2 Index Workshops Case Analysis Debate Case Questions How to Use Your Workshop ResourcesDisclaimerLearning ObjectivesConglomerate CompanyLuxury Goods MarketIntroduction to LVMHOverviewAnnual ResultsLVMH StrategyClick on ImageSource:
3 Index Chapter Outlines Competitive Position: Competitive Advantage Competitive Strategy: the Analysis of Strategic PositionLectureCorporate Strategy: Adding Value in Multi-Business FirmsGlobal Strategies and International AdvantageCompetitive Position: Competitive AdvantagePrinciples of Strategic PlanningPrinciples of Strategic ManagementGlobal StrategiesCorporate Strategy
4 WorkshopThis workshop series is designed to compliment Teaching and Learning Strategies for undergraduate, postgraduate and executive level Strategic Management and related programmes and courses using the case studies featured in the ‘Strategy Analysis and Practice’ text shown on the right.The overall aim is to support the learning contents offered in the relevant chapters of the book whilst expanding participants’ knowledge and skills base required to understand, review and analyse the issues faced by LVMH’s managers in the progress of in implementing and reviewing the company’s corporate strategy.Strategy Analysis and PracticeJohn McGee, Warwick Business School Howard Thomas, Warwick Business School David Wilson, Warwick Business School
5 Case AnalysisA case study is a particular method of qualitative research.Rather than using large samples and following a rigid protocol to examine a limited number of variables, case study methods involve an in-depth, longitudinal examination of a single instance or event: a case.They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results.As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research.Click on ImageSource: Doyle Research
7 Workshop DebateWorkshop discussion topics have been divided into four parts according to the relevant chapters of the book:IntroductionCompetitive Position: Competitive AdvantageCorporate Strategy: Parenting AdvantageGlobal StrategiesManaging Strategic ChangeYou should ensure that you have understood the contents of chapters 6, 9, 11, and 15 prior to attending any of the above debates.Also see:How to Use Your Workshop ResourcesLearning ObjectivesLearning from Case Studies: A Short Guide for Students
8 Case Questions Please Note: At your instructor’s discretion the indicative questions below and elsewhere in this resource may be varied or deemed unnecessary for teaching and learning purposes for some courses or modules.Also see Learning Using Case Studies for further information.Also see A Model for Case Analysis and Problem Solving
10 How to Use Your Workshop Resources ViewingYou will need either MS PowerPoint program or PowerPoint Viewer installed on your computer. The latter may be downloaded free from Microsoft website here.NavigationThe Learning Contents (Literature Reviews) are linked to a relevant public domain on the Internet.Most, if not all pictures/images are ‘clickable’, i.e. linked to its source which provides further information on the topic or the copyright holder.If your version of PowerPoint does not show the navigation buttons on the slide, right click on the screen and select your destination from the dialogue box. Alternatively use the small arrowheads, indicating ‘previous’ and ‘next’ respectively.
11 DisclaimerThis information is provided with the understanding that the authors and publishers do not assume any legal responsibility for the completeness or accuracy of the contents or any opinions or views expressed on these pages or linked destination sources.It is the nature of the media (Internet) that some of the pages may not always be available due to broken or dead links, withdrawals, etc. Whilst the publishers will be pleased to take any appropriate corrective action, for example, by replacing or removing the sources when possible, they unable to assume any legal responsibility for unavailability of any third party material for whatever reason beyond their direct control.
