roleofcountrymanager_v4

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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