The tricky business of transatlantic alliances

Article Abstract:

Purchases of US businesses appeal to European firms. These investments require adequate preparation and sensitivity to cross-cultural differences. Some successful and failed European investments in US firms are described, including the successful purchase of Beatrice Group by ICI of Britain and the less than successful purchase of Doubleday by the German firm Bertelsmann. Failed foreign investments are generally attributed to: paying too much, diversifying into the wrong areas, or buying poor quality. One estimate for cumulative foreign investment in the US is $205 billion. The number of foreign-bought US companies increased 36 percent from 1985 to 1986. Foreign investments in or purchases of US companies are necessitated by the size of US markets. The US chemical industries' market, for example, represents 40 percent of the global market for chemical products.

United States, Europe, Foreign investments, Acquisitions and mergers, Investments, Foreign corporations, International business enterprises, Multinational corporations, Influence, Corporations, Intercultural communication, Corporations, European

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The issue globalists don't talk about: global strategy for global markets sounds easy, but few companies have achieved it without pain and loss: the key is the balance between central and local control

Article Abstract:

Problems in global marketing have less to do with marketing strategy or corporate culture than they do with reconciliation of international management control with national initiative, and with local accountability versus central direction. Success for the global supplier depends on the ability to construct and manage a viable base from which to supply the consumer. The increasing cost of new technology and the vital importance of volume in economic manufacturing of products are key factors in international competitive position. The product axis is becoming more important than the country axis in global marketing. Placing profit responsibility in the hands of national managers seems to be the best way for most firms to maximize international financial returns.

Analysis, International aspects, Marketing, Strategic planning (Business), Export marketing

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The rise of the network

Article Abstract:

Networking is becoming a fast rising trend in corporate management. As a management style, networking allows a company to operate both as a global and local business with a decentralized organizational structure that has centrally based control. Characteristic to networks are the co-operative effort of management and employees in an adviser- and facilitator-type of management, a boundaryless organizational structure, self-organization, the team concept, and the nurturing of personal relationships. Some of the companies around the world which have successfully utilized networking are ABB, Electrolux, MIPS Computer Systems, Hewlett-Packard, General Electric, BP, Lafarge Coppee, Simons Engineering, Ricoh and Canon.

Methods, Innovations, Business planning, Organizational change, Social networks

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