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Opening Profile Chap 7-8

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Opening Profile.
Haier Group total income: $965 million
Outstanding shares: $2.4 B
Total cash estimate: $ 2,705,400 M
Management Goal: Haier’s global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations.
Three management human resources techniques: Haier’s service system runs throughout the production process from product design, production, manufacturing, to pre-sale, under sales and after sales service.
Three Management actions to further globalization: As they are facing the fierce global market competition, Haier launches the Global Brand Building Strategy and updates spirit “Create resources, worldwide prestige” and work style “Individual-goal combination, swift action and success” with an aim to gain global recognition and sustainable development.”


Global alliance: two or more countries joining globally.
In February 2 1996, Sprint Corporation, Deutsche Telekom and France Telecom have created a global alliance in telecommunications that offers advance voice and data services to businesses, telephone carriers and consumers around the world.

Cross Border Alliance international merger and acquisition with partners.

Global Sourcing: describe practice of sourcing from the global market for goods and services across international boundaries.
Global sourcing is designed to reduce costs and increase efficiency by buying products and services all over the world.

Joint Venture: joint venture is typically a business agreement between two or more businesses for the purpose of a mutually beneficial sales transaction for a product or service.
BHPBilliton is a joint venture with a British Company and an Australian company formed to combine the resources exploration competencies of both companies.

IJVs: international joint venture where in which at least one parent is headquartered outside of the venture’s country of operation.
IJV’s can enable companies to share technology and complementary IP assets for the production of goods and services.

Strategic Alliance: An arrangement between two companies who have decided to share resources in a specific project.
Japan and the United States have created a Strategic Alliance to create a better way to connect with their consumers.

Equity Strategic Alliance: a cooperative venture in which involves equity ownership by one or both partners.
When you need something done, like development, you might want to form an Equity Strategic Alliance with a development firm.

Non-Equity Strategic Alliance: Two separate businesses retain their own equity shares in the strategic alliance. They join forces and create a strategic alliance relationship, agreeing to share resource.
Non-Equity Strategic Alliance doesn’t lock the owners because in business, people change and products develop.

NGO: legally constituted organization created by natural or legal persons that operates independently from any government.
UN introduced NGO to differentiate the participation of international private organizations and intergovernmental specialized agency.

Knowledge Management: strategies and practices used in an organization to identify, create, distribute, represent, and enable adoption of insights and experiences.
Knowledge Management helps the organization to identify the concentration areas and less populated areas of knowledge.

Comparative Management in Focus
P 241

Three reasons why I would not recommend alliances in Russia are corruption, bribe-taking at all levels of the state bureaucracy, and weak legislative and enforcement regimes.

Discussion Questions
P 252 # 1,2,4,7,9

1. Reasons why companies embark on cross border strategic alliance market expansion, cost and technology sharing, avoiding protectionist legislation and taking advantage of synergies. Technological advances and resulting blending of industries, such as those in the telecommunications and entertainment industries are reasons that prompt such alliance.
2. There are an increasing number of mergers with companies in different industries because of technology. Technology has dramatically changed our perception of the world. It has affected how we navigate our environment and consume information, and has changed our expectations about how quickly information should be made available. Nowadays, they keep coming up with new innovations that I couldn’t even guess what will be the new “in thing.”
4. Common sources of incompatibility in cross border alliance are intriguing benefits often cover up the risks involved. There are cultural clashes, conflicting strategic goals and objectives, loss of technology or skill base and management and control conflicts that most commonly arise. You can minimize them b
7. Strategic Implementation is the process if setting up overall policies, administrative responsibilities and schedules throughout the organization. Successful implementation results from setting up the structure, and processes of the firm, as well as the functional activities that creates system fits with the desired strategy.

