Question: this is case study question. can u answer my question 12.3, rever to the text i give. make 1 page answer, please. thank you for
this is case study question. can u answer my question 12.3, rever to the text i give. make 1 page answer, please. thank you for helping.
CASE The Multinational Enterprise of the Future: Leading Scenarios Evolving workflows, technology platforms, and market dy- ly and to the highest quality. Earlier models saw configu- namics intensity globalization trends. MNES respond in kind, ration and coordination barriers constrain knowledge flows rethinking visions, claritying missions, adjusting strategies, production opportunities, and organizational options. Now and reconfiguring value chains to compete in the brave new like the Internet, the globally integrated enterprise designa world." Forecasts of accelerating change due to digitize its strategy, configures its activities, and coordinates its pro tion, frugal innovations, robotic cells, and activist transna- cesses to connect everything, everywhere, 24/7 tional institutions, among others, spur MNEs to assess the tencies. Let's take a look at some high-concept visions of The Metanational the MNE of the future In the future, goes this scenario, world-class operational efficiency will no longer determine an MNE's competitive The Globally Integrated Enterprise advantage. Nor will an MNE build superior competitive ness from unique features of its home country or for that The evolutionary perspective sees MNES responding sys- matter, from a set of national subsidiaries. Rather, Victory tematically to the steadily unfolding imperatives of global will go to those who move from designing multinational ization. As policies and practices progressively connect Operations to synthesizing metanational competencies countries, MNEs similarly respond, progressively integrating The metanational seeks unique ideas, activities, and in their cross-national operations. Sam Palmisano, the past sights that complement its existing operations as well as CEO of IBM, has a provocative take. Reflecting on IBM'S create new leverage points. It expands its mission from evolution, he contends that it has passed through three stra- selling stuff worldwide to mining the treasure trove of tegic phases, each fitting the prevailing circumstances and Ideas, resources, and capabilities that emerge anywhere collectively foreshadowing the MNE of the future and everywhere. Its managers scan the world, identifying First, there was the nineteenth-century international and interpreting the untapped potential of the specialized model, whereby the company was headquartered both knowledge that lays latent in unique market situations physically and mentally in its home country, it sold goods. Exploiting these opportunities positions managers to when it was so inclined, through a scattering of overseas "build a new kind of competitive advantage by discover sales offices. Headquarters focused on business activi ing, accessing, mobilizing, and leveraging knowledge from thes in its home country and configured international opera-many locations around the world. 115 tions with little input from overseas units. As such, it used Metanationals goes the theory, orient strategic planning to an international strategy to engage a world composed of unevenly connected countries Prospect for and access untapped technologies and unidentified consumer trends. Phase two of the evolution ushered in the classic multi- national firm of the late twentieth century. Echoing the local Leverage globally the specialized knowledge scattered ization strategy. this phase saw Ho build smaller versions throughout local subsidiaries. of itself abroad. Steadily, the expanding connection among Mobile fragmented knowledge to generate innova tions that produce, market, and deliver value on a global countries, by supporting concentrated value chains geared scale. toward exploiting location economics and scale economies, highlighted the inefficient economics of the mini-me" op- Apply superior project management skills across teams tion. The cost of redundancy-cach country essentially to foster a strong collaborative culture and to engage 3 ran a stand-alone operation-grew unacceptable in the face robust array of communications tools. 116 of intensifying competition MNEs like Shiseido, ARM, McDonald's, STMicroelec The third phase, the globally integrated enterprise." tronics, Acer, Procter & Gamble, SAP, Tata, and PolyGram speaks to the dawn of globality in which "business flows are emergent metanationals, able to turn underused knowl in every direction Companies have no centers. The idea of edge into global-dominant innovations. Consider the expert foreignness is foreign. Commerce swirls and market domi ences of McDonald's in its fast-growing market - Russia nance shifts. Competing with everyone from everywhere has more than 500 outlets and plans to add hundreds more. for everything requires putting investments, people, and given that Russia is one of its fastest-growing and most work anywhere in the world based on the right cost, the profitable markets. 117 Successfully building its Russian op right skills and the right business environment with work erations required McDonald's to rethink its value chain.in flowing to the places where it will be done...most efficient the West, it buys ingredients from third parties, rather than CHAPTER 12 Singer for Internationem producing its own. Upon entering Russin, the lack of local motivated by an entrepreneurial vision, leaving a large MNE suppliers required opening the McComplex, a full-scale pro- and launching a firm that goes global from the get-go. 120 duction system outside of Moscow. Making virtually every The micro-multinational moves from theory to practice ingredient from scratch at the McComplex required rethink precisely because circumstances let it do so. The ongoing ing how to reconfigure activities to tap Russia's unique globalization of markets, marked by falling trade barriers, market. Besides building better burgers, McDonald's lev. expanding demand for specialized products, and improving eraged its Russian experiences worldwide to develop new technologies, enables bom-globals to implement their vi competencies. In metanational style, McDonald's began sion cheaply and quickly. Micro-multinationals exploit these its worldwide pushback against coffee chains by tapping circumstances, building powerful platforms to develop and knowledge it developed with test runs in Russia. It opened deliver innovations in niche markets that spon the world McCafes there in 2003, fine-tuned its espresso-style drinks, and then successfully moved the concept to the United States in 2009 and, from there, to the world. 