דברי פתיחה יגב בן יצחק
TRANSCRIPT
Shuki Katz is very experienced in the area of change, M&As and transformation ofbanking and financial systems. Mr. Katz was the Director of Organization and Systemsin Bank Hapoalim. During his tenure in Bank Hapoalim, Mr. Katz lead major changessuch as the transition from product lines to customer groups, establishing the privatebanking sector, commercial banking, online banking, direct banking, central callcenter, growing through activities abroad and many other strategic changes. Mr. Katzalso acquired practical experience with other companies such as Master-card,Continental Bank, Israeli- American Bank and others. Shuki was very involved in theacquisition of the Israeli – American Bank by Bank Hapoalim and the merger of bothbanks’ operations. Mr. Katz was also instrumental in growing Bank Hapoalim’s activityand sales in the US by helping its branches grow new initiatives and business linesand building an adequate corporate culture, strategy and structure.
Our People (Core team)Globalization Opportunities & Challenges
Presented by: Yagev Ben Itzhak
אסטרטגיה ממוקדת יישום
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A Global Company ?
Going Global does not mean just
doing business abroad.
In a true Global Company there is
harmony between different
cultures.
Resources, knowledge and
materials are moved seamlessly
across different countries so that
the company enjoys maximum
competitive advantage.
Rule # 2
“And the small shall act big . . . One way small
companies flourish in the flat world is by
learning to act really big. And the key to being
small and acting big is being quick to take
advantage of all the new tools for collaboration
to reach farther, faster, wider, and deeper.”
Thomas Friedman, Author
“The World is Flat”
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Rule # 3
“And the big shall act small . . .
One way that big companies learn to flourish in
the flat world is by learning how to act really small
by enabling their customers to act really big.”
Thomas Friedman, Author
“The World is Flat”
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Why go Global?
Small local market
Benefits of Foreign Trade to accelerate
growth
Revolution in Global Communications
Fast and Efficient Transportation
Opening of Previously Closed Markets
The field has been redefined
Bank of Israel – Research Department
We find that the productivity of exporting firms in Israel is
higher than that of non-exporters.
The export premium is higher before firms enter the export
market, an indicator of a self-selection effect.
We also find an additional premium for firms after they
have entered the export market, which is suggestive of a
learning by exporting effect. We found a significant positive
learning effect.
Growth in the productivity of exporting firms is
approximately 12 percent 5 years after they enter the export
market.
Means to go Global
Exports to foreign Countries
Strategic Alliances
Licensing
Franchising
Contract Manufacturing
Joint Ventures
Wholly Owned Subsidiaries
M&As
Components of effective Global Organizations
Global Strategy
Global Structure
Global Leadership
Global Culture
Resources, knowledge and materials are moved seamlessly across different countries so that the company enjoys maximum competitive advantage.
Global Products & Multi–Local Products
People all over have similar needs
Some products have Global demand Industrial products:
Steel, Chemicals etc.
Semiconductors, Internet services, Software
Global products are usually impersonal products.
People in different cultures have different styles, tastes, language, culture
Government Regulations force Local Modifications
Economic Differences
Global Competitive Analysis
The Fundamental aim of business Strategy is to create and sustain competitive advantages
First Step is to conduct competitive analysis. Country Specific Advantages Firm Specific Advantages (F.S.A.) Value Chain Analysis
Best way to leverage these advantages in Foreign Markets & gain advantage over Local Firms
Dealing with Global and Local Competitors
National Competitive Advantage
A country might provide an absolute
advantage by the virtue of having certain
resources
Homeland Security, Agriculture,
Communication,
High Technology in USA, Israel
Comparative Advantage :
When one country is better in producing a
certain type of product
Coffee in Brazil
Software in India, Medical tourism in India
Heart Bypass
U.S.: $130,000
Singapore: $18,500
Thailand: $11,000
India: $10,000
Photo: East Shore Hospital, Singapore
Data: Business Week,
The East Shore Hospital is an International
Member of Blue Cross, Blue Shield of
South Carolina..
Heart Valve Replacement
U.S.: $160,000
Singapore: $12,500
Thailand: $10,000
India: $9,000
Photo: Apollo Hospital, Chennai. India
Data: Business Week, The Apollo Hospital is an International
Member of Blue Cross, Blue Shield of
South Carolina..
Angioplasty
U.S.: $57,000
Singapore: $13,000
Thailand: $13,000
India: $11,000
Photo: Bumrungard International Hospital , Bangkok
Data: Business Week, 35,000 Americans traveled to Bangkok in 2007
for this treatment
Hip Replacement
U.S.: $43,000
Singapore: $12,000
Thailand: $12,000
India: $9,000
Photo: Gleneagles, Singapore
Data: Business Week,
US Private equity firm, TPG has taken a controlling
interest in the Parkway Group that owns the hospital.
Hysterectomy
U.S.: $20,000
Singapore: $6,000
Thailand: $4,500
India: $3,000
Photo: a subsidiary of Wockhardt in Mumbai, India
Data: Business Week,
Active discussions with US insurers
Knee Replacement
U.S.: $40,000
Singapore: $13,000
Thailand: $10,000
India: $8,500
Photo: St. Luke’s Hospital in Manila
Data: Business Week,
Early stage infrastructure; not yet world-class..
Spinal Fusion
U.S.: $62,000
Singapore: $9,000
Thailand: $7,000
India: $5,500
Photo: Tiantan Puhua Hospital, Beijing, China
Data: Business Week,
Experimental stem cell treatments, not available
in the USA..
Firm Specific Advantages (F.S.A.)
Firms develop competitive advantages which is unique to them
E.g: Patents, Distribution Network, Manufacturing techniques, Access to Raw materials etc
Knowledge Based F.S.A. : Soft skills such as marketing, brand management etc. Skills reside in employees and experience of the Firms
Resource Based FSA: Resources such as products, technology, know-how & Services
Firms have to build both Knowledge based & Resource based advantages
Taking F.S.A. Abroad
FSA cannot always be transferred abroad.
The degree of transferability depends on FSA
itself
Intangible “skills” are toughest to transfer
FSA tied at home country are not always
transferrable.
Initial Thoughts
Going global will stretch and mold company resources into a globally effective organization.
Global Managers will have to select the right entry strategies, decide on trade-offs between localization or global standardization to achieve the optimal local responsiveness and global economies of scale.
Going global is not only about selling abroad. It’s about a global strategy, global structure, global leadership and global culture.