Strategic Positioning for MNE's - Revision history

Paulreed: /* The Transnational Revisted */

2013-01-10T18:50:08Z

The Transnational Revisted

← Older revision		Revision as of 12:50, 10 January 2013
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	There is now no such thing as a do-it-all global manager. Instead, there are groups of specialists, each of whom must share a transnational perspective. Bartlett and Ghoshal outline a three-phase procedure that changes the thoughts and actions of managers accustomed to hierarchical bureaucracies. At ABB, for instance, Barnevik was intent from the start on replacing ''the old context of imposed compliance and control with a more internalized model of behavior. In addition to stripping out structural overhead and simplifying bureaucratic reporting requirements'' Barnevik focused on the challenge of establishing strong norms of self-discipline and building a context of support and encouragement.		There is now no such thing as a do-it-all global manager. Instead, there are groups of specialists, each of whom must share a transnational perspective. Bartlett and Ghoshal outline a three-phase procedure that changes the thoughts and actions of managers accustomed to hierarchical bureaucracies. At ABB, for instance, Barnevik was intent from the start on replacing ''the old context of imposed compliance and control with a more internalized model of behavior. In addition to stripping out structural overhead and simplifying bureaucratic reporting requirements'' Barnevik focused on the challenge of establishing strong norms of self-discipline and building a context of support and encouragement.

	In the second stage of the transformation process, the emphasis is on building "[[Strategic ~~Strech~~\|stretch]]" and trust-pushing managers toward ambitious goals in an environment with a "bias toward inclusion and involvement, a sense of fairness and equity, and a belief in the competence of one's colleagues." Finally, a "regeneration phase" shifts management's attention to maintaining the momentum of change and coming as close as possible to achieving the ideal of the "self-driven, self-renewing organization."		In the second stage of the transformation process, the emphasis is on building ''[Strategic Stretch\|stretch]]'' and trust-pushing managers toward ambitious goals in an environment with a "bias toward inclusion and involvement, a sense of fairness and equity, and a belief in the competence of one's colleagues." Finally, a "regeneration phase" shifts management's attention to maintaining the momentum of change and coming as close as possible to achieving the ideal of the "self-driven, self-renewing organization."

	Bartlett and Ghoshal observe that large companies with the best track records in accomplishing this transformation employ a gradual approach. At General Electric, for instance, under the leadership of CEO Jack Welch, the first two steps took more than a decade to complete. Meanwhile, attempts by other organizations to accelerate the process have been counterproductive. General Motors learned this the hard way in the 1980s, when it tried to implement the first two steps simultaneously. The result was a management overload that led to a breakdown of systems and relationships.		Bartlett and Ghoshal observe that large companies with the best track records in accomplishing this transformation employ a gradual approach. At General Electric, for instance, under the leadership of CEO Jack Welch, the first two steps took more than a decade to complete. Meanwhile, attempts by other organizations to accelerate the process have been counterproductive. General Motors learned this the hard way in the 1980s, when it tried to implement the first two steps simultaneously. The result was a management overload that led to a breakdown of systems and relationships.

Paulreed at 18:49, 10 January 2013

2013-01-10T18:49:23Z

← Older revision		Revision as of 12:49, 10 January 2013
Line 1:		Line 1:
	See [[MNEs]] [[Ghoshal]] [[Firm-Specific Advantage]],[[Country-Specific Advantage]]		See also
	Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes into account local cultural conditions. Decentralozed federation that are flexible but higher costs - e.g		*[[MNEs]]
			*[[Ghoshal]]
			*[[Firm-Specific Advantage]]
			*[[Country-Specific Advantage]]

	International transfers skills and capabilities to new markets/ Their is local discretion about what products to offer but marketing and strategy are kept central e.g. P&G		==Multi-domestic==
			MNE sells across many countries but develops individual Supply Chains and takes into account local cultural conditions. Decentralized federation that are flexible but higher costs - e.g International transfers skills and capabilities to new markets. Their is local discretion about what products to offer but marketing and strategy are kept central e.g. P&G

