnheuser Busch – InBev case study 284–90argument for global standardization 273–5CMR article (Arnold, Birkinshaw and Toulan,

2001) 278–80context of Levitt’s article 276Federal Express example 277Haier Group case study 291–8HBR article (Levitt, 1983) 273–5homogenization of consumer preferences 273–5Hoover example 275impacts of the Internet 277–8learning objectives 273limitations of Levitt’s model 281–3management insights 280management takeaways 281–4SMR article (Quelch and Klein, 1996) 276–8Sun Microsystems example 276–7

international projector MNEs 17–19approach to expanding abroad 136core competencies 82decentralizing R&D 195, 196–9Disney 19distance factor in foreign markets 140–2, 144economic exposure challenge 257–8evolution of 200Ford 18foreign factories 228–9in globalized markets 273–4international diffusion of FSAs 314–16Internet intermediaries 278joint ventures 363–4marketing strategy in emerging economies 427model of knowledge flows 204moving away from MNE archetypes 311Pattern I 40–1Porter’s view 110product standardization 280regional integration effects on subsidiaries 173

Index

580






relationship with emerging economies 431–2strategic positioning 35–8subsidiary management 158, 162, 166transformation into multi-centred MNE 308trend towards regionalization 225

international sourcing and productionBMW case study 236–42CMR article (Galbraith, 1990) 226–7context for Ferdows’ article 224–5contributor factory 223, 229Flextronics case study 228–36HBR article (Ferdows, 1997) 219–24lead factory 223, 229learning objectives 219limitations of Ferdows’ analysis 229–31making the most of foreign factories 219–24management insights 227–31management takeaways 228NCR example 224offshore factory 222, 228–9outpost factory 222, 228–9possible roles for foreign manufacturing

facilities 221–3server factory 222, 228–9SMR article (MacCormack, Newman and

Rosenfield, 1994) 225–6Sony example 224source factory 222–3, 229

internationally transferable FSAs(non-location-bound FSAs) 5–8, 13, 15–24

paradox of transferability 15–16strategic linkages 34–8tacit knowledge 16

Internet, impacts on international marketing 277–8Internet intermediaries 278Islamic banking 427

Jaguar 181Jain, Raj 154Jap, Sandy 360–2Japan, home appliances industry (case example) 29Japanese firms, strategic approach 82–4Japanese MNE subsidiary management 164–6, 172Jean Paul Gaultier 125, 126–7Jiang Zemin 435Jollibee (case example) 42–3Jones, Hannah 514JP Morgan 409Jung, Andrea 264just-in-time system 64, 225–6

Kaeser, Joe 210Kale, Prashant 362–4

Kamprad, Ingvar 96Kanak, Donald 438Kao (case example) 25Kawashima, Kiyoshi 61–2Keck, Beth 151Kelly, Phil 346Kessler, August 536KFC (Kentucky Fried Chicken) 136

in China (case example) 33Khanna, Tarun 418–24Kim, W. Chan 162–4Klein, Lisa 276–8Knight, Phil 508, 509, 510Kobayashi, Tony 57Kolk, Ans 527–9Kuemmerle, Walter 107–8, 195, 196–9Kuenheim, Eberhard von 238

L’Oréal Groupe 127Lafarge Group 22, 397, 398

case example 257Laker Airways 249–50Land Rover 181Latin American debt crisis (1980s) 48Le Calvez, Didier 69–70lean manufacturing principles, Toyota Production

System 202–3Lee, Hau L. 335–6Lee, Kai-Fu 443–5Lenovo 348, 349, 350Lenovo case study 404–12

acquisition of IBM’s PC business 404, 407–8Chinese approach to innovation 405competitive landscape 410–12current strategy 409–10founder Liu Chuanzhi 406–7future prospects for Lenovo 412Legend (Lianxiang) technology company 406–7Legend becomes Lenovo 407making of China’s first global brand 406–9PC industry consolidation 410post-acquisition initial branding strategy 408–9selling Chinese brands internationally 404–5strategy to attack new markets 410strategy to protect the base 409–10

Lessard, D. R. 245, 246–51Letelier, Maria Flores 427Levi Strauss 143Levitt, Theodore 273–5LG Group 307Li Peng 435–6Lidl 39Liebherr 292

