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International Dimensions of Management
International Dimensions of Management
International Dimensions of Management
International Dimensions of Management
Michel Villette Janvier 2009
Michel Villette Janvier 2009
Classement mondial des entreprises (Source : Fortune, june 2008)
Classement mondial des entreprises (Source : Fortune, june 2008)
Classement mondial des entreprises source : Fortune, june 2008
Classement mondial des entreprises source : Fortune, june 2008
Food and drug stores :
Food and drug stores :
For a particular country, what is a foreign company
For a particular country, what is a foreign company
Lusine Aka
Lusine Aka
For a particular company, what means being international
For a particular company, what means being international
WHY COMPANIES ENGAGE IN FOREIGN OPERATIONS
WHY COMPANIES ENGAGE IN FOREIGN OPERATIONS
Whos got the Profits
Whos got the Profits
WHY INTERNATIONAL COMPANIES ENGAGE IN FOREIGN PRODUCTION
WHY INTERNATIONAL COMPANIES ENGAGE IN FOREIGN PRODUCTION
Michel Villette Janvier 2009
Michel Villette Janvier 2009
Taux de croissance de divers pays en 2009 ( ann
Taux de croissance de divers pays en 2009 ( ann
How to organize the multinational corporation
How to organize the multinational corporation
Area for formulation of global corporate objectives :
Area for formulation of global corporate objectives :
Possible evolutions of a corporation toward internationalization :
Possible evolutions of a corporation toward internationalization :
The Stopford and Wells Model of MNC Organizations
The Stopford and Wells Model of MNC Organizations
Integration & Differenciation
Integration & Differenciation
?
?
Research by Gates and Egelhoff, 1986, Centralization In
Research by Gates and Egelhoff, 1986, Centralization In
Reaching a decision takes too long because we must get approval from
Reaching a decision takes too long because we must get approval from
The globalization process George S. Yip, 1989, Global strategy in a
The globalization process George S. Yip, 1989, Global strategy in a
Limits of globalisation
Limits of globalisation
Strat?gie dexpansion
Strat?gie dexpansion
R?duction des risques dans une strat
R?duction des risques dans une strat
Different types of multinationals companies
Different types of multinationals companies
Organization or culture
Organization or culture
Four style of management for the multinational company H.V. Perlmutter
Four style of management for the multinational company H.V. Perlmutter
Mod?le multinational, tr
Mod?le multinational, tr
Polycentric policy
Polycentric policy
Polycentric policy Advantages/disadvantages
Polycentric policy Advantages/disadvantages
Mod?les international, ethnocentrique ou encore global
Mod?les international, ethnocentrique ou encore global
Ethnocentric policy
Ethnocentric policy
Ethnocentric Policy Advantages/Disadvantages
Ethnocentric Policy Advantages/Disadvantages
The global corporation : a myth
The global corporation : a myth
Regiocentric policy
Regiocentric policy
The regiocentric policy Advantages/Disadvantages
The regiocentric policy Advantages/Disadvantages
Le mod
Le mod
Le mod
Le mod
Dans le mod
Dans le mod
STRATEGY IMPLEMENTATION AND MANAGEMENT OF CHANGE in the multinational
STRATEGY IMPLEMENTATION AND MANAGEMENT OF CHANGE in the multinational

: 10 . : Michel Villette. : 10 .ppt. zip-: 414 .

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10 .ppt
1 International Dimensions of Management

International Dimensions of Management

Michel Villette

Michel Villette Janvier 2009

1

2 International Dimensions of Management

International Dimensions of Management

Michel Villette Janvier 2009

2

Course Objectives The course is designed to provide a comprehensive and up-to-date overview of the main issues managers are facing within European multinational corporations. After a brief identification of the strategic issues of internationalisation, we will focus on the difficulties and practical dilemmas professionals are confronted with, while organizing, controlling and managing a Multinational Corporation.

