1、080105010001 王源泽080105010002 王玉翠080105010005 皮丽莉080105010022 吕长帅Part Evolution of Strategy at P&GAccording to the article on page 281, we also searched some information about P&G, we summarize the answers for the giving questions, and those following sentences are summaries for them. 1. What is the
2、strategy adopted by P&G from its first entering foreign markets to the beginning of 1990s?They choose INTERNATIONAL STRATEGY.Historically, there are low cost pressures and low pressures for local responsiveness , the strategy at P&D was well established, the company developed new products in Cicinna
3、ti (辛辛提那R&D center) and then relied on foreign subsidiaries to manufacture , market, and distribute those products in different nations. The foreign subsidiaries had their own production facilities and tailored the packaging, brand name, and marketing message to local taste and preference. The featu
4、re of this type of strategy is as follows, The international strategy involves taking products first produced for the domestic market and then selling them internationally with only minimal local customization.2.Why did the early strategy become impractical in 1990s??By the 1990s, however, profit gr
5、owth was slowing. The essence of the problem lies in that P&Gs costs were too high because of extensive duplication of manufacturing, marketing, and administrative facilities in different national subsidiaries.In detail, the duplication made sense in the world of the 1960s when national markets were
6、 segmented from each other by barriers to cross-border trade.By the 1980s, the barriers were falling rapidly worldwide , the emerging retailers such as Wal-Mart, Tesco were demanding prices discounts from P&G.Until the 1990s, P&G have to take some measures to cut down the costs and realize economies
7、 of scale. For example, lay off employees, concentrated production in fewer plants.3.What is the strategy that under P&Gs consideration?And what are the pros and cons of the strategy?With time going, the cost pressures and pressures for local responsiveness were intense. Now P&G adopted TRANSACTIONA
8、L STRATEGY, it launched its second reorganization, the famous “organization 2005”, the goal was to transform P&G into a truly global company. In detail , P&G formed up with 4 units based on geographies before , now it tore up its old organization which was based on seven self-contained global busine
9、ss units, ranging from baby care to food products(形成基于产品线的七个全球性经营单位).The pros:1. Usually every brand has its own manager, calling brand manager, thus giving managers more rights to make decision and stimulating managers to work harder.2. The strategy based on brand also impels information to be shar
10、ed and distribution channels when selling similar products.3. The strategy enlarges and increases the steps of innovation, the cycle of R&D reduced from 3 years to 18 months.4. Achieve low costs through location economies, economies of scale, and learning effects. The annual cost savings were estima
11、ted to be $ 800 million which can be used to cut prices and increase marketing spending in an effort to gain market share, and thus further lower costs.5. Bureaucratism (官僚主义) has been less and coordination played great role to gain team morale.The cons:1. Because of the amazing speed of evolution,
12、just as breaking down an original balanced block, the strategy didnt smile to the end. Too much increasing changes have been out of control, they made most employees upset and frightened to be laid off, morale decreased, which seriously influenced the performance and quality of products.2. The strat
13、egy needs to consider much more factors in global market, that means one product should meets and adapts to many other countries needs , but not only the country where the product developed. So the brand managers pressure is quite heavy, and it also takes large amount of time and money to corporatio
14、n and coordination.Part Strategy at LenovoTask descriptionglobalEDGETM: Suppose as a notebook manufacturer, Lenovo wants to take the advantage of expansion opportunity in East Europe. To achieve purpose the economy of scale, the management level focus on the strategy with little local responsiveness
15、. Select a county in East Europe and draw an implementation draft to explain that the standardization is impractical and local responsiveness is important.Lenovos BackgroundLenovo is headquartered in New York, meanwhile two main operation centers are set up in Beijing, China and the United States. T
16、hrough Lenovos own sales organization, Lenovos business partners and alliances with IBM, the new Lenovos sales network covered the globe. International expansion can give a company many opportunities, just like expanding the market,realizing location economies,realizing greater cost economies from e
17、xperience effects and so on.As a result, high-level managers has decided to take the advantages of expansion opportunity to enter the East Europe emerging markets and grab PC market share immediately at the first place of all.As we all knew, the company has officially entered the Polish market in 20
18、06, so, why do we choose Poland?1. Excellent geographical location.Poland is a bridge and a hub for East and West Europe, which is rich in natural resources and has well-trained and cheap quantity of labors.2. Huge market and development prospectsBefore World War II, Polands industrial base was conc
19、entrated on the coal, chemical, machinery, iron, and steel sectors. Today it extends to motor vehicles, petrochemicals, machine tools, electrical machinery, and electronics. Polish trade is dominated by the EU-over 80% of its imports and exports come from or go to EU member states. Poland, a member
20、of the World Trade Organization (WTO) and the European Union, applies the EUs common external tariff to goods from other countries. After joining in NATO(北约组织), capital investors, especially long-term investors, have a more secure and low risk of non-economic protection, which reduced the political
21、instability.While foreign trade is an important part of the Polish economy, Poland remains much less trade dependent than its Central European neighbors.Strong economic growth potential, a large domestic market, tariff-free access to the EU, and political stability are the top reasons why Lenovo cho
22、ose to do business in Poland.From the above analysis,we know that Polish market is a market with a lot of special characteristics. Initially we focus on the strategywith little local responsiveness to enter the Polish market. However, after investigation and analysis, we found that adaptation to loc
23、al conditions is very critical.1. Lower level of consumption, low penetration market, huge growth potential, for low-end marketLenovo in China and the global high-end commercial market is still ahead of the competition and continue to gain market share. Therefore, the experience of high-end market i
24、s not feasible to use in Poland.2. Special distribution channels in PolandLenovo should strengthen cooperation, in mature PC markets, electronic products and large retailers market. Step into the mainstream channels and stores, while online retail sales strengthening, sell them through the Web-tell.
25、 3. Quick actionYang Yuanqing, the CEO of Lenovo, said that the most important features of IT industry is that its various changing technical, price and product, if you want to win, we must adapt to these changes. We must move faster than any of our competitors.This requires us to respond quickly to
26、 regional unsuited.4. Electronic products are one-time purchase, which has the characteristics of individual consumption .The consumers of PC pursue for computers characterized by personality and novelty, which requires us to be close to local preferences and this also requires that products and ser
27、vices should be responsiveness and high quality.Furthermore, Polish government strongly support foreign enterprises to enter the Polish market, they set up a number of related departments. For example: Investment OffersThe Polish Information and Foreign Investment Agency is a Government agency whose
28、 mission is to contribute to economic growth by increasing the inflow of direct foreign investments into Poland and promote Poland as an attractive place for capital investments.Regional Investor Assistance Centers (IAC)The main goal for the IAC operations is to ensure the complete service to the in
29、vestors at a high level. The centers devoted to investment projects and provide an independent service to investors who report to them directly.At the end, we can draw a conclusion that for the emerging market, a simple global standardization strategy are lacked of related economies of scale, learning effects to acquire, and a simple localization strategy is facing with the competitive pressures for high cost. So maybe the transnational strategy is a good choice.
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