Index

581






Lightstone, J. B. 245, 246–51Ling, Dennis 263Litton Industries 117Liu Chuanzhi 406–7local best practices, hotel industry 26–7local prioritization, source of bounded

reliability 57, 58location advantages 5–8, 28–34, 38

biotechnology clusters 30–1Canada’s natural resources 28–9cross-border location advantages 31economic clusters 30–1French perfume industry 30German educational system 29highly skilled workforce 29host country location advantages 31–4influence of NAFTA 31Japanese home appliances industry 29local business incentives 30local demands foster innovation 29local market for specific products 29motivations for FDI 31–4natural resources 28–9regional trading and investment agreements 31restriction on operating elsewhere 30strategic linkages 34–8superior educational system 29US biotechnology clusters 30–1

location-bound (non-transferable) FSAs 5–8,13–14, 24–8

Acer Inc. 28Citibank (now Citigroup) (case example) 25–6domestic routines 27–8Hong Kong hotels 26–7hotel industry practices 26–7Kao (case example) 25local best practices 26–7local marketing knowledge 26Office Depot 27–8Peninsula hotel group 26–7Ralph Lauren Polo brand 26reputational resources 26stand-alone resources linked to locationadvantages 24–6

strategic linkages 34–8Locke, Richard 488–90Lockett, Geoff 251–3Logitech 20–1, 172

case example 34Louis Vuitton see LVMHLSI Logic Corporation 120Lucent 229Lutens, Serge 126

LUX (Japanese high-tech company) 33LVMH (Moët Hennessy Louis Vuitton) 30, 552LVMH case study 318–23background 318compensation for expatriates 321–2employee development beyond international

mobility 322future challenges 322–3history of Hennessy 318–19history of Louis Vuitton 318organizational structure 319organizing human resources management

319–22preparing for expatriation 321reasons to send people overseas 320repatriation process 321whom to send abroad 320–1

MacCormack, Alan 225–6MacLeod, J. M. 537Maeda, Tamon 211Mahalingam, Seturaman 185Mahindar Group 478management of subsidiary networksallocating specific roles to subsidiaries 157,

158–62Black Hole subsidiary type 160–1centralization strategy 158–9classification of subsidiary types 160–2CMR article (Neghandi, Eshghi and Yuen, 1985)

164–6context of Bartlett and Ghoshal’s analysis 162Contributor subsidiary type 161due process (procedural justice) approach 163–4EMI example 159HBR article (Bartlett and Ghoshal, 1986) 157,

158–62homogenization strategy 158, 159identifying valuable subsidiary initiatives 167–9Implementer subsidiary type 161Japanese approach 164–6, 172learning objectives 157limitations of Bartlett and Ghoshal’s model

167–74management insights 166management takeaways 167model to assign differentiated roles 160–2need for a differentiated roles approach 159–60Nestlé case study 175–9Procter & Gamble example 160SMR article (Kim and Mauborgne, 1993) 162–4Strategic leader subsidiary type 161Tata Group case study 180–8

Index

582






management takeawayscore competencies 88–91corporate environmental sustainability 530corporate social responsibility (CSR) 495economic exposure 255emerging economies 429–33emerging economy MNEs (EMNEs) 463foreign distributors 338–44home country location advantages 111host country location advantages 142international innovation 205–8international marketing 281–4international sourcing and production 228managing expatriates 315mergers and acquisitions 397Porter’s diamond model 111seven key questions in international business

strategy 60strategic alliance partners 365subsidiary network management 167

managing expatriatesCMR article (Bartlett and Ghoshal,

1988) 311–13Colgate-Palmolive example 307context of Black and Gregerson’s

article 307–8cost of sending managers abroad 304HBR article (Black and Gregersen,

1999) 303–7Honda of America example 306learning objectives 303LG Group example 307limitations of Black and Gregersen’s

analysis 316–17LVMH case study 318–23management insights 314management takeaways 315Matsushita example 312Nokia example 306personal characteristics required for expatriate

posts 306Philips example 312–13proposed best practices 303, 305–6reasons for unfavourable outcomes 305return on investment 304–5SMR articles (Prahalad and Doz) 308–11successful approaches to candidate

selection 306–7market seeking, motivation for FDI 32–3marketing, local marketing knowledge 26 see also

international marketingMarks, Michael 232, 233, 234Martin, Dennis 48

Massachusetts Institute of Technology (MIT) 1–2,30–1, 118–19 see also Sloan ManagementReview (SMR)

