roleofcountrymanager_v4
TRANSCRIPT
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Country manager of the 1970s and 80s
Trans-national model of 1990s
Country manager today
Case-studies and examples
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The Focus was purely on the local market and each country worked in isolation as a standalone entity
What is good for western world should be good for developing markets.
The definition of going global was to look for new markets as a source for incremental growth
MNCs pushed their existing products into newer markets
Increasing focus of successful corporations to adapt to booming global environment and competition
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Operated like a mini
CEO : Created thevision and the localenvironment.
Inspired teams toachieve business
objectives
Full responsibilitiesfor all facets of the
business in a country
Assumed complete
control over profitand loss
Innovation is wherethe power lied andeach country was
responsible for itsown innovation and
marketing strategies
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Global Competition
Global customers
Global Integration
Regional Trading blocs
Strategic Alliances
Diminishing : CMs
decision makingautonomy
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Potentate CabinetMember
Trader Ambassador
Global Inter-national
Multi-nationalTrans-national
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Homogeneous customerneeds
McDonalds, Sony, Mercedes, Coca
Cola.
Globalsourcing/manufacturing
Best place for raw-material
Best place to do value-addition
Era of best practices
What is the best product?
Which is the best process?
Which is the best market to sell it?
Consolidation andCentralization of power
Complexity
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Not catering to the local tastes/preferences Increased response time for new products.
Nimble competition. Country managers role reduced to that of
sales/distribution No incentives to recommend ideas Does any industry still adopt trans-national
model?
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Has thorough local knowledge
Customer preferences
Geographic variations
Seasonal variations and social-economic trends
Politically networked
Flexibility Entrepreneurial and risk taking Forecast local trends and take action Examples
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If you are a country subsidiary manager, you have to be sensitive andresponsive to national differences.
It is important to understand country differences as strengths, not as impedimentsto your operation.
The real battle now is shifting to how you use the world as a source of ideas andexpertise; and the country manager's role is key.
For example, Procter & Gamble in Japan understand thatJapanese womenare incredibly sophisticated, demanding customers whospend more money on cosmetics than anyone else in theworld.
The country managers response: "We've got very demanding customers here. We'vegot incredibly tough competitors here. That creates a fabulous environment that'sgoing to drive innovation, so let's build our R&D here and use this environment todrive innovation.
" Out of that commitment came SK-II, a skin care product that sells for about $120a bottle and has moved them into a whole new range.
Now this prestige line is being rolled out globally.
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Country and stage ofdevelopment
Growth rate and size ofmarket Method of market entry
Joint Venture/Alliance
Subsidiary
Long-term corporatestrategy of company
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Introduce global best practices locally. Understand, design and develop products for local
preferences Nokia developing Cell Phones for the Indian markets
KFC- large eat-in restaurants in Asia Explore the possibility of transfer of ideas to similar
markets TVS bikes are sold in Indonesia, Srilanka
Hyundai exports cars from India globally Frugal engineering ideas for developed markets
Low-cost ECG machines for India exported to US GE case
Variants of TATA-Nano for the European markets.
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1902 : First hydro project in Karnataka
1969 : First Nuclear Power Plants in India
1989 : JV with local giant - Wipro
GE CEO
Biz 1 Biz 1 Biz 1
Asia
.
America Europe
India China SEA .
India CEO Plant 1 GM Plant 2 GM
Asia CEO
Sales
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GE CEO
India CEO China America Europe ROA
Sales Operations
Biz 1 Biz 2. Plant 2 .Plant 1
R&D
Focus : first on local country requirements All businesses to synchronize with the country strategy New product introductions : In country For Country (ICFC) Stronger interaction between teams of different business
for best practice sharing and resource sharing
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1.0
1970s and 1980s
Think and act locally.
Decentralized power Multinational companies
2.0
1990s
Think and act globally.
Centralized power Transnational companies
3.0
Beyond 2000
Think globally, act locally.
Globalized - Truly global companies.
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Globalization
Worldwide
communication
Branding
Economies of
scale
StrategicBusiness Units
HQ control
Centralization
helped by ERP