Aditya Case
P 254 # 1,2,3

1. The strategy towards the business portfolio was to exit from areas where they has minor presence or where they had losses being incurred and to consolidate and build operations where competencies and strengths existed was a brilliant plan. If I owned businesses where I want it to grow and it’s in area where there’s really no income in than I rather build more towards the area that I know I can make profit.
2. Under the leadership of Kumar Mangalam Birla, his incentives were taken with the focus on learning and relearning, performance management and organizational renewal. He also wanted to instituted the steps of taking retired aged managers and replace them with young managers who came in with fresh and “out of the box” ideas. I think it’s important to learn about performance management and also organization renewal to strengthen your company. Also sometimes if fresh new ideas is what is going to work to put the company back on top then there’s nothing wrong with that. Sometimes you need fresh new eyes to see what actions need to be done if the old way wasn’t working.
3. ABG second part of its mission “Indian Values” wanted to send out the message that “We care.” They reached out to 7M people annually through the Adiitya Birla Centre, they are focusing on health care, education, sustainable livelihood, infrastructure, and espousing social causes. They currently are running 41 schools and 18 hospitals and working in 3,700 villages.

Chapter 8

Opening Profile
Samsung’s total asset is about $344B in 2010.
One management goal: strives to provide exceptional service to each customer while delving deeper into their needs to help them make the connection with Samsung products that fit their lifestyles.
3 Management changes as Samsung introduced to offset the company downturn: Enhance our flexibility, potential for growth, and risk management capabilities and also strengthen our leadership in core businesses and capabilities in key growth fields.
Bottom line - The line in a financial statement that shows net income or loss.
From looking at this year’s balance statement, it showed me how much we’ve gained or lost on the bottom line.

EBO – also known as Emerging Business Opportunities. It was made so that companies would not miss opportunities for growth.
There’s so many emerging business opportunities that many companies are trying to develop new products to push in the market.

Organizational structure – is an organization that is intended to aid the implementation of strategic goals.
Companies use different organizational structures to maintain a lead in the market.

Global E-Corporation – global corporation that is based online.
Since technology has boosted many companies are opening new business global e-corporation.

Structural evolution - form of a global strategy that includes organizational structure, optimization, relationships, designing authority, responsibility and levels of communication.
As companies become more international, they reorganize their structural evolution to accommodate new strategies.

Stages model - a form of structural evolution that has different stages and is based on research done on U.S. MNCs.
When companies reorganize their structural evolution, they have the stage models to examine their new strategies.

Global geographic structure - arranging operations into divisions that are created based on specific geographic regions.
Many companies use global geographic structure in Asia to execute their new plan for that area.

Global functional structure - works with foreign operations to gain economies of scale.
Global functional structure tries to see where they can gain more profit.

Integrated global structure - structures that companies use to increase the benefits of domestic and foreign operations.
A company created the integrated global structure to maximize domestic and foreign operations.

Internal benchmarking - is a system where the different locations within an organization that do or produce similar products compare how they are producing the similar outputs.
Benefits of internal benchmarking are that it increases customer satisfaction and it improves the quality of your product.

Pan European Strategy - strategy designed for all European countries.

Core Competencies - Core competencies are those capabilities that are critical to a business achieving competitive advantage.
The starting point for analyzing core competencies is recognizing that competition between businesses is as much a race for competence mastery as it is for market position and market power. Downsizing - is typically accomplished through restructuring, which means reducing the number of employees and, often, the spin-off of activities unrelated to the company’s core business.
After the economy plummeted, companies started downsizing their staff to make ends meet.

TNC - strategy designed for all European countries. This is the horizontal linking of foreign operations, alliances and networks

Discussion Questions: 1,2,3,4

3. Transnational structure allows a company to “be global and act local” by using networks to decentralize units with horizontal communications.

Acer Case Study P280 #2,3
2. Acer India focus would be on education, youth and retail. For the education segment they wanted to build solutions, which fit the needs and budget of students, and for the retail, they intended to tie up with large format retail stores. Acer is growing high as it getting highest order from the education sector where it has gained 40% share. Large numbers of orders from government bodies and educational institution has contributed this success and emerged as main competitor of HP. To take advantage of the opportunities that is presented by the Indian market Acer should strengthen their organization, the finance department should be run conservatively, and the marketing department should be run aggressively.

3. Acer India has managed several accolades in its endeavors. A state of the art reconfiguration centre for fast and flexible offerings to different customer needs; Acer Customer Service Centers to service notebooks in about 60 cities in the country and a unique unmatched guarantee within the warranty period to provide peace of mind to the customer. An extremely robust service coupled with the ability to make the latest technology affordable makes Acer India a force that shapes the dreams of millions of people.…...

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