7.4 Larson Inc. in Nigeria 468
Index
Figure 1 The structure of the book page 5
Figure 1.1 A learning model of internationalization 23
Figure 1.2 Approaches to foreign market entry 24
Case 1.1 Exhibit 3 Evaluation of Global Sourcing 34
Case 1.3 Exhibit 1 Mabe’s Company History, 1946 to 2009 49
Case 1.3 Exhibit 2 Mabe’s Historical Revenues, 1987 to 2010 50
Case 1.3 Exhibit 3 Mabe Income by Region, 1990 to 2011 51
Case 1.3 Exhibit 9 Mabe’s Product Line in Russia 59
Case 1.3 Exhibit 10 Main Appliance Players in Russia 60
Case 2.1 Exhibit 2 Wine Industry Value Chain 88
Case 2.1 Exhibit 3 Wine Consumption Per Capita, Selected Countries
(1980–2014) 90
Case 2.1 Exhibit 5 Global Wine Sales by Volume and Value (1999–2013) 92
Case 2.1 Exhibit 8 Exports as % of Production Volume by Source: EU,
New World, and Globally, 1961–2009 96
Case 2.1 Exhibit 9a China Wine Sales Volume by Retail Sale Point and
Country of Origin, 2009 99
Case 2.1 Exhibit 9b Bottle Wine Positioning in China by Price Segment
and Area of Origin (%), 2014 99
Case 2.2 Exhibit 4 MTN’s Organizational Structure, 2014 110
Case 2.3 Exhibit 4 IMAX Corporation Stock Performance, 2008–2013 124
Case 2.3 Exhibit 6 Economic Comparison of the BRIC Economies 127
Case 2.3 Exhibit 7 Population and Average Household Income for 15 Most
Affluent Cities 128
Case 2.3 Exhibit 8 Country Culture Comparison of BRIC Countries 131
Case 2.3 Exhibit 10 BRIC Countries’ Governance Indicators (Percentiles) 133
Case 2.3 Exhibit 11 BRIC Population Age Distribution 2013 and 2020
(Projected) 133
Case 2.4 Exhibit 5 Mahindra and Mahindra – Business Segments 142
Figure 3.1 The integration–responsiveness framework 154
Figure 3.2 Category-specific strategies to help companies serve
middle-class consumers in emerging economies 157
Case 3.1 Exhibit 4 Organization Chart 175
Case 3.2 Exhibit 1 Yushan Bicycles Organizational Structure 178
Case 3.4 Exhibit 2 GE Corporate Structure 197
Case 3.4 Exhibit 3 GE’s Operating System 198
Case 3.4 Exhibit 4 Evolution Locomotive Product Specifications 201
Case 3.4 Exhibit 6 CECOR Tool Kit 204
Case 3.4 Exhibit 7 GE Transportation Organizational Chart 207
Case 3.4 Exhibit 8 Comte’s Marketing Organization 209
Figure 4.1 Stopford and Wells’ international structural stages model 216
Figure 4.2 Organizational configuration models 220
Figure 4.3 Integrated network model 226
Figure 4.4 Integration and differentiation needs at Unilever 227
Figure 4.5 Model I: the traditional change process 231
Figure 4.6 Model II: the emerging change process 232
Case 4.1 Exhibit 2 KCP International Division Organizational Chart, 2000 238
Case 4.1 Exhibit 3 Kent Chemical Products Organizational Chart, 2006 240
Case 4.1 Exhibit 4 Decision Matrix for Resource-Allocation Decisions on the
European Fire Protection Business 244
Case 4.3 Exhibit 5 Organization of METC, 1985 270
Figure 5.1 Mobilizing knowledge 305
Case 5.1 Exhibit 2 P&G European Organization, 1986 308
Case 5.1 Exhibit 3 P&G’s Worldwide Organizational Structure, 1990 309
Case 5.1 Exhibit 5 P&G Organization, 1999 (Post O2005 Implementation) 314
Case 5.1 Exhibit 6 Beauty Counselor Work Flow 315
Case 5.1 Exhibit 7 In-Store SK-II Counter Space 316
Case 5.1 Exhibit 8 Representation of Global Cleansing Cloth Development
Program 318
Case 5.1 Exhibit 9 Illustration of Part of SK-II Product Line 319
Case 5.2 Exhibit 1 ART Organization with Filtration Unit Detail 326
Case 5.3 Exhibit 2 Cisco India R&D Evolution 337
