1 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Business

“Globalization 101”:

China @ Crossroad, 2009

International

Business Strategy viz. China:

The Unique Qualifiers

Gadi Ariav

MIT Forum, January 2010

Zhang HongTu

Image sourced from Saatchi Gallery website.

2 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Businesssynopsis

� one world – ready or not

� thinking strategically – global arbitrage?

� homework: configure the IB architecture

� the CN-modifiers:

� national differences, different stake-holders

� doing business in/with CN:

� challenging

� no excuse for ignorance-based failure

� unavoidable?

3 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Business

the design of globalcompetitive corporate business architecture

key strategic global choices:� home country� supplier / production countries� customer countries� partner countries� competitor strategic global choices

the global arbitrage case:global added value from trade

key global operational choices (“G5”):platform, network, intermediary,entrepreneurship, investment

4 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Business

global business strategy:implementation agenda

� managing the value network:

� manufacturing and supply networks

� locating components globally

� marketing

� payments and collections

� control:

� risk and asset protection

� governance

5 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Business

IB strategy:global strategic modifiers

� national differences:

� history, economic history

� political economic system

� legal system

� culture

� country linkages

� stakeholders: esp. government and public

� ethics and social responsibility

6 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Business

7 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global BusinessCN ultimate combination

� infinite pool of low wage, not-trained labor

� fast increase in productivity w/o impact on wages

� emerging and huge consumption markets

� potential access to global best practices

� diversified economic development among provinces

� acceptable secondary and tech education

� acceptable political stability

� very high political independence

8 / 8Copyright Max Perlman Center for Global Business 2010 ©

TEL AVIV

UNIVERSITYFaculty of

Management

Max PerlmanCenter for

Global Business

national differences:

� history, economic history: long, transitional

� political economic system: market socialism

� stakeholders: esp. government and public

� legal system: practice precedes law

� culture: deep, somewhat transitional

� ethics and social responsibility

� country linkages: China-fication of WTO

China strategic modifiers