abhishreshthaa
Abhijeet S
Each country has a strategic role that influences strategy, structure, and the role of the country manager.
The strategic role of the country also influences which functions are duplicated within the country (e.g., R&D, mfg., etc.).
A lead market must have R&D.
The country manager’s role is a function of the strategic role of the country in the multinational firm’s overall strategy:
- Access new markets with existing products (Implementer)
- Develop new markets and adapt and develop new products for those markets (Local Manager)
- Develop “lead” markets from which to learn and transfer knowledge to other relevant markets (Global Network Manager)
There are numerous potential competitive advantages that MNCs can realize by thinking about their firm as a global network of resources and capabilities.
MANAGEMENT ISSUE IN A COUNTRY:
COUNTRY MANAGEMENT MODEL:
Stage 1: Global Strategy/Structure
Export focus on sales and distribution
Worldwide units dominate structure (local staff report to global units)
Country manager as TRADER (implementer)
Stage 2: Multinational Strategy/Structure
Focus on developing, making, and selling broader line to locally adapted products
Country Manager as MANAGER (potentate)
Stage 3: Transnational Strategy/Structure
Focus on worldwide integration, reducing local authority, standardizing systems
Country manager as GLOBAL NETWORK MANAGER (cabinet member)
The strategic role of the country also influences which functions are duplicated within the country (e.g., R&D, mfg., etc.).
A lead market must have R&D.
The country manager’s role is a function of the strategic role of the country in the multinational firm’s overall strategy:
- Access new markets with existing products (Implementer)
- Develop new markets and adapt and develop new products for those markets (Local Manager)
- Develop “lead” markets from which to learn and transfer knowledge to other relevant markets (Global Network Manager)
There are numerous potential competitive advantages that MNCs can realize by thinking about their firm as a global network of resources and capabilities.
MANAGEMENT ISSUE IN A COUNTRY:
- What is the role of a country organization?
- What activities, resources to locate within a country?
- How is an affiliate integrated into worldwide operations?
- What is the role of the country manager (CM)?
- How can a CM define and meet local and global goals?
- What role does the CM play in a firm’s worldwide strategy?
- Country Organization Role
- Traditional View
- Organization to sell products locally
- Emerging View (interdependent markets as part of global network)
- Pool of resources that happen to be located within a national market that are used to compete locally and globally
COUNTRY MANAGEMENT MODEL:
Stage 1: Global Strategy/Structure
Export focus on sales and distribution
Worldwide units dominate structure (local staff report to global units)
Country manager as TRADER (implementer)
Stage 2: Multinational Strategy/Structure
Focus on developing, making, and selling broader line to locally adapted products
Country Manager as MANAGER (potentate)
Stage 3: Transnational Strategy/Structure
Focus on worldwide integration, reducing local authority, standardizing systems
Country manager as GLOBAL NETWORK MANAGER (cabinet member)