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Kulicke and Soffa Industries, Inc.: Designing a Supply Chain Network
Supply chain network design choices and the challenges in implementing and understanding how alternatives influence firm performance are key management skills that can be applied to the case of a global company, Kulicke & Soffa Industries, Inc. (K&S), and its expansion strategy. Suitable for the MBA, EMBA, GMBA, and executive education programs, the case explores the decision to expand the company's tool bonding capacity in order to manage its growth. The question becomes whether to grow current operations in Yokneam Israel or seek alternative sites. And if it was decided to seek a location outside of Israel, where exactly should the company go? -
Competing in a Global World
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. We define crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 1, "Competing in a Global World," assesses how global the world economy has become and what implications that has for companies. -
The Globalization of Companies and Industries
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 2, "The Globalization of Companies and Industries," looks at globalization at the industry level. It asks the following questions: What is a global industry? What are the driving forces behind the globalization of industries? and What explains the dominance of particular countries or regions in global industries? -
Generic Strategies for Global Value Creation
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence, and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 3, "Generic Strategies for Global Value Creation," looks at generic strategies for creating a global competitive advantage, ranging from adaptation to aggregation to arbitrage. -
Global Strategy as Business Model Change
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 4, "Global Strategy as Business Model Change," introduces the concept of a business model to define global strategy formulation as changing or adapting a company's core (domestic) business model to achieve a competitive advantage as it globalizes its operations or presence. -
Target Markets and Modes of Entry
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 5, "Target Markets and Modes of Entry," looks at decisions regarding which foreign markets to enter and why, when, and how to enter them. Topics include measuring market attractiveness; the use of partnerships and alliances; and the issue of timing market entry. -
Globalizing the Value Proposition
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 6, "Globalizing the Value Proposition," discusses the globalization of the company's core offerings and introduces the concept of a value proposition globalization matrix to guide strategic thinking. -
Global Branding
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 7, "Global Branding," topics include global branding vs. global positioning; determinants of global brand structures; formulating a global brand strategy; and managing key strategic brands. -
Globalizing the Value Chain Infrastructure
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 8, "Globalizing the Value Chain Infrastructure," looks at the globalization of the value-chain infrastructure, from research and development, to product development, to manufacturing, to distribution, to after-sale service. -
Global Supply-Chain Management
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. Chapter 9, "Global Supply-Chain Management," covers topics including supply-chain agility and resiliency; making supply chains adaptable; and creating supply-chain alignment. -
Globalizing the Management Model
The book Fundamentals of Global Strategy was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. This book examines the opportunities and risks associated with staking out a global competitive presence and introduces the fundamentals of global strategic thinking. The author defines crafting a global strategy in terms of change: how a company should change and adapt its core (domestic) business model to achieve a competitive advantage as it expands globally. The conceptual framework behind this definition has three fundamental building blocks: a company's core business model, the various strategic decisions a company needs to make as it globalizes its operations, and a range of globalization strategies for creating a global competitive advantage. Numerous mini-cases illuminate key themes. In the book's final chapter -- Chapter 10, "Globalizing the Management Model" - the author returns to a broader strategic and general-management perspective, addressing topics such as pitfalls in globalizing a management model; the importance of a global mindset; and realigning and restructuring for global competitive advantage. -
Patagonia
Patagonia was deeply committed to the environment. This commitment, at times, conflicted with the company's goal to create the most innovative products in its industry. Patagonia's founder and executives welcomed imitation of both its environmental commitment and its culture. The question remained whether Patagonia's model would work well for a wide range of companies. In 2003, Patagonia executives were considering which products and markets would fit best into their portfolio of product lines, which included alpine, skiing, snowboarding, fishing, paddling, rock climbing, surfing, kayaking, and mountain biking. There was a tradeoff between alienating its core customers and achieving growth via entry into new product markets. -
The UCLA Medical Center: Kidney Transplantation
