1. Concepts, Models & Discussion Questions
Global Strategies
Concepts, Models &
Discussion Questions

2. Examples Finland vs. U.S. (60x) & China (250x) Cell phones Soft drinks
Shampoo
Fast food
PCs
Video games
Labor costs: U.S. vs. China

3. Why globalize? Expand global market share
Restructure value chain on a global scale
Ultimate goal

4. What changes do global companies have to face?
Market size
Complexity of foreign markets
Buyers
New entrants
Rivalry

5. National differentiation
What are the two potentially conflicting dimensions in global strategies?
Global integration
National differentiation

6. Pankaj Ghemawat’s CAGE Model: Cultural distance
How are markets different across borders and what are the implications?
Pankaj Ghemawat’s CAGE Model:
Cultural distance
Administrative and political distance
Geographic distance
Economic distance

7. Three types of global strategies: What are they?
Global strategy
Multi-domestic strategy
Transnational strategy

8. Why are there clusters of companies in certain industries and countries?
Porter’s Diamond Model of
Competitive Advantage of Nations
Demand Conditions
Factor Conditions
Related and Supporting Industries
Strategy, Structure and Rivalry

9. What are the common market entry modes?
Exporting
Licensing
Strategic alliances
Greenfield investments
M&As

10. Bartlett and Ghosal’s Classifications: Decentralized federations
What are the appropriate organizational structures for global companies?
Bartlett and Ghosal’s Classifications:
Decentralized federations
Centralized hubs
Coordinated federations

11. Group discussion: Answer 2 questions
1. What has been CEMEX’s competitive advantages in the global cement industry? How transferable are these competitive advantages across borders?
2. What has been CEMEX’s primary entry mode in international markets? Explain the logic behind the use of this entry mode.
3. What has been the path of CEMEX’s international market expansion. Explain the logic.
4. What challenges and opportunities does CEMEX face in the global cement industry? What would you recommend to the company in order to survive and thrive in the competition with other global competitors? (Required)