12 Learning ObjectivesThe main objective of the workshop is to evaluate the strategic development practices and implementation process of LVMH.Participants will have an opportunity of developing and enhancing theirstrategic thinking skillsappreciations of the complex decision making process involved in economic strategies such as migration and outsourcinganalytical and critical thinking skills by reviewing the factors that influenced corporate centre's decisions on the businesses in their portfolios
13 Conglomerate Company Conglomerate is: A large, diversified company with a wide array of businesses; see Conglomerate (company), Holding company.In geology a rock consisting of other stones that have been cemented together; see Conglomerate (geology).In computing an XML editor for GNOME; see Conglomerate XML editor.It is a Clastic, Sedimentary rock.Larger ImageSource: University of North CarolinaAlso See Horizontal expansion and conglomerates
14 Conglomerate CompanyPotential Advantages of the Conglomerate Organizational FormConglomerate companiesMedia conglomeratesSee alsoJapaneseKoreanPortfolio Analysis ExampleLarger ImageSource: BCG
15 Luxury GoodsIn economics a luxury good is a good for which demand increases more than proportionally as income rises, contrast with inferior good and normal good. Luxury goods are said to have high income elasticity of demand: as people become more wealthy, they will buy more and more of the luxury good.This also means, however, that should there be a decline in income its demand will drop. It must be noted, though, that income elasticity of demand is not constant with respect to income, and may change sign at different levels of income.
16 Luxury GoodsThat is to say, a luxury good may become a normal good or even an inferior good at different income levels, e.g. a wealthy person stops buying increasing numbers of luxury cars for his automobile collection to start collecting airplanes (at such an income level, the luxury car would become an inferior good).Click on ImageSource: BYG PublishingPerceptionMarket characteristicsLuxury brandsLocationsSee alsoExternal linksReferencesClick on ImageSource: Wikipedia
17 LVMH Overview Conglomerate Company Luxury Goods Overview Annual ResultsStrategyClick on ImageSource: Christian Dior SA
18 LVMH Overview Also see www.lvmh.com LVMH Moët Hennessy Louis Vuitton S.A. (Euronext: MC), usually shortened to LVMH, is a French holding company and the world's largest luxury goods conglomerate. It is the parent of around 50 sub-companies that each manage a small number of prestigious brands. The child companies are run, to a large extent, autonomously. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of brandy.Click on ImageSource: ITAP International IncAlso see
19 LVMH OverviewIn 1987, they merged with baggage manufacturer Louis Vuitton to form the current group.The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies.His successful integration of various famous brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR), Prada and Richemont have also created extended portfolios of luxury brands.Click on ImageSource: Louis Vuitton
20 LVMH OverviewThe oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.De Beers LV: in 2001 De Beers launched a joint venture with LVMH in order to establish De Beers as a retail brand.Click on ImageSource: De BeersClick on ImageSource: thewinedoctor.com
21 Annual Results 2002 - 2005 2005 Full Year Results Presentation (PDF-357 ko)Press releaseVideo webcast2005 First Half ResultsPresentation (PDF-250 ko)Press releaseClick on ImagesSource: BBC
26 Strategy - Shareholder Value Maximization Creating and managing shareholder valueShareholder valueDefinitionShareholder Value MaximizationCriticismAlternative Definition based upon Criticism: Stakeholder AnalysisSource: Shareholdervalue.com
27 Strategy - DivestmentIn finance and economics, divestment or divestiture is the reduction of some kind of asset, for either financial or social goals. A divestment is the opposite of an investment.Divestment for financial goalsDivestment for social goalsCriticisms of divestment for social goalsExternal linksSee alsoLarger ImageClick on ImageSource: Accenture
29 Strategy - Economies of Scale IntegrationThis occurs when two firms join together to form one new company. Integration can be voluntary (a merger) or forced (a takeover). The figure below shows the three main types of integration.Click on ImageSource: BizEd, University of Bristol
30 Strategy - Acquisitions and Mergers Financing M&AMergerAcquisitionHigh-yieldExamplesMotives behind M&AM&A and Investment BankingM&A Marketplace DifficultiesLevels and flowsClassifications of mergersIssuesWorld Economic ForumClick on ImageSource: George & Co
31 Strategy - The Gucci Battle In March 1999, a $ 3 billion stock deal was announced between luxury goods major Gucci N V and the Pinault-Printemps-Redoute (PPR) group of France. The news of PPR acquiring a 40% stake in Gucci came as a surprise for Bernard Arnault (Arnault), Chairman of the Moet Hennessy Louis Vuitton (LVMH) group, who had been trying to acquire Gucci through open market stock acquisitions.More …Click on ImageSource: Copyright 2006 Ronald Feldman Fine Arts, Inc.
