1. International Strategy

2. Which is the American car? Page 2 Pontiac G8 BWM X5

3. Which is the American car? Page 3 Pontiac G8 BWM X5 Manufactured in Australia Manufactured in South Carolina

4. Page 4 Toyota SequoiaJeep Patriot Which is the American car?

5. Page 5 Toyota SequoiaJeep Patriot 80% U.S. Content66% U.S. Content

6. The Last “American” Car Page 6

7. The Last “American” Car Page 7 92% U.S. Content …but assembled in Canada

8. cars.com Most American Car

10. TouaregPassatJettaBeetleGolf Engine Germany Hungary Germany Poland Mexico Hungary TransmissionJapan Argentina Japan Argentina Japan Argentina Final Assembly SlovakiaGermanyMexico Brazil Country of Origin for VW Models Sold in U.S.: Major Components and Final Assembly

11. VW Jetta…just a little “German” Transmissions Japan Assembly Mexico Engines Poland Customers Lexington

13. Globalization Drivers o Market Drivers o Cost Drivers o Government Drivers o Competitive Drivers Low Adapt High Standardize

14. Effective Standardization Coca-Cola’s “global polar bears” McDonald’s “Big Mac”

15. Effective Adaptation o P&G single-use shampoo packages in India

16. Effective Transnationalization oBarbie is 51 years old oSold in 130 countries oNational adaptations: Physical features Costumes Activity sets oStandardized physique: Scaled to 6’2”, 110 lbs.

17. Value Chain Location and standardization/adaptation Infrastructure Technology Development Procurement Human Resource Management Inbound Logistics Operations Outbound Logistics Marketing Service Profit Margin

18. Value Chain Infrastructure Technology Development Procurement Human Resource Management Inbound Logistics Operations Outbound Logistics MarketingService Profit Margin Headquarters

19. Value Chain Infrastructure Technology Development Procurement Human Resource Management Inbound Logistics Operations Outbound Logistics MarketingService Profit Margin Upstream Headquarters

20. Value Chain Infrastructure Technology Development Procurement Human Resource Management InboundLogistics Operations OutboundLogistics MarketingService Profit Margin UpstreamDownstream Headquarters

21. Value Chain Marketing Profit Margin UpstreamDownstream Headquarters Manufacturing

22. Value Chain Configuration location o Geographic location of value chain activities around the world

23. VW Jetta…just a little “German” Transmissions Japan Assembly Mexico Engines Poland Customers Lexington

24. Value Chain Coordination linkages o Cross-border linkages between dispersed value- creating units o Coordination o Coordination = Flows of: –Money –Product (finished and intermediate) –Technology –People –Information (market data, strategic direction, etc.) o Highly coordinated vs. only money flows

25. International Strategy: Managing Competing Pressures Pressures for Global Efficiency Pressures for Local Responsiveness High Low High Low

26. International Strategy: Managing Competing Pressures Pressures for Global Efficiency Pressures for Local Responsiveness High Low High Low Export Strategy

27. Export Strategy U.S. Germany Mexico Malaysia

28. Export Strategy U.S. Germany Sweden England

29. International Strategy: Managing Competing Pressures Pressures for Global Efficiency Pressures for Local Responsiveness High Low High Low Export Strategy ?? Multidomestic Strategy

30. Multidomestic Strategy U.S. Germany Mexico Malaysia

31. P&G Multidomestic Strategy UK Germany France Italy Neth.

32. International Strategy: Managing Competing Pressures Pressures for Global Efficiency Pressures for Local Responsiveness High Low High Low Export Strategy ?? Multidomestic Strategy Global Strategy

33. Global Strategy (Textbook Variety) U.S. Germany Mexico Malaysia

34. International Strategy: Managing Competing Pressures Pressures for Global Efficiency Pressures for Local Responsiveness High Low High Low Export Strategy ?? Multidomestic Strategy Global Strategy Transnational Strategy

35. Transnational Strategy (v.1) U.S. Germany Mexico Malaysia

36. P&G “Pan-Euro” Strategy UK Germany France Italy Neth. Spain Zone 1 Zone 2

37. Surprising Outcome F VIZIR was precursor to “Liquid Tide” in US –Great irony is: P&G’s struggle to develop “Euro-brand” first found success in a different large, integrated market…

38. Surprising Outcome F VIZIR was precursor to “Liquid Tide” in US –Great irony is: P&G’s struggle to develop “Euro-brand” first found success in a different large, integrated market… The U.S.

39. Transnational Strategy (v.2) U.S. Germany Mexico Malaysia

40. Transnational Strategy (v.2) U.S. Germany Mexico Malaysia

41. Transnational Strategy (v.3) U.S. Germany Mexico Malaysia Engines Final Assembly Trim, seats, glass Steel

42. VW International Strategy - Jetta Germany Japan Mexico Poland Transmission Final Assembly Engine Misc. U.S. Marketing

44. McDonald’s Identity

45. McDonald’s Transnational Menu USBrazilCanadaIndiaGermany Big Mac French Fries Coca-Cola McNuggets McAloo Tikki McRib McBier McLobster McCalebresa PitaMac McFarmer

46. McDonald’s Site Selection and Stores US -- Colorado

48. McDonald’s Site Selection and Stores Moscow, Russia

49. McDonald’s Site Selection and Stores Bangkok, Thailand

50. Hamburger University Illinois, USA

51. Hamburger University Illinois Sydney London Munich Hong- Kong

52. Hamburger University Curriculum o80 classroom hours oTopics – Fast food “the McDonald’s way” Restaurant operations, food preparation Crew selection, training and team building Marketing and promotion Asset management Corporate citizenship and ethics Leadership, effective supervisory skills Standardization of Processes

53. McDonald’s Transnational Strategy U.S. Singapore Greece Brazil