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Managing Differences

Managing Differences. Pankaj Ghemaeat / HBR / 2007.03. 목차. 1. AAA Triangle. 2. Understanding the AAA Triangle. 3. From A to AA. 4. The elusive trifecta. 5. Developing a AAA strategy. 6. Broader lessons. 1. AAA Triangle. New framework for approaching global integration

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Managing Differences

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  1. Managing Differences PankajGhemaeat / HBR / 2007.03

  2. 목차 1 AAA Triangle 2 Understanding the AAA Triangle 3 From A to AA 4 The elusive trifecta 5 Developing a AAA strategy 6 Broader lessons

  3. 1. AAA Triangle New framework for approaching global integration It the AAA Triangle. The three A’s stand for the three distinct types of global strategy. Adaption, Aggregation, Arbitrage

  4. 1. AAA Triangle Adaption – Boost revenues and market share by maximizing a firm’s local relevance Aggregation – deliver economies of scale by creating regional or sometimes global operations Arbitrage – the exploitation of differences between national or regional market

  5. 2. Understanding the AAA Triangle Most companies will emphasize different A’s at different point in their evolution as global enterprises

  6. 3. From A to AA AA strategies – takes two forms. Adaptation and aggregation. IT systems help with integration as well. This structure is animated by an elaborate cycle of reviews at multiple levels. Aggregation and arbitrage. To obtain the benefit of aggregation without losing its traditional arbitrage-based competitive advantage It has places great emphasis on its global network delivery model. Arbitrage and adaptation. cognizant has taken another approach and arbitrage and adaptation by investing heavily in a local presence in its key market Not all of the innovations that enable AA strategies are structural.

  7. 4. The elusive trifecta There are serious constraints on the ability of any one organization to use all three A’s simultaneously with great effectiveness. The complexity of doing so collides with limited managerial bandwidth. Many people think an organization should have only one culture, and that can get in the way of hitting multiple strategic targets. Capable competitor can force a company to choose which dimension it is going to try to beat them on External relationship may have a focusing effect as well Economies of scale, Acquisition capabilities, Economies of scope

  8. 5. Developing a AAA strategy AAA competitive Map for diagnostic imaging – Insights on positioning relative to the three A’s can be pulled together into a single map

  9. 5. Broader lessons Focus on one or two of the A’s Make sure the new elements of a strategy are a good fit organizationally Employ multiple integration mechanisms Think about externalizing integration Know when not to integrate

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