Cage framework ghemawat pdf

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. Professor pankaj ghemawat, director of the center for the globalization of education and management at the stern school of business, discusses the. The individual sessions in this module work through the cultural, administrative, geographic. Ghemawat 2001 has focused extensively on country distance and has defined what is commonly known as the cage distance framework, which covers four countryspecific variables, i. Santos silva and tenreyro 2011 were in line with pankaj ghemawats cage. Ghemawat improves upon the traditional competitive strategy concepts in order to help determine how to achieve and sustain a competitive advantage. He was convinced that one should look beyond mere sales potential and analyse the impact of distance. Pankaj ghemawat identified this issue and has in turn proposed the cage distance framework which assesses the cultural, administrative, geographic and economic. Cage distance framework, a powerful strategic tool toolshero. Section 6 ghemawat s cage framework includes all of the following dimensions except environmental to create and.

It compares gdpweighted rather than simple averages to highlight differences that business practitioners encounter in the large markets on which they often focus. The cage framework also recurs in the discussion of strategies for globalization and speci. One of these researchers is pankaj ghemawat, who has developed a framework called cage which is supposed to be a complementary tool to. Designmethodologyapproach using the cultural, administrative, geographic, and economic distance framework proposed by ghemawat, the authors offer empirical support for the role of different. I call it the cage distance framework to refer to the cultural, administrative, geographic, and eco nomic differences or distances between countries. The cage framework was developed by professor pankaj ghemawat, a renowned professor of global strategy at iese business school in barcelona, spain. Know the reasons why cage analysis emphasizes distance. 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 socalled aaa framework offers three generic approaches to global value creation. See table 1 for a summary and the readings assigned for module ii for additional discussion. Ghemawat also puts forward an avenue for the future the world 3. Cage framework derives much of its power from being customized to the particular industry being studied. Cage framework ghemawat pdf know the reasons why cage analysis emphasizes distance. Cage distance framework, where cage is an acronym for cultural, administrative.

Thus, cultural distance matters more in the beer industry than in the cement industry, where geographic distance is the category that stands out. The cage framework for countrylevel analysis cultural differences. Aug 30, 2019 cage framework ghemawat pdf know the reasons why cage analysis emphasizes distance. Cage distance framework when crafting international strategies businesses need to evaluate the affected countries in terms of their distances, or in other words their differences. Adaptation strategies strategies that seek to increase revenues and market share by tailoring one or more components of a firms business model to suit local requirements or preferences. Apr 02, 2014 the fact that ghemawat was accused of thinking of the world as round in his talks over in india, make me wonder about corporate backed subsidiaries. Cage framework for international trade global matters duration. Pdf strategic analysis on cage framework and triple aaa. It may also be used to understand patterns of trade, capital, information, and people flows. April 19, 2020 leave a comment on cage framework ghemawat pdf. One of the framework was identified by ghemawat aaa framework in.

Figure 2 covers country characteristics across all four cage dimensions. The cage framework of distance presented here considers four attributes. 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. The application and working of cage framework help the company to identify the attractive and lucrative international markets based on the raw material costs, easy access to target markets and consumers, access to potential human resources, and other such. Jan 22, 2020 cage framework ghemawat pdf know the reasons why cage analysis emphasizes distance. Differences and the cage distance framework pankaj ghemawat. As summarized in table the cage framework, the cage cultural. One of the framework was identified by ghemawat aaa framework in which the three as. Pankaj megawatt ghemawat is an international strategy guru who developed the cage framework the analytical framework used to understand country and regional differences along the distance dimensions of culture, administration, geography, and economics. Whether, it is in the best interest of foreign corporations to back a view of a flattening world now rather than later in order to challenge controversial views of a western dominated media and.

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. Globalization, the international integration, is adapted by an organization by adapting various approaches. May 27, 2015 globalization, the international integration, is adapted by an organization by adapting various approaches. We use pankaj ghemawats wellknown aaa triangle framework to describe three generic approaches to global value creation. Pdf cage analysis of chinas trade globalization researchgate. Ghemawat 2007 specifies the components of cage distance framework. 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. Fundamentals of global strategy a business model approach. Studies using subsets of the cage factors do a good togreat job of. Crossing borders in a world where differences still matter.

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. 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. Cage distance framework, where cage is an acronym for cultural, administrative institutional and political, geographic and economic distances among countries. Redefining global strategy crossing borders in a world where differences still matter.