1. Section III Management Dimensions Introduction by Emily Lambright Chapter 9: Revisiting Multinational Firm’s Tolerance for Joint Ventures: A Trust-Based Approach by Stacey Hipp Chapter 10: The Role of Strategic Alliances in High- Technology New Product Development by Shanna Hamilton Chapter 11: The Return of 7-Eleven....From Japan: The Vanguard Program by Alicia Dalton Conclusion by Laurie Dressler

2. How do Businesses Overcome the Obstacles? Companies can implement cooperative strategies that require a pooling of capital resources and technical capabilities. Businesses can focus on new product development as a cooperative effort. Firms can evaluate other successful firms to determine if the same strategies are possible for them.

3. Introduction to Management Dimensions Business environments are growing more competitive. There is increased pressure to develop, manufacture, and market products around the world. Most businesses and industries are becoming less and less limited by geographic boundaries.

4. What Are the Best Ways to Respond to These Pressures?

5. Dissatisfaction with Joint Ventures Parties may act in a manner motivated only by self-interest Parties may not fully utilize their shared resources There is often a high potential for conflict with the existence of dual hierarchies Parties may not utilize shared information to reduce overall costs

6. Approaches towards Joint Ventures Ownership-centered –Control is achieved through ownership –Management conflict is avoided by having a central hierarchy –Approaches are outcome oriented –Emphasis is on the structural framework of the JV Relationship-centered –Control is achieved through mutual trust –Effective social relations facilitate productivity and flexibility –Recognizes that forcing decisions on one party would have devastating results

7. Importance of Trust in Relationship-centered Ventures “…trust is the perceived likelihood of the other not behaving in a self- interested manner.”

8. What Is Necessary to Have an Effective Joint Venture? There must be a mutual need for each partner’s resources. There must be a mutual trust that the other will not engage in opportunistic behavior. Dominant partners must not behave with benevolence towards the less powerful partner. All available information must be shared equally. Social relations must be nurtured in order to effectively increase flexibility and overall efficiency thus leading to increased mutual benefits for both parties involved in the joint venture.

9. The Role of Strategic Alliances in High-Technology New Product Development What is this really saying??? What are the factors that effect innovation??

10. How is innovation measured??? What is Innovation? –Innovation is the introduction of new products to the market, innovation is the youth of every industry. Innovation is what keeps all of us, moving forward!!! Innovation’s role in international business dynamics must be measured.. But how ?? Innovativeness can be investigated from a perspective of inherent product attributes through three schema –Newness to the market –Newness to the firm –Newness to the market and newness to the firm

11. There are six hypotheses that attempt to measure innovation Number of firms involved –“Products of cooperating firms tend to be more innovative than products of a single firm” Nature of the strategic linkages –“Products of cooperating firms tend to be more innovative than products of a single firm” Firm size –“Products of cooperating firms tend to be more innovative than products of a single firm” Industry –Products introduced by firms associated with an industry outside an existing producer’s industry tend to be more innovative than products introduction by firms associated with the product’s industry Temporal Order –Product innovation tends to increase with time Nationality –Products introduction by firms of the same triad region tend to be more innovative than products introduced by cross-nationally cooperating firms

12. Return of the 7-Eleven … from Japan: The Vanguard Program The Vanguard Program Accelerated Inventory Management Combined Distribution Centers Japanese Based Success –Ito-Yokado’s image/reputation –Customer Orientation, Decentralized Management, Efficient Distribution –Feedback and Open Communication Lines

13. Accelerated Inventory Management (AIM) Build a balanced inventory Improve store merchandising Improve inventory management Improve ordering Remove dead items Introduce new products Product selection in hands of local management

14. Combined Distribution Centers Reduce number of deliveries Managed system of scheduled deliveries Reduction in vendor’s expenses Broader assortment of products Shorter replenishment cycle Quality controlled from manufacture through point of sale

15. Issues Influencing 7-Eleven Turnaround -- Challenges Charismatic Leadership –“Japanize” stores in image and management –Infuse cash so changes are undertaken correctly –Change infrastructure of the distribution system Kaizen -- Continual Improvement Privately Owned Stores Communication Resistance to Change Competition

16. Management Dimensions Conclusion & Discussion Cooperative strategies, like JVs, are needed by most companies to stay competitive. Strategic linkage, firm size, industry effect, time, & nationality are factors effecting innovation. –Increasing competition is shown to have a positive effect on the level of innovation. Successful integration & adaptation of organizational goals requires: –a guiding vision –regular & open communication –dedication to exceeding customer expectations