32 Strategy - The Gucci Battle In the late 1990s, Gucci became mired in a standoff with one of fashion's biggest conglomerates, LVMH Moët Hennessy Louis Vuitton.Just before Gucci Group’s IPO in 1995, Investcorp approached LVMH chairman Bernard Arnault with a proposition to sell him the entire Gucci brand, including its lucrative watch and fragrance divisions.Click on ImageSource: Wikipedia
33 Competitive Position: Competitive Advantage Literature ReviewStrategic PlanningStrategic ManagementIncome Elasticity of DemandWhat in the World is Competitive Advantage?Competitive Position: Competitive AdvantageSustainable Competitive AdvantagePositioning StrategyPerformance measures to support competitive advantageClick on ImageSource: BRSClick on ImageSource: businessballs.comAlso see Annotated Lecture Outline
34 Competitive Position: Competitive Advantage Competitive StrategiesRisk-related ChallengesClick on ImageSource: Stanford University
35 Corporate Strategy Literature Review Business Strategy Map Value Based ManagementValue CreationValue Management ModelsCentralization, Decentralization and DelegationStrategy Modelling Technique for Financial Services
36 Global Strategies Literature Review Going Global: Assess Market OpportunitiesInstitutions and Business Strategies in Emerging Economies: A Study of Entry Mode ChoiceGlobalization, Models of Competitive Advantage and SkillsThe Competition of CountriesCompetitiveness of Nations: The FundamentalsEconomist Country BriefingsClick on ImageSource: Agrium Inc. 2004Also see Annotated Lecture Outline
38 Literature Review Strategic Planning Strategic planning consists of the process of developing strategies to reach a defined objective. As we label a piece of planning "strategic" we expect it to operate on the grand scale and to take in "the big picture" (in contradistinction to "tactical" planning, which by definition has to focus more on the tactics of individual detailed activities)."Long range" planning typically projects current activities and programs into a revised view of the external world, thereby describing results that will most likely occur (whether the planner wants them or not!)Click on ImageSource: Long Range Planning - International Journal of Strategic Management
39 Literature Review Strategic Planning "Strategic" planning tries to "create" more desirable future results byinfluencing the outside world oradapting current programs and actions so as to have more favorable outcomes in the external environment.Click on ImageSource:
40 Literature Review Strategic Planning MethodologiesSituation AnalysisIdentifying culturesPerspectivesEthnographical versus Clinical approachFunctionalistic versus Interpretionistic approachArtifactsVisible artifactsInvisible artifactsCulture typesChanging cultures and strategyApproachesResistanceMeasurementsGoals, objectives and targetsMission statements and vision statementsWhy strategic plans failExternal linksClick on Image. Larger ImageSource: University of Cambridge, Department of Engineering
41 Literature Review Strategic Management Strategy FormulationStrategic ImplementationIntroduction to Strategic ManagementGeneral approachesThe strategy hierarchyHistorical development of strategic managementBirth of strategic managementGrowth and portfolio theoryThe marketing revolutionThe Japanese challengeGaining competitive advantageExternal LinksClick on Image. Larger ImageSource: IUS
42 Literature Review Strategic Management Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer (CEO) and executive team. It provides overall direction to the whole enterprise.An organization’s strategy must be appropriate for its resources, circumstances, and objectives. The process involves matching the company's strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently.A good corporate strategy should integrate an organization’s goals, policies, and action sequences (tactics) into a cohesive whole. To see how strategic management relates to other forms of management, see management.Strategic management can be seen as a combination of strategy formulation and strategy implementation.
43 Literature Review Strategic Management - Formulation Strategy formulation involves:Doing a situation analysis: both internal and external; both micro-environmental and macro-environmental.Concurrent with this assessment, objectives are set. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.Click on Image. Larger ImageSource: Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH
44 Literature Review Strategic Management - Formulation These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives.This three-step strategy formation process is sometimes referred to as determining where you are now, determining where you want to go, and then determining how to get there. These three questions are the essence of strategic planning. SWOT Analysis: I/O Economics for the external factors and RBV for the internal factors.Click on Image. Larger ImageSource: Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH
45 Literature Review Strategic Management - Implementation Strategy implementation involves:Allocation of sufficient resources (financial, personnel, time, computer system support)Establishing a chain of command or some alternative structure (such as cross functional teams)Assigning responsibility of specific tasks or processes to specific individuals or groupsIt also involves managing the process. This includes monitoring results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process as necessary.When implementing specific programs, this involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes.
