Global Strategy - Essay Example

Comments (0) Cite this document
Summary
1. Identify the internationalisation path of Haier and critically analyse the 'internationalisation' triggers and methods used by them in their development. What are the main benefits (negative aspects) of internationalisation to Haier' (40 marks)
MNE are defined as enterprises that operate in more than two countries…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
Global Strategy
Read TextPreview

Extract of sample
"Global Strategy"

Download file to see previous pages These are ownership, location and internalization. Ownership is analogous to Porter's competitive advantages and is concerned with ownership of "such things as proprietary technology, superior marketing skills, economies of scale in production, superior management skills, and other firm-specific capabilities". Location is ability of a company to use location advantages in reducing manufacturing costs. Finally internalisation deals with whether activities are performed in the company or outside the company.
This case study done by Liu, H. and Li, K. (2002) discusses Haier, a leading Chinese company specialising in home electronics. This company in its short time has grown from a small enterprise employing 600 people to its present status as a leading multinational enterprise (MNE) which is in the Fortune 500. Haier's path to internationalisation has been unique and highly effective.
According to Liu, H. and Li, K. (2002) the analysis of its internationalisation strategy can be viewed in terms of the environment - strategy - performance framework. The environment being classified into two classes of positive factors collectively referred to as the impetus and the negative factors collectively referred to as constraints.
The end of the cold war which came as a result of collapse of communism in Europe created an international environment with reduced polarisation. At the same time China was liberalising and opening its market in the 1990s. China has had the longest sustained economic growth since the 1980s. The annual average growth rate has been more than 8% for more than 20 years.

Haier's history of growth started in 1984 with the appointment of current CEO Zhang Rulmin. At that time China's economy was drastically changing. Competition among the domestic producers of home appliances was hotting up. Liberalisation of the economy brought foreign players to compete in an already saturating market. The admittance of China into the World trade Organisation (WTO) in 2001 opened the floodgates. Many companies from developed countries were rushing to enter the Chinese market. Not willing to compete using a price war Haier was forced to look outside China for further growth in its business.

The external constraints on Haier in its internationalisation strategy were lack of financial resources. The company was under-equipped and under-financed. For the company to expand it had to develop innovative strategies for financing its overseas expansion. The Government was supportive of Haier and allowed them to form a bank and use it as a vehicle of financing its own expansion abroad.

The Japanese firms which internationalised followed two generic paths as shown in the diagram below.


Figure 1 Internationalization paths for Japanese Companies, Liu, H. and Li, K. (2002)

The Type I path was popular as it allowed the company to use the ventures in developing countries to acquire skills for international operation. These skills are used to enter developed countries. This strategy also favors a low cost strategy where the lower costs of manufacturing in developing countries are used to service the market in developed countries. The Type II strategy which starts with entrance into developed markets and then expansion into ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Global Strategy Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Global Strategy Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from https://studentshare.org/business/1526578-global-strategy
(Global Strategy Essay Example | Topics and Well Written Essays - 2500 Words)
Global Strategy Essay Example | Topics and Well Written Essays - 2500 Words. https://studentshare.org/business/1526578-global-strategy.
“Global Strategy Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1526578-global-strategy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Corporate and global strategy
Corporate strategy of the company is analysed with the help of core competency and overall scope availability. The study used VRIN model and porter’s value chain analysis for auditing business strategy of the company. The report used tools such as PESTLE and Porter’s Five Forces in order to measure external opportunity for the company.
12 Pages(3000 words)Essay
CORPORATE AND GLOBAL STRATEGY
CORPORATE AND GLOBAL STRATEGY Table of Contents Executive Summary 3 Introduction 4 Business Strategy 7 Internal Analysis 7 External Analysis 12 Evaluation of Strategy 16 Conclusion & Recommendations 17 References 18 Executive Summary Business strategy is often referred to as a process and continues along with the business.
14 Pages(3500 words)Essay
Global Strategy
This annotated bibliography contains an overview of Sumantra Ghoshal, W. Brian Arthur, and George S. Yip's books. Here you will find the analysis of Chapter 16 of Global Strategy: an Organizing Framework. Strategy and Chapter 17 of Increaing Returns & the New World of Business along with the Chapter 18 of Global Strategy in the Twenty-First Century.
1 Pages(250 words)Annotated Bibliography
Global strategy & competitivness
These businesses are also required to standardize their products in some cases so as to suit the different markets. A case in point is Microsoft Corporation and its operations in the UAE. Some of its competitors are Google and Apple. These companies are also required to formulate strategies that are compatible with their vision and mission.
5 Pages(1250 words)Essay
Global strategy
The company’s ratings by the year 2008 suggest that it had gone global with a market capital of approximately US$29.4 billion, and a working staff of around 20,700 employees (Stockport 2009, p.573). At this very time, the company had expanded across national borders beyond its original home in the United States; other countries in which Amazon had established its websites include Germany, the UK, France, Japan, Canada and China.
8 Pages(2000 words)Essay
Global Strategy
Germany. The portfolio of services of T-Mobile includes mobile services, fixed phone network, internet as well as ICT and TV services. The company ensures that the best quality of services is provided to the customers so that the company is able to maintain a dominant position in the markets.
13 Pages(3250 words)Essay
General Motors Global Strategy
Its vehicles are sold in 200 nations and in the year 2004, GM recorded sales of about 9 million cars and trucks worldwide registering a growth of 4% compared to the previous year being the second highest in its history. The sales figures went up to 9.17 million in 2005 covering brands such as Cadillac, Chevrolet, Buick, GMC, GM Daewoo.
5 Pages(1250 words)Essay
Corporate and global strategy
mbly plants and 30 distribution and warehousing centres in US, the company has manufacturing, distribution or warehousing operations in approximately 55 countries. Canada is another big centre of its facilities where GM operates through 20 locations. But the company’s position
6 Pages(1500 words)Essay
Global strategy
The aim, purpose and objective of setting up the business school have been discussed in the plan. The purpose of setting up the business has been discussed and the entire business has been described in
10 Pages(2500 words)Essay
Global Strategy
Strategy formation is related to creation of strategy, designing a new business involving various steps like exploration, searching
16 Pages(4000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Global Strategy for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us