Professional Documents
Culture Documents
By :- Ravi Shivhare
Internationalisation
Did investment in Nigeria in 1977 In 1983 came a joint venture in Malaysia In the late 1980s, it adopted the exports route to several years Next several years, continually internationalised on the basis of acquisitions, holding majority stakes in a bulk of overseas companies It operates in 50 countries and has manufacturing facilities in 11 countries.
Digitalisation
Manifested in various websites to specialized services for doctors, patient education Holds an ERP system with state-of-the-art business With increasing technological sophistication, backed by a strong R&D, as many as 25 global brands and a multicultural workforce of 11,000 employees around the world. RANBAXY is truly an Indian MNC in its own right.
INTERNATIONALIZATION STRATEGIES
IS are a type of expansion strategies that require organization to market their products or services beyond the domestic and national market. Steps for expansion internationally: Assess the international environment evaluate its capacities and devise strategies to enter foreign markets Then it have implement its strategies and monitor and control its foreign operations.
GLOBAL STRATEGY
TRANSATIONAL STRATEGY
INTERNATIONAL STRATEGY
MULTIDOMESTIC STRATEGY
Disadvantages:
Higher Risks Difficulty in managing cultural diversity High Bureaucratic cost High Distribution cost Trade Barriers
Regionalisation strategies
Alan rugman,2000 presented powerful thesis in which he proposed that globalisation is a myth. Also demonstrated that many of the worlds largest firms are not global but regionally, in terms of breadth and depth of market coverage. Regionalisation can be considered as an expression of semiglobalisation. Regional strategies are: home base, portfolio, hub, platform and mandate strategies.
Strategies for the Bottom-of-the-Pyramid Bottom-of-the The popular phrase bottom-of-the-pyramid was used by the American president Franklin Roosevelt in a radio speech to denote the economically weaker sections of the society. BoP is the majority of the worlds population, estimated to be 4 billion in a total population of 6 billion, who survive on US$2 a day. The idea of BoP is addressed to the MNCs that have increasingly found the markets saturating at most places they operate in. The tactics suggested to implement the BoP idea into practice depends on making products and services affordable to poor people.
These tactics could be several, such as: Asking for easy payments in installments Dramatic cost cutting Offering products in small packages Charging prices by pay-by-use Direct distribution by avoiding costly marketing intermediaries
high
low
COOPERATIVE STRATEGIES
Corporate strategies could take in to account the possibility of mutual cooperation with competitors, at the same time competing with them so that the market potential could expand
COOPERATIVE STRATEGIES
JOINT VENTURES
STRATEGIC ALLIANCES
Mahindra & Mahindra s take over a 90 % stake in Schoneweiss a German Company with the experience of 140 years in Foreign Business. Hutchison Whampoa of Hong Cong sold their controlling stake in Hutchison-Essar to Vodafone for a Whopping US $ 11.1 billion.
HORIZONTAL MERGERS
VERTICAL MERGERS
COCENTRIC MERGERS
CONGLOMERATE MERGERS
JOINT VENTURE
It could be considered as an entity resulting from a long term contractual agreement between two or more parties, to undertake mutually beneficial economic activities, exercise joint control and contribute equity and share in the profits or losses of the entity.
DISADVANTAGE
Problem in equity participation Foreign exchange regulation
Strategic alliances
It is a partnerships between firms whereby their resources, capabilities and core competencies are combined to pursue mutual interest to develop, manufacture or distribute goods or services.
Cont.
Two or more firms unite to pursue a set of agreed upon goal, but remain independent subsequent to the formation of the alliances. The partner firms share the benefits of the alliances and control over the performance of assigned tasks perhaps the most distinctive characteristic of alliances and the one that makes them so difficult to manage. The partner firms contribute on a continuous basis, in one or more key strategic areas, for example technology, product and so forth.
Entering new markets Reducing manufacturing costs Developing and diffusing technology
Procompetitive alliances (low interaction/low conflict) Non competitive alliances (high interaction/low conflict) Competitive alliances (high interaction/high conflict) Precompetitive alliances (low interaction/high conflict)
Clearly define a strategy and assign responsibilities. Phase in the relationship between the partners. Blend the culture of the partners. Provide for an exit strategy.
Digitalization Strategies:
Digitalization is a vast subject, encompassing a number of areas such as business, social sciences or technology.
Digitalization is defined as digital coding of information and the growing productivity gains in processing and transmission it enables.
Let us start by looking at some other terms used in the context of digitalization such as computerization, electronization and digitization, networking and telecommunication.
Computerization:
It has been a strategic alternative before organizations since last decades. Computers have become an internal part of the organizational asset configuration as well as inevitable part of its information system.
Electronization:
It is a term to denote progressive conversion of physical data into electronic data through digitisation.
Digitization:
It is technical term denoting the conversion of analogue electrical signals into digital signals, a process takes place for instance, in case of recording music on compact disk, when physical sound waves in the form of electrical sound signals get converted into digital electronic signals.
Digitalization Strategies
Choosing among the e-business patterns. The structure foundation sets the new rules of the game. Choosing the e-business models. The strategic framework that allows competing in the game. Choosing the e-business designs. The specific strategy for what is needed to be done in the marketplace.
E-business patterns
1. 2. 3. 4. 5. E-channel pattern Click and brick pattern E-portal pattern E-market or Net market pattern. Pure-digital products pattern.
Main Points:Employing more than 10000 employees. Annual turnover is over US$2.1 billion. The firm focuses on core competence. Ranked no.1 or 2 in their respective businesses. Took risk in 1990 when turnover is 230 crore and invest 100 crore in IT for product development, supply chain management, marketing and to reduce cost as well as time.
Entered into joint venture in May 2007 with Gerdau S.A.Brazil for installation of rolling mills. 100 % acquisition of RSBconsult Gmbh (RSB) of Germany.
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