Matsushita 82, 215managing expatriates 312R&D site development 199

Mauborgne, Renée 162–4Maucher, Helmut 175McArdle, James 537McConnell, David 255McCoy, Sherilyn S. 264McDonald’s 147

in China 33in the Philippines 42

McGregor, Gordon 18McKenzie, Joe 232McKinsey 405McKnight, William 91, 92, 93McKnight principle of management 92McNerney, Jim 95Medina, Hector 400Medion 410Merck 491, 492mergers and acquisitions

alternative strategies to 389–90bounded rationality and bounded reliabilityproblems 388–9

CEMEX case study 397–403CMR article (Inkpen, Sundaram and Rockwood,2000) 392–3

context of Ghemawat and Ghadar’sarticle 390

HBR article (Ghemawat and Ghadar, 2000)385–90

learning objectives 385Lenovo case study 404–12limitations of Ghemawat and Ghadar’sanalysis 395–6

management bias towards 388–9management insights 393management takeaways 397reasons for unsuccessful outcomes 388–9SMR article (Sebenius, 1998) 390–1weakness of economic rationale for 385–8

Mexican peso crisis (1994/1995) 48Michelin 45–6Microsoft 228, 404, 443, 444Milstein, Mark 524–7minicomputer industry, Boston Route 128

region 117, 118–23Mistry, Cirus 180Mitsubishi 529Miyake, Issey 125

Index

583






MNE archetypes 16–24emerging economy MNEs (EMNEs) 23–4freestanding companies 22–3strategic positioning 35–8see also centralized exporter MNEs; internationalcoordinator MNEs; international projectorMNEs; multi-centred MNEs

MNE performance, implications of internationalbusiness strategy 59–60

MNE senior managersneed for a practitioner-oriented framework 2sources of practical knowledge 1–2

Modi 558Moët Hennessy Louis Vuitton see LVMHMonsanto 530Montedison (case example) 51–2Monteiro, Em 93Moreau-Gobard, Romain 210Morimune, Ichiro 215Morita, Akio 211, 212, 213Motorola 228, 251–3, 441Mudambi, Ram 461multi-centred MNEs 21–2

catering for host country preferences 280economic exposure challenge 257in globalized markets 273–4international diffusion of FSAs 314–16Lafarge Group 22moving away fromMNE archetypes 311, 312–13Pattern IV 44–5Philips 21–2Porter’s view 110relationship with emerging economies 431–2strategic positioning 35–8subsidiary management 158, 162, 166transformation of international projector into308

multifaceted information 55–6multiple diamond model 110–13, 462–3, 532Murdoch, Rupert 135Murthy, N. R. 472, 473

Nandy, Sabaleel 186Nasser, Jack 558National Semiconductor 117natural factor endowments, dangers of

relying on 104natural resource seeking, motivation for FDI 32natural resources, location advantage 28–9NCR 224NEC 17, 82, 410Neghandi, Anant 164–6Nestlé case study 175–9

background 175consolidating the business 175–9decentralized front end (markets and

businesses) 176future plans and challenges 179GLOBE resource planning system 176, 177grouping markets into clusters 177inherited organizational features 175moving away from the independent subsidiary

model 177–8‘Nestlé on the Move’ change process 178–9rationalization of the back end of the value

chain 176regionally or globally run backline 176

Netease Youdao 446Newman, Lawrence 225–6Nexen Petroleum 32Nike, labour conditions in supplier factories 489Nike case study 508–14accusations of using sweatshop labour 509–10adjusting the business model 511–12background to sweatshop controversy 508business model 508changing to managing responsibility 510–11continuing CSR pressure from the public 513creating mandatory global industry

standards 512criticism in the US media 509–10CSR as a never-ending challenge 513–14efforts to improve CSR practices 513–14history of Nike 508initial response criticisms about labour

practices 508–9labour rights in Indonesia 508–9new labour environment in Indonesia 512–13problems caused by the business

model 511–12pursuit of collective responsibility 512recognition of problem of working conditions

