Global Strategy

20 years before the company expanded beyond Sweden to neighbouring Norway. IKEA pursued an international strategy (first through Europe). IKEA focused on low-cost and shifter from an international strategy to a global-standardisation in which it attempts to achieve economies of scale through effectively managing a global supply chain

A process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs

A company that deploys resources and capabilities in the procurement, production, and distribution. of goods and services in at least two countries

Toomplace from about 1900 through the early years of World War II. All the important business functions were located in the home country. Only sales and distribution operations took place overseas (exporting goods to othe markets). MNEs first introduced

End of World War I came a new focus on growing business.MNEs began to create smaller, self-contained copies of themselves, with all business functions intact

Rising wages anf other costs negate the benefits of access to low-cost input factors. Standard of living rising in emerging economies has resulted in MNEs hoping that increased purchasing power will enable workers to purchase the product they used to make for export only

Global financial crises lead to a deep recession in many parts of the work. European soverign debt crisis unfolded with several countries teetering on the verge of insolvency

Access to a larger market, access to low-cost input factors, develop new competencies

Carved out a copmpetitve advantage in business process outsourcing (BPO) niotonly becuase of low cos labour but also because of an ambundanceof well-educated, english-soeaking young boys

Benefits from locating v alue chain activities in optimal geographies for a specific actiivty

A strategy in which MNEs draw on multiple, equally important innovation hubs throughout the world characteristic of Globalisation 3.0

Liability of foreigness, loss of reputation, loss of intellectual property

The additional costs of doing business in an unfamiliar cultural and economic environment and of coordinating across geographic distances

Cultural, Administrative and political, Geographic, Economic

Power distance, individualism, masculinity-femininity and uncertainty avoidance, long-term orientation and indulgence