48 Literature Review Income Elasticity of Demand In economics, the income elasticity of demand measures the responsiveness of the quantity demanded of a good to the income of the people demanding the good.It is measured as the percentage change in demand that occurs in response to a percentage change in income. For example, if, in response to a 10% increase in income, the quantity of a good demanded increased by 20%, the income elasticity of demand would be 20%/10% = 2. (Case & Fair, 1999: 119).Larger MapClick on MapSource: bized.ac.uk/
49 Literature Review Income Elasticity of Demand Spotlight on the theoryMathematical DefinitionSee alsoReferencesListsLarger MapClick on MapSource: bized.ac.uk/
50 Literature Review Income Elasticity of Demand A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the quantity demanded and may lead to changes to more luxurious substitutes.A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in the quantity demanded. A high positive income elasticity of demand is associated with luxury goods.A zero income elasticity of demand is an increase in income without leading to a change in the quantity demanded of a good.Many necessities have an income elasticity of demand between zero and one: expenditure on these goods may increase with income, but not as fast as income does, so the proportion of expenditure on these goods falls as income rises. This observation for food is known as Engel's law.
51 Literature Review Competitive Position: Competitive Advantage Competition is the act of striving against another force for the purpose of achieving dominance or attaining a reward or goal, or out of a biological imperative such as survival. Competition is a term widely used in several fields, including economics, business, politics, and sports. Competition may be between two or more forces, life forms, agents, systems, individuals, or groups, depending on the context in which the term is used.Sizes and levels of competitionConsequences of competitionCompetition in different fieldsEconomics and business competitionCompetition in biology and ecologyCompetition in politicsSports competitionCompetition in educationThe Study of competitionCompetitivenessEconometricsSee alsoClick on ImageSource:Brecker Associates
56 Literature Review Shareholder Value What is Shareholder Value?What Drives Shareholder Value?Shareholder Value AnalysisLarger ImageSource: Accenture
57 Literature Review Shareholder Value Analysis Larger ImageSource: agility.com.auRediscovering Shareholder Value: A Proven ApproachHow to Build Value into a MergerShareholder Value Tool
58 Literature Review Value Management Models Larger ImageSource: performgroupClick on Image for further information
59 Literature Review Value Management Models Six SigmaSix Sigma was pioneered by Bill Smith at Motorola in 1986. Originally, it was defined as a metric for measuring defects and improving quality; and a methodology to reduce defect levels below 3.4 Defects Per (one) Million Opportunities (DPMO). Six Sigma is a registered service mark and trademark of Motorola, Inc. Motorola has reported over US$17 billion savings from Six Sigma to date.AlliedSignal and GE became early adopters of Six Sigma and reported benefits of over US$300 million during its first year of application. Their CEO's, Larry Bossidy and Jack Welch, played a vital role in popularizing Six Sigma. Other major organizations who claim to have benefited from Six Sigma implementation are Ford, Caterpillar, Microsoft, Raytheon, Quest Diagnostics, Seagate Technology, Siemens, Merrill Lynch, Lear, 3M and many more.Click on ImageSource: KETCH.ca
60 Literature Review Value Management Models Six SigmaDefinitionApplication & SuccessHealthcareBankingInsuranceConstructionMilitaryMethodologyDMAICDMADVRoles Required for ImplementationExamples of Some Key Tools UsedCriticisms of Six SigmaOf its originOf the term: Six SigmaOf statisticsOf methodsOf effectsReferencesSee alsoExternal linksClick on ImageSource: QCI International. All rights reserved.
