scholarly journals Why Localization Is Necessary as a Business Strategy in Emerging Markets: The Case Comparison of Hyundai and Volkswagen

2021 ◽  
Vol 7 (3) ◽  
pp. 190
Author(s):  
Jungyoun Lee ◽  
Jungyeon Kim ◽  
Jiwoo Kim ◽  
Seungho Choi
Keyword(s):  
Emerging Markets ◽  
Value Chain ◽  
Business Strategy ◽  
Multinational Enterprises ◽  
Business Strategies ◽  
Target Market ◽  
Institutional Voids ◽  
Case Comparison ◽  
Primary Focus ◽  
Multinational Businesses

Localization, the process of establishing the most adequate system in the target market according to the given environment to produce the most viable product in the market, can help multinational enterprises (MNE) to better understand the market, and take the most appropriate actions needed. Business strategies in emerging markets must account for the environment’s distinctive characteristics because emerging markets are characterized by underdeveloped institutions, also known as institutional voids. What would be the best strategy to respond to these voids? The primary focus of this article is to investigate how multinational businesses deal with the institutional voids of emerging markets such as the Indian automobile market, and how the different strategies affect the players’ performances. By comparing Hyundai Motors Company and Volkswagen Auto Group’s different strategical approaches, this research demonstrates that better creation of a local value chain and ecosystem leads to better performance in emerging markets. Survival within emerging markets requires thorough market analysis in an institutional context, and rapid response to environmental shifts resulting from institutional voids. Localization can help in both aspects.

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

scholarly journals From the Host to the Home Country, the International Upgradation of EMNEs in Sustainability Industries—The Case of a Chinese PV Company

2019 ◽  
Vol 11 (19) ◽  
pp. 5269 ◽  
Author(s):  
Jun Jin ◽  
Zhengyi Zhang ◽  
Liying Wang
Keyword(s):  
Emerging Markets ◽  
Host Country ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Home Country ◽  
Emerging Market ◽  
Internal Market ◽  
Market Mechanism ◽  
Trigger Time ◽  
Depth Analysis

With the internationalization of firms from emerging-markets, the upgradation along the global value chain of emerging-market multinational enterprises (EMNEs) has attracted the attention of academics and industries. However, the role of upgradation of EMNEs in a host country to the transition of EMNEs in the home country is ignored. This study explored how EMNEs from emerging-markets could upgrade their operations in their home countries driven by the transformation of subsidiaries in host countries. An in-depth analysis of Company S was conducted to elaborate on the resources and trigger time a firm needs to transform the function of a subsidiary in the host country, and the upgradation of the firm in the home country during the internationalization process. Research on the internationalization of Company S suggested that with the complementary capabilities and markets as the fundamental basic resources, the industrial crisis triggers the firm’s upgrading in the host country. In addition, the intrafirm (internal) market mechanism makes it possible to sustain the upgrading process without conflicts between subsidiaries. Moreover, synergies will develop through interactions with subsidiaries, owing to complementary capabilities and the internal market. The synergetic development promotes the transition of firms in the home country and emphasizes the complementarity of the manufacturing and engineering service. Finally, this study demonstrates the two-stage international upgrading process, in which the international upgrading of firms in the home country is driven by the development and transition of the subsidiary in the host country, which provides contributions to the internationalization upgrading strategy and process of firms from emerging-markets.

scholarly journals Evaluation of the Agile Manifesto within Business Strategies

2016 ◽  
Vol 2 (2) ◽  
pp. 227
Author(s):  
Andreas Kompalla ◽  
Jan Kopia
Keyword(s):  
Project Management ◽  
Automotive Industry ◽  
Value Chain ◽  
Business Strategy ◽  
Business Strategies ◽  
Lead Times ◽  
It Project Management ◽  
The Core ◽  
Single Person ◽  
Traditional Industry

<p><em>Every institution, company or single person needs a guideline aligning specific actions, processes and assets to an overall target. Recent research shows that guidelines of enterprises within the manufacturing branch or more specific within the automotive industry are almost identical. But new and emerging competitors force the traditional industry to adapt its business strategy and especially to increase flexibility. The internal and external changes within the manufacturing environment support this trend. The lead times are constantly shrinking and an increasing variety in customer demands has to be handled via new platforms and models. In conclusion, enterprises within the automotive industry need to increase agility and flexibility in order to stay competitive.</em></p><p><em>Within IT-project management, agility has been a focus since the end of the 1990s. Beneath that the automotive industry has applied several principles on the core value chain, logistics and production. But on the highest strategic level of an enterprise these principles have not been analyzed yet. This research paper is evaluating case studies in order to derive core agile aspects as well as principles. Based on that business strategies within the automotive branch are broken down and compared with these principles.</em></p><p><em>The result is that most of the agile aspects are not yet considered on the highest strategic business levels although they could increase the performance of enterprises within the automotive branch. But they need to be adapted to the specific characteristics.</em></p>