Course Organization ( 8 x3 hours) 1. Internationalisation why ? Illusions and myths about globalization The rationales for developing business aboard. 2. The decision of developing foreign operations The different steps toward internationalisation 3. How Multinational should Your Organization be ? Ethnocentric policy Polycentric policy Regiocentric policy Geocentric policy 4. Relations between headquarter and subsidiaries -Main difficulties -Techniques and tactics -Management Accounting -Human Resources 5. Building teams for global operations 6. Managing change in the multinational company 7. Mergers, Acquisitions 8. International Joint ventures and alliances

3 Michel Villette Janvier 2009

Michel Villette Janvier 2009

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Special Report The 400 Best Big Companies 12.22.08, 06:00 PM EST

Industry is :

NAME

5-YEAR TOTAL RETURN %

SALES ($BIL)

NET INCOME ($MIL)

INDUSTRY

Andersons

9.6

3.5

90

Food Drink & Tobacco

Archer Daniels

15.5

78.1

2,411

Food Drink & Tobacco

Brown-Forman

6.0

2.6

446

Food Drink & Tobacco

Bunge

9.4

54.1

1,519

Food Drink & Tobacco

Campbell Soup

7.0

8.1

1,155

Food Drink & Tobacco

Coca-Cola

2.8

32.1

6,026

Food Drink & Tobacco

Corn Products Intl

10.8

3.9

266

Food Drink & Tobacco

Flowers Foods

20.4

2.3

109

Food Drink & Tobacco

General Mills

9.9

14.1

1,284

Food Drink & Tobacco

Hain Celestial Group

-7.4

1.1

37

Food Drink & Tobacco

Hormel Foods

1.5

6.8

286

Food Drink & Tobacco

Kellogg

6.3

12.7

1,145

Food Drink & Tobacco

Kraft Foods

-0.1

41.8

3,323

Food Drink & Tobacco

McCormick & Co

2.8

3.1

261

Food Drink & Tobacco

PepsiAmericas

3.1

4.9

231

Food Drink & Tobacco

PepsiCo

5.3

42.9

5,685

Food Drink & Tobacco

Ralcorp Holdings

16.2

2.8

168

Food Drink & Tobacco

4 Classement mondial des entreprises (Source : Fortune, june 2008)

Classement mondial des entreprises (Source : Fortune, june 2008)

Food consumer products :

Food consumer products :

Food consumer products :

Beverage :

Beverage :

Beverage :

Michel Villette Janvier 2009

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From the July 21, 2008 issue

Rank

Company

Global 500 rank

$ millions

% change from 2006

$ millions

% change from 2006

1

Nestl?

57

89,630

12

8,875

21

2

Unilever

122

55,006

8

5,322

-11

3

PepsiCo

184

39,474

12

5,658

0

4

Kraft Foods

195

37,241

0

2,590

0

5

Groupe Danone

423

20,128

14

5,721

237

Rank

Company

Global 500 rank

$ millions

% change from 2006

$ millions

% change from 2006

1

Coca-Cola

275

28,857

20

5,981

18

2

Coca-Cola Enterprises

403

20,936

6

711

0

3

Inbev

431

19,751

18

3,009

70

4

Heineken Holding

491

17,197

16

553

-27

5

SABMiller

493

17,057

15

2,023

23

REVENUES

REVENUES

PROFITS

PROFITS

REVENUES

REVENUES

PROFITS

PROFITS

5 Classement mondial des entreprises source : Fortune, june 2008

Classement mondial des entreprises source : Fortune, june 2008

Food production :

Food production :

Food production :

Food services :

Food services :

Food services :

Michel Villette Janvier 2009

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From the July 21, 2008 issue

Rank

Company

Global 500 rank

$ millions

% change from 2006

$ millions

% change from 2006

1

Archer Daniels Midland

158

44,018

20

2,162

65

2

Bunge

191

37,842

44

778

49

3

Tyson Foods

298

26,900

5

268

Rank

Company

Global 500 rank

$ millions

% change from 2006

$ millions

% change from 2006

1

McDonald's

359

23,231

8

2,395

-32

2

Compass Group

401

20,950

-5

1,014

98

3

Sodexo

473

17,673

13

458

16

REVENUES

REVENUES

PROFITS

PROFITS

REVENUES

REVENUES

PROFITS

PROFITS

6 Food and drug stores :

Food and drug stores :