	Global ~~- profitability~~ through standardization Coca Cola, Semi Conductors		==Global==
			Profitability through standardization Coca Cola, Semi Conductors

	Transnational - Exploit experienced based cost economies and transfer them within the co but also has some local responsiveness Toyota		==Transnational==
			Exploit experienced based cost economies and transfer them within the co but also has some local responsiveness Toyota

			==The Transnational Revisted==

	~~The Transnational Revisted~~
	~~Transforming People and Perspectives~~
	Research by Christopher A. Bartlett Volume III, Number I		Research by Christopher A. Bartlett Volume III, Number I
	Percy Barnevik ~~had his work cut out for him in 1988 when he~~ took the helm as CEO of Asea Brown Boveri (ABB), a ~~freshly cast~~ global engineering giant created through the merger of two firms in the electrical power equipment industry. His ~~assignment: Transform~~ the resulting collection of second- and third-tier companies into a first-class operation able to meet the organizational and strategic challenges of the world economy.		Percy Barnevik took the helm as CEO of Asea Brown Boveri (ABB) in 1988. It was a global engineering giant created through the merger of two firms in the electrical power equipment industry. His challenge was to transform the resulting collection of second and third-tier companies into a first-class operation able to meet the organizational and strategic challenges of the world economy.



	~~Little more than a~~ decade later, ABB ~~has become~~ a prime example of what ~~HBS professor Christopher~~ Bartlett and ~~London Business School's Sumantra~~ Ghoshal ~~have~~ described as a "transnational corporation." This radically different corporate model was first developed in their ~~influential~~ 1989 book, Managing Across Borders: The Transnational Solution ~~(HBS Publishing: 2001)~~. "ABB," they write, "is truly what Barnevik set out to create -- 'a company that is big and small, global and local, decentralized but with central control.'"		A decade later, ABB became a prime example of what [[author::Bartlett]] and [[author::Ghoshal]] described as a "transnational corporation." This radically different corporate model was first developed in their 1989 book, '''''Managing Across Borders: The Transnational Solution''''' . "ABB," they write, "is truly what Barnevik set out to create -- 'a company that is big and small, global and local, decentralized but with central control.'"

	~~Outside Reading~~

	~~Managing Across Borders: The Transnational Solution by Christopher A.~~ Bartlett and ~~Sumantra~~ Ghoshal, (~~HBS Publishing: 2001~~).		According to Bartlett and Ghoshal's research, competing solely on the basis of scale efficiency or national market responsiveness or the ability to transfer specialized knowledge worldwide (approaches employed earlier by Japanese, European, and American corporations, respectively) no longer suffices. Modern transnational firms, in contrast, succeed by developing all three capabilities simultaneously.

	~~The Individualized Corporation by Christopher A.~~ Bartlett and ~~Sumantra~~ Ghoshal~~, (HarperBusiness~~: ~~1997).~~		Having examined the link between corporate strategy and organizational structure Bartlett and Ghoshal looked at the development of transnational managers. They address three major categories of challenges:

	~~Transnational Management: Text, Cases and Readings in Cross Border Management. 3rd ed., by Christopher A. Bartlett and Sumantra Ghoshal (Irwin/McGraw~~-~~Hill: 1999).~~		*Strategic - How to understand and confront the forces that drive an industry and shape a firm's ability to perform.
	~~According~~ to ~~Bartlett~~ and ~~Ghoshal's research, competing solely on~~ the ~~basis of scale efficiency or national market responsiveness or the ability to transfer specialized knowledge worldwide (approaches employed earlier by Japanese, European,~~ and ~~American corporations, respectively) no longer suffices. Modern transnational firms, in contrast, succeed by developing all three capabilities simultaneously. "It~~'s the corporate equivalent of being able to walk, chew gum, and whistle at the same time," notes Bartlett. These days, the term "transnational" has become part of the business lexicon, as companies strive to ~~build the capabilities demanded by an evolving global market~~.

