FINAL REPORT SUBJECT GLOBAL STRATEGIC MANAGEMENT critically present your understading about global positioning

Critically present your understading about global positioning ………4 Choices of countries………4 Value proposition………4 b.. Malaysia for rubber, or Saudi Arabia for petroleum - Second, the def

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UNIVERSITY OF UEH BUSINESS SCHOOL FACULTY OF INTERNATIONAL BUSINESS -

MARKETING

FINAL REPORT SUBJECT: GLOBAL STRATEGIC MANAGEMENT

Instructor: MSc Do Ngoc Bich Class Code: 22D1BUS50310901 Student: Nguyen Phuong Uyen Grade - Class: K46 - FTC01 MSSV: 31201024693

Ho Chi Minh City, June 5 th , 2022

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1 Question 1……… 4

a Critically present your understading about global positioning ………4

Choices of countries………4

Value proposition………4

b Analyse global positioning of a global firm ………5

Choices of countries………5

Value attribute,,,,………5

Customer segment ………6

Degree of worldwide standardization ……….6

2 Question 2……….…7

a Discuss 6 reasons leading to joint venture failure (support with relevant evidences and numbers, explanation) …… ……….7

1 Valuation mistakes………,,………7

2 Integration Time,………7

3.Culture Management ………8

4.Synergies … ……….9

5.Straying too far… ……… 10

6 Lacking of project governance……… 11

b Analyse one failure of global brands and present all lessons that you can taken from (causes and results analysis – link with 2a) ………11

1 Culture aspect……….12

2 Synergies problems……….12

3 Appendix……….13

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TABLE OF ACRONYM

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D ECLARATION

I confirm that this is my own work and the use of all materials from other sources has been properly and fully acknowledged

Signature: Uyen Phuong Nguyen

Date: 5th June 2022

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• Key countries are critical for the long-term competitiveness of the company because

of their size, growth or available resources.(Germany, the UK and France are important nations in Europe)

• Emerging countries exhibit a high growth rate for a particular industry (China, India would fit that description)

• Platform countries can serve as ‘hubs’ for setting up regional centers – global factories that are ‘platforms’ for further development ( Carrefour, the French hypermarket conglomerate, has exploited Taiwan as a strategic expansion platform in Asia)

• Marketing countries have attractive markets without being as strategically critical as the key countries ( Vietnam in Asia, Tunisia in North Africa )

• Sourcing countries have a strong resource base but limited market prospects ( Malaysia for rubber, or Saudi Arabia for petroleum)

- Second, the defining of the numerous value propositions for the company's products or

services, as they relate to the categories and regions in which the company wishes to compete.

 Value proposition consists of the selection of value qualities, client segmentation, and the degree of standardization:

• Value characteristics are product/service elements that customers value when making

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+ A standardized value proposal provides the same sort of consumer segment with a similar or standard value attribute everywhere over the world

+ An adaptive value proposition tailors the value proposition to different regions

- The choice of global positioning depends on the company’s decisions on the:

• Scope of targeted client groups (broad/focused player)

• Approach of making a value proposition in several nations (standardized/adaptive)

• Adoption of generic strategies adopted (differentiation or cost leadership)

1.b/

*Pepsi Company

- Choices of countries: Pepsi International is a world renowned brand that produce one of the

largest carbodinated drinks in the world and is the second largest food and beverage company Pepsi is producing Cola for more than 100 years and it has dominated the world market for a long time Although its head office is in New York City, the company operates almost all over the world

- Value attributes: Pepsi’s generic competitive advantage approach is product positioning and

differentiation It emphasizes quality and values in consumer goods and continued to refine its beverage and snack portfolio to meet changing consumer demands For example, in 2016, the corporation introduced Pepsi Zero Sugar - a beverage with reduced sugars and saturated fat to produce a healthier and more nutritious beverage Moreover, differentiation marketing strategies help highlight the distinctiveness of the product like the “Pepsi Challenge,” where consumers blindly taste both Pepsi and Coke and choose which one they prefer

The cost leadership generic approach is used on Pepsi's goods to gain a competitive edge through cost or pricing Pepsi beverage products are priced lower than competitors such as Coca Cola’s The company ensures that its many products are readily available and affordable, which is appealing to different income segments

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- Customer segment: PepsiCo is known for its broad and multi-segment customer base where it

targets more than one customer with its diverse products to better capture the market and satisfy their customers There are three ways for Pepsi to classify customers : through age, behavior and psychology.

+ Age segmentation Demographically, PepsiCo is known to classify its market based on age where the company's major segment is those within the age of 15-45 These are individuals who are still strong and have no worries about carbonated drinks and will always buy the original PepsiCo product Pepsi has over 22 brands that reach diverse consumers based on age, gender, income levels, and such like demographics.and the association of pepsi image with youth as well as the vitality favorable helped position the image of Pepsi so high

+ Behavioral segmentation

Behavioral segmentation is another way through which PepsiCo has classified its market The group being targeted here includes benefits sought such as those seeking enjoyment and taste of those refreshing beverages or spending time Personality as well includes those users who are easy-going, ambitious, and determined in their activities

+ Psychopathic segmentation The company has products that fit in all the classes from the working class, middle class, to the upper class This is because the products are packaged in diverse sizes and prices start from lowest to highest which makes the product affordable for nearly all classes and income levels

- Degree of worldwide standardization: PepsiCo applied the adaptive value proposition The

company has created a diverse product line of complementary goods and beverages globally to address the requirements and changing behaviors of customers Since nutritionists continually say that soft drinks are bad for people’s health due to their high sugar content, Pepsi tries to provide several nutritious and healthier alternatives for the expanding nutritions market The company introduced Aqua Minerale water and juice, a healthy drink with more flavors for its Kevita Master Brew Kambocha brand and Tropicana Probiotics Moreover, they also develop

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several flavors of drinks with customer tastes and preferences in mind - For example, to capture the market share of Latin community, Pepsi launched a whole grain oats-based food item called Three Minutos

2 a/

1 Valuation Mistakes:

To complete an M&A transaction, a significant amount of information needs to be exchanged If the original information was inaccurate or could not be supported by market-based data, it would likely change the original offer The investment in the assets may look good on paper, but practically they may not be the revenue-generating areas after the closure of the deal When the original terms are not properly valuated, the company can pay an inaccurate bidding price for the target, making it less controllable

2/ Intergration time

Several deal makers were unable to lessen the time of uncertainty for their workers, customers, and suppliers throughout the M&A processcompare to sucessful ones Since acquiring a firm normally necessitates big investments, the company's owners and management want to see a speedy return on investment The prolong integration could inflate the expense of the integration process and make it impossible for the organization to expedite the return on

investment.However, too quick an integration is not good either - as the company may take incorrect or uninformed decisions and overlooked important aspect

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3/ Culture Management

Cultural differences are one of the reasons why almost two-thirds of M&A failed Part of the problem is when integrating companies are in the same or similar businesses, their top executives tend to assume they are “similar” and dismiss the need for deep cultural analysis.

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Tiêu đề	Global Strategic Management
Tác giả	Nguyen Phuong Uyen
Người hướng dẫn	MSc. Do Ngoc Bich
Trường học	University of Ueh
Chuyên ngành	International Business Marketing
Thể loại	Final Report
Năm xuất bản	2022
Thành phố	Ho Chi Minh City

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