Case 5.3 Exhibit 3 Indian Telecom Industry 338
Case 5.3 Exhibit 4 Telecom Network Structure 340
Case 5.3 Exhibit 5 Cisco’s R&D Project Approval Process 342
Figure 6.1 Range of strategic alliances 347
Figure 6.2 Partner selection: comfort vs. competence 357
Case 6.1 Exhibit 1 How 4G LTE (And Mobile Broadband) Works:
A Simplified Network Representation 366
Case 7.1 Exhibit 1 Levendary Organizational Chart 427
Case 7.2 Exhibit 2 Lifebuoy’s Indian Relaunch, February 2002 440
Case 7.2 Exhibit 3 Unilever Sustainable Living Program (USLP): Original
Targets 2010 444
Case 7.2 Exhibit 4 Unilever Corporate Organization Structure 445
Case 7.2 Exhibit 5 Lifebuoy Core Claim: Protection against Germs 446
Case 7.2 Exhibit 6 Unilever Behavior-Change Model 449
Case 7.3 Exhibit 2 Schindler Organization Chart, Elevator and Escalator
Division 457
Case 7.3 Exhibit 4 Schindler India Organization Chart 461
Case 7.3 Exhibit 5 Indian Elevator Market, Structure, and Product
Segmentation 462
Case 7.3 Exhibit 6 Market Research on Indian Elevator Market, 1996 463
viii List of Figures
Case 7.4 Exhibit 1 The Ridley Report 470
Case 8.2 Exhibit 2 Barrick Spending on Corporate Social Responsibility
in Tanzania 517
Case 8.3 Exhibit 2 Unilever’s Compass Vision and USLP Goals 523
Case 8.3 Exhibit 3 Unilever’s Virtuous Cycle Business Model 525
Case 8.3 Exhibit 4 Unilever Corporate Organization Chart 527
Case 8.3 Exhibit 5 Persil/ Omo “Dirt Is Good” Campaign 530
Case 8.3 Exhibit 6 Unilever’s Transformational Change Priorities 533
Case 8.3 Exhibit 7 Unilever’s Stock Price vs. DJIA and P&G, 2009–2014 535
Case 8.3 Exhibit 8 Unilever’s USLP Achievements, 2014 536
List of Figures ix
LIST OF TABLES
Table 1.1 Selected indicators of FDI and international
production, 2010–2015 page 14
Table 1.2 Internationalization statistics of the 100 largest non-financial
MNEs worldwide and from developing and transition economies 15
Table 1.3 Comparison of top MNEs and selected countries: 2016 16
Case 1.1 Exhibit 1 NHL Share of Hockey Stick Brands and their
Manufacturing Sites 32
Case 1.1 Exhibit 2 Types of Global Sourcing 34
Case 1.1 Exhibit 4 Hourly Compensation Costs in Manufacturing (US$) 36
Case 1.2 Exhibit 1 Income Statements 41
Case 1.2 Exhibit 2 Balance Sheets 44
Case 1.2 Exhibit 3 Data on McTaggart Supplies Ltd 45
Case 1.3 Exhibit 4 Mabe’s Balance Sheet 2006–2008 (000s USD) 52
Case 1.3 Exhibit 5 Mabe’s Income Statement 2006–2008 (000s USD) 53
Case 1.3 Exhibit 6 Global Appliance Players, 2011 53
Case 1.3 Exhibit 7 Appliances Market Size in China, India, and Russia 2005
to 2010 54
Case 1.3 Exhibit 8 Marginal Contribution Per Appliance in China, India, and
Russia 2008 (per cent) 54
Case 1.3 Exhibit 11 Mabe’s Entry Strategy and Positioning, 2008 and 2012 61
Table 2.1 Changes in national investment policies, selected years 2003–2015 73
Case 2.1 Exhibit 1a Retail Price Structure of a Typical EU Wine in Select
Export Markets (€ per bottle), 2014 87
Case 2.1 Exhibit 1b Bottle Wine Segments by Retail Price (European
Commission’s Categories), 2014 87
Case 2.1 Exhibit 4 Wine Production and Consumption: Selected Old World
and New World Countries, 2014 91
Case 2.1 Exhibit 6 Penfolds Red Wine U.S. Brand Structure, 2009 93
Case 2.1 Exhibit 7a Top-10 Global Wine Companies by Volume, 2003
and 2014 94
Case 2.1 Exhibit 7b Top-10 Global Wine Brands, 2009 and 2014 94
Case 2.2 Exhibit 1 MTN Subscribers, June 2015 106
Case 2.2 Exhibit 2 MTN’s Top Risks and Mitigation Strategies, 2014 108
