09 Jan Managing in a Global Economy Fall 2021
Managing in a Global Economy Fall 2021
Lesson 10- 11 -12 Final Case Study
1
What is this about ?
• We have selected an industry • We have looked at the industry from many
different sides
• We have seen the opportunities • We have seen the challenges ! • Now you will become CEO of an industry in
your sector!
2
You are the CEO!
• You are the CEO • You determine strategy • Your company is in a period of slow growth • You decide that solution to slow growth • = foreign expansion • You need to make a plan that is viable = • Can be implemented !
3
What kind of company is it ?
• You will invent a company • You will not take an existing company in your
sector !
• You will not – I repeat – take an existing company in your sector !
• You will not invent a company and enter into a
joint venture with an existing company in your
sector !
4
Example !
• Company CEO – Jean Ergas • Company name – Jean Ergas Inc. • Company activity – Frozen Roast Chickens ! • Company size – Mid – size
5
Company Characteristics !
• Mid –size – this is in relation to your sector • You are not a market leader • You do not have a lot of pricing power • You will attempt to establish a stronger position by
going abroad !
6
Limited Foreign Experience !
• You have some foreign experience • You have limited foreign experience • You have experience of some exports • You do not have a dedicated export team • You do not have a dedicated international
division
• You are basically beginners !
7
To help you – an expert !
• You recently hired an: • An expert in the sector • An expert in international business • This person shall help you to develop a
strategy
8
Losing Market Share!
• You are not a large firm in your sector • You do not have a large market share • You are losing market share in a : • Increasingly price competitive environment • Slow macro economic growth environment • Slow sector growth environment
9
Structure of the Paper !
• You have a maximum of 600 words • You will not write more than 600 words ! • You will use this word allocation well ! • You will write short sentences • You will write one sentence = one concept !
10
3 Parts to the Paper !
• 1- Introduction: 100 words • 2- Discussion : 400 words • 3- Conclusion : 100 words
11
Part 1 Introduction – Brief summary of industry
• Introduction: • Say what your industry is • Summarize the industry: • For example: • My industry is the global PC sector. • It has sales of US Dollars billion • Growth is slow – moderate – fast !
12
Part 2 – Presentation !
• You shall present your plan • You shall explain why you have chosen this
plan
• You shall explain the opportunities • You shall explain the challenges • You shall explain why your plan: • Maximizes the opportunities • Offsets the challenges !
13
Part 3 – Conclusion !
• You will conclude by summarizing: • Strategy chosen • 2 major reasons why you chose it • 2 major risks to your strategy !
14
We go international !
• We need to make a plan • We need to look at many factors • We need to look at: • Our position in the sector • Growth prospects: • Domestic • International • We know international better than domestic /
home !
15
We need to look at our product !
• We need to look at product – standard – non standard
• We need to look at brand – strong – weak • We need to look at need to produce locally: • Weak • Strong • We need to look at capital investment: • Strong • Weak
16
Organization!
• We need to look at current organization • We are given this organization • We are a domestic focused company • We have a simple organization !
17
Organization ! Very Simple !
• We are organized by function: • Sales • Marketing • Production • Finance • We are not organized by product ! • We are not organized by region !
18
Will we need to change our organization ?
• Will you need to change your organization ? • Will you need to establish a: • International division • Product management structure ?
19
Marketing Strategy !
• Marketing Strategy: • Home replication • Global multi-product • Use these two basic models!
20
Finance !
• Finance – explain if + finance necessary yes – no
• Finance – if + finance necessary where will more finance come from:
• Current owners • New investors • Banks • This can be very brief !
21
Export or FDI ?
• Will you sell from the home office ? • Will you produce in your target market ? • Will you have a 2 phase strategy: • Export from home office • Production in the target market
22
Alone or Joint Venture ?
• Will you do this expansion alone ? • Will you do this expansion with a joint venture
partner?
• Will you choose a large local firm? : • Strong market position • Strong pricing power • Will you choose a mid size local firm: • You can obtain better conditions • You can build market together !
23
Summary !
• No real companies: • Your company • Partner • 600 words !: • Will stop reading after 600 words • Will take off 10 points every 100 words + • Clearly structure the paper !
24
Slide 1
What is this about ?
You are the CEO!
What kind of company is it ?
Example !
Company Characteristics !
Limited Foreign Experience !
To help you – an expert !
Losing Market Share!
Structure of the Paper !
3 Parts to the Paper !
Part 1 Introduction – Brief summary of industry
Part 2 – Presentation !
Part 3 – Conclusion !
We go international !
We need to look at our product !
Organization!
Organization ! Very Simple !
Will we need to change our organization ?
Marketing Strategy !
Finance !
Export or FDI ?
Alone or Joint Venture ?
Summary !