Food and drug stores :

Food and drug stores :

Michel Villette Janvier 2009

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1

Carrefour

33

115,585

15

3,147

11

2

Tesco

51

94,703

18

4,253

20

3

Metro

56

90,267

20

1,129

-15

4

CVS Caremark

80

76,330

74

2,637

93

5

Kroger

87

70,235

6

1,181

6

6

Walgreen

125

53,762

13

2,041

17

7

Royal Ahold

137

50,739

-11

4,012

256

8

Groupe Auchan

139

50,465

15

1,317

41

9

Seven & I Holdings

141

49,768

9

1,130

-1

10

AEON

154

44,707

8

380

-23

11

Supervalu

157

44,048

18

593

31

12

Safeway

164

42,286

5

888

2

13

J. Sainsbury

208

35,797

10

660

7

14

Woolworths

228

33,442

18

1,016

34

15

George Weston

254

30,559

8

524

392

16

Coles Group

293

27,556

0

594

-32

17

Delhaize Group

306

26,113

7

561

27

18

William Morrison Supermarkets

310

25,960

12

1,109

141

19

Rite Aid

328

24,418

40

-1,079

-4122

20

Alliance Boots

340

23,812

10

20

-97

21

Publix Super Markets

360

23,194

6

1,184

8

22

Migros

445

18,915

15

666

11

REVENUES

REVENUES

PROFITS

PROFITS

Rank

Company

Global 500 rank

$ millions

% change from 2006

$ millions

% change from 2006

7 For a particular country, what is a foreign company

For a particular country, what is a foreign company

Foreign shareholders : 20%, 50% ? Foreigners among the top managers ? Headquarter localization ? Research Localization ? Taxation policy ? Image ? Political influence ?

Michel Villette Janvier 2009

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8 Lusine Aka

Lusine Aka

dHonfleur d?pose son bilan (Le Monde, 16 janvier 1997)

Michel Villette Janvier 2009

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Septembre 1996 : Il reste 312 salari?s dans lusine, plus personne ne paie leurs salaires et on ne sait plus qui est le propri?taire de cette entreprise : il ny a plus personne pour payer les indemnit?s de licenciements, les dettes aux fournisseurs et pour proc?der ? la liquidation. Les pouvoirs publics fran?ais, qui ont largement subventionn? limplantation de lusine, vont devoir encore supporter le co?t de son d?mantellement. Pour la ville de Honfleur, le projet de d?veloppement tourne au fiasco. Pour la conception de politiques industrielles, cest un exemple ? m?diter

Cr?e en 1982 avec dimportante subventions publiques et une protection douani?re, lusine Aka? dHonfleur ?tait un mod?le social Elle comptait 700 employ?s en 1993. 1993 : La direction fait savoir quelle ne sollicite plus pla prime dam?nagement du territoire de 5, 25 millions de francs pour un investissement de 65 millions avec 300 nouveaux emplois ? la clef. Avril 1995 : La marque Japonaise Aka? est absorb?e par la multinationale asiatique Semi-Tech. 1996 : 180 licenciements ? Honfleur. Baisses de salaires allant jusqu? 40% pour les autres. Juin 1996 : Semi-Tech revend lusine ? une soci?t? Chinoise, Omin Present dont le si?ge est ? Hong-Kong pour un prix tr?s bas : 392 000 Frs (pour une usine dont le chiffre daffaires est en 1995 de 576 millions de F (et une perte annuelle de 22 millions).

9 For a particular company, what means being international

For a particular company, what means being international

Foreing sales as a % of total sales Foreing products diversity Age of foreing operations Number of countries where the company is operating % of third countries nationals among employees % of expatriates among employees Type of foreing operations : exportation, production, research, Type of organization , company culture and strategy.

Michel Villette Janvier 2009

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10 WHY COMPANIES ENGAGE IN FOREIGN OPERATIONS

WHY COMPANIES ENGAGE IN FOREIGN OPERATIONS

Phatak Arvind V. International Dimensions of Management. PWS Kent Publishing Company, 1992.

