| Risk, cost and strategy building for Supply Chain imponderables  The international community has reported an increasing flow of Foreign Direct Investment (FDI), from which developing nations feature significantly in the total. Countries attract FDI flow unevenly and according to their potential explained base on location inherent and created competitive advantages such as: market size, strategic location, country’s resources, industrial profile, industrial agglomeration & synergy and industrial policy among others. After more than three decades from the first internationalization wave along which current competitiveness profile and internationalization typologies were built, the international community is nowadays urging countries and companies to adopt sustainability indicators, with the aim to change competitiveness profiles to a People-Profit-Planet (PPP) orientation. The aim of this paper is to undercover changes in the competitiveness profile of the Mexican manufacturing if PPP indicators are put in place. The paper seeks for competitiveness changes in country, states, companies levels based on manufacturing mobility from US & Canada. Abstract:
The concept of doing business for the base of the economic pyramid proposes several reasons for which foreign subsidiaries operating in emerging economies, need to craft their own product strategies. Not only because they face adverse business conditions that are atypical and can hardly be endured by knowledge generated in developed countries but also, because of a promising base of emerging consumers that raises the profit expectation once ignored. However, a focus towards the base of the economic pyramid is a substantial change in a subsidiary’s strategic role and produces major implications to the way headquarters conceives mandates.
The purpose of this paper is to uncover the ability of foreign subsidiaries to embed themselves in the corporation in order to raise a voice about the need of this shift, as well as to embed themselves in the local arena to solidify the shift. The paper analyses cases of foreign subsidiaries operating in Latin America, gives examples of their strategies, and exposes barriers to accomplish the shift.
Keywords: Subsidiary Embeddedness, Base of the Pyramid, Emerging Consumers. One of the considerations for manufacturing transfers is the overall production cost gained from such location. Hence, foreign plants would compete for projects based on economic figures they are able to produce under the specific interaction of subsidiary capabilities and location characteristics. If HQ grants a mandate, it is expected that projected figures come true. However if production start-up delays or planned budget increases, it would impact not only on economic figures but also on future chances to gain new mandates. The purpose of this paper is to analyze the cost of landing and its relation with the degree of subsidiary embeddedness with the aim to highlight the need to convey efforts towards the embedding process. Cost of landing is defined as a function of the degree of experience on product/process technology, degree of lateral relations established and degree of subsidiary managers ‘voice’ inside corporate network. The paper suggest ‘experience on’, ‘embedding on’ and ‘acculturation to’ as transfer characteristics that impact on cost of landing. Abstract
The speed of changes in the global business environment has pushed European multinationals to employ staff of its subsidiaries abroad to take over some corporate activity in a third country. This is the case with Latin American executives working in China, which face not only the culture shock, but are immersive in a complex chain of command between headquarters, subsidiary and host market. The purpose of this article is to decode the business environment in China for Latin American executives, based on corporate communication barriers, communication genres and different business perspectives. The study is based on four groups with different degrees of involvement in doing business in China. The first group includes executives from Latin America who were employed by headquarters to carry out a corporate activity based in China, usually for several years. The second group are executives of the subsidiary who travels to China to solve a specific problem and for a period usually less than one year. The third group are executives working in Latin America, but have frequent business in China and thus not only travel to China, but also receive their Chinese counterparts. The last group are executives of the subsidiary that only work in Latin America, but are responsible for maintaining remotely business transactions with their Chinese counterparts. Unearth differences in perceptions, intentions and attitudes to do business not only improve efficiency but also increase the frequency and engagement between them.
Keywords: international business communication, corporate communication, expatriate communication, subsidiary coordination and control
The Inter-Organization Programme for Research on North American Region(PIERAN) made by the College of México, the Center for Research and Teaching in Economics, El Colegio de la Frontera Norte, Tecnologico de Monterrey, the Universidad de las Americas-Puebla and the Universidad Nacional Autonoma de Mexico (American Research Center North), invites researchers Mexicans and foreigners residing in the country as immigrants, to propose trilateral research within the field of social sciences, which provide for joint participation with academics from the U.S. and Canada, conducting research comparative based on fieldwork in the three countries. Applicants must be affiliated with academic institutions in Mexico. Research should focus on significant issues of relations between Mexico and the United States and Canada or be comparative studies on issues that have significant effects on these relationships. While giving priority Pier trilateral groups, also support in special cases to Mexican or foreign researchers as immigrants who, without counterparts in the United States and Canada, have a strong trilateral research project, as well as experience, academic relations with these countries and the ability to undertake a trilateral comparison individually.
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