Dirk Morschett / Hanna Schramm-Klein / Joachim Zentes Strategic International Management
Dirk Morschett Hanna Schramm-Klein Joachim Zentes Strategic International Management Text and Cases
Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de. Dirk Morschett is Professor of International Management at the University of Fribourg, Switzerland. He holds the Liebherr/Richemont Endowed Chair for International Management and is responsible for the Master of Arts in European Business at the University of Fribourg. Hanna Schramm-Klein is Professor of Marketing at the University of Siegen, Germany. She holds a Chair for Marketing and teaches International Marketing, Marketing and International Management at the University of Siegen and in different MBA programmes. Joachim Zentes is Professor of Management and Marketing at the Saarland University, Saarbrücken, Germany. He is Director of the H.I.MA. (Institute for Commerce & International Marketing) and Director of the Europa-Institut at Saarland University. He holds a Chair in Business Adminstration, with a focus on Foreign Trade and International Management. 1st Edition 2009 All rights reserved Gabler GWV Fachverlage GmbH, Wiesbaden 2009 Editorial Office: Barbara Roscher Renate Schilling Gabler is part of the specialist publishing group Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publica-tion are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Cover design: KünkelLopka Medienentwicklung, Heidelberg Printing and binding: Krips b.v., Meppel Printed on acid-free paper Printed in the Netherlands ISBN 978-3-8349-1488-0
Preface Overthelastfewdecades,internationalactivitiesofcompanieshavegained dramatically in importance. Empirical evidence for this statement can be found,forinstance,intherapidgrowthofworldtradeandinforeigndirect investmentflowsaswellasinthehighshareofintracompanytradeontotal world trade, indicating the relevance of crossborder value creation pro cesses. CoursesonInternationalManagementhave,thus,becomeanintegralpartof mostmanagementstudiesatuniversitiestodayanddedicatedmasterspro grammesoninternationalmanagementhaveemergedinrecentyears. Concept and Overview of this Book Thisbookintendstogiveacompactoverviewofthemostrelevantconcepts anddevelopmentsininternationalmanagement.ittakestheperspectiveof MultinationalCorporationsasDifferentiatedNetworks.Thevariousstrategy concepts of internationally active companies and their implementation in practicearethecoreofthisbook. Itisnotdesignedasatraditionaltextbookoracollectionofcasestudies,but triestocombineboth.thebookintroducesthecomplexandmanifoldques tionsofinternationalmanagementintheformof20lessonsthatgiveathe maticoverviewofkeyissuesandillustrateseachtopicbyprovidingacom prehensivecasestudy. The book is divided into six major parts. Part I ( Introduction to Strategic International Management ) lays the foundation by explaining basic con ceptsofinternationalmanagement.inpartii,theinfluenceoftheexternal environmentonmultinationalcorporationsisdescribed,lookingintomar ket barriers and regional integration, the competitive advantage of nations andtheinfluenceofcountryculture.partiiifocusesonthecoordinationof internationallydispersedactivitiesinamultinationalcorporation.anover view of formal and informal instruments is given and some coordination instrumentsarediscussedinmoredetail.anothercoredecisionwithregard tointernationalactivities,theforeignoperationmode,isdealtwithinpart IV.Afteranoverviewofthebasictypesofforeignoperationmodes,thethree mainoptions market,cooperationandhierarchies areexplainedinindi vidualchapters.partvisdevotedtospecificvaluechainactivities.interna tionalproduction&sourcing,internationalr&dandinternationalmarket V
