1. Strategic Agility
Levendary Cafe

2. Today’s class Little bit about Feb 18th class Case analysis questions
BREAK
Strategic agility and multiunit enterprises

3. Levendary Cafe What is the central problem? Analysis of issues ?
Central recommendation/strategic alternatives?
An implementation plan (a specific action program for Foster to deal with continued growth in China)

4. Strategic Agility for MNEs
Maneuvering between established and emerging markets needs strategic agility
Sensing local opportunities
Enacting global complementarities
Appropriating local value

5. Sensing local opportunities
Discovering opportunities through local presence and strong ties to local partners
Applying tailor made metrics for evaluating and rewarding initiatives
Championing (interaction between HQ-subsidiary)

6. Enacting global complementarities
Mobilizing and sharing complementary resources globally
Coordinating cross emerging market tasks
Leveraging resources and best practices across emerging and established markets

7. Appropriating local value
Adapting go to market concepts locally
Building legitimacy in local power networks
Creating dynamic barriers to imitation

8. Strategic agility and organizational Tensions
‘Tensions of Belonging’ : Differences between mindsets between HQ and subsidiaries
Maintaining distinctiveness versus centralizing
Mistrust between HQ and subsidiaries
Performing tensions: performance objectives of subsidiaries and MNCs could be at odds over time frame
Organizing tensions: tensions between local empowerment and centralised directions
Between collaboration and competition

9. Getting around organizational tensions
Developing modular systems
Having specific standardized interfaces
Malleable subsystems
Having integrative thinkers in the TMT
Having high performance HRM practices
Facilitate flow of expat and local managers
Facilitate cross functionality and communication flow

10. What is a multiunit enterprise ?
A geographically dispersed organization built from standard units.
Norm in several industries, such as apparel, banking services, consumer electronics, food and drug stores, general merchandise, hospitality, hardware, mail and package delivery, and toys and sporting goods.

11. What are the advantages of multi unit enterprise?
What are its disadvantages?

12. What kind of challenges does the multi unit structure offer?

13. Challenges of Structure
Hard to maintain consistency
Implementation needs most attention
Aligning priorities, plans and practices
Some leverage for customization even though they are standardized
Attention to consumer demography/taste/prefence
Employee availability, skill and wages
Sharp division between corporate HQ and field organization
Corporate makes decisions about initiatives
Field makes decisions about implementation
Struggle to get the best out of field managers

14. Challenges of the multiunit enterprise
Growth
How do these firms grow?
Starbucks
Marriott
What can the potential impact of the different models of growth be?
On implementation
On roles and responsibilities
Strategic Responsiveness?
Speed
Remedial response
Anticipatory initiatives