Distance, intraeuropean cooperation, partner choice. 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. 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. A summary of harvards professor pankaj ghemawats influential article.
Download free cage framework pankaj ghemawat pdf ticketletitbit. The globalization debate pits the opinions of thomas friedman against those of pankaj ghemawat. Distancestill matters the hard reality of global expansion. In the semiglobalized world, however, global strategy begins with noticing national differences. An analysis of pankaj ghemawats distance still matters the hard. Distance still matters free download as powerpoint presentation. Among the first articles in this direction, ghemawat 2001 proposes the cage framework which allows differentiating four dimensions. Ghemawat 2001 easily attracted readers by naming this article distance still matters. 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 hard reality of global expansion by pankaj ghemawat a lot of. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. In this article one can appreciate the discussion more rational approach to evaluating global opportunities. What is the central theme for distance still matters the hard reality of global expansion by pankaj ghemawat. Other attributes that must be considered in clude the physical size of the country, average withincountry distances to borders, access to waterways and the ocean, and topography.
It and global communications areshrinking the world, turning it into a small and relatively homogeneousplace. It may also be used to understand patterns of trade, capital, information, and people flows. Summary pankaj ghemawat s article, distance still matters. 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. Distance still matters, the hard reality of global expansion essay. Tool kit companies routinely exaggerate the attractiveness of foreign markets, and that distance still matters can lead to expensive the hard reality of global expansion mistakes. Pankaj ghemawat pdf professor ghemawat devised the renowned dhl global connectedness. Article information, pdf download for reconceptualizing. 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. This framework can help to identify the ways in which potential markets may be distant from existing ones. Erdilek a 2003 a comparative analysis of inward and. Heres a more rational approach to by pankaj ghemawat evaluating global opportunities. 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 hard reality of global expansion by pankaj ghemawat. Aug erences as w ne such an economic e rters than, canada a ted states. Heres a more rational approach to by pankaj ghemawat evaluating. Distance still matters, and companies must explicitly and thoroughly account for it when they make decisions about global expansion. The hard reality of global expansion hbr bestseller. The framework was developed by pankaj ghemawat, a professor at the. As summarized in table the cage framework, the cage cultural. Ghemawat 2001 clearly displayed for the research in the introduction. The hard reality of global expansion discusses the reasons and rationale that drive companies to overestimate profit potential in foreign markets. The hard reality of global expansion alessandro giudici with marianna rolbina 1. The purpose for measuring the impact of distance in an industry was to identify highly promising global investment. Mar 24, 2019 pankaj ghemawats distance still matters. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international.
Provide critical analysis of the 4 distances described, for example, cultural, political, geographical and economical distance. Distance still matters by pankaj ghemawat pdf download. November 2016 summarized by johann hofer 1 distance still matters. Distance still matters 3 ghemawat p distance still. Heres a more rational approach to evaluating global opportunities.
Through exposure to friedmans ideas, you gain a better perspective on the forces, or flatteners, that are making crossborder business more prominent. Companies routinely overestimate the attractiveness of foreign markets. 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. Their differing views help you better understand the context of international business. Begin by considering the example summarized in exhibit 21, which plots walmarta s operating margin by country in 2004 against the distance between each countrya s capital and walmarta s headquarters. According to ghemawat, it would be domestic strategy applied to a bigger market.
Tool kit companies routinely exaggerate the attractiveness of foreign markets, and that can lead to expensive mistakes. Ghemawat underlines psychic distance still matters and demonstrates the effect using the example of media attention to tragedies for usa media, one. Distance still matters by pankaj ghemawat pdf download, task force black book download 1cc1596b1f strategy. In this work, ghemawat proposes the cage distance framework that. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 distance still matters. The hard reality of global expansion 12 further reading a list of related. Differences between croatia and eu candidate countries. The article explores how and by how much various types of distance can affect different types of industries and shows how dramatically an explicit consideration of distance can change a companys picture of its strategic options. With the study guides and notes written by fellow students, you are guaranteed to be properly prepared for your exams. Creating value through international strategy international business. Crossing borders in a world where differences still matter. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies. Does distance still matter in intraeuropean partnerships. What are the weaknesses and strenghts of this summary.
If the inline pdf is not rendering correctly, you can download the pdf file here. The authors of this article studied global expansion and found common mistakes that companies make when entering a new market. The problem is rooted in the analytic tools the most prominent being country portfolio analysis, or cpa that managers use to judge international investments. Pankaj ghemawat is global professor of management and strategy at the nyu stern. Erdilek a 2003 a comparative analysis of inward and outward fdi in turkey from com 2040 at middlesex community college. Apr 08, 2016 pankaj megawatt ghemawat is an international. An analysis of pankaj ghemawats distance still matters. 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 picture presented by the cage analysis. In particular, administrative, geographic, economic and technological distance appears to play a key role, whereas cultural distance does not seem to influence the choice of partners. I remember, i decided to write my why the world isnt flat article, because i was being interviewed on tv in mumbai, and the interviewers first question to me was, professor ghemawat, why do you still believe that the world is round. In this work, ghemawat proposes the cage distance framework that allows firms to. Distance still matters tool kit country is in miles or kilometers.
How to be productive at home from a remote work veteran. An analysis of pankaj ghemawat s distance still matters. Pankaj ghemawat is the jaime and josefina chua tiampo professor of business ad ministration at harvard business school. 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. Ghemawat 2001 calls this effect the law of distance, and argues that distance continues to dampen international business activities.
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