Global and Transnational Business

George Stonehouse is Professor of International Strategic Management and Associate Dean of Newcastle Business School. He is also an Honorary Professor of the State University of Management, Moscow, Russia, and Visiting Professor at the University of International Business and Economics, Beijing, and Zhengzhou University, People’s Republic of China. His research interests are in globalization, knowledge and organizational learning. Dr. Jim Hamill is Reader in the Department of Marketing at University of Strathclyde. Jim is a Visiting Lecturer at a number of Business Schools in Europe and is widely published in International Marketing, E-business and International Human Resources Management.Dr. David Campbell is Senior Lecturer in Strategic Management at Newcastle Business School. David’s research interests are in the areas of Strategic Management and Corporate Governance.Dr. Tony Purdie is Principal Lecturer in Strategic Management and MBA Programme Director at Newcastle Business School. Tony is a Visiting Lecturer at several Business Schools in Europe.

• Preface to the second edition xixAcknowledgements xxiPart I 11 Strategic and Management Issues in Global and Transnational Business 3Learning objectives 3Global and transnational business – an introduction 3Global and transnational strategies and management – the issues 19A framework for global and transnational strategic management 20The approach to global strategy in this book 26The global and transnational strategic management process 29Conclusion 33Part II 372 From National Culture to Global Vision 39Learning objectives 39Introduction 39The concept of globalization 40Causes of market and industry globalization 42Globalization and environmental turbulence 47Global mission, objectives and strategy 49Culture and global business 52Hofstede’s cultural dimensions framework 56Trompenaars’ dimensions of culture framework 59Tayeb – major cultural characteristics observed in various nations 62The importance and determinants of culture in transnational business 62Analysing organizational culture – the cultural web 663 Analysis of the Global Business 73Learning objectives 73Introduction 73Analysis of the global organization 74Competences, resources and capabilities 74Global value chain analysis 80The ‘global’ value chain 86Global organizational culture and structure 87Products, performance and portfolio analysis 91Outside in or inside out? 994 Analysis of the Competitive Environment 103Learning objectives 103Introduction 103The nature of the business environment 104Industries and markets 106Yip’s globalization drivers 109Industry analysis 118Globalization drivers and the five forces 123Market analysis 125Strategic group and competitor analysis 128A resource-based approach to environmental analysis 131Critical success factors (CSFs) and core competences 1345 Analysis of the Global Macroenvironment 139Learning objectives 139Introduction 139Change in the business environment 140The macroenvironment 142The role of national circumstances in international business 145The analytical process 148Summary – analysis of the global macroenvironment 151Part III 1556 Global and Transnational Strategy 157Learning objectives 157Introduction 157Transnational strategies and global competitiveness 158Strategies – the choice 161Knowledge and competence-based strategy 163Competitive positioning – Porter’s generic strategies 175Knowledge, core competence and generic strategy – a synthesis 179Global and transnational strategy 181Total global strategy 1877 Global and Transnational Market-servicing Strategies 197Learning objectives 197Introduction 197Alternative foreign market-servicing strategies 198Selection of mode of entry 209Global market-servicing strategies 210Collaborative arrangements 212Appendix 7.1 Some additional notes on foreign market-servicing strategies 2178 Global Production and Logistics Management 227Learning objectives 227Introduction 227Production strategy and competitive advantage 228Global production strategies 229Research in global productions strategy 231Plant location decision making 236Procurement and transnational business 240Global logistics 242Part IV 2479 Global Leadership and Strategic Human Resource Management 249Learning objectives 249Introduction 249Leadership and management in transnationals 250Strategic human resource management 257European and American approaches to HRM 262A transnational model of HRM 263Porter’s global strategy and HR strategy 26410 Global Technology Management 269Learning objectives 269Introduction 269Technology and strategy 270Technology as a strategic asset 271Technology strategy 277Comparisons of transnational technological performance 285Information and communication technologies 28711 Global and Transnational Marketing Management 297Leearning objectives 297Introduction 297The role of marketing in global and transnational strategy 298Globalization of markets and marketing research 301Global marketing strategies 302Global market segmentation and positioning strategies 308Global marketing management 310Global products 313Global pricing 318Global promotion 324ICT and global marketing 33112 Global Financial Management 339Learning objectives 339Introduction 339Finance management and the global enterprise 340Centralization versus decentralization of the finance function 343Decision area 1: financing foreign operations 344Decision area 2: resource allocation and capital budgeting 348Decision area 3: operational policies 351Decision area 4: remittance strategy 35513 Organizational Structure and Control in Global and Transnational Business 361Learning objectives 361Introduction 361Some essentials of organizational structure 362Determinants of organizational structure 364Types of international organizational structure 369The development of global and transnational matrix structures 374The development of the transnational organizational structure 376Decision making and control in international business 382Global and transnational strategies, organization and control 38514 Managing Global Mergers, Acquisitions and Alliances 391Learning objectives 391Introduction 391An overview of integrations and alliances 392Transnational mergers and acquisitions 395Collaborative ventures and strategic alliances 403Types of strategic alliance and collaborative venture 405Successful alliances 411The strategic management of networks and alliances 41215 Global Business – Present and Future Trends 419Learning objectives 419Introduction 419The global business environment – limits of globalization 420A global approach to strategy and management? 422Global competitive advantage in the future 423Appendix 1 McDonald’s and Its International Expansion 431A brief history 431McDonald’s and franchising 434International growth 435Appendix 2 Nike Inc. 439Company development 439The Nike product concept 440Vertical linkages and outsourcing 441Promotions and endorsements 443Markets and structure 444Changes in the 1990s 445Nike at the end of the 1990s 446References and further reading 447Index 449

"Presents an integrative framework within which to discuss the complex strategic issues involved in global and international business..." (Long Range Planning, 38, 2005)