They employed the survey methodology which consisted of expert panel, telephone and mail survey, and empirically confirmed the Agarwal and Rao study. Earlier studies by Wentz and Martin (1989) and Kaperfer (1992) used brand earnings multiples or weights to calculate Brand Equity. The brand weights were based on historical data, such as brand share and advertising expenditures, and individual’s judgment of other factors, such as stability of product category, brand stability, and its international reputation. The Brand Equity, according to them is the product of the multiplier and the average of the past three year’s profit. Motameni and Shahrokli (1998) defined Global Brand equity (GBE) as the product of brands net earnings and brand’s multiple which will be determined based on brand strength.
This previous chapter had looked the background study. This chapter review literature and is in two parts. Part one review the theoretical perspectives of internationalisation and internationalisation process. Because this thesis study the drivers and motivations internationalisation process of emerging market multinationals both at the institution, firm, industry level and location choice. Part two of chapter review relevant literature pertaining drivers, motivations and location choice of the EMNCs will be the main theme and focus of this chapter trade theories new FDI trade theories were development by scholars such as that of Dunning, Johansson and Vahlne 1.2 Theories of Foreign Direct Investment and Internationalisation The growth
First Altman Model (1968) According to Altman (1968) in The Journal of Finance, the systematic Altman Z-Score formula can be formulated as follows: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 Information: X1 = Net Working Capital / Total Assets X2 = Retained Earning / Total Assets X3 = Earning Before Interest and Tax / Total Assets X4 = Market Value of Equity / Book Value of Debt X5 = Sales / Total Assets According to Endri (2009) the financial ratios of Altman Z-Score can be summarized as follows: 1. Net Working capital / Total Assets This ratio shows how the company in generating working capital from the total total assets owned. Net working capital can be obtained by way of current assets minus current liabilities. 2. Retained earning /
George Yip provides a framework to analyze the “globalization drivers” that are most likely to influence a company’s decisions to expend its business internationally. The four drivers of internationalization that he identified are: market drivers, cost drivers, government drivers and competitive drivers. Market drivers According to the annual report 2001 of Delhaize, the company’s desire was to strengthen its position as an international player in the food distribution sector.
Theory of complex interdependence According to the author of the given paper, the international relations theory that most clearly reveals the essence of the impact of the corporate lobby on the foreign policy decisions, is the theory of complex interdependence. It was developed in the 1960s-1970s by American political economists Robert Cohanim and Joseph Hiring. This concept is situated at the intersection of realist and liberal paradigms. In general, complex interdependence is defined as the situation in international relations that was an outcome of the expansion of world trade and financial relations, and is characterized by the following points. First of all, multiple communication channels have been established between societies,
Dunning’s Eclectic Paradigm The eclectic (otherwise known as OLI) paradigm has been a dominant framework for the elements of FDI as well as the foreign activities of MNEs. The framework avers that the extent, industrial and geography structure of overseas production taken by MNEs is determined by three factors, namely (O) Ownership, (L) Location and (I) Internationalisation (Dunning, 2000). Firstly, ownership advantage is established by firm-specific ownership of intangible assets. Assets such as technological knowledge, marketing knowledge and even its managerial capabilities to control and manage international transactions. Secondly, location advantage is characterized by comparative cost of country-specific inputs (natural resources, materials
BCG Growth-Share Matrix Introduction The BCG Matrix was evolved in the early 1970s by Bruce Henderson, founder of the Boston Consulting Group, to help corporations make investment and disinvestment decisions related to their business units or product portfolios. The matrix plots business units (or products) that form part of a corporation’s portfolio on a grid of four equal quadrants on the basis of their market growth and market share (which is why the BCG Matrix is also called the “Growth-Share” Matrix). The matrix categorises units as “stars,” “cash cows,” “dogs,” and “question marks,” depending on whether they deserve cash infusions or need to be closed down. Suggested image here: https://www.google.co.in/search?q=images+of+bcg+matrix&biw=1280&bih=689&tbm=isch&tbo=u&source=univ&sa=X&ei=VgqeVfKaD4uwuAS9voDoBg&ved=0CBwQsAQ#imgrc=pBDs3BceOtFkAM%3A Used on the page: http://www.quickmba.com/strategy/matrix/bcg/ Credit: quickmba.com The quadrants of the matrix Let us study the four categories identified in the matrix. Stars: “Stars” are business units that have a high market share but consume a high amount of cash as they are situated in a high-growth market.
The notable theorists of hybridity are Homi Bhabha, Nestor Garcia Canclini, Stuart Hall, Gayatri Spivak, and Paul Gilroy, whose works respond to the multicultural awareness that emerged in the early 1990s. It is worth noting that the term hybridity has been constantly discussed since Bhabha published his book The Location of Culture in 1994. Bhabha is a key figure in the development of the term in postcolonial studies and many theorists embraced his emphasis on hybridity, mimicry and ambivalence. Before discussing Bhabha’s notion of hybridity, a description of the history of the term is explained. According to Brah and Coombes, hybridity started life as a biological term, used to describe the outcome of a crossing of two plants or species.
To be included in the review the information addressed had to be dated no earlier than 1960 to maintain relevance in today’s business world. The content reviewed has been organised into the following sections: Corporate Structure Centralisation vs Decentralisation Impacting Change on Organisational Architecture Corporate Politics Corporate Culture Each section includes excerpts from relevant citations as well as a Key Learnings summary in relation to the subject of the dissertation. Theoretical framework: - The Congruence model The congruence model is based on the ideology the that an organisations performance is based on four key elements; tasks, people, structure and culture. For the investigation into Sony Music’s operational efficiencies it will be used to
According to Maweu (2012), the choice of strategy to be used normally is determined by the size, nature of the organization and the Level at which decisions are made. The human rights organization being a single business organization opts for Ansoff product market growth strategy to explain its strategic direction. Strategy according to Ansoff (1965) is looked at as the common thread among organization's activities. It defines the nature of the business that organizations are taking or planning to take. His matrix is concerned with product and market, which results in four growth strategies.