The more two countries differ across these dimensions, the riskier the target foreign market. Hbr akamai technologies filetype pdf most popular pdf. Hbrs articles cover a wide range of topics that are relevant to different industries, management functions, and geographic locations. In this work, ghemawat proposes the cage distance framework that. The hard reality of global expansion discusses the reasons and rationale that drive companies to overestimate profit potential in foreign markets.
It may also be used to understand patterns of trade, capital, information, and people flows. Summary pankaj ghemawats article, distance still matters. Collaboration efficient supply chain with little flexibility limited communication localized focus on continuous improvement responsive and agile based on product characteristics enterprise approach long lead times one supply chain for all products. An analysis of pankaj ghemawats distance still matters. The challenge of managing a longdistance relationship with your boss as more employees work remotely, they face new obstacles to getting along with the boss.
Summary of 3 pages for the course advanced international management at vu. The individual sessions in this module work through the cultural, administrative, geographic and economic components of the cage framework, in that order. Distance still matters, and companies must explicitly and thoroughly account for it when they make decisions about global expansion. Cage distance framework, a powerful strategic tool toolshero. The hard reality of global expansion 12 further reading a list of related. The hard reality of global expansion september 2001, where i presented a four. As summarized in table the cage framework, the cage cultural. Companies routinely overestimate the attractiveness of foreign markets. What was the hermitage strategy, and how well was it working. Know the reasons why cage analysis emphasizes distance. Title pub date 2005 2003 american library association. According to one survey of senior executives, 76 percent believe their organizations need to develop. Heres why and what to do about it hbr r1204g hermitage questions.
Ghemawat p 2001 distance still matters the hard reality of. A decade has passed, filled with research and technology development relevant to the issues raised in that paper. By contrast, similarities along these dimensions suggest. Hbr, discovering new points of differentiation kumar 2006. Distance still matters 3 ghemawat p distance still. The hard reality of global expansion by pankaj ghemawat. The cage cultural administrativegeographiceconomic distance framework. The cage framework of distance presented here considers four attributes.
Crossing borders in a world where differences still matter. The framework was developed by pankaj ghemawat, a professor at the. Find new ideas and classic advice on strategy, innovation and leadership, for global leaders from the worlds best business and management experts. Dispelling five common myths about globalization is a good place to start. Pankaj megawatt ghemawat is an international strategy guru who developed the cage framework to offer businesses a way to evaluate countries in terms of the distance between them. Global entrepreneurship professor daniel isenberg course. Thus, cultural distance matters more in the beer industry than in the cement industry, where geographic distance is the category that stands out. Ghemawat emphasizes that different types of distance matter to different extents. When firms believe in the illusions of a flat world and the death of distance, they charge across borders as if the globe were one seamless marketplace. These costs are grouped into a category classified as distance which itself is subdivided into four dimensions.
Distance still matters article from hbr the stalemate at the wto to trade or not to trade. This is the point on the earths surface when you draw a straight line from hbr through the centre of the earth. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 distance still matters. A special report on entrepreneurship economist, mar 14 09. Harvard business school press, redefining global strategy. Robin what to consider before you even get to the meeting. The cage distance framework identifies cultural, administrative, geographic and economic. Suffering limited cash flow and high debt service obligations, tricon restaurants international tri had to select its globalexpansion investments carefully. World where differences still matter, pankaj ghemawat, harvard business school press. A companys meetings are meets the road, and the espoused theories about who we think we are become practical demonstrations of who we really are. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. As firms reach across borders, globalleadership capacity is surfacing more and more often as a binding constraint. Crossing borders in a world where differences still matter, boston, usa, 810.
Distance still matters by pankaj ghemawat pdf download 157d49. How to be productive at home from a remote work veteran. Where do i get to when i dig a hole in hbr through the centre of the earth. 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.
Hbr, selling to the moneyed masses competitive dynamics hamel, 2001. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies. Some of the empirical evidence for this can be found in my last hbr article, distance still matters. Syllabus for the international economy and business. Hbr guide to making every meeting matter hbr guide series. Pankaj ghemawat is global professor of management and strategy at. Distance still matters by considering the potential impact of distance on your industry, you may identify promising globalinvestment opportunities.
The challenge of managing a longdistance relationship. Distance still matters by pankaj ghemawat pdf download. Companies must cultivate leaders for global markets. By contrast, similarities along these dimensions suggest great potential.