510–11Nippon Data General Corporation (NDG) (case

example) 46–7Nippon Mini Computer Corporation

(NMC) 46–7Nippon Steel 528Nokia 306, 457, 552non-location-bound FSAs see internationally

transferable FSAsnon-transferable FSAs see location-bound FSAsNoranda 29Nortel 228, 229North American Free Trade Agreement (NAFTA)

4, 111–13

Index

584






case example 31Northwest airline 55Novartis AG 31NUMMI alliance 202–3

Office Depot (case example) 27–8offshoring for cost reduction 137–8Ogoni people, fight for rights 541–4Okie, Francis 91Olivetti 220Oneworld airline alliance 371Oneworld global alliance 55operating exposure see economic exposureopportunism, source of bounded reliability 57, 58organizational culture 6organizational structure and function 6original equipment manufacturers (OEMs)

230, 232Orkut social networking site 448–9Orr, Gordon 405Ostrom, Elinor 560outsourcingand core competencies 82for cost reduction 137–8

over-commitments, scaling back on 57, 58

Page, Larry 440–1, 445Palepu, Krishna 418–24Pan, Yigang 138–9Parke-Davis (case example) 44–5Parker, Mark 514partnerships see strategic alliance partnersPascale, Richard 64patterns of FSA development 40–51Pattern I 40–1Pattern II 41–3Pattern III 43–4Pattern IV 44–5Pattern V 45–6Pattern VI 46–7Pattern VII 47–8Pattern VIII 49Pattern IX 49–50Pattern X 50–1

patterns of FSA development (examples)Pattern I 166, 204, 228–9, 254, 280, 338, 532–4Pattern II 42–3, 110, 532–4Pattern II-B 462–3Pattern III 43, 44, 140–2, 166, 204–5, 229, 254,

312, 340, 423, 428, 463–4, 532–4Pattern IV 44–5, 166, 254, 280, 338, 532–4Pattern V 45–6, 229, 339–40, 532–4Pattern VI 46–7, 166–7, 204, 229, 532–4

Pattern VII 47–8, 428, 494, 532–4Pattern VIII 49, 205, 339–40, 532–4Pattern IX 49–50, 205, 340, 428, 532–4Pattern X 50–1, 340, 428, 532–4

Patterson, Maynard 93PC industry, competitive landscape 410–12Peninsula hotel group (case example) 26–7People’s Insurance Company of China (PICC) 434,

435, 436, 438PetroChina 546pharmaceutical industry, drug pricing in

developing countries 490–3Philips 21–2, 82, 220, 552

case example 45managing expatriates 312–13

Phoenix Group 240physical resources 5Piëch, Ferdinand 268Piëch, Louise 265Pierre Fabre S.A. 124Ping An Insurance Company 435Pinkse, Jonathan 527–9Pischetsrieder, Bernd 238–9, 240Pizza Hut 136

in China 33pollution havens 532Porsche, Ferdinand 265, 268Porsche, Ferry 265Porsche case study 265

background 265economic exposure managementstrategy 267–8

exchange rate pass-through capability 266–7relationship with Volkswagen 268–70sourcing structure and operating exposure 265–6structural changes in Porsche 268

Porter, Michael 103–6, 196, 519–22Porter’s diamond model 103–6

context of development 106–7double diamond model 110–13, 200, 532factors in long-term competitiveness 104–6management insights 110management takeaways 111multiple diamond model 110–13, 462–3, 532weaknesses in the model 110–16

