Pankaj ghemawat is global professor of management and strategy at the nyu stern school of business, director of nyu sterns center for the globalization of. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international. Professor pankaj ghemawat, director of the center for the globalization of education and management at the stern school of business, discusses the. Thus, cultural distance matters more in the beer industry than in the cement industry. They loose sight of the difficulties of pioneering new, often very different territories. Recall though, that any international expansion strategy still needs to be supported by the specific resources and capabilities possessed by the firm, regardless of. Know the reasons why cage analysis emphasizes distance. 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. 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. 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. A summary of harvards professor pankaj ghemawats influential article.
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. Distance still matters by pankaj ghemawat pdf download. Recall though, that any international expansion strategy still needs to be supported by the specific resources and capabilities possessed by the firm, regardless of the picture presented by the cage analysis. He builds on this definition to present some very valuable and. It may also be used to understand patterns of trade, capital, information, and people flows. By pankaj ghemawat distance still matters presented by kedar gokhale. They loose sight of the difficulties of pioneering new. May 01, 2018 pankaj ghemawat s pioneering book offers an innovative approach for how to deal with this critical challenge. Cage distance framework, a powerful strategic tool toolshero. Crossing borders in a world where differences still matter. Ratan tata, former chairman, tata group pankaj ghemawat s redefining global strategy has very appropriately identified the world we live in as only semiglobalized. In this work, ghemawat proposes the cage distance framework that.
The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies. May 09, 2020 pankaj ghemawats distance still matters. The framework was developed by pankaj ghemawat, a professor at the university of navarra iese. Ghemawat analyzes the failures of different companies news corp, tricon restaurants, etc. Summary pankaj ghemawats article, distance still matters. The hard reality of global expansion discusses the reasons and rationale that drive companies to overestimate profit potential in foreign markets.
Companies routinely overestimate the attractiveness of foreign markets. Find, read and cite all the research you need on researchgate. This framework can help to identify the ways in which potential markets may be distant from existing ones. In other words, more than 90 percent of the fixed investment around the world is still domestic. An analysis of pankaj ghemawats distance still matters. Aug 30, 2019 pankaj ghemawats distance still matters. Cultural distance, by pankaj ghemawat is the jaime and josefina chua tiampo professor of busi ness administration at harvard business school in boston. Star tv the situation1991 star tv aims to enter asia and target market is top 5% star tv could use cheap english programming 2 nd languageminimize geographical distance by distributing through satellites news corporation bought out. He is 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.
Pankaj ghemawatglobalization and business strategist, professor, and speakerworks with organizations and policy makers around the world to help them anticipate and prepare for economic shifts. The hard reality of global expansion by pankaj ghemawat. The hard reality of global expansion crc press book by focusing on national wealth, consumer income, and peoples propensity to consume, cpa emphasizes potential sales, ignoring the costs and risks of doing business in a new market. Some of the empirical evidence for this can be found in my last hbr article, distance still matters. Distance still matters by pankaj ghemawat pdf download 157d49. By contrast, similarities along these dimensions suggest great potential. The hard reality of global expansion september 2001, where i presented a four. Heres a more rational approach to evaluating global opportunities. Whats the topic companies routinely exaggerate the attractiveness of foreign markets and that can lead to expensive mistakes. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. Sep 28, 2019 distance still matters ghemawat pdf harv bus rev. The cage framework was developed by professor pankaj ghemawat, a renowned professor of global strategy at iese business school in barcelona, spain. Cpd consists of any educational activity which helps to ghemawa and develop knowledge, problemsolving, and technical skills with the aim to provide better health care through higher standards.
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. The hard reality of global expansion hbr bestseller. Tool kit companies routinely exaggerate the attractiveness of foreign markets, and that can lead to expensive mistakes. The hard reality of global expansion 12 further reading a list of related. He was convinced that one should look beyond mere sales potential and analyse the impact of distance. Study by economists jeffrey frankel and andrewrose distance still matters. Jun 17, 2017 by pankaj ghemawat distance still matters presented by kedar gokhale pgdm exec kj somaiya1 2.
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. The more two countries differ across these dimensions, the riskier the target foreign market. In this work, ghemawat proposes the cage distance framework that allows firms to. As summarized in table the cage framework, the cage cultural. Still matters the hard reality of global expansion. By pankaj ghemawat distance still matters presented by kedar gokhale pgdm exec kj somaiya1 2. Distance still matters 3 ghemawat p distance still. We provide a free online form to document your learning and a certificate for your records.