Cultural Effects of Global Businesses and Multinational Businesses

2020 ◽  
pp. 493-518
Author(s):  
Yeter Demir Uslu ◽  
Yasemin Hancıoğlu
Keyword(s):  
Multinational Enterprises ◽  
Organizational Structures ◽  
Point Of View ◽  
Business Strategies ◽  
Theoretical Point ◽  
Global Level ◽  
Cultural Effects ◽  
National Market ◽  
Single Standard ◽  
Multinational Businesses

The concept of globalization is a process in which countries, cultures, organizational cultures, and even organizational structures converge with each other and a single standard point of view in the world emerges, and it identifies and defines the differences of the elements. This shows that the processes of globalization and localization are always in interaction. Convergence brought by globalization shows that multinational enterprises perform standard activities at the global level. However, in contrast to this convergence, with the effect of localization, hybrid organizational structures are becoming important especially in order to provide competitive advantage in the national market. While creating hybrid organizational structures, attention is paid to establish a structure that will not hinder the coordination between the host country and the home country. In this context, the definitions of globalization, localization, hybridization, and how the complexity of their interactions are reflected in business strategies are discussed from a theoretical point of view.

Strategic responses of MNCs in emerging markets: addressing institutional voids associated with informal institutions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anne H. Koch
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Business Strategy ◽  
Informal Institutions ◽  
Social Needs ◽  
Institutional Voids ◽  
Strategic Responses ◽  
Critical Perspective ◽  
Content Type ◽  
Social Innovations

Purpose The purpose of this paper is to address the question how multinational corporations (MNCs) can respond to different domains of formal voids associated with informal institutions in emergent markets. Design/methodology/approach The author advances the institution-based view of international business strategy by developing a framework and six propositions. The theoretical distinction of informal institutions as an additional aspect when disrupting formal institutional voids are instrumental in developing a refined understanding of how MNCs can respond to institutional voids. Findings By emphasizing the notion of informal institutions that are associated with formal institutional voids, the author moves away from a unidimensional toward a multidimensional view of substituting formal voids. The presented response variety includes a variety of substitutes. Research limitations/implications Further research can apply qualitative research to further examine where, when and why social innovations can be used efficiently to address institutional weaknesses or absences. The author suggests further research opportunities in the implication section. Social implications Constituting substitutive formal institutions with complementary informal institutions can help strategic managers navigate business activities in emerging markets. Institutional weaknesses can be used as opportunities to create legitimacy and serve social needs. To help facilitate such impacts public policies need to be developed accordingly. Originality/value The paper provides a new and critical perspective on how MNCs can use institutional voids as opportunities. The author’s key contribution is to highlight specific substitutive actions from MNCs to institutional voids when different cultural-cognitive and normative circumstances apply in emerging markets.

scholarly journals “GLOBLIZATION TO GLOCALIZATION OF MNFEs IN INDIA” WITH SPECIAL REFERENCE TOFOOD ENTERPRISES IN LUCKNOW

2015 ◽  
Vol 6 (3) ◽  
pp. 904-911
Author(s):  
Arvind Kumar Singh ◽  
Dr. Shailendra Kumar Chaturvedi ◽  
Karan veer Singh
Keyword(s):  
Service Quality ◽  
Product Development ◽  
Emerging Markets ◽  
Special Reference ◽  
Host Country ◽  
Multinational Enterprises ◽  
Food Industry ◽  
Home Country ◽  
Business Strategies ◽  
Political Environment

The concept of Glocalization is derived from that of globalization and localization and signifies that companies should not only think globally but also act locally while addressing business functionalities including branding, marketing, advertising and product promotion. Food industry, of India and World is witnessing unprecedented increase in the number of multinational enterprises. These multinational enterprises, when deciding to expand their operations to a new country, have to make a choice between following uniform business strategies as in their home country or modify their strategies to suit the host country socio-economic and political environment. Recently, many multinational food giants have successfully penetrated into emerging markets due to their product or service quality but there are cases where companies have failed to earn profits due to lack of Glocalization strategies. This paper focuses on multinational food Enterprises (MNFEs) and identifies suitable Glocalized strategies in marketing, product development, advertisement etc. establishing themselves and gaining market share in a diverse country like India.

scholarly journals Manajemen Perencanaan Strategis Sistem Informasi Menggunakan Metode Tozer (Studi Kasus: SMK Bina Nusantara Ungaran)

2021 ◽  
Vol 11 (1) ◽  
pp. 72-79
Author(s):  
Herry Sanoto
Keyword(s):  
Information System ◽  
Value Chain ◽  
Business Strategy ◽  
Business Processes ◽  
Information Age ◽  
Vocational School ◽  
Business Strategies ◽  
Success Factor ◽  
Critical Success Factor ◽  
Critical Success