PotashCorp 29practitioner-oriented framework 2Prahalad, C. K. 79–82, 308–11, 355–9procedural justice (due process) approach to

subsidiary management 163–4Procter & Gamble (P&G) 138, 456–7, 459

case example 50management of subsidiaries 160

Index

585






production see international sourcing and productionPuig Group 127

quality, Asian perceptions of 139Quandt, Herbert 237Quelch, John 276–8, 424–6

R&D see innovation; international innovationRalph Lauren Polo brand (case example) 26Ramadorai, Subramaniam 183Ramis, Monica 488–90Ranbaxy (case example) 42Raytheon 119RCA 119recombination capabilities

as highest-order FSA 39–40domestic routines 27–8rising importance of 559–61

recombination of resources 8, 14internationally dispersed resources 200to create value 38–51

regional strategies, dominance over globalstrategies 552–4

regional trading and investment agreements 31Reich, Robert 510Reinert, Uwe 137–8reprioritization, source of bounded reliability 57, 58reputational resources 6, 26resource base available to firms 5–6resource recombination to create value 38–51

as highest-order FSA 39–40Carrefour 39definition 38importance to businesses 39paradox of strong routines 40patterns in international business 40–51requirements for 39

reverse innovation 440Rhodes, William 48Richard, Jean-Michel 251–3Ricoh 56Rinker Group, acquisition by CEMEX 402–3Rio Tinto Zinc 22–3Roche 171Rockwood, Kristin 392–3Rong Yiren 435Roos, Chantal 126, 127Rosenfield, Donald 225–6Rosneft 32Roth, Erik 405Rouse, Ted 137–8Route 128 see Boston Route 128routines 6

Cisco 7–8domestic routines as location-bound FSAs 27–8Federal Express 6–7

recombination capacity of strong routines 40Rover Group 236–7BMW acquisition 238–9BMW’s role in its destruction 240–2end of 240pre-BMW years 239

Royal Dutch 536RUCIS countries 410Rugman, Alan 253–4

Saklatwala, Nowroji 180Salbitano, Miguel 263Samsung Electronics 122, 216, 349case example 33

Samuel, Marcus, Jr 536Sanmina-SCI 230Saro-Wiwa, Ken 541–4Satyam 478Saxena, Mukul 209–10Schmidt, Eric 445Schmitt, Bernd 138–9Schultz, Howard 146, 148Schumpeter, Joseph 524Sebenius, James K. 390–1semiconductor industry, Silicon Valley 117–23Sethi, Suresh 558SGS-Thomson 171Shell case study 536–46Brent Spar controversy 538–41death of Ken Saro-Wiwa 541–4decentralized management system 536–7diverse environmental practices around the

world 537–8environmental damage in Nigeria 541–4history of corporate social responsibility

problems 536history of Shell 536–7human rights abuses in Nigeria 541–4impact of the BP Deepwater Horizon oil

spill 546lack of commitment to renewable energy 545negative media coverage in the 1990s 538–44responses to criticisms of environmental

practices 544–6restructuring in 2004 546

Shih, Stan 461Shiseido (case study) 124–8background in the fragrance market 124becoming an insider in France 125–6building local relationships 125–6

Index

586






initial failures 124–5local decisions and autonomy 127local hiring 126local operations (plants and salons) 125local success 126–7subsequent developments 127–8

Shockley, William 117Shockley Transistors 117Siemens 29, 457Siemens case study 208–11background 208building the R&D unit in India 209–10continuing R&D expansion 210–11Global Technology Fields (GTFs)

initiative 209role and scope of corporate technology in

R&D 208Siemens Corporate Research, Princeton 209

Silicon Valley (case study) 117–23attitude towards entrepreneurs and

risk 120corporate culture 119–20current situation 121educational infrastructure 118–19factors in divergent performance between

regions 119–21foreign investment 122government funding as the catalyst 119influence of the dominant design 121influence of the initial leading firm 119regional network 120–1replicating elsewhere 123self-sufficient corporations versus relational

networks 120–1success factors 118–19venture capital 119

Singapore Airlines 139Sinha, Jayant 418–24Sinopec 466–7Six Sigma management standards 95Skyteam 55Sloan Management Review (SMR) 1–2Sloan Management Review articlescore competencies (Egelhoff, 1993)