Michel Villette Janvier 2009

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To achieve efficiency by locating a function in that country which has a comparative advantage in providing the factors required to perform it (scale economies) ex: labor cost, cost of capital. by sharing investments and costs across more products, markets and businesses ( scope economies ) ex: research laboratories To manage risks currency wage-rate Growth rates differences between countries. To be more innovative, to learn, to adapt Technology transfer marketing intelligence benchmarking research: "In the US, all great engineers want to work on product innovation; in Asia, the best guys want to work on improving the production process" To make easy money To take advantage of cross-exchange rates between currencies To avoid strict laws and high taxation For leadership attack or counterattack against competitors power relations with clients power relations with suppliers power relations with nation-states

11 Whos got the Profits

Whos got the Profits

Ireland The subsidiary Turns around and Resells the item at $150 to a U.S. sub- Sidiary earning a $70 profit. Taxe rate : 4% Tax Paid : $ 2,80

United States The U.S. subsidiary sells the item at cost, for $150. No profit is earned. The Irish subsidiary then lends money to the U.S. company for future expansion Tax Rate : 34% Tax Paid : $0.

Germany An Item is manu- Factured at a cost Of $80. It is then sold to an Irish Subsidiary for $80 Taxe Rate : 48% Taxe Paid : $0

Michel Villette Janvier 2009

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12 WHY INTERNATIONAL COMPANIES ENGAGE IN FOREIGN PRODUCTION

WHY INTERNATIONAL COMPANIES ENGAGE IN FOREIGN PRODUCTION

To maintain a market position abroad despite tariff and non-tariff barriers To reduce high transportation costs To take advantage of cheap labor or cheap supply. To meet the demand of fast growing market. To meet the demand for the product quickly To builds good relations with customers and the host government To take advantage of incentives offered for direct investments

Michel Villette Janvier 2009

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13 Michel Villette Janvier 2009

Michel Villette Janvier 2009

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14 Taux de croissance de divers pays en 2009 ( ann

Taux de croissance de divers pays en 2009 ( ann

e de crise)

Michel Villette Janvier 2009

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1 Macau, China 13.2 2009 est. 2 Qatar 9.5 2009 est. 3 Azerbaijan 9.3 2009 est. 4 China 8.7 2009 est. 5 Ethiopia 8 2009 est. 6 India 8.8 2010 est. 7 Poland 7.3 2009 est. 8 Lebanon 7 2009 est. 11 Congo, Republic of the6.6 2009 est. 12 Uganda 6.6 2009 est. 13 Djibouti 6.4 2009 est. 14 Laos 6.4 2009 est. 15 Niue 6.2 2003 est. 26 Turks and Caicos Islands4.9 2000 est. 31 Bermuda 4.6 2004 est. 32 Gambia, The 4.5 2009 est. 33 Indonesia 4.5 2009 est. 34 Zambia 4.5 2009 est. 35 Iraq 4.3 2009 est. 70 Iran 2.6 2009 est.

United States Virgin Islands2 2002 est. Australia 3.3 2010 est. Saudi Arabia 0.2 2009 est. Brazil -0.2 2009 est. Norway -1 2009 est. France -2.2 2009 est. United States -2.4 2009 est. Argentina -2.5 2009 est. Canada -2.5 2009 est. European Union -4 2009 est. Italy -4.8 2009 est. United Kingdom -4.8 2009 est. Bulgaria 4.9 2009 est. Germany -5 2009 est. Japan -5.3 2009 est. Turkey -5.6 2009 est. Mexico -6.5 2009 est. Russia -7.9 2009 est.

15 How to organize the multinational corporation

How to organize the multinational corporation

Key questions

How to encourage a predominantly domestic organization to take full advantage of growth opportunities abroad ? How to blend product knowledge and geographic area knowledge most efficiently in coordinating worldwide business ? How to coordinate the activities of foreign units in many countries while permitting each to retain its own identity ?