	~~Having examined the link between corporate strategy and organizational structure in the first edition of their book, as well as the effects of differences in cultural, national~~, ~~and corporate heritages~~, Bartlett and Ghoshal now add their insights regarding the development of transnational managers. Making use of additional research that led to the publication of The Individualized Corporation (HarperBusiness: 1997), ~~the authors explore the critical roles, tasks~~, and ~~responsibilities these people have in building the successful transnational organization~~.		*Organizational - How to build an "integrated network organization," given a company's current resources, structures, systems, and culture.

	~~Global Guidelines~~		* Managerial - How to reshape the roles and responsibilities of business, country, functional, and corporate managers while instilling a new transnational perspective.

	An application handbook, new to the second edition of Managing Across Borders, presents a series of structured exercises that Professors Bartlett and Ghoshal have found beneficial in their work with transnational managers worldwide. Intended as a guide to implementing the complex transformation process, the handbook addresses three major categories of challenges:

	~~Strategic~~

	~~How to understand and confront the forces that drive an industry and shape a firm's ability to perform.~~

	~~Organizational~~

	~~How to build an "integrated network organization," given a company's current resources, structures, systems, and culture.~~

	Managerial

	How to reshape the roles and responsibilities of business, country, functional, and corporate managers while instilling a new transnational perspective.

	~~"The reality is," they say, "that there~~ is now no such thing as a do-it-all global manager. Instead, there are groups of specialists, each of whom must share a transnational perspective." Accordingly, a new section of the book explores the most important roles and responsibilities of business, country, functional, and corporate managers. "Firms must recognize," Bartlett and Ghoshal declare, "that success relies not only on the strategies, structures, and systems typically controlled by senior management but on effecting changes in individuals' behavior."		There is now no such thing as a do-it-all global manager. Instead, there are groups of specialists, each of whom must share a transnational perspective. Bartlett and Ghoshal outline a three-phase procedure that changes the thoughts and actions of managers accustomed to hierarchical bureaucracies. At ABB, for instance, Barnevik was intent from the start on replacing ''the old context of imposed compliance and control with a more internalized model of behavior. In addition to stripping out structural overhead and simplifying bureaucratic reporting requirements'' Barnevik focused on the challenge of establishing strong norms of self-discipline and building a context of support and encouragement.

	~~In keeping with this thesis,~~ Bartlett and Ghoshal outline a three-phase procedure that changes the thoughts and actions of managers accustomed to hierarchical bureaucracies. At ABB, for instance, Barnevik was intent from the start on replacing "the old context of imposed compliance and control with a more internalized model of behavior. In addition to stripping out structural overhead and simplifying bureaucratic reporting requirements~~," Bartlett and Ghoshal write, "~~Barnevik ~~and his top team~~ focused on the challenge of establishing strong norms of self-discipline and building a context of support and encouragement."

	In the second stage of the transformation process, the emphasis is on building ~~what Bartlett and Ghoshal describe as~~ "stretch" and trust-pushing managers toward ambitious goals in an environment with a "bias toward inclusion and involvement, a sense of fairness and equity, and a belief in the competence of one's colleagues." Finally, a "regeneration phase" shifts management's attention to maintaining the momentum of change and coming as close as possible to achieving the ideal of the "self-driven, self-renewing organization."		In the second stage of the transformation process, the emphasis is on building "[[Strategic Strech\|stretch]]" and trust-pushing managers toward ambitious goals in an environment with a "bias toward inclusion and involvement, a sense of fairness and equity, and a belief in the competence of one's colleagues." Finally, a "regeneration phase" shifts management's attention to maintaining the momentum of change and coming as close as possible to achieving the ideal of the "self-driven, self-renewing organization."

	Bartlett and Ghoshal observe that large companies with the best track records in accomplishing this transformation employ a gradual approach. At General Electric, for instance, under the leadership of CEO Jack Welch, the first two steps took more than a decade to complete. Meanwhile, attempts by other organizations to accelerate the process have been counterproductive. General Motors learned this the hard way in the 1980s, when it tried to implement the first two steps simultaneously. The result was a management overload that led to a breakdown of systems and relationships.		Bartlett and Ghoshal observe that large companies with the best track records in accomplishing this transformation employ a gradual approach. At General Electric, for instance, under the leadership of CEO Jack Welch, the first two steps took more than a decade to complete. Meanwhile, attempts by other organizations to accelerate the process have been counterproductive. General Motors learned this the hard way in the 1980s, when it tried to implement the first two steps simultaneously. The result was a management overload that led to a breakdown of systems and relationships.