In 2010, organ transplantation remained among the few sets of medical conditions in the US for which bundled payments were a dominant reimbursement model, and for which patient health outcomes were universally measured and reported. In 1986, UCLA Medical Center was approached by Kaiser to develop a new bundled pricing approach to kidney transplant care that was quickly adopted by many payers and providers for various transplant types. This case study examines the history and current state of care delivery, reimbursement, and measurement for the UCLA Kidney Transplant Program, among the nation's highest-volume transplant providers. The UCLA Kidney Program is an interdisciplinary unit that involves clinicians from multiple Departments and engages in continuous care management throughout the often protracted transplant care cycle. -
AdMob (A)
AdMob's CEO is deciding between international expansion and increasing the number of publishers to strengthen the company's advantage in the mobile advertising industry. AdMob displayed advertising on global devices, powered 6,000 websites and 1,000 applications, and served over 6 billion advertising impressions a month to 25 million unique visitors. AdMob's success attracted numerous competitors, such as Millennial Media and Quattro Wireless, both of which were expanding quickly and had raised considerable capital. The company now needs to allocate its limited resources wisely to position it for long-term success. -
AdMob (B)
CEO is deciding between international expansion and increasing the number of publishers to strengthen the company's advantage in the mobile advertising industry. AdMob displayed advertising on global devices, and powered 6,000 websites and 1,000 applications, and served over 6 billion advertising impressions a month to 25 million unique visitors. AdMob's success attracted numerous competitors, such as Millennial Media and Quattro Wireless, both of which were expanding quickly and had raised considerable capital. The company now needs to allocate its limited resources wisely to position it for long-term success. -
Scenario-Based Strategy Maps
Strategy maps are designed to help execute strategy and bring predictive qualities to key performance indicators by linking them according to perceived cause-and-effect relationships. However, in our experience strategy maps are often extrapolations of past performance and are seldom sufficiently linked to possible future states. In this article, we argue that scenario analysis could play an important role in the design of strategy maps, as it is an effective method to look at the future. Through the development of scenarios, organizations can think creatively about possible discontinuous future states and can prepare themselves for multiple plausible futures, not only the one they expect to happen. Therefore, scenario-based strategy maps could enable organizations to face strategic uncertainty in a more effective way and make them more sustainable in the longer term. This article highlights the strengths and weaknesses of strategy maps and scenario analysis, and outlines a method to develop scenario-based strategy maps both in theory and by presenting a significant example. -
The Secret to Job Growth: Think Small
With job growth lagging, local communities will be tempted to use tax breaks to attract big employers, but new research by Harvard economist Edward L. Glaeser and William R. Kerr of Harvard Business School indicates that's a misguided approach-growth is highly correlated with an abundance of small firms, not the presence of a few big ones. -
How Hierarchy Can Hurt Strategy Execution
In a recent survey, HBR readers told us how well they think strategy is developed in their organizations, which obstacles get in the way of effective execution, what kind of impact the financial downturn has had, and more. -
Finding the Right Path
Executing a new strategy nearly always requires new resources and capabilities-and most firms seek them out the wrong way. In a 10-year study of 162 telecom companies, the authors found that organizations deploying all the methods available to them outperform those that stick with a narrow approach. Yet most firms doggedly pursue one chief method, whether it's developing what they've already got internally, entering into contracts with providers, forming partnerships, or using M&A. The framework in this article will help companies weigh their options more strategically. To select the best tactics for the situation you face, ask whether your existing resources are relevant to your new needs. If the answer is yes, internal development makes sense; otherwise, you'll need to go outside the firm. Next, to figure out what kind of relationship you should pursue with a provider, determine whether all parties would have a shared understanding of the resources' value. If so, a purchase contract is a sensible choice; if not, consider a partnership or a corporate acquisition. Because M&A is the most complex option, reserve it for cases in which it really pays to have a deep relationship with the resource provider. -
Innovation's Holy Grail
Affordability and sustainability, not premium pricing and abundance, are the new tenets of effective innovation. Westerners are struggling with the shift in mind-set, but a few emerging-market pioneers are showing the way: They're designing inexpensive products and manufacturing them with so little capital and on a scale so vast that their prices-1 cent for a one-minute telephone call, $2,000 for a car-are the lowest in the world. Nowhere is this approach, which the authors call "Gandhian innovation," more evident than in India. Smart companies have used it to penetrate the country's burgeoning mass market. This article provides a framework to help executives understand three types of Gandhian innovation that have brought corporations success: disrupting business models, as Bharti Airtel did when it shifted its focus from average revenue per user to gross profit and expanded its market reach; modifying existing business capabilities, as Computational Research Laboratories did when it came up with a whole new supercomputer design that used standard components; and creating or sourcing new capabilities, as Lupin did when it reversed the usual drug development process to create an affordable treatment for psoriasis.