BU491 Chapter Notes - Chapter 1-4: Sildenafil, Theodore Levitt, Gary Hamel
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Must have a substantial direct investment in another country (criterion 1) It (cid:272)a(cid:374)"t just si(cid:373)pl(cid:455) (cid:271)e t(cid:396)adi(cid:374)g (cid:449)ith the(cid:373) They have to be actively engaged in managing their assets(both strategic and organizational integration) in these other countries (criterion 2), not just having them as an investment in their portfolio. The active, coordinated management of operations located in different countries. So(cid:373)e mne"s ha(cid:448)e su(cid:271)sta(cid:374)tial (cid:396)e(cid:448)e(cid:374)ue that thei(cid:396) e(cid:454)iste(cid:374)(cid:272)e is e(cid:395)ually important economically to some smaller gdp countries. Have substantial influence on the global economy because of this, they hire a lot of graduates, and have many strategic and organizational hurdles to overcome as managers. Need to secure key supplies was one of the earliest reasons. Pre mne stage: firms have export unit within home office to oversee growing export levels. After the product matures and production becomes standardized, they go to the next stage. Third stage is when the product is highly standardized and competitors start entering the business.