	"Understanding the requirements ~~for success as a modern transnational~~ is just the beginning,~~" say Bartlett and Ghoshal. "Implementation~~ is far more difficult, especially in an era when people seek instant solutions at every turn. ~~That's why we've included the application handbook in this edition" (see sidebar). According to their research, the~~ greatest problem lies in teaching managers to think holistically and understand that the historic and cultural heritages of their nation, their industry, and especially their company are major factors in shaping the capabilities of their organization.		"Understanding the requirements is just the beginning, implementation is far more difficult, especially in an era when people seek instant solutions at every turn. The greatest problem lies in teaching managers to think holistically and understand that the historic and cultural heritages of their nation, their industry, and especially their company are major factors in shaping the capabilities of their organization.

	The prescriptions provided by Bartlett and Ghoshal offer no simple cure, but the long-term result of their regimen is likely to be robust and innovative companies well positioned for success in the new millennium.

	~~Return to top~~

	~~by Peter K. Jacobs~~

	[[Category:Strategy]]		[[Category:Strategy]]

Paulreed at 14:50, 23 December 2010

2010-12-23T14:50:03Z

← Older revision		Revision as of 08:50, 23 December 2010
Line 1:		Line 1:
	See [[MNEs]] [[~~Goshal~~]] [[Firm-Specific Advantage]],[[Country-Specific Advantage]]		See [[MNEs]] [[Ghoshal]] [[Firm-Specific Advantage]],[[Country-Specific Advantage]]
	Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes into account local cultural conditions. Decentralozed federation that are flexible but higher costs - e.g		Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes into account local cultural conditions. Decentralozed federation that are flexible but higher costs - e.g

Paulreed: Created page with "See MNEs Goshal Firm-Specific Advantage,Country-Specific Advantage Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes..."

2010-12-23T14:49:27Z

Created page with "See MNEs Goshal Firm-Specific Advantage,Country-Specific Advantage Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes..."

New page

See [[MNEs]] [[Goshal]] [[Firm-Specific Advantage]],[[Country-Specific Advantage]]
Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes into account local cultural conditions. Decentralozed federation that are flexible but higher costs - e.g

International transfers skills and capabilities to new markets/ Their is local discretion about what products to offer but marketing and strategy are kept central e.g. P&G

Global - profitability through standardization Coca Cola, Semi Conductors

Transnational - Exploit experienced based cost economies and transfer them within the co but also has some local responsiveness Toyota

The Transnational Revisted
Transforming People and Perspectives
Research by Christopher A. Bartlett Volume III, Number I
Percy Barnevik had his work cut out for him in 1988 when he took the helm as CEO of Asea Brown Boveri (ABB), a freshly cast global engineering giant created through the merger of two firms in the electrical power equipment industry. His assignment: Transform the resulting collection of second- and third-tier companies into a first-class operation able to meet the organizational and strategic challenges of the world economy.

Little more than a decade later, ABB has become a prime example of what HBS professor Christopher Bartlett and London Business School's Sumantra Ghoshal have described as a "transnational corporation." This radically different corporate model was first developed in their influential 1989 book, Managing Across Borders: The Transnational Solution (HBS Publishing: 2001). "ABB," they write, "is truly what Barnevik set out to create -- 'a company that is big and small, global and local, decentralized but with central control.'"

Outside Reading

Managing Across Borders: The Transnational Solution by Christopher A. Bartlett and Sumantra Ghoshal, (HBS Publishing: 2001).

The Individualized Corporation by Christopher A. Bartlett and Sumantra Ghoshal, (HarperBusiness: 1997).