61 Literature Review Value Management Models Value ChainClick on ImageSource: Vickers
62 Literature Review Centralization, Decentralization and Delegation Advantages of CentralizationClose control of operationsUniformity of policies, practices, and proceduresBetter use of centralized expertsAdvantages of DecentralizationFaster decision-makingDecision better adapted to local conditionBetter management experience for managers that are considered for promotion to higher level managementClick on ImageCopyright: Cornell University
63 Literature Review Why Delegate? At a certain point, there are just too many facets to running a successful business to continue doing it alone.In an increasingly complex business environment, with all the trends affecting business today, such as globalization, the information technology explosion, strategic alliances, increased mergers and acquisitions, heightened competition, and higher expectations of nearly every customer, it just isn't possible to still be that one person in control of everything. Bringing in others to manage is an absolute necessity for survival now.Source:
64 Competitive Position - Competitive Advantage 1/4 LectureOpening RemarksIt is useful to start the session by recapping on the previous lecture and emphasizing the notion of ‘strategy as imperfection’ or the quest for ‘unfair’ advantage. This lecture explores the idea of competitive advantage in more detail and puts some flesh on the bare bones of generic strategies introduced in the preceding session. The lecture focuses on the idea that strategy is about the position of an organisation with respect to its markets and competitors (the so called market-based or positioning school) and looks at the relationships between market structure, pricing and strategy.The Market Positioning SchoolA recap on the ‘generic strategies’ framework introduced briefly in the last chapter and restatement of the stuck in the middle hypothesis.Larger ImageClick on ImageSource: Wikipedia
65 Competitive Position - Competitive Advantage 2/4 The Nature and Source of Cost AdvantageA more detailed look at the nature and sources of cost advantage focussing on the links between economies of scale, scope and learning and the achievement of cost advantage.The Nature and Source of Differentiation AdvantageA more detailed look at the nature and source of differentiation advantage and the risks associated with this strategy emphasising the difference between differentiation and cost based strategies. Identifying the potential for differentiation.The Concept of Competitive AdvantageA definition of competitive advantage and a description of its constituent elements. An explanation of firm-specific imperfections as the source of competitive advantage and the interrelationship between industry structure and competitive advantage.. This latter point may be omitted from undergraduate lectures and developed in a tutorial context.Figure 6.7. An explanation of the concept of sustainability and its determinants (on undergraduate programmes this may be included a little later in the course)
66 Competitive Position - Competitive Advantage 3/4 Three Major Routes to Competitive Advantage: Is it possible for a firm to pursue more than one generic strategy?A re-statement of the ‘stuck in the middle’ hypothesis and a summary of the reasons for arguing that, in order to be successful, a firm should commit to a single strategy. The critique of this position and the implications of composite strategies. The relationship between generic strategies and market structure (this may be omitted on undergraduate programmes).On undergraduate programmes the following sections may form the basis of a second lectureMarket Segmentation AnalysisThe rationale for market segmentation analysis. The concept of offer curves and price/quality trade-offs (this element may be omitted on undergraduate programmes). The identification of segmentation variables.Value Creation and Value AnalysisThe concept of value and consumer surplus. The link between value, competitive strategy and competitive advantage. Value maps could be included if time permits but can be omitted without losing the main thrust of the argument.
