May 09, 2020 pankaj ghemawats distance still matters. Cultural distance, by pankaj ghemawat is the jaime and josefina chua tiampo professor of busi ness administration at harvard business school in boston. Aug 30, 2019 pankaj ghemawats distance still matters. It may also be used to understand patterns of trade, capital, information, and people flows. Summary pankaj ghemawats article, distance still matters. Cage distance framework, a powerful strategic tool toolshero. Heres a more rational approach to evaluating global opportunities. The more two countries differ across these dimensions, the riskier the target foreign market. A summary of harvards professor pankaj ghemawats influential article. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies. Ghemawat analyzes the failures of different companies news corp, tricon restaurants, etc.
Recall though, that any international expansion strategy still needs to be supported by the specific resources and capabilities possessed by the firm, regardless of. They loose sight of the difficulties of pioneering new. By contrast, similarities along these dimensions suggest great potential. The hard reality of global expansion hbr bestseller. In this work, ghemawat proposes the cage distance framework that. 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. 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. 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 this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international. Pankaj ghemawat is global professor of management and strategy at the nyu stern school of business, director of nyu sterns center for the globalization of. He builds on this definition to present some very valuable and. Whats the topic companies routinely exaggerate the attractiveness of foreign markets and that can lead to expensive mistakes.
By pankaj ghemawat distance still matters presented by kedar gokhale. The hard reality of global expansion september 2001, where i presented a four. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. Distance still matters by pankaj ghemawat pdf download 157d49. An analysis of pankaj ghemawats distance still matters. 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. 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 framework was developed by pankaj ghemawat, a professor at the university of navarra iese. Distance still matters by pankaj ghemawat pdf download. Companies routinely overestimate the attractiveness of foreign markets. Some of the empirical evidence for this can be found in my last hbr article, distance still matters. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic. Jun 17, 2017 by pankaj ghemawat distance still matters presented by kedar gokhale pgdm exec kj somaiya1 2. Ratan tata, former chairman, tata group pankaj ghemawat s redefining global strategy has very appropriately identified the world we live in as only semiglobalized.
The hard reality of global expansion discusses the reasons and rationale that drive companies to overestimate profit potential in foreign markets. Distance still matters 3 ghemawat p distance still. Still matters the hard reality of global expansion. He was convinced that one should look beyond mere sales potential and analyse the impact of distance. Sep 28, 2019 distance still matters ghemawat pdf harv bus rev. Crossing borders in a world where differences still matter. Pankaj ghemawatglobalization and business strategist, professor, and speakerworks with organizations and policy makers around the world to help them anticipate and prepare for economic shifts. This framework can help to identify the ways in which potential markets may be distant from existing ones.
Find, read and cite all the research you need on researchgate. Know the reasons why cage analysis emphasizes distance. By pankaj ghemawat distance still matters presented by kedar gokhale pgdm exec kj somaiya1 2. 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. They loose sight of the difficulties of pioneering new, often very different territories. The hard reality of global expansion 12 further reading a list of related. Aug 29, 2019 the cage framework was developed by professor pankaj ghemawat, a renowned professor of global strategy at iese business school in barcelona, spain. We provide a free online form to document your learning and a certificate for your records. 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.
The hard reality of global expansion by pankaj ghemawat. He is global professor of management and strategy and director of the center for the globalization of education and management at the stern school of business at new york university and the. May 01, 2018 pankaj ghemawat s pioneering book offers an innovative approach for how to deal with this critical challenge. The hard reality of global expansion crc press book by focusing on national wealth, consumer income, and peoples propensity to consume, cpa emphasizes potential sales, ignoring the costs and risks of doing business in a new market. Professor pankaj ghemawat, director of the center for the globalization of education and management at the stern school of business, discusses the. In other words, more than 90 percent of the fixed investment around the world is still domestic. The cage framework was developed by professor pankaj ghemawat, a renowned professor of global strategy at iese business school in barcelona, spain. In this work, ghemawat proposes the cage distance framework that allows firms to. Study by economists jeffrey frankel and andrewrose distance still matters. Mar 12, 2015 professor pankaj ghemawat, director of the center for the globalization of education and management at the stern school of business, discusses the cage framework and how businesses can use it to. Thus, cultural distance matters more in the beer industry than in the cement industry. As summarized in table the cage framework, the cage cultural.