Michel Villette Janvier 2009

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16 Area for formulation of global corporate objectives :

Area for formulation of global corporate objectives :

Michel Villette Janvier 2009

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Finance Financing of foreign affiliates Local borrowing Taxation : minimizing tax burden globally Optimum capital structure Foreign exchange management- minimizing losses from foreign fluctuations Technology Type of technology to be transferred aboard; Adaptation of technology to local needs and circumstances Host Gouvernent Relations Adapting affiliate plans to host governement developmental plans Adherence to local laws, costums and ethical standards Personnel Development of managers with global orientation Management development of host country nationals Research and Development Innovation of patentable products Innovation of patentable production technology Geographical dispersion of research and development laboratories.

Profitability Level of profits Return on assets investment equity, sales Yearly profit growth Yearly earnings per share growth Marketing Total sales volume Market share worldwide, region, country Growth in sales volume Growth in market share Integration of country markets for marketing efficiency and effectiveness. Production Ratio of foreign to domestic production volume Economics of scale via international production integration Quality and cost control Introduction of cost efficient production methods Doing or buying

17 Possible evolutions of a corporation toward internationalization :

Possible evolutions of a corporation toward internationalization :

Merger with other corporations

Integration of Foreign affiliates

Acquisition Of foreign companies

Production abroad

Alliance and Joint ventures

Sales Branches or Subsidiaries

Export department and direct sales

Foreign Inquiry

Michel Villette Janvier 2009

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18 The Stopford and Wells Model of MNC Organizations

The Stopford and Wells Model of MNC Organizations

Global Or transnational

Worldwide Product Division

Foreign Product Diversity

Geographic Area Division

International division

Foreign Sales as Percentage of Total Sales

Michel Villette Janvier 2009

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19 Integration & Differenciation

Integration & Differenciation

Three Basic integrative mechanisms : Centralization Formalization Normative integration Differentiation : measured for each company as the ratio of the number of its fit to its misfits subsidiaries.

Michel Villette Janvier 2009

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20 ?

?

?

?

Des mod?les dorganisation plus ou moins adapt?s selon les secteurs :(organizational fit)

Michel Villette Janvier 2009

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Des exigences diff?rentes selon Les pays

Adaptabilit? locale

Multinational, Style de management polycentrique

Co?ts de R&D ?lev?s, exigences diff?rentes selon les pays

Diffusion des comp?tences

International Style de management ethnocentrique

Un march? mondial homog?ne, des opportunit?s d?conomie d?chelle

Effets dechelle, Production et distribution de masse

Mod?le global Style de management geocentrique

Secteurs

Caract?ristiques du secteur

Condition de La comp?titivit?

Mod?le dorganisation adapt?

21 Research by Gates and Egelhoff, 1986, Centralization In

Research by Gates and Egelhoff, 1986, Centralization In

esearch by Gates and Egelhoff, 1986, Centralization In Headqharters-subsidiary relations , Journal of International Business Studies

If a subsidiary has to face ? more dynamic environment : rapid product change rapid competitive climate change then, more autonomy.

hypothesis contradicted !

Michel Villette Janvier 2009

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22 Reaching a decision takes too long because we must get approval from

Reaching a decision takes too long because we must get approval from

headquarters There is too much bureaucracy in the organization Too much paperwork has to be send to headquarters Headquarters staff and subsidiary management differ about which problems are important Headquarters tries to control its subsidiaries too tightly The subsidiary is too dependant on headquarters for new product development Headquarters makes decisions without through knowledge of marketing conditions in the subsidiarys country The company doesnt have a good training program for its international managers The company has an inadequate procedure for sharing information among its subsidiaries There is very little cross-fertilization with respect to ideas and problems solving among functional groups within the company Headquarter is too home-country oriented Headquarter managers are not truly multinational personnel

Decision problems as perceived by international affiliates CEO

Michel Villette Janvier 2009

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23 The globalization process George S. Yip, 1989, Global strategy in a

The globalization process George S. Yip, 1989, Global strategy in a

world of Nations ? Sloan Management Review,N29 Fall 1989.