Business competition in this fast-paced information age has become very tight. especially in the field of education. Thus the organization must have a business strategy that is very mature in order to face the competition. The application of information systems and technology has become one of the most influential business strategies for staying in competition. Bina Nusantara Ungaran Vocational School has implemented an information system and technology, but apparently it has not run optimally because some parts have not yet implemented an information system. In this study discusses how to plan an IS / IT strategy using the Tozer version method with supporting analysis such as Value Chain Porter's, Five Force Porter's, SWOT, Critical Success Factor, and McFarlan's Strategic Grid. Which produces a portfolio of SI / IT that is aligned with the vision and mission to support the business processes that are run and make Bina Nusantara Ungaran Vocational School excel in field of education.

scholarly journals Perencanaan Strategis SI/TI Menggunakan Metode Ward and Peppard di Institusi Pendidikan (Studi Kasus: SMK Bina Nusantara Ungaran)

2021 ◽  
Vol 3 (1) ◽  
pp. 96-107
Author(s):  
Galang Krisnawa Bhakti ◽  
Augie David Manuputty
Keyword(s):  
Information System ◽  
Information Systems ◽  
Value Chain ◽  
Business Strategy ◽  
Business Processes ◽  
Information Age ◽  
Vocational School ◽  
Business Strategies ◽  
It Strategy

Business competition in this fast-paced information age has become very tight. especially in the field of education. Thus the organization must have a business strategy that is very mature in order to face the competition. The application of information systems and technology has become one of the most influential business strategies for staying in competition. Bina Nusantara Vocational School has implemented an information system and technology, but apparently it has not run optimally because some parts have not yet implemented an information system. In this study discusses how to plan an IS / IT strategy using ward and peppard methods with supporting analyzes such as Value Chain Porter's, SWOT, and McFarlan's Strategic Grid. Which produces a portfolio of IS / IT that is aligned with the vision and mission and roadmaps of its implementation to support the business processes that are run and make the Bina Nusantara Vocational School excel in education.

Better value chains: a matrix for competitive advantage

2014 ◽  
Vol 35 (5) ◽  
pp. 43-48 ◽  
Author(s):  
Conrad den Hertog
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Business Strategy ◽  
Senior Management ◽  
Business Strategies ◽  
Value Chains ◽  
Future Research ◽  
Business Unit ◽  
Content Type ◽  
Business Units

Purpose – The purpose of this paper is to present a new and comprehensive business strategy matrix which can be used to create competitive advantage for the value chain of every business unit of any firm. Design/methodology/approach – This paper reviews the key findings of several well-known papers within the value chain literature and then adds several new conceptual insights to step by step create a logically developed, business strategy matrix featuring four strategy choices. Findings – This paper presents the four business strategy choices of competitive value chains, based on the business strategies of innovative quality, lean cost, agile delivery and attentive service. Research limitations/implications – A future research implication of this paper is to empirically test the financial benefits for producers of custom products, of applying agile delivery as a key business strategy. Practical implications – This paper provides the senior management of each business unit of any firm, with a clear guide to defining an optimal business strategy. Social implications – This paper is intended to advance the practice of business strategy by senior management, to enhance customer value across all business units. Originality/value – This paper expands upon existing business strategy models by providing a comprehensive business strategy matrix, which can be applied to all possible business units. It does this by building upon current best practice to demonstrate that next to innovative quality, lean cost and attentive service strategies, an agile delivery strategy is required in the case of custom products.

scholarly journals Proposed Business Strategy for Small Medium Enterprises (SMEs) (Case Study: Rimbang SMEs of Clothing Industry)

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Arifa Amalina Izni ◽  
Harimukti Wandebori
Keyword(s):  
Value Chain ◽  
Business Strategy ◽  
Swot Analysis ◽  
External Factors ◽  
Clothing Industry ◽  
Business Strategies ◽  
Online Sales ◽  
Factors Analysis ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Rimbang is one of Small Medium Enterprises (SMEs) of Clothing Industry that provides kids professional uniforms in Bandung, Indonesia. At present, as the growth of SMEs continues to increase and with the presence of marketplace platforms become one of the causes of the decline in product sales over the last three years, namely in the years 2017, 2018 and 2019. This research was conducted to develop the most suitable strategy based on existing internal and external factors. The results of internal factors analysis demonstrate the strength of reputation and good relationship and weakness in the form of a product type that is seasonal and easily emulated. The results of external factors analysis show the opportunity of online sales and future integration and threats in the form of potential newcomers and higher competencies. Analysis results are used to formulate strategies using SWOT Analysis, TOWS Matrix and Porter's Generic Strategy. The proposed strategy is the Cost Leadership Strategy and Forward Integration as a strategy used to improve and develop existing business strategies and marketing strategies. These strategies are done by developing limited resources, implementing effective value chain activities and conducting product marketing directly to end consumers through online and offline sales. 

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