Distance still matters by pankaj ghemawat pdf download, task force black book download 1cc1596b1f strategy. Its a notion ghemawat says was first floated in the 1850s by david livingston, the scottish explorer who traveled the. Begin by considering the example summarized in exhibit 21, which plots walmarts operating margin by country in 2004 against the distance between each countrys capital and walmarts headquarters in bentonville, arkansas. This note introduces the cage distance framework, which is used to identify and prioritize the differences between countries that companies must address when developing crossborder strategies. When firms believe in the illusions of a flat world and the death of distance, they charge across borders as if the globe were one seamless marketplace. Redefining global strategy pankaj ghemawat download.
The hard reality of global expansion most of these costs and risks result from the barriers created by distance. Recall though, that any international expansion strategy still needs to be supported by the specific resources and capabilities possessed by the firm, regardless of. The hard reality of global expansion discusses the reasons and rationale that drive companies to overestimate profit potential in foreign markets. But crossborder differences are larger than we often assume, explains pankaj ghemawat in redefining global strategy. He created the dhl global connectedness index and the cage distance framework. Distance still matters by pankaj ghemawat pdf download. It and global communications areshrinking the world, turning it into a small and relatively homogeneousplace. By focusing on national wealth, consumer income, and peoples propensity to consume, cpa emphasizes potential sales, ignoring the costs and risks of doing business in a new market. With the study guides and notes written by fellow students, you are guaranteed to be properly prepared for your exams. Friedman asserts that 10 forcesmost of which enable connectivity and collaboration at a dis tance are flattening the earth and leveling a. The hard reality of global expansion 12 further reading a list of related.
Crossing borders in a world where differences still matter ghemawat, pankaj on. An analysis of pankaj ghemawats distance still matters. The problem is rooted in the analytic tools the most prominent being country portfolio analysis, or cpa that managers use to judge international investments. It may seem that were living in a borderless world where ideas, goods and people flow freely from nation to nation. Star tv the situation1991 star tv aims to enter asia and target market is top 5% star tv could use cheap english programming 2 nd languageminimize geographical distance by distributing through satellites news corporation bought out. Summary pankaj ghemawats article, distance still matters. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic, and economic when planning global expansion. In this work, ghemawat proposes the cage distance framework that.
In other words, ghemawat takes issue with the idea that national borders are eroding and that we are all just living in one world. Distance still matters 3 ghemawat p distance still. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. Because a onesizefitsall strategy no longer stands a chance. Pankaj ghemawat coined a new phrase in his talk from tedglobal. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies. Distance still matters, and companies must explicitly and thoroughly account for it when. Citing evidence from his primary research on the subject of globalisation, ghemawat argued that we are a lot. Yet ghemawat contends that despite the benefits and ease of technology, human behaviour still matters, distance still matters, and yes, borders still matter and these factors overwhelm the perception of a small, frictionless world.
With great data and an eyeopening survey, he argues that theres a delta between perception and reality in a world thats maybe not so hyperconnected after all. Semiglobalization and international business strategy. Author, speaker, and economist pankaj ghemawat is global professor of management and strategy and director of the center for the globalization of education and management at nyu stern, and the anselmo rubiralta professor of global strategy at iese business school. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 distance still matters. Ghemawat analyzes the failures of different companies news corp, tricon restaurants, etc. Please accept our apologies for any inconvenience this may cause. The interviewer was referring of course to the thesis of new york times columnist thomas l. Crossing borders in a world where differences still matter as want to read. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international. Cpd consists of any educational activity which helps to ghemawa and develop knowledge, problemsolving, and technical skills with the aim to provide better health care through higher standards.
Companies routinely overestimate the attractiveness of foreign markets. Assess the cultural, administrative, geographic, and economic differences between regions at the industry leveland decide which ones require attention. Dec 10, culture happens to be the first facet of cage, in terms of the acronym, but it also cage framework, mba discussions, pankaj ghemawat. The framework was developed by pankaj ghemawat, a professor at the university of navarra iese. It was written by pankaj ghemawat, a professor of global strategy at the iese business school in barcelona who served as open pdf files through vfp a faculty member. According to ghemawat, it would be domestic strategy applied to a bigger market. Why do so many global strategies faildespite companies powerful brands and other bordercrossing advantages. Pankaj ghemawat is global professor of management and strategy at the nyu stern. Based on rigorous research, pankaj ghemawat shows how to create successful strategies and provides practical management tools so you can. Pankaj ghemawat born september 30, 1959 is an indianamerican economist, professor, global strategist, speaker and author known for his work in the study of globalization. The impact of geographic distance is obvious, but what other types. Pankaj ghemawat is the anselmo rubiralta professor of global strategy at iese business school and the jaime and. The diagnosis of semiglobaliza tion does more than just supply a relatively stable frame of reference for thinking about the environment of crossborder operations.