Step 1: Develop core Business strategy

Home country

Step 2: Internationalize The strategy

Country A

B

C

D

Step 3: Globalize the Strategy

Michel Villette Janvier 2009

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24 Limits of globalisation

Limits of globalisation

GLOBAL

NON GLOBAL

Non

Michel Villette Janvier 2009

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25 Strat?gie dexpansion

Strat?gie dexpansion

linternational :

X

X

X

X

X

X

x

X

X

X

X

X

X

Pays 1

2

3

4

5

6

7

Produit 1

2

3

4

5

Michel Villette Janvier 2009

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26 R?duction des risques dans une strat

R?duction des risques dans une strat

gie de croissance internationale :

pays

Segments de client?le

Produits actuels

Produits nouveaux

actuel

actuel

1

3

actuel

nouveau

2

4

nouveau

actuel

5

7

nouveau

nouveau

6

8

Michel Villette Janvier 2009

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27 Different types of multinationals companies

Different types of multinationals companies

? Geocentric attitude

? Ethnocentric attitude

? Polycentric attitude

Global

Transnational

High

National

Multinational

Low

National differentiation responsiveness

Low

High

Global Coordination Integration

Michel Villette Janvier 2009

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28 Organization or culture

Organization or culture

The formal organization chart is a poor representation of how an organization really operate. Organization is a set of relationships among individuals, groups, units and very different relationship patterns can flourish within the same formal structure.

formal

informal

Michel Villette Janvier 2009

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29 Four style of management for the multinational company H.V. Perlmutter

Four style of management for the multinational company H.V. Perlmutter

and D.A. Heeman, "How Multinational Should Your Organization Be? HBR, November-December 1974.

Ethnocentric attitude "Our culture is better than Yours, we will teach You how to do " Polycentric attitude "Stay home, and do it your own Way" Regiocentric attitude "By international and let us rule the company" Geocentric attitude "Believe us, we will be global soon. Nationally will make no differences between us"

Michel Villette Janvier 2009

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30 Mod?le multinational, tr

Mod?le multinational, tr

s d?centralis?, polycentrique,

Le si?ge consid?re le groupe comme un portefeuille dentit?s ind?pendantes Les filiales sont autonomes et dot?es de ressources strat?giques Lint?gration minimum est assur?e par des relations personnalis?es entre dirigeants et un syst?me de reporting l?ger.

Si?ge mondial

Michel Villette Janvier 2009

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31 Polycentric policy

Polycentric policy

As many policy as subsidiaries. Few rules and guidelines (except finance management). CEO of Subsidiaries are host country nationals with no career opportunity aboard Strategic decisions are centralized and operational decisions at the subsidiary level The CEO of a subsidiary is autonomous as long as he as good financial results. Headquarters interventions are limited.

Michel Villette Janvier 2009

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32 Polycentric policy Advantages/disadvantages

Polycentric policy Advantages/disadvantages

CEOs are close to the subsidiary they are leading The task of the headquarters is simple Chameleon strategy to face nationalism and cultural particularities

Lack of control Management of change is difficult Poor international co-ordination Managers do not have an international perspective careers are limited lack of loyalty, segregation difficulty to negotiate at an international level with clients or suppliers

Michel Villette Janvier 2009

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33 Mod?les international, ethnocentrique ou encore global

Mod?les international, ethnocentrique ou encore global

Le si?ge consid?re les filiales comme des extensions de lactivit? domestique. Les filiales sont dot?es dimportantes ressources mais fortement contr?l?es par le si?ge. Il existe un syst?me sophistiqu? de planification et de contr?le.

Si?ge mondial

Michel Villette Janvier 2009

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34 Ethnocentric policy

Ethnocentric policy

Michel Villette Janvier 2009

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Parent country - is the reference - provide the leaders - keep control Expatriates rules the subsidiaries Great privileges and advantages for expatriates Centralized decisions Careers managed by the headquarters Foreigners does not belong to the "family" Headquarters does not help very much. He is controlling.