Case 2.2 Exhibit 3 MTN’s Strategy 109
Case 2.2 Exhibit 5 Nigerian Telecommunications Usage, 2015 112
Case 2.2 Exhibit 6 Telecommunications Industry in Nigeria in
November 2016 113
Case 2.2 Exhibit 7 Nigeria Worldwide Governance Indicators 114
Case 2.2 Exhibit 8 Nigeria’s Economic Trends 115
Case 2.3 Exhibit 1 IMAX Worldwide: Screens, Box Office, Demographics,
and Urbanization 120
Case 2.3 Exhibit 2 IMAX Corporation Balance Sheets, 2010–2013
(in Thousands of $) 122
Case 2.3 Exhibit 3 IMAX Corporation Income Statements, 2010–2013
(in Thousands of $) 123
Case 2.3 Exhibit 5 Exhibitor-Branded Premium Large Format Screens, by
Region 126
Case 2.3 Exhibit 9 Risks in the BRIC Economies 132
Case 2.4 Exhibit 1 South Africa – Business Environment Rankings 136
Case 2.4 Exhibit 2 South Africa: Total Vehicle Sales, Production, Exports
and Imports, 2006–2010 138
Case 2.4 Exhibit 3 Mahindra & Mahindra South Africa – Leader Brands’
Production 138
Case 2.4 Exhibit 4 South Africa – Customer Segmentation, December 2010 140
Case 2.4 Exhibit 6 Mahindra & Mahindra – Consolidated Income
Statement 143
Case 2.4 Exhibit 7 Mahindra & Mahindra – Indian Domestic Market Shares
by Volume 144
Case 2.4 Exhibit 8 Mahindra & Mahindra South Africa – Income
Statement 146
Case 2.4 Exhibit 9 Mahindra & Mahindra South Africa – Sales Volume 147
Table 3.1 Scope economies in product and market diversification 158
Table 3.2 Worldwide advantage: goals and means 159
Table 3.3 Strategic orientation and configuration of assets and capabilities
in international, multinational, global, and transnational
companies 163
Case 3.1 Exhibit 1 United Cereal Selected Financial Results (USD in 000s) 170
Case 3.1 Exhibit 2 United Cereal SG&A by Market (USD in 000s) 171
Case 3.1 Exhibit 3 Test Market and Consumer Panel Results 172
Case 3.2 Exhibit 2 Yushan Bicycles Selected Financial Data, 2015 (NT$) 179
Case 3.2 Exhibit 3 Yushan Bicycles Australia Subsidiary Selected Financial
Data, 2015 (NT$) 180
Case 3.4 Exhibit 1 GE Financial Performance, 1995–2006 ($ millions) 195
Case 3.4 Exhibit 5 IB Review Preparation: Sample Questions 203
Table 4.1 Organizational characteristics of decentralized federation,
coordinated federation, and centralized hub organizations 222
Case 4.1 Exhibit 1 Kent Chemical: Summary of Financial Data,
2003–2007 ($ millions) 237
Case 4.2 Exhibit 1 Top Pharmaceutical Markets, 2005 246
Case 4.2 Exhibit 2 Leading Anti-Depressants and Alzheimer’s Disease
Medications in the Global CNS Market, 2005 248
Case 4.2 Exhibit 3 Lundbeck Financial Highlights, 2005 250
List of Tables xi
Case 4.3 Exhibit 1 Philips Group Summary Financial Data, 1970–2008
(Reported in millions of Dutch Guilders (F) to 1996;
Euros (€) after 1997 262
Case 4.3 Exhibit 2 Philips Group, Sales by Product and Geographic
Segment, 1985–2003 (Reported in millions of Dutch
Guilders (F) to 1996; Euros (€) after 1997 263
Case 4.3 Exhibit 3 Philips Research Labs by Location and Specialty, 1987 265
Case 4.3 Exhibit 4 Matsushita Creed and Philosophy (Excerpts) 268
Case 4.3 Exhibit 6 Matsushita, Summary Financial Data, 1970–2000a 274
Case 4.3 Exhibit 7 Matsushita, Sales by Product and Geographic Segment,
1985–2000 (billion yen) 275
Case 4.4 Exhibit 1 Beiersdorf Subsidiaries 278
Case 4.4 Exhibit 2 Major Innovations under the Nivea Brand Umbrella 282
Case 4.4 Exhibit 3 Beiersdorf Balance Sheet 2008–2011 285
Case 4.4 Exhibit 4 Beiersdorf Income Statement and Additional Financials
2008–2011 286
Case 4.4 Exhibit 5 Biggest Global Competitors (Overview) 287
