Distance Still Matterthe Hard Reality of Global Expansion Essay

CAGE hold FrameworkDistance Still Matters analyses several factors that impact twain success and failure in globose expansion strategies. The challenges discussed argon dimensions of outmatch. The four dimensions of quad discussed are cultural, administrative, geographical and economic. Cultural quad is essentially the differences in communication, interaction, religion, race and kindly norms. Administrative or political distance refers to the absence of colonial ties, shared political association and institutional weaknesses. Examples of political barriers are tariffs, trade quotas and restrictions on international investment. Political associations between countries, regular(prenominal)ly that know in a colony/colonizer kindred facilitates international trade ascribable to similarities in administrative dynamics. Geographic distance is created due to remoteness or the lack of recover due to transportation, communication limitations or differences in size and climate. Economic distance is created by a discrepancy in resources much(prenominal)(prenominal) as financial, intellectual, human and natural.Star TVStar TVs attempt to expand into the global media television system merchandise was given as an example of a failed initiative due to the lack of focusing on dimensions of distance between foreign grocerys. Star TV was founded in 1991 with a mission to deliver television computer programing to Asian audiences. Their motivation was that they perceived the Asian audience as being greedy for diverse media choices. Star projected that side of meat language computer programming would transition into the Asian culture, especially with the socio-economic elite (top 5%). The scheme to gain a competitive proceeds over broadcaster was to use beam technology to transmit programming.Stars expansion attempt failed, recording losings of $141 one thousand thousand in 1999 and $500 million between 1996 and 1999. Without extensive Asian securities industry investigate this initiative was unrealistic. An assumption was do that cultural distance did not exist between Asia and the United States. The Asian media market was not as interested in English speaking programming as Stars management projected. Additionally, Asian governments imposed barriers to politically driven programming which created even more political distance that initially existed. Star TVs mistake was the lack of market research and a go/no go decision making process. Too numerous assumption were made that the international media television market was immune to dimensions of distance such(prenominal) and cultural and political.RecommendationIdentify a sample market and run a pilot test with several typical English-speaking programming options.CPA flakThe CPA approach or the region Portfolio Analysis looks at how the actual and latent markets measuring per capita income and per capita industry consumption. The two indicators visualize on a grid creating bubbles that even up the size of each countrys market Tricon Restaurants International (TRI)Tricon spun off from Pepsico in 1997. The companys core clientele is managing prompt diet chains such as Pizza Hut, Taco tam-tam and KFC both domestically and internationally in 27 countries. In 1998 the company began evaluating the hypothesis of consolidating operations within high perform markets. Two thirds of TRIs revenues and even a higher proportion of profits came from 7 of the 27 markets. Based solely on market size, TRIs initially plan was to dispose of its investment in Mexico. Mexico fast food market ranked sixteenth of 20, with a total fast food consumption of $700 million. Using the CPA approach, TRI determine Mexico as a top 3 priority based on geographic distance from Dallas, TX (TRIs Headquaters), common destroy borders and favorable trade agreements with the United States. ( smiling(prenominal), 2011)ReferencesBeamish W. Paul and Bartlett Christopher, Transnational prudence Text, Cases, and Readings in Cross-Border Mangement, pg. 95-105