Global and Transnational Business: Strategy and Management

In this new edition of a successful textbook the authors assess the turbulent environment in which international businesses operate and the approaches to strategy formulation and implementation which can be adopted. They also examine the functional and operational management of companies and fuse together the theoretical and empirical aspects of international management. New material includes coverage of leadership in transnational companies, cultural issues in international management, entrepreneurship and SMEs in global business, the impact of e-commerce, and the anti-globalization movement.

Table of Contents:
Preface to the second edition xix Acknowledgements xxi PART I 1 1 Strategic and Management Issues in Global and Transnational Business 3 Learning objectives 3 Global and transnational business – an introduction 3 Global and transnational strategies and management – the issues 19 A framework for global and transnational strategic management 20 The approach to global strategy in this book 26 The global and transnational strategic management process 29 Conclusion 33 PART II 37 2 From National Culture to Global Vision 39 Learning objectives 39 Introduction 39 The concept of globalization 40 Causes of market and industry globalization 42 Globalization and environmental turbulence 47 Global mission, objectives and strategy 49 Culture and global business 52 Hofstede’s cultural dimensions framework 56 Trompenaars’ dimensions of culture framework 59 Tayeb – major cultural characteristics observed in various nations 62 The importance and determinants of culture in transnational business 62 Analysing organizational culture – the cultural web 66 3 Analysis of the Global Business 73 Learning objectives 73 Introduction 73 Analysis of the global organization 74 Competences, resources and capabilities 74 Global value chain analysis 80 The ‘global’ value chain 86 Global organizational culture and structure 87 Products, performance and portfolio analysis 91 Outside in or inside out? 99 4 Analysis of the Competitive Environment 103 Learning objectives 103 Introduction 103 The nature of the business environment 104 Industries and markets 106 Yip’s globalization drivers 109 Industry analysis 118 Globalization drivers and the five forces 123 Market analysis 125 Strategic group and competitor analysis 128 A resource-based approach to environmental analysis 131 Critical success factors (CSFs) and core competences 134 5 Analysis of the Global Macroenvironment 139 Learning objectives 139 Introduction 139 Change in the business environment 140 The macroenvironment 142 The role of national circumstances in international business 145 The analytical process 148 Summary – analysis of the global macroenvironment 151 PART III 155 6 Global and Transnational Strategy 157 Learning objectives 157 Introduction 157 Transnational strategies and global competitiveness 158 Strategies – the choice 161 Knowledge and competence-based strategy 163 Competitive positioning – Porter’s generic strategies 175 Knowledge, core competence and generic strategy – a synthesis 179 Global and transnational strategy 181 Total global strategy 187 7 Global and Transnational Market-servicing Strategies 197 Learning objectives 197 Introduction 197 Alternative foreign market-servicing strategies 198 Selection of mode of entry 209 Global market-servicing strategies 210 Collaborative arrangements 212 Appendix 7.1 Some additional notes on foreign market-servicing strategies 217 8 Global Production and Logistics Management 227 Learning objectives 227 Introduction 227 Production strategy and competitive advantage 228 Global production strategies 229 Research in global productions strategy 231 Plant location decision making 236 Procurement and transnational business 240 Global logistics 242 PART IV 247 9 Global Leadership and Strategic Human Resource Management 249 Learning objectives 249 Introduction 249 Leadership and management in transnationals 250 Strategic human resource management 257 European and American approaches to HRM 262 A transnational model of HRM 263 Porter’s global strategy and HR strategy 264 10 Global Technology Management 269 Learning objectives 269 Introduction 269 Technology and strategy 270 Technology as a strategic asset 271 Technology strategy 277 Comparisons of transnational technological performance 285 Information and communication technologies 287 11 Global and Transnational Marketing Management 297 Leearning objectives 297 Introduction 297 The role of marketing in global and transnational strategy 298 Globalization of markets and marketing research 301 Global marketing strategies 302 Global market segmentation and positioning strategies 308 Global marketing management 310 Global products 313 Global pricing 318 Global promotion 324 ICT and global marketing 331 12 Global Financial Management 339 Learning objectives 339 Introduction 339 Finance management and the global enterprise 340 Centralization versus decentralization of the finance function 343 Decision area 1: financing foreign operations 344 Decision area 2: resource allocation and capital budgeting 348 Decision area 3: operational policies 351 Decision area 4: remittance strategy 355 13 Organizational Structure and Control in Global and Transnational Business 361 Learning objectives 361 Introduction 361 Some essentials of organizational structure 362 Determinants of organizational structure 364 Types of international organizational structure 369 The development of global and transnational matrix structures 374 The development of the transnational organizational structure 376 Decision making and control in international business 382 Global and transnational strategies, organization and control 385 14 Managing Global Mergers, Acquisitions and Alliances 391 Learning objectives 391 Introduction 391 An overview of integrations and alliances 392 Transnational mergers and acquisitions 395 Collaborative ventures and strategic alliances 403 Types of strategic alliance and collaborative venture 405 Successful alliances 411 The strategic management of networks and alliances 412 15 Global Business – Present and Future Trends 419 Learning objectives 419 Introduction 419 The global business environment – limits of globalization 420 A global approach to strategy and management? 422 Global competitive advantage in the future 423 Appendix 1 McDonald’s and Its International Expansion 431 A brief history 431 McDonald’s and franchising 434 International growth 435 Appendix 2 Nike Inc. 439 Company development 439 The Nike product concept 440 Vertical linkages and outsourcing 441 Promotions and endorsements 443 Markets and structure 444 Changes in the 1990s 445 Nike at the end of the 1990s 446 Index 449

About the Author :
George Stonehouse is Professor of International Strategic Management and Associate Dean of Newcastle Business School. He is also an Honorary Professor of the State University of Management, Moscow, Russia, and Visiting Professor at the University of International Business and Economics, Beijing, and Zhengzhou University, People’s Republic of China. His research interests are in globalization, knowledge and organizational learning. Dr. Jim Hamill is Reader in the Department of Marketing at University of Strathclyde. Jim is a Visiting Lecturer at a number of Business Schools in Europe and is widely published in International Marketing, E-business and International Human Resources Management. Dr. David Campbell is Senior Lecturer in Strategic Management at Newcastle Business School. David’s research interests are in the areas of Strategic Management and Corporate Governance. Dr. Tony Purdie is Principal Lecturer in Strategic Management and MBA Programme Director at Newcastle Business School. Tony is a Visiting Lecturer at several Business Schools in Europe.

Review :
"Presents an integrative framework within which to discuss the complex strategic issues involved in global and international business..." (Long Range Planning, 38, 2005)