Case 4.4 Exhibit 6 Global Market Segmentation, 2010 288
Case 4.4 Exhibit 7 Competitors (Overview of Selected Market Shares) 289
Case 5.1 Exhibit 1 P&G’s Internationalization Timetable 307
Case 5.1 Exhibit 4 P&G Select Financial Performance Data, 1980–1999 312
Case 5.1 Exhibit 10 Global Prestige Market: Size and Geographic Split 320
Case 5.1 Exhibit 11 Global Skin Care Market Size: 1999 Skin Care
(Main market and prestige) 320
Case 5.1 Exhibit 12 Skin Care and Cosmetics Habits and Practices: Selected
Countries 321
Case 5.1 Exhibit 13 Global SK-II Cost Structure (% of net sales) 322
Case 5.2 Exhibit 2 Wagner’s List of Potential Markets 328
Case 5.2 Exhibit 3 ART Mini Water Oxidation System—Development
Committee Team Structure 330
Case 5.2 Exhibit 4 Market Research: Summary Data 331
Case 5.2 Exhibit 5 Summary Sales and Profit Forecast for RIMOS 332
Case 5.2 Exhibit 6 Summary Risk Analysis and Risk Mitigation for RIMOS 333
Case 5.3 Exhibit 1 Cisco Revenue Breakdown by Product and Geography 335
Table 6.1 Scope of activity 360
Case 6.1 Exhibit 2 Mobile Networks: Evolution and Comparison 366
Case 6.1 Exhibit 3 Malaysia: Background Information 368
Case 6.1 Exhibit 4 Finland: Background Information 369
Case 6.2 Exhibit 1 World Pharmaceutical Suppliers 1992 and 2001
(US$ millions) 377
Case 6.2 Exhibit 2 India’s Economy at a Glance 380
Case 6.2 Exhibit 3 Top 20 Pharmaceutical Companies in India by Sales
(Rs billions) 381
Case 6.2 Exhibit 4 Values at Eli Lilly-Ranbaxy Limited 385
Case 6.2 Exhibit 5 Eli Lilly-Ranbaxy India Financials 1998 to 2001 (Rs’000s) 387
xii List of Tables
Case 6.2 Exhibit 6 Lilly Financials 1992 to 2000 (US$ millions) 388
Case 6.2 Exhibit 7 Product Segment Information
Lilly and Ranbaxy 1996 and 2000 389
Case 6.2 Exhibit 8 Ranbaxy Financials 1992 to 2000 (Rs millions) 390
Case 6.3 Exhibit 1 E-Commerce Sales as a Percentage of Total Retail Sales 393
Case 6.3 Exhibit 2 Comparison of Large E-Commerce Retailers 395
Case 6.3 Exhibit 3 Comparison of Large Offline Retailers 396
Case 6.3 Exhibit 4 Amazon.com Financials 398
Case 6.3 Exhibit 5 Future Enterprises Financials 402
Case 7.1 Exhibit 2 Levendary Income Statement 2010 (dollars in 000s) 429
Case 7.1 Exhibit 3 Comparison of Two Levendary U.S. and Two Levendary
China Locations 434
Case 7.1 Exhibit 4 Levendary China Income Statement (2010) 435
Case 7.2 Exhibit 1 Unilever Financial Performance, 1990–2012 ($ millions) 437
Case 7.2 Exhibit 7 Lifebuoy India P&L: 2006 to 2012 (€ thousands) 450
Case 7.2 Exhibit 8 Lifebuoy Behavior-Change Program Options:
2013 Projected Costing (values in Rs.) 451
Case 7.3 Exhibit 1 Schindler Top Management Profiles 455
Case 7.3 Exhibit 3 Schindler India: Key Managers’ Profiles 459
Table 8.1 MNE–stakeholder relationships in emerging markets: a typology 481
Table 8.2 The Global Compact’s ten principles 493
Case 8.1 Exhibit 1 IKEA Stores, Fiscal Year Ending August 1994 499
Case 8.1 Exhibit 2 IKEA History: Selected Events 500
Case 8.1 Exhibit 3 “A Furniture Dealer’s Testament”—A Summarized
Overview 502
Case 8.1 Exhibit 4 IKEA in Figures, 1993–1994 (fiscal year ending
August 31, 1994) 503
Case 8.1 Exhibit 5 The U.N. Convention on the Rights of the Child:
Article 32 506
Case 8.2 Exhibit 1 Three Types of Engagement Behaviors 513
Case 8.2 Exhibit 3 Total Amount of Money Spent on Community
Development Projects, 2006 (in US$) 519
Case 8.3 Exhibit 1 Unilever Financial Performance, 1995–2014 ($ millions) 521
