One of the framework was identified by ghemawat aaa framework in. Seduced by market size, the illusion of a borderless, flat world, and the allure of similarities, firms launch onesizefitsall strategies. Pankaj ghemawats highly acknowledged cage framework 2001 helps actors. Strategy and the business landscape pankaj ghemawat. I found this book to be pretty nicely written with very easy examples to understand the cage framework and aaa strategy for.
By contrast, similarities along these dimensions suggest great potential. Youngresearcherssection cage analysis of china s trade. Pankaj ghemawat authority of global strategy pankaj ghemawat is one of the new generation management gurus who throws new light on corporate behaviour and particularly its global aspect. Managing differences the central challenge of global strategy author. Modern competitive strategy by gordon walker provides a slightly longer and very solid introduction. Adaptation strategies strategies that seek to increase revenues and market share by tailoring one or more components of a firms business model to suit local requirements or preferences. Just how global are we really its not a new question, of course. Its one that david livingstone first floated back in the 1850s, and one thats been popularized by writers such as thomas friedman. Michael porter calls you one of those rare individuals who combine worldclass scholarship with a deep knowledge of business practice. Fundamentals of global strategy a business model approach. Pankaj ghemawats aaa framework to evaluate global strategy june 23, 2015 dennisbarber in recent due to the volatile nature of various factors like economic conditions, dynamic nature of market factors, etc. Introduction to pankaj ghemawat and his work on globalization and strategy with executives, policy makers, and students around the world.
Friedman assumes that the world is becoming much more globally integrated. Core concepts offers a contemporary yet historically grounded perspective on the field of strategy. Adaptation strategies seek to increase revenues and market share by tailoring one or more components of a companys business model to suit local requirements or preferences. Strategy and the business landscape is based on contemporary research in the field of strategy and adopts a valuefocused, firmcentered perspective that promotes an analytical approach to strategy. The as stand for the three distinct types of international strategy. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies. 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.
Pankaj ghemawat is a bit of a boundary crosser himself, combining. Throughout the lecture, he gave some information that felt should be relevant. Santos silva and tenreyro 2011 were in line with pankaj ghemawats cage framework when they argued that the gravity model can be extended by including variables to account for language relationships, tariffs, contiguity, access to the sea, colonial history, exchange rate regimes, and other variables of interest. Crossing borders in a world where differences still matter by pankaj ghemawat harvard business school press boston,massachusetts isbn.
Pankaj ghemawat is global professor of management and strategy at the. Semiglobalization and international business strategy. If you want a longer treatment, contemporary strategy analysis by robert grant, or strategic management by garth saloner, andrea shepard, and joel podolny are. The implied marginvolume tradeoff was first discussed systematically in chapter 3 of my book, commitment op cit. This section introduces the cage distance framework, which is used to identify and prioritize the differences between countries that companies must address when developing crossborder. Pankaj ghemawats highly acknowledged cage framework 2001 helps. 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. The differences across countries and the cage distance framework 153 the betteroff test 157 industry attractiveness 159 cost effects 160. He created the dhl global connectedness index and the cage distance framework he is the global professor of management and strategy and director of the center for the globalization of education and management at the.
Finergrained analysis of case studiesparticularly of companies that have in various ways been global innovatorssuggests that it is possible to combine the two. Pankaj ghemawat disagrees with both and his case, backed by data, can be convincing. Globalization, the international integration, is adapted by an organization by adapting various approaches. Ghemawat, strategy and the business landscape, 3rd edition. Heres a more rational approach to evaluating global opportunities. Why do so many global strategies faildespite companies powerful brands and other bordercrossing advantages. This note introduces the cage distance framework, which is used to identify and prioritize the differences between countries that companies must address when. Dr p ghemawat, harvard business school, soldiers field road, morgan hall 227, boston, ma 02163, usa. Friedman discussed the fact that the word is becoming easier to do global business in. Pankaj ghemawat, adding value and differences and the cage distance. In this article, pankaj ghemawat presents a new framework that encompasses all three effective responses to the challenges of globalization. So says pankaj ghemawat, the most prominent flatworld skeptic in. We use pankaj ghemawats wellknown aaa triangle framework to describe three generic approaches to global value creation.
He is professor of management and strategy at the stern school, new york and professor of global strategy at the iese business school. Tool kit companies routinely exaggerate the attractiveness of foreign markets, and that can lead to expensive mistakes. Crossing borders in a world where differences still matter, and strategy and the business landscape 2nd edition, and more on. Pisano, provides firmcentered and valuebased logic to bridge some of the great debates about strategy today. See all books authored by pankaj ghemawat, including redefining global strategy. Differences and the cage distance framework pankaj ghemawat. Global prosperity and how to achieve it, and he takes the stage to ask an important question. The more two countries differ across these dimensions, the riskier the target foreign market. Semiglobalization and international business strategy pankaj ghemawat harvard business school, boston, ma, usa correspondence.
Ghemawat socalled aaa framework offers three generic approaches to global value creation. But crossborder differences are larger than we often assume, explains pankaj ghemawat in redefining global strategy. Pankaj megawatt ghemawat is an international strategy guru who developed the cage framework the analytical framework used to understand country and regional differences along the distance dimensions of culture, administration, geography, and economics. Through adaptation, companies seek to boost revenues and market share by maximizing their local relevance. Pankaj ghemawat books list of books by author pankaj. 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. The final barrier in the cage framework has been economic. In order to prove this point, ghemawat provides interesting data to prove that crossborder flows of goods, services, capital, information and people are actually a lot more limited that most. Ghemawat, 2014 search for markets size of the market of the recipient. Then, the cage framework is used to unpack potential bases of arbitrage and the adding value scorecard is applied to analyze arbitrage strategies.
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. Pankaj gh cage dist differences ping crossexample g margin untrys cap e impact of nce or dist itable for w exhibi perating m work disag cultural, ng these di, please email. In this thesis we study if swedish mncs consider the factors suggested in the cageframework when evaluating emerging markets. He optimistically portrays the world as changing for the better. It may also be used to understand patterns of trade, capital, information, and people flows. National efforts to expand international flowsof trade, capital, information, and peoplecan be a major leverage point for raising prosperity. Pankaj ghemawat speaks regularly on globalization and its impact on business strategy,and public policy.