LECTURE NOTES

Chapter 13 Global Strategies

Content of Chapter 13
1. There are at least eight motivations for global strategies.
2.

Research has shown that the success of a global strategy involves a strong core, a
repeatable formula, differentiation that travels, and being in sync with industry economics.

3. Six dimensions affect the decision as to what country to enter.

4. A key issue is what should be standardized (looking for economies and exploiting
brilliance) and what should be customized.
5. Global brand management involves a planning system, a way to gain cross-country
synergy, a system to create brilliance, and an internal communication system.
6. Strategic alliances in a global context, their motivations and success keys, are discussed.
Motivations Underlying Global Strategies
What is the motivation to McDonalds to invest in other counties such as China? What
about P&G? What firms can and should ignore the market potential of China and India?
Some of the eight reasons for going global may not come up. Ask why? The Wal-Mart
case alludes to the fact that they failed in Germanysummarized on p. 229 (and are not doing
well in the UK and some other countries).
Ask what are the indicators that strategies should be global and compare the answers
to p. 226 top.
Expanding the Global Footprint
Why did Marks & Spencer have trouble implementing its strategy in Europe? (there
was a look and feel problem). Again check out the Wal-Mart case and note the material on p.
229 on Wal-Mart in Germany.
How would you evaluate the India as a market for Budweiser? For Ford?
Standardization vs. Customization
For what products does globalization not make sense because the strategy needs to
be local (many food products fall into this category).

2007 John Wiley & Sons

Lecture Notes

Chapter 13 page 1

What products have points of differentiation that span countries? Pampers? Nike?
What is the implication that Honda has a youthful, racing image in Japan and a cafe,
middle class, family image in the US?
Global Brand Management
Why would competent CEOs employ the uninformed dictator model? Why does the
anarchy model survive?
Explain the service provider, the facilitator and consultative model. Why might they
make sense for a new global manager despite their inability to create global strategies?
Why is delivering brilliance important? Why is standardization a possible barrier to
brilliance? How can brilliance be created?
Strategic Alliances
What are the motivations for a strategic alliance? What are the attributes of a
successful alliance?
Quotes:
Most managers are nearsighted. Even though todays competitive landscape often stretches
to a global horizon, they see best what they know best: the customers geographically closest
to home.
- Kenichi Ohmae
A powerful force drives the world toward a converging commonality, and that force is
technology The result is a new commercial reality the emergence of global markets for
standardized consumer products on a previously unimagined scale of magnitude.
- Theodore Leavitt
My ventures are not in one bottom trusted, nor to one place.
- William Shakespeare
The Merchant of Venice
For Discussion:
1.

Pick a product or service that is offered in a limited number of countries. Assess the
advantages of expanding to a more global presence.
In general, food products are more sensitive to culture and local needs and habits;
products that have functional benefits that are visible are more likely to be global.

2007 John Wiley & Sons

Lecture Notes

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2.

For a particular product or service, how would you evaluate the countries that would
represent the best prospects? Be specific. What information would you need, and how
would you obtain it? Prioritize the criteria that would be useful in deciding what
countries to enter.
Focus in on a few brands that are different like Frito-Lay snacks, Ford cars, or GE
turbines. The material on pages 228-9.

3.

What is the advantage of a global brand team? What are the problems of using a team
to devise and run the global strategy? When should a team lead, and when should it
take on a supporting role? Would your answer differ for BP versus P&G? Why?
The problem of getting control of the silo countries is wide spread and this model (p.
233) provides a structure for dealing with it.

4.

For firm such as Bank of America, P&G, or Ford, how would you go about creating
blockbuster global-brand building programs-for example, sponsorships, promotions, or
advertising? How would you leverage those programs?
The key is getting a lot of ideas on the table and then testing them. The P&G approach
is to let the silos be allowed to generate and test options and then run with the best.

5.

Select a company. How would you advise it to find an alliance partner to gain
distribution into China? What advice would you give regarding the management of that
alliance?
See page p. 237-9.

2007 John Wiley & Sons

Lecture Notes

Chapter 13 page 3