35 Ethnocentric Policy Advantages/Disadvantages

Ethnocentric Policy Advantages/Disadvantages

Uniformity of subsidiaries Cultures Technology transfers Secrecy Ethnic conflicts avoided Prestige of the parent country Response to xenophobia International reactivity Multi divisional organization is possible at a word while scale

Expensive Centralization may face rebellion Decisions not adapted to the countries Permanent conflicts between expatriates and host country nationals Second class citizens are discouraged

Michel Villette Janvier 2009

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36 The global corporation : a myth

The global corporation : a myth

Myth, utopia, ideal ? Equal opportunity for all managers around the word No nationalist bias in the decision making process Competition among subsidiaries to develop and promote internationally recognized solutions to technical problems good co-operation among managers from different nationalities Advantages/disadvantages ? This policy match the global challenge very expensive managers becomes nomads in reality the myths does not work perfectly well Internationals managers consider themselves as an elite and may become arrogant Ex: Shell, Unilever , Nestl?, Hewlett-Packard, Schlumberger...

Michel Villette Janvier 2009

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37 Regiocentric policy

Regiocentric policy

Three level organization: -World while Headquarters -Regional Headquarters (Europe, Asia, Middle East) -National Subsidiaries Ex: IBM, Texas Instrument, Dow Chemical, Eastman Kodak before 1985. Parents country nationals keep the top positions at the world headquarters High international mobility among managers of the same region. Career of third country nationals ended at the regional headquarters.

Michel Villette Janvier 2009

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38 The regiocentric policy Advantages/Disadvantages

The regiocentric policy Advantages/Disadvantages

Good relations between subsidiaries in the same area Manager mobility develop an international culture A lot of international managers are available Expatriates are well accepted by host country colleagues and subordinates International opportunities for young managers

To Expensive Foreigners are second class citizens Foreigners lives the company when they have been trained as international managers. Regional diversity is high and regional policy are not adapted to the different markets To many hierarchical levels, bureaucracy. Decision process is slow ,complicated and conflictual.

Michel Villette Janvier 2009

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39 Le mod

Le mod

le transnational R?f?rence : Christopher A. Bartlett and Sumantra Ghoshal, 1989, Managing Across Borders, The Transnational solution, Harvard Business School Press,

Les actifs de lentreprise sont dispers?s g?ographiquement, sp?cialis?s et interd?pendants. Chaque filiale nationale doit contribuer, de mani?re diff?renci?e ? une strat?gie d?finie de mani?re int?gr?e au niveau mondial. Les comp?tences sont d?velopp?es conjointement par lensemble des entit?s et partag?es au niveau mondial.

Michel Villette Janvier 2009

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40 Le mod

Le mod

le transnational : un reseau dexploitation de la diversit?.

Michel Villette Janvier 2009

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41 Dans le mod

Dans le mod

le transnational : 4 r?les possibles pour une filiale :

+

-

+

Importance strat?gique du march? local

TROU NOIR

LEADER STRATEGIQUE

CONTRIBUTEUR

EXECUTANT

Niveau de comp?tence de la filiale locale

Michel Villette Janvier 2009

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42 STRATEGY IMPLEMENTATION AND MANAGEMENT OF CHANGE in the multinational