Transnational Management: Text, Cases and Readings in Cross Border Management. 3rd ed., by Christopher A. Bartlett and Sumantra Ghoshal (Irwin/McGraw-Hill: 1999).
According to Bartlett and Ghoshal's research, competing solely on the basis of scale efficiency or national market responsiveness or the ability to transfer specialized knowledge worldwide (approaches employed earlier by Japanese, European, and American corporations, respectively) no longer suffices. Modern transnational firms, in contrast, succeed by developing all three capabilities simultaneously. "It's the corporate equivalent of being able to walk, chew gum, and whistle at the same time," notes Bartlett. These days, the term "transnational" has become part of the business lexicon, as companies strive to build the capabilities demanded by an evolving global market.

Having examined the link between corporate strategy and organizational structure in the first edition of their book, as well as the effects of differences in cultural, national, and corporate heritages, Bartlett and Ghoshal now add their insights regarding the development of transnational managers. Making use of additional research that led to the publication of The Individualized Corporation (HarperBusiness: 1997), the authors explore the critical roles, tasks, and responsibilities these people have in building the successful transnational organization.

Global Guidelines

An application handbook, new to the second edition of Managing Across Borders, presents a series of structured exercises that Professors Bartlett and Ghoshal have found beneficial in their work with transnational managers worldwide. Intended as a guide to implementing the complex transformation process, the handbook addresses three major categories of challenges:

Strategic

How to understand and confront the forces that drive an industry and shape a firm's ability to perform.

Organizational

How to build an "integrated network organization," given a company's current resources, structures, systems, and culture.

Managerial

How to reshape the roles and responsibilities of business, country, functional, and corporate managers while instilling a new transnational perspective.

"The reality is," they say, "that there is now no such thing as a do-it-all global manager. Instead, there are groups of specialists, each of whom must share a transnational perspective." Accordingly, a new section of the book explores the most important roles and responsibilities of business, country, functional, and corporate managers. "Firms must recognize," Bartlett and Ghoshal declare, "that success relies not only on the strategies, structures, and systems typically controlled by senior management but on effecting changes in individuals' behavior."

In keeping with this thesis, Bartlett and Ghoshal outline a three-phase procedure that changes the thoughts and actions of managers accustomed to hierarchical bureaucracies. At ABB, for instance, Barnevik was intent from the start on replacing "the old context of imposed compliance and control with a more internalized model of behavior. In addition to stripping out structural overhead and simplifying bureaucratic reporting requirements," Bartlett and Ghoshal write, "Barnevik and his top team focused on the challenge of establishing strong norms of self-discipline and building a context of support and encouragement."

In the second stage of the transformation process, the emphasis is on building what Bartlett and Ghoshal describe as "stretch" and trust-pushing managers toward ambitious goals in an environment with a "bias toward inclusion and involvement, a sense of fairness and equity, and a belief in the competence of one's colleagues." Finally, a "regeneration phase" shifts management's attention to maintaining the momentum of change and coming as close as possible to achieving the ideal of the "self-driven, self-renewing organization."

Bartlett and Ghoshal observe that large companies with the best track records in accomplishing this transformation employ a gradual approach. At General Electric, for instance, under the leadership of CEO Jack Welch, the first two steps took more than a decade to complete. Meanwhile, attempts by other organizations to accelerate the process have been counterproductive. General Motors learned this the hard way in the 1980s, when it tried to implement the first two steps simultaneously. The result was a management overload that led to a breakdown of systems and relationships.

"Understanding the requirements for success as a modern transnational is just the beginning," say Bartlett and Ghoshal. "Implementation is far more difficult, especially in an era when people seek instant solutions at every turn. That's why we've included the application handbook in this edition" (see sidebar). According to their research, the greatest problem lies in teaching managers to think holistically and understand that the historic and cultural heritages of their nation, their industry, and especially their company are major factors in shaping the capabilities of their organization.

The prescriptions provided by Bartlett and Ghoshal offer no simple cure, but the long-term result of their regimen is likely to be robust and innovative companies well positioned for success in the new millennium.

Return to top

by Peter K. Jacobs

[[Category:Strategy]]