For Tuesday 23 march and Thursday 25 March(first Period)

* Topic Focus is on the ability of global firms to transfer distinctive competencies(unique strengths that a firm has to acheive superior effeciency,quality,innovation and/or customer responsiveness across national markets).
* Review point-Distinctive competencies form the bedrock of an organizations competitive advantage(ie- they enable a firm to lower the costs of value creation/perform value-creation activities in ways that lead to differentiation and premium pricing).
* Location economics can be realized from basing individual value-creation activities in the optimal location for that activity.
* By entering the global environment in various ways a firm can ride down the experience curvemore rapidly than competitors who just focus on domestic markets.
* Know how McDonalds profited from transfering its distinctive competencies in managing its fast-food operations abroad (See SiA 8.1)
* Firms that compete globaly face pressures for cost reductions and local responsiveness(fig 8.1). These place conflicting demands on a company therefor the firm must respond by minimizing its units costs(finding a favorable low cost location somewhere in the world)
or offer a standardized productin the global market(to ride down the experience curve as quickly as possible)or
differentiate its product offering snd market strategy from country to country.
* Know how Firms can use Four basic strategic choices to enter and compete in the international environment(See Fig 8.2)
* Know if the international strategy pursued by P and G during the 70s and 80s was appropriate. Why or why not?(See SinA8.2)
* Firms that pursue a Transnational strategy are trying to achieve low-cost and differentiation advantages. Know how Caterpillar acheived this against competitors such as Komatsu(see figure 8.3)
* Know the advantages and disadvantages of the four basic strategies to enter and compete in the international environment(see table 8.1)
* Know choices of entry mode
* Bring up www.ibm.com website and process assignment questions on page 276 of text. Be sure to indicated why or why not the entry strategies into each country makes sense in light of your understanding of this text material.(10 points)Keep a typed copy on Journal #1.