STRATEGY IMPLEMENTATION AND MANAGEMENT OF CHANGE in the multinational

corporation Bibliography

Michel Villette Janvier 2009

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Recommended books Bartlett Christopher A., Ghoshal Sumantra. Transnational management : text, cases, and readings in cross-border management. Homewood, IL, Irwin, 1992. Kotter, John P. Leading Change. Harvard Business School Press, Boston,MA, 1996. Complementary readings : Adler Nancy J. International Dimensions of Organizational Behavior. Kent Publishing Company, 1991. pages 126-142. Bartlett Christopher A. Ghoshal Sumantra. Managing Across Borders. The Transnational Solution. Harvard Business School Press, 1989. Bartlett Christopher A., Ghoshal Sumantra. Transnational management : text, cases, and readings in cross-border management. Homewood, IL, Irwin, 1992. Bogan Christopher E. English J. Benchmarking for best Practices. Mc Graw Hill, New York. Borg-Warner Chemicals case. Wim Broekhuysen. 1993. Brown Shona L., Eisenhardt Kathleen M., Competing on the edge : strat?gy as structured chaos, Havard Business School Press, Boston, MA, 1998. Brunsson N, The Irrational Organization. Irrationality as a Basis for Organizational Change. John Wiley, 1985. Champy James A. and Hammer Michael, Reengineering the Corporation : A Manifesto for Business Revolution. Harper Collins PUblishers, New York. 1993. Collins Timothy M. Doorley Thomas L. Teaming up for the 90s. Business One Irwin, Homewood, USA. Crosby Philip B. Quality is Free. The Art of Making Quality Certain. Mac Graw hill, New York, 1980. Drissi Amar, Its Impossible, so Well Do It. Business Life Seminar, Session of 8 April 1994, Ecole de Paris du Management. France. Duck Jeanie Daniel. Managing Change : the Art of Balancing. Harvard Business Review. November-December 1993. Evans Paul, Doz Yves and Laurent Andr?, Human Resource Management in International Firms. Change, Globalization, Innovation. Macmillan, 1989 Evans Paul, Doz Yves and Laurent Andr?, Human Resource Management in International Firms. Change, Globalization, Innovation., Macmillan, 1989 Gates Stephen R. Egelhoff William G. Centralisation in Headquarters-subsidiary relationships. Journal of International Business Studies. Summer 1986. Ghoshal Sumantra and Bartlett Christopher A. Changing the Role of Top Management. Harvard Business Review, January-February 1995. Ghoshal Summantra. Nohria Nitin, Horses for Courses : Organizational Forms for Multinational Corporations. Sloan Management Review. Winter 1993. Hamill Jim, Pan-Europeanisation: Myth or Reality- CMB Packaging. European Management Journal, Vol 10 N4 December 1992. Haspeslagh P.C. and Jemison D.B. Managing Acquisition, Free Press, 1991. Kanter R.M. The change Masters, Simon and Schuster, 1984. Kelly F.J. and H.M. What they really teach you at the Harvard Business School, Warner Books, New York, 1986.

Kotter, John P. Leading Change. Harvard Business School Press, Boston, MA, 1996 Kotter, John, P, Organizational Dynamics : diagnosis and intervention, Addison-Wesley, Reading, MA, 1978. Latour Bruno. Aramis. La D?couverte, Paris, 1992. Marsick Victoria J. Turner Ernie and Cederholm Lars, International managers as team leaders. Management Review, March 1989. Midler Christophe. Twingo, L'Auto qui n'existait pas. Inter-?dition, Paris, 1994. Mills D. Quinn. The Decline and Rise of IBM.. Sloan Management Review. Summer 1996. Mills, D. Quinn, Friesen, G. Bruce, Broken promises : an unconventional view of what went wrong at IBM. Harvard Business School Press, Boston, MA,1996. Mitzberg H. Rise and Fall of Strategic Planning, Free Press, 1993. Mumford E. and Pettigrew A., Implementing Strategic Decisions, Longman Group, 1975. Muzyka Daniel, Breuninger Hans, Rossell Gerda, The Secret of New Growth in Old German Mittelstand Companies, European Management Journal, Vol 15, N2 April 1997. Nissan Motor CO. Europe case. Insead, Fontainebleau, France, Revised 1993. Nohria Nitin, Ghoshal Sumantra, The differentiated network : organizing multinational corporations for value creation. Jossey-Bass Publishers, San Francisco, 1997. Nohria Nitin, Ranjay Gulati, What is the Optimum Amount of Organizational Slack ? A study of the relationship between slack and innovation in multinational firms. European Management Journal, Vol 15 N6, December 1997. Permutter H.V. and Heeman D.A. How Multinational Should Your Organization be ? HBR, November-December 1974. Pettigrew A., The Awakening Giant. Continuity and Change in ICI, Blackwell,Oxford,1985.. Pettigrew Andrew, The Management of Stragegic Change, Basil Blackwell, 1988. Phatak Arvind V. International Dimensions of Management. PWS Kent Publishing Company, 1992. Sadler Philip, Designing Organisations : the foundation for excellence, Kogan Page, London, 1998. Schein E.H. Organizational Culture and Leadership, Jossey Bass, 1986. Stalk G. Hout. T. Competing against Time. The Free Press, New York, 1990. Strebel Paul. New Contracts : The Key to Change. European Management Journal. Vol 11 N4 December 1993. Yip George S. Global Strategy in a word of Nations ? Sloan Managemnet Review, Fall 1989.

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