Fact of the Month

China aims to spend 2.2% of GDP on Research & Development by 2015.

Source: International Business Times

Feature of the Month : Total Global Strategy

In a challenging economic environment, it is not uncommon to hear companies in developed markets expanding into developing markets for growth opportunities. Strategies for penetrating new global environments range from having a unique strategy for each country (ex. China, Brazil, India) to having a complete global strategy. Joe McCracken, Global Head of Business Development for Switzerland-based Roche Healthcare confirmed that his company will not have a uninque strategy for China. While Roche is investing over $100 million in China, he believes that the most profitable strategy is to focus on “serious diseases” and “highly differentiated drugs” on a global scale rather than country-by-country.

With the continued development in emerging markets, companies located in fast-growing economies are also looking to expand abroad to increase business opportunities. China’s largest cement producer, Anhui Conch Cement Co., plans to add 10 million tons of annual capacity by 2015 by setting up new, international factories and acquiring rivals weakened by the European debt crisis. However, this international expansion story is not an isolated case. China’s central planning committee has aspired to increase R&D in emerging industries and Chinese enterprises are now stepping up their plans to expand abroad. These goals are designed to fuel domestic consumption and create a winning environment for companies to grow domestically and internationally.

From the globalEDGE Blog

Tomas Hult, Director of the International Business Center at Michigan State University, just published the new version of the Total Global Strategy book with George Yip. TGS has been the market leader both in multinational corporations’ board rooms and in executive MBA programs for years. From General Motors using the TGS framework to restructure their Asia operations to Michigan State University using it in its world-leading executive training programs in supply chain management to being rated as a top 30 business book previously, Total Global Strategy is the authority on practical and sophisticated global strategy development and implementation.To read more about this great book and its authors, visit the globalEDGE Blog!

Featured Resources

The Law of International Trade: A Business Overview
Produced by Warner Norcross & Judd LPP, this globalEDGE exclusive provides a thorough yet concise synopsis of major issues related to international trade law. Subjects covered include: Exporting, Importing, Contracts for the Sale or Purchase of Goods, Joint Ventures and Direct Investment, and a special section entitled "Traps for the Unwary." This is a must read for all business persons!
Category: Trade Law

Center for Globalization and Policy Research: Working Papers
The Center for Globalization and Policy Research provides a series of working papers on globalization topics like the possible benefits and costs of the globalization of the world economy, or discussing whether globalization can decrease corruption. Working papers are available for download as either a PDF or Microsoft Word Document depending on the paper.
Category: Globalization

Featured Academy

Identifying and Measuring Drivers of Global Entrepreneurship
This module on identifying and measuring drivers of global entrepreneurship is helpful in understanding some of the emerging trends in practices and business models of international new ventures.
Category: Entrepreneurship

Developing an Export Strategy
This module was created in cooperation with the U.S. Commercial Service and is the second chapter of the book A Basic Guide to Exporting. In this module, we will cover: How to assess if and when your company is ready to export; how exporting will affect your company; questions to ask before exporting; and how to create an export plan. A case study on the company Mykytyn Enterprises Incorporated is also included.
Category: Exporting

globalEDGE Business Review

"The Lodging Market Potential Index (L-MPI©) Ranking of Major Lodging Markets in the United States"
by A.J. Singh, Raymond S. Schmidgall, and Tunga Kiyak (Volume 6, Number 1, pp. 1-5, 2012)

The Lodging Market Potential Index (L-MPI©) as a systematic and formal analysis was developed as a joint project between The School of Hospitality Business, MSUCIBER, and globalEDGE to identify aggregate market potential and ranking for major lodging markets in the USA in 2009. Faculty researchers from The School of Hospitality Business at Michigan State University presented the index at the Midwest Lodging Investors Summit (MLIS) in Chicago, in July 2011. This article presents the complete index (L-MPI©), which covers the 25 largest market areas (as tracked by Smith Travel Research) that show the long term potential of lodging investments.

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