110 The Glorecalizized MNE Which sorts of MNEs aspire to be a metanational? Gen- Advocates of regionaltation endorse the awkward form erally, those facing pressures for global integration and lo cal responsiveness yet seeing opportunities in prospecting, "Glorecalization as the next logical step of global strat egy 27 Glorcalization, a portmanteau of Globalization leveraging, and mobilizing knowledge that is fragmented across countries. Until recently, the metanational option Regionalization Localization, champions a global Vision attracted fow companies. Communication and collabora and customized local tactics through a value chain con tion barriers complicated sharing knowledge. Moreover, figured to exploit location economies within a regional market. The glorecalized MNE leverages its regional net significant national differences, although shrinking, posed problems. Today, environmental conditions, institutional work to gain the necessary operational efficiencies without agendas, and technology trends, by casing sensing, mobi- forsaking local flexibility. Various conditions support the lizing, and operationalizing knowledge, steadily support the giorecalized MNE. First and foremost, regional trade blocs metanational's emergence 120 (0.9., AU, ASEAN, CARICOM, EU, NAFTA and TPP) create ample location effects in terms of institutional structure, regulatory framework, and market integration. The Euro- The Micro-Multinational pean Union, for example, unites 28 countries and creates a common "home" for more than 500 million who share simi- The future frontier for the MNE is set by the matter of size, iar outlooks, overlapping national interests, and conver- say others. Historically, MNEs were colossi that straddied gent consumption preferences. Efficient flows of people, the globe. Today, the number of MNEs grows worldwide, capital information, products, and processes throughout but the average size is falling-many of the 80,000 plus the EU streamline how an MNE acquires resources, de- firms that operate internationally employ fewer than 250 velops capabilities, and crafts competencies. Similarly, re- people. This anomaly signals the era of so-called "mi gionalizing production exploits location effects and scale cro-multinationals": nimble, small firms that are born global operating Internationally from day one 123 Unlike their big- economies, but without sacrificing the flexibility to adapt ger counterparts that expanded Internationally by gradually goods and services entering new markets, micro-multinationals go global im- mediately. They go where they wish, typically following the The Cybercorp circuit paths of the Internet, but always targeting markets with plentiful customers and innovative environments. The The cybercorp, a form unimaginable a generation ago, is bom-global does not see international markets as a refuge increasingly a reality today. The cybercorp does not or when sales slow at home. Rather, It begins with the belief ganize products, consumers, or markets to reflect or re- that the domestic market is just one of the many opportuni- spect the physical geography of lines on a map. Instead, ties in the world. 24 the connectivity network of the Internet, not national or The micro-multinational's distinctive break from the past ders, defines its operational boundaries, Facebook, for in- follows from its global focus at start-up. Folks who found stance, exists physically in its California headquarters, but bom-global firms often have a strong international orien- its workdorce of about 13.000 run a company that serves tation gained from living or studying abroad. Logitech, the more than 1.5 billion customers in more than 150 nations Swiss-based maker of computer devices Se mice, key- through a website interface translated into more than boards, and speakers, was founded by a Swiss and an 100 languages. 129 Italian who met while studying at Stanford University in the Cybercorps develop competencies that help them react United States. Soon after start-up, Logitech was selling its in real time to changes in customers, markets, and environ- products worldwide and now does business in more than ments. They engage perspectives and strategies that bias 100 countries. Tas Often, too, we see a seasoned executive, value chains toward virtuality in order to ink capabilities 378 PART 5 Corporate Policy and Strategy and competencies within dynamic networks. For instance, Make the Call Reebok owns no plants, instead relying on contract man- ufacturers to make and distribute its products. Similarly, Yes, the ideal MNE of the future is more speculation than Nike, Apple, Cisco, and Qualcomm outsource production stipulation. No matter the standard that ultimately emerges, to manufacturers in low-cost labor locations in order to do we expect it will showcase the historic markers of compa- what each does best: maximizing value creation through nies that are built to last a down-to-earth, pragmatic, com- R&D and marketing. Though nominally independent, com- mitted-to-excellence framework run by bright people who munications and collaboration systems integrate agents into articulate an insightful vision, practical mission, and clever the network, thereby creating virtual capabilities. Nike, for strategy that change the game. 132 Still, we watch, tracking example, focuses on increasing value creation by leverag- the emergence of the contenders, waiting to see which form ing its competencies in design and marketing, confident in sets the standard. manufacturers' expertise to adjust product mixes as con- sumer preferences evolve. QUESTIONS The cybercorp builds on crowdsourcing, swarm intelli: 12-3. You have a choice to work for a globally integrated enterprise, gence, and artificial intelligence to tap the collective insight a metanational, a glorecalized MNE, a micro-multinational, developed in self-organizing systems that are remotely ex- ecuting, global, always on, and endlessly configurable. It, in or a cybercorp. Which would you choose? Why? 12-4. Looking out over the next decade, estimate the likely stan- collaboration with partners, operates here, there, and every- dards of how an MNE will create value. In your opinion, where. Many of these agents were, just a decade earlier, far off the global grid. Now, innovations enact a techno-utopia which form of MNE is best designed for this scenario? Why? that connects everyone to the "evolving nervous system of 12-5. The MNE of the future, in whatever form it takes, will face civilization. 130 The cybercorp, built to engage strategies pressures for global integration along with those clamoring that learn, evolve, and transform, moves business toward for local responsiveness. In your opinion, which form will the emerging standards of the Singularity Principle. 131 best reconcile that challenge