82–4corporate environmental sustainability (Hart

and Milstein, 1999) 524–7corporate social responsibility (CSR) (Locke and

Ramis, 2007) 488–90economic exposure (Holland, Lockett, Richard

and Blackman, 1994) 251–3emerging economies (Arnold and Quelch,

1998) 424–6

emerging economy MNEs (EMNEs) (Gadieshand Vestring, 2008) 458–9

foreign distributors (Thomas and Wilkinson,2006) 334–5

home country location advantages (Kuemmerle,2005) 107–8

host country location advantages (Vestring,Rouse and Reinert, 2005) 137–8

international innovation (Birkinshaw and Fry,1998) 200–2

international marketing, (Quelch and Klein,1996) 276–8

international sourcing and production(MacCormack, Newman and Rosenfield,1994) 225–6

management of subsidiary networks (Kim andMauborgne, 1993) 162–4

managing expatriates (Prahalad and Doz)308–11

mergers and acquisitions (Sebenius, 1998)390–1

strategic alliance partners (Anderson and Jap,2005) 360–2

smiling curve concept 461–2, 554Smith, Frederick W. 6–7Smith, Jack 203Smith, N. Craig 490–3SMR see Sloan Management Reviewsocial justice 561Sogu 446Solectron 230Sony 82, 220, 552

foreign factories 224Sony case study 211–16

background 211current strategy 215–16establishing global R&D centres 212–13going international 212–13history of technologically innovative products211–12

managing R&D units 213–14R&D in Japan 213Sony’s recent decline 214–15Sony’s standards 214

Sony Ericsson 231sourcing see international sourcing and productionSperry 183Spinosa, Charles 427stakeholder groups 4Standard Oil 536Stanford University 118, 123Star Alliance 55, 371Star TV 135

Index

587






Starbucks (case study) 142–9administrative (or institutional) distanceissues 146–7

background 142–6challenge of the Italian market 148cultural distance issues 146economic distance issues 147geographic distance issues 147in China 146–7in Russia 146–7moving forward 148–9perception of American culturalimperialism 146

refocusing of the brand and strategy 148–9strategy to reduce distance in foreign markets147–8

Tata joint venture in India 148–9trademark protection lawsuits 146–7

Starr, Cornelius Vander 433–4Statoil, economic exposure (case example) 259–60Steyr-Daimler-Puch AG 238Stich, Johann 46STMicroelectronics 171Stora Enso 529strategic alliance partners

alliance-specific advantages (ASAs) 370bounded reliability issues 360–2CMR article (Kale and Anand, 2006) 362–4competitive collaboration 355–9context of the article by Hamel et al. 359–60control of knowledge and skills transfer 358–9Danone and Wahaha Group case study 365–82dark side of alliances 360–2dynamics of international strategicalliances 355–9

HBR article (Hamel, Doz and Prahalad, 1989)355–9

inherent instability in joint ventures 363–4learning objectives 355limitations of Hamel et al.’s analysis 371–3management insights 364management takeaways 365potential for exploitation and abuse 360–2problems with establishing alliances 362–4risk of a dependency spiral 357–8, 360–2safeguards against dysfunctional relationships360–2

SMR article (Anderson and Jap, 2005) 360–2theoretical benefits of strategic alliances 355winning the learning race 356–7, 363–4

strategic architecture 81–2strategic resource seeking, motivation for FDI 33Stringer, Howard 216

subsidiary networks see management of subsidiarynetworks

Suekawa, Hisayuki 128Sun Microsystems 276–7, 440, 552Sundaram, Anant K. 392–3Suzlon 456Suzuki 423Suzuki, Masami 62SWITCH companies 478

tacit knowledge 16administrative heritage 16–24

Taco Bell 136Talisman Energy case study 499–507acquisition of Arakis Energy 500, 502conflict over water resources in the Nile region

500–1damaging controversy in Sudan 499defence of position in Sudan 504exploration and acquisitions strategy 501–2final withdrawal from Sudan 505–6history of conflict in Sudan 499–500human rights issues in Sudan 499–500lessons learned from the Sudan

experience 506–7oil production in Sudan 500public protests over involvement in

Sudan 502–4reputational damage caused by involvement in

Sudan 502–4role of Egypt in the conflict in Sudan 500–1South Sudan situation 506Talisman’s involvement in Sudan 500, 501–2

