Pankaj ghemawat born september 30, 1959 is an indianamerican economist, professor, global strategist, speaker and author known for his work in the study of globalization. An analysis of pankaj ghemawats distance still matters. Ghemwat, from day one i am sure glad i belong to the breed of globaloneys. Aug 30, 2019 cage framework ghemawat pdf know the reasons why cage analysis emphasizes distance. 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. This chapter enumerates the reasons that borders still matter and classifies them in terms of the cultural, administrative, geographic, and economic distances between countries. The cage framework for countrylevel analysis cultural differences. The four dimensions of the cage framework focus on distinct categories of differences.
Apr 17, 2019 the analysis of the cage framework helps the company to identify the odds and gaps and thereby invest in the profitable foreign markets. Please feel free to share your focal countrys exports map. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Ghemawat, strategy and the business landscape, 3rd edition. Mar 12, 2015 professor pankaj ghemawat, director of the center for the globalization of education and management at the stern school of business, discusses how having a b. 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. Culture happens to be the first facet of cage, in terms of the acronym, but it also cage framework, mba discussions, pankaj ghemawat. In this work, ghemawat proposes the cage distance framework that allows firms to consider mattres dimensions of international distance cultural, administrative, geographic, and economic when planning global expansion. It treats differences across borders as opportunities, not as constraints. What focal country did you select which countrys exports are you going to analyze. The framework developed does provide an aid in the evaluation of strategic alternatives that is. 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.
The framework developed does provide an aid in the evaluation of strategic alternatives that is especially useful for major investment decisions. Adaptation strategies seek to increase revenues and market share by tailoring one or more components of a companys business model to suit local requirements or preferences. 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. This chapter is excerpted from pankaj ghemawat, world 3. I call it the cage distance framework to refer to the cultural, administrative, geographic, and eco. Download free cage framework pankaj ghemawat pdf ticketletitbit. As summarized in table the cage framework, the cage cultural. The framework can also be used to understand the patterns of capital, trade, the flow of people, and information that work as. Professor pankaj ghemawat, director of the center for the globalization of education and management at the stern school of business, discusses how having a b. 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.
The cage framework identifies the cultural, administrative, geographic, and economic differences between the various countries that companies should address and take care of whilst working on and crafting international strategies. It was written by pankaj ghemawat, a professor of global strategy at the iese business school in barcelona who served as open pdf files through vfp a faculty member. See table 1 for a summary and the readings assigned for module ii for additional discussion. Cage distance framework, a powerful strategic tool toolshero. He created the dhl global connectedness index and the cage distance framework he is the global professor of management and strategy and director of the center for the globalization of education and.
Ghemawat improves upon the traditional competitive strategy concepts in order to help determine how to achieve and sustain a competitive advantage. Pankaj ghemawat is the 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 anselmo rubiralta professor of global strategy at iese business school. Pankaj megawatt ghemawat is an international strategy guru who developed the cage. He was convinced that one should look beyond mere sales potential and analyse the impact of distance.
Applications include making differences visible, understanding the liability of foreignness, comparing competitors, comparing markets, and discounting markets by size. Mar 24, 2019 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. Sep 28, 2019 in this work, ghemawat proposes the cage distance framework that allows firms to consider mattres dimensions of international distance cultural, administrative, geographic, and economic when planning global expansion. Pankaj ghemawat arbitrage is a way of exploiting differences by seeking absolute economies rather than the scale economies gained through standardization. Studies using subsets of the cage factors do a good togreat job of. The cage framework was developed by professor pankaj ghemawat, a renowned professor of global strategy at iese business school in barcelona, spain. 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. Aug 28, 2019 cage framework ghemawat pdf know the reasons why cage analysis emphasizes distance.
This section begins by underscoring the importance of arbitrage. The cage distance framework the cultural, administrative, geographic and economic cage distance framework helps managers identify and assess the impact of distance on various industries. I call it the cage distance framework to refer to the cultural, administrative, geographic, and eco nomic differences or distances between countries. Cage distance framework, where cage is an acronym for cultural, administrative institutional and political, geographic and economic distances among countries. In this work, ghemawat proposes the cage distance framework that. The cage framework also recurs in the discussion of strategies for globalization and speci. It may also be used to understand patterns of trade, capital, information, and people flows. Strategy and the business landscape is based on contemporary research in the field of strategy and adopts a valuefocused, firmcentered perspective that promotes an. Ghemawat socalled aaa framework offers three generic approaches to global value creation. Cage framework is typically most fruitfully applied at industry level.
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