Cheatsheet module 5
Yip drivers (MCCG)
- Market: similar/global customers, transferable marketing
- Cost: scale economies, global sourcing, bulk purchase, logistics
- Competitive: multipoint competition, clusters, Red Queen
- Government: trade policies, technical standards, host government policies
- Every driver is dynamic; internationalisation comes in waves
Bartlett & Ghoshal
| Local pressure low | Local pressure high | |
|---|---|---|
| Integration pressure high | Global | Transnational |
| Integration pressure low | International | Multi-domestic |
- International: temporary, export (Xerox). Global: standardisation (cars). Multi-domestic: country managers (financial). Transnational: both (Unilever)
- The boxes are stages; transnational becomes a necessity
Entry mode (Johanson & Vahlne)
Exporting, licensing, franchising, sales rep/unit, then direct investment.
| Fast? | On failure | Risk | |
|---|---|---|---|
| Buy | yes | sell on | culture, valuation |
| Ally | yes | share loss | control, learning race |
| Greenfield | no | not sellable | slow |
Choice: urgency, uncertainty, type of capabilities (soft = hard).
LOF and OLI
- LOF: extra costs of a foreign firm (unfamiliarity, discrimination, geopolitics)
- Ownership: core competences, dynamic capabilities
- Location: Porter’s diamond (factor, demand, related and supporting, strategy structure rivalry)
- Internalization: avoid transaction costs, entry mode
- The OLI advantage must exceed the LOF
CAGE (Ghemawat)
Cultural, Administrative, Geographic, Economic. Reus: C and A most important. Distance changes the ranking of countries.
NUMMI (GM and Toyota)
- GM: factory, workers (explicit). Toyota: TPS (tacit)
- Toyota learned, GM did not: not-invented-here, no absorptive capacity
- Learning race
Geopolitics
- Anarchy = football without a referee, not chaos
- Conflict equilibrium (tariffs, breaking agreements) versus cooperative equilibrium
- Consequences: market entry, investment security, equal treatment, institutional alignment
- Disequilibrium: shift in power, nationalism, new friend-foe views
Exam tips
- Full sentences, do not translate English technical terms
- 5p for a Yip driver with explanation; transnational with high pressure on both; acquisition: faster and can be sold on