Tan Caktiong, Tony 42Taobao 456Tata, Dorab 180Tata, J. R. D. 180, 181Tata, Jamsedji 180, 187–8Tata, Ratan N. 180, 181, 182–3, 185, 187Tata Consultancy Services 478Tata Global Beverages 148–9Tata Group, Nano car 24, 181Tata Group case study 180–8background 180corporate social responsibility 185donation to Harvard Business School 185historical opium trading 187–8history of the Tata Group 180–1international expansion 180–1managing the business 181–2nanotechnology and biotechnology R&D 185stated core values 187–8sustainability research 185

Index

588






Tata Consultancy Services 182–5Tata Swach water purification project 186

Tatelman, Michael 350tax regimes, location advantages 30technical knowledge resource 6Teece, David 108–9Temasek Life Sciences Laboratory 185Tencent Soso 446The Economist 1Thomas, Andrew R. 334–5Thulin, Inge 95–6Tiffany & Co. 70Toronto Stock Exchange (TSX) 29Toshiba 122, 215Total 546Total SA 32total quality management (TQM) 225–6Toulan, Omar 278–80Toyota 15Toyota Production System 202–3tragedy of the commons, avoiding 559, 560Tricon Restaurants International 136TRW Automotive (case example) 50–1Tsai, Huei-Ting 459–62Tse, Edmund 438TSX Venture Exchange 29

unifying frameworkbounded rationality 8–9, 52–7bounded reliability 8–9, 57–9complementary resources of external

actors 8, 51–2firm-specific advantages (FSAs) 5–8internationally transferable (non-location-bound)

FSAs 5–8, 15–24learning objectives 13location advantages 5–8, 28–34, 38location-bound (non-transferable) FSAs 5–8,

24–8need for 2overview 4–9recombination of resources 8, 38–51seven concepts 13–14strategic linkages 34–8value creation through recombination

38–51Unilever 181, 528Unisys 183United Airlines 557University of California, Berkeley 118Universo Online 441upstream knowledge 6US biotechnology clusters 30–1

US firms, strategic approach 82–4US Foreign Corrupt Practices Act 444

Vachani, Sushil 490–3value creation through recombination of resources

14, 38–51van der Linde, Claas 519–22van der Veer, Jeroen 545Varian 117Vasella, Daniel 31venture capital 119, 121Vestring, Till 137–8, 458–9Volkswagen 29

foreign currency exposure 269–70relationship with Porsche 268–70

Volvo 405Voser, Peter 545

Wadia Group 381–2Wahaha Group 365–82 see Danone and Wahaha

Group case studyWalker, Robert 120Wal-Mart 334, 344, 349, 510

case example 53Wal-Mart in Germany (case study) 149–54

background 149co-determination system 151consumer spending pattern in Germany 150culture of Wal-Mart 149–50features of the German retail market 150–1geographic locations of warehouses andheadquarters 151

hard discounting in German retailing 150history of Wal-Mart 149–50impact on customer service 152–3impact on the EDLP 151–2lesson learned for the future growth 153–4regulatory environment 150–1unionization 151Wal-Mart’s difficulties in the German market151–3

Wall Street Journal 1Wang Laboratories 118, 119Wangxiang 457Warner Bros. Pictures 17Warner-Lambert (case example) 44–5water purification, Tata Swach project 186Welch, Jack 386Weyrich, Claus 210Whirlpool Corporation (case example) 44Whitman, Meg 411Wiedeking, Wendelin 265, 268Wilkinson, Timothy J. 334–5

Index

589






Winterkorn, Martin 268Wipro 209, 478Wong, Nicole 448Wong Wai Ming 406

Xerox 82, 232case example 56–7R&D site development 198

Xstrata 29

Yahoo Inc. 441, 443, 444Yamashita, Keith 483–7Yang Yuanquing 406, 412

Yashiro, Masamoto 25Young, Andrew 510YouTube 448–9Yuen, Edith 164–6YUM! Brands, Inc. 136Yunus, Muhammad 427Yves Rocher 127

Zambrano, Lorenzo 398, 399, 400Zambrano, Mike 401, 402Zhang Ruimin 291–8Zhu Rongji 435Zuckerberg, Mark 120

Index

590






Documents

Index [assets.cambridge.org]assets.cambridge.org/97811070/27893/index/9781107027893_index.pdf · Index 3M 209, 552 3M Canada (case example) 47–8 3M core competencies case study