This document contains a student's notes summarizing three compelling points from a strategic management course.
The first point discusses how international companies like McDonalds and Illy Cafe successfully expanded globally using strategies like franchising that allowed them to enter new markets while responding to local needs.
The second point examines the strategic alliance between Renault and Nissan where partnering allowed them to share resources and capabilities to develop new competitive advantages.
The third point emphasizes how innovation requires experimentation, and transnational companies like McDonalds that operate across homogenous markets while adapting to local trends have achieved profitability through their "glocal" scale. Partnering and collective competition also makes companies stronger by reducing costs and facilitating
This document contains a student's notes summarizing three compelling points from a strategic management course.
The first point discusses how international companies like McDonalds and Illy Cafe successfully expanded globally using strategies like franchising that allowed them to enter new markets while responding to local needs.
The second point examines the strategic alliance between Renault and Nissan where partnering allowed them to share resources and capabilities to develop new competitive advantages.
The third point emphasizes how innovation requires experimentation, and transnational companies like McDonalds that operate across homogenous markets while adapting to local trends have achieved profitability through their "glocal" scale. Partnering and collective competition also makes companies stronger by reducing costs and facilitating
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Original Title
Strategic Management 3 bullets - most interesting stuff
This document contains a student's notes summarizing three compelling points from a strategic management course.
The first point discusses how international companies like McDonalds and Illy Cafe successfully expanded globally using strategies like franchising that allowed them to enter new markets while responding to local needs.
The second point examines the strategic alliance between Renault and Nissan where partnering allowed them to share resources and capabilities to develop new competitive advantages.
The third point emphasizes how innovation requires experimentation, and transnational companies like McDonalds that operate across homogenous markets while adapting to local trends have achieved profitability through their "glocal" scale. Partnering and collective competition also makes companies stronger by reducing costs and facilitating
This document contains a student's notes summarizing three compelling points from a strategic management course.
The first point discusses how international companies like McDonalds and Illy Cafe successfully expanded globally using strategies like franchising that allowed them to enter new markets while responding to local needs.
The second point examines the strategic alliance between Renault and Nissan where partnering allowed them to share resources and capabilities to develop new competitive advantages.
The third point emphasizes how innovation requires experimentation, and transnational companies like McDonalds that operate across homogenous markets while adapting to local trends have achieved profitability through their "glocal" scale. Partnering and collective competition also makes companies stronger by reducing costs and facilitating
1. McDonalds / Illy Cafe - International Strategies
In my opinion, these two cases had the most interesting discussion which I was fascinated by. I was really excited to know about the formation of such large companies and study their business strategies. In order for companies of such scale to be successful they have to have solid vision beforehand and I really enjoyed the process of learning how these giants expanded around the world. For instance, McDonalds former CEO Ray Kroc captured they idea that they could sell selected menu items in large quantities and this motivated him to purchase McDonald Co. from two McDonald brothers. However, he thought restaurant business is a very sensitive and hard to do business that led him to introduce franchise business. As we were on the topic of international strategies, franchisee business is one of the flexible tools for companies to enter new markets. I think, they chose the right international strategy for a restaurant business which is transnational responding both for global trends as well as for local needs and regulations.
2. Renault x Nissan Alliance (rationale, outcome and crisis) –
Cooperative strategies Another very insightful discussion for me was the topic of cooperative strategies when two large companies decide to partner to compete against other competitors. In case of Renault and Nissan I believe both of these firms formed strategic alliances to exchange and share resources and capabilities in order to co-develop, sell, and service goods and services. Strategic alliances enable businesses to capitalize on their existing resources and capabilities while collaborating with partners to build new resources and capabilities that will serve as the foundation for new competitive advantages. When sharing resources and teaming up make companies be undefeatable which not only allows to save costs and time but also help to learn from each other.
3. Xiaomi and Samsung in India - Strategic Analysis
1. Innovation without experimentation doesn’t work. Like with LEGO case, some companies have propensity in their culture to change. They are not afraid of experimenting and try new things which is more important than innovation. 2. Profitability comes from “glocal” scale. Meaning that transnational companies like McDonald which operate in homogenous markets is doing good job of responding both for global trends as well as for local needs and regulations. 3. Partnering and collective competition make sense when growing. When sharing resources and teaming up make companies be almost undefeatable which not only allows to save costs and time but also help to learn from each other.