Preface ingarelookedatindetail.finally,humanresourcemanagementandinter nationalcontrolarediscussedashighlyrelevantbusinessfunctionsinpart VIofthebook. Teaching and Learning The book is primarily aimed at students at the beginning of their Masters studies who major in BusinessAdministration, International Management, Strategic Management or related fields. In addition, practitioners from the manufacturing or service sectors, who seek compact and practiceoriented informationonstrategyconceptsininternationalmanagement,canbenefit fromthebook.furthermore,thebookcanbeusedincasestudybasededu cation.forthispurpose,thecasestudiesaccompanyeachlessoninsucha way that they provide additional content and a specific application of the individuallessonsontheonehand,i.e.,theyarepartoftheexplanationof thetopic,buttheyalsoleadtosuggesteddiscussionsubjectsandquestions inordertodeepentheunderstandingofthetopic. Instructors are provided with additional resources. A set of PowerPoint slides can be downloaded from the publisher s website (www.gabler.de). Furthermore,foreachcasestudy,adraftsolutioncanbeobtained. Acknowledgements A textbook with cases cannot be written without the active support and cooperation of the selected companies. Thus, first of all we appreciate the help of the companies and their representatives who have willingly sup portedusinthedevelopmentofthecasestudies. AtGablerwethankBarbaraRoscherandRenateSchillingwhoaccompanied andsupportedourconceptforthisbookfromthebeginning. At the universities where the three authors are teaching and researching International Management, we would particularly like to thank Sebastian Rittinger(SaarlandUniversity)forthepreparationofanumberofcasestud iesaswellasforcopyeditingthebook.wealsoacknowledgetheassistance ofjonasbastian,peterdomma,catherineholtgräfe,pascalkrämer,juliane Krebs,FabianLehnert,SandraPocsay,andSaskiaZolnowskifromtheSaar land University and Annett Donath and Marcus Aschenbrenner from the UniversityofFribourg,whohaveallpreparedspecificcasestudies. Fribourg,SiegenandSaarbrücken,June2009 DIRKMORSCHETT HANNASCHRAMMKLEIN JOACHIMZENTES VI
Brief Contents Contents Preface Introduction... V... 1 Part I Chapter1 Chapter2 Chapter3 Chapter4 Introduction to Strategic International Management MultinationalCorporationsasNetworks... 9 CaseStudy:Siemens... 19 TheIntegration/ResponsivenessFramework... 29 CaseStudy:Retailing... 41 RoleTypologiesforForeignSubsidiaries... 51 CaseStudy:ABB... 62 MotivesforInternationalisation... 71 CaseStudy:BritishPetroleum... 83 Part II Chapter5 Chapter6 Chapter7 The External Environment MarketBarriers,GlobalandRegionalIntegration... 95 CaseStudy:Nissan... 104 CompetitiveAdvantageofNations andregionalclusters... 113 CaseStudy:BaselRegionCluster... 124 TheRoleofCountryCultureforInternational Management... 133 CaseStudy:China... 145 Part III Chapter8 International Coordination FormalandInformalCoordinationMechanisms... 157 CaseStudy:Würth... 172 VII
Brief Contents Chapter9 Chapter10 Chapter11 InternationalOrganisationalStructuresas CoordinationMechanism...181 CaseStudy:DeutschePostWorldNet...194 CorporateCultureasCoordinationMechanism...203 CaseStudy:VirginGroup...214 CorporateSocialResponsibilityofMNCs...221 CaseStudy:Goodyear...231 Part IV Chapter12 Chapter13 Chapter14 Chapter15 Foreign Operation Modes BasicTypesandTheoreticalExplanationsof ForeignOperationModes...241 CaseStudy:AccorS.A....253 Buying,OutsourcingandOffshoring...263 CaseStudy:Wipro...272 InternationalAlliances...281 CaseStudy:oneworld...291 WhollyownedSubsidiaries,GreenfieldInvestments, Mergers&Acquisitions...303 CaseStudy:NestléS.A...313 Part V Chapter16 Chapter17 Chapter18 Selected Value Chain Activities InternationalProduction&Sourcing...325 CaseStudy:Electrolux...340 InternationalResearch&Development...349 CaseStudy:Danone...361 InternationalMarketing...367 CaseStudy:Richemont...379 Part VI Chapter19 Selected International Business Functions InternationalHumanResourceManagement...393 CaseStudy:Unilever...406 VIII
Brief Contents Chapter20 InternationalControl... 413 CaseStudy:Daimler... 427 References Index... 435... 467 IX