67 Competitive Position - Competitive Advantage 4/4 Strategic Group AnalysisAn explanation of the concept of strategic groups and rationale for this kind of analysis. Mapping strategic groups over time and strategic groups in practice.Industry TransformationUsing the 5 forces framework to gain insight into industry transformation. On undergraduate programmes this may be omitted from the main lecture and developed in tutorial sessions.Business ModelsThis is an optional part of this session and may be considered in a later slot.An explanation of the terminology. The key elements of a business model. Business models in practice. Achieving a sustainable and defensible strategic position.Larger ImageClick on ImageSource: Vadim Kotelnikov, GIVIS, Ten3 East-West
68 Corporate Strategy: Parenting Advantage 1/3 LectureIntroductionThe move from a focus on competitive strategy to a focus on corporate strategy. A discussion of the growth in multi-business firms with illustrative examplesSlide: Definition of corporate strategy.Changes in Organisational Structures over TimeAn explanation of the ways in which organizational structures have evolved and developed over time and a discussion of the advantages and disadvantages of U versus M forms of organizationSlide: Figure 9.2 plus bullet points outlining strengths and weaknesses of this form of organizationSlide: Figure 9.3 bullet points outlining strengths and weaknesses of this form of organizationClick on Image for further information
69 Corporate Strategy: Parenting Advantage 2/3 Strategy and StructureA discussion of the two-way relationship between strategy and structure and Alfred Chandler’s work. A consideration of the questions raised by the rise of M forms of organizationSlide: Bullet points of issues (page 343)Managing the Multi-business Firm 1: The Corporate-Business InterfaceAn introduction to issues of business unit boundaries, groupings of businesses and headquarter/business unit relationships. An exposition of common corporate-business interface styles.Slide: Bullet points relating to three different styles (p.347)Managing the Multi-business Firm 2: The Role of the Corporate HeadquartersAn explanation of the different ways in which the centre can add value and a description of Gold and Campbell’s work on parenting stylesSlide: Figure 9.7Slide: Figure 9.8
70 Corporate Strategy: Parenting Advantage 3/3 Managing the Multi-business Firm 3: Managing the PortfolioA brief review of portfolio models such as the familiar BCG matrix plus an explanation of the limitations of these models and the reasons why they are no longer popular.Slide: Figure 9.9Evidence and ExperienceA brief review of the finding of some of the empirical work in the area, emphasizing the difficult of measuring relatednessSlide: bullet points on concept of ‘relatedness’Concluding CommentsLink back to the resource-based view highlighting the connection between core competences and relatedness. A summary of the key tensions in managing portfolio businesses including centralization v decentralization, vertical v horizontal focus and co-operation v competition.
71 Global Strategies and International Advantage 1/6 Lecture The 'global strategies and international advantage' topic covers a lot of ground and on undergraduate programmes it might be worthwhile covering the topic over two lectures.The first lecture could focus on the concept globalization and the pursuit of international competitive advantage at the nation and industry level. The second could focus on firm level choices and the strategic options available to international firmsIntroduction – opening remarks should establish the link with previous lectures on competitive and corporate strategy and explain this lecture’s focus on the global arena.Click on Image. Larger ImageSource: Carnegie Endowment
73 Global Strategies and International Advantage 3/6 National Competitive Advantage – an introduction to, and explanation of, the determinants of national competitive advantage (Porter’s diamond model). Lectures to postgraduate audiences could also include a discussion of the limitations of the model (discussed on p of the text) and introduce the double diamond model.Slide: Figure 11.1The Internationalization process – an explanation of the ways in which domestic firms develop their overseas activities and the evolution of different forms engagement in foreign markets over time. A summary of the advantages and disadvantages of these different forms of international activity, e.g. licensing, foreign direct investment, etc.Slide: Figure 11.2Click on ImageSource: Irish Agriculture and Food Development Authority
74 Global Strategies and International Advantage 4/6 From international to global strategies – a reiteration of the opening themes of internationalization, moving to a discussion of the strategic options available to multi-national firms, introducing the notion of multi-domestic and global strategies.Slide: Figure 11.3Slide: Bullet points contrasting multi-domestic and global strategiesThe Drivers of Globalization – a discussion of the forces that are driving the industries and firms to go global and the limitations of, and tensions in, this processSlide: Table 11.4Global v Local – an outline of the trade-offs between standardisation and differentiation and the link between the strategic environment and available strategic options.Slide: Table 11.5Strategic Choices – an explanation of Bartlett and Ghosal's four basic strategies used to enter and compete in international environmentsSlide: Figure 11.5The Best of Both Worlds – Transnational Strategies – an outline of what is understood by a transnational strategy and an explanation of implementing this strategy in practice.
76 Global Strategies and International Advantage 6/6 Concluding Comments – a summary of some of the main themes including the nature of globalization and the significance of national competitive advantage, the global/local debate and the way this connects with firm-specific versus country-specific advantages, the tantalizing possibility of gaining the 'best of both worlds' through transnationality and the possibilities and problems of developing appropriate organizational structures and systems to make the transnational organization a reality.Click on Image. Larger MapSource: BizEd