Global industries

Identify and select two global industries. If you need some guidance or inspiration, you can check out List of Industries – Global | IBISWorld.
https://www.ibisworld.com/global/list-of-industries/
cting the two industries, identify an organization within each of those industries. For your case study, you will….

  1. Provide a brief background of the industry and your two chosen organizations.
  2. Compare the following elements of chosen organizations:
    a. Organizational design and structure
    b. Global strategies
    c. Global alliances (e.g., strategies, current, etc.) and challenges in implementing
    d. Joint ventures, if any.
    e. Any additional information you believe is appropriate.
  3. Summary (i.e., lessons gained)

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Sample Answer

 

 

 

Let’s explore the global automotive manufacturing and the global pharmaceuticals industries.

1. Industry Background and Chosen Organizations:

  • Global Automotive Manufacturing: This industry designs, manufactures, and markets motor vehicles, including passenger cars, commercial vehicles, and automotive parts. It’s a complex, capital-intensive industry with a long, globally intertwined supply chain. My chosen organizations are:  

    • Toyota Motor Corporation (Japan): A global leader known for its efficient production systems (Toyota Production System) and hybrid vehicle technology.  
    • Volkswagen AG (Germany): A multinational automotive manufacturer with a diverse portfolio of brands, including luxury and mass-market vehicles.  
  • Global Pharmaceuticals: This industry researches, develops, manufactures, and markets pharmaceutical products, including prescription drugs, over-the-counter medications, and vaccines.

    It’s a heavily regulated, research-driven industry with significant ethical considerations. My chosen organizations are:

 

Full Answer Section

 

 

 

 

    • Pfizer Inc. (USA): A global pharmaceutical giant known for its research and development capabilities and a broad range of therapeutic areas.  
    • Novartis AG (Switzerland): A multinational pharmaceutical company focused on innovative medicines, including generics and biosimilars.  

2. Comparison of Chosen Organizations:

a. Organizational Design and Structure:

  • Toyota: Emphasizes a lean, decentralized structure with a strong focus on continuous improvement (Kaizen) and employee empowerment. Its organizational structure supports its Toyota Production System, focusing on minimizing waste and maximizing efficiency.  
  • Volkswagen: A more complex, centralized structure due to its diverse portfolio of brands. It has undergone restructuring in recent years to streamline operations and improve decision-making.  
  • Pfizer: A matrix structure, combining functional departments (e.g., research, marketing) with therapeutic area divisions. This structure allows for specialization while also fostering collaboration across different functions.  
  • Novartis: Also uses a matrix structure with a focus on innovation and specialized therapeutic areas. It has a global footprint with decentralized decision-making in certain regions.  

b. Global Strategies:

  • Toyota: Focuses on a global localization strategy, adapting its products and marketing to meet the specific needs of different regional markets. It also emphasizes building strong relationships with local suppliers and partners.  
  • Volkswagen: Employs a multi-domestic strategy, giving significant autonomy to its regional subsidiaries to cater to local preferences. This allows for flexibility but can sometimes lead to inconsistencies.  
  • Pfizer: Pursues a global standardization strategy, seeking to develop and market its products globally with minimal adaptation. This allows for economies of scale and efficient use of resources.
  • Novartis: A combination of global standardization and localization. While it aims for global reach with its innovative medicines, it also adapts its strategies for generics and biosimilars to local market conditions.

c. Global Alliances and Challenges:

  • Toyota: Has numerous strategic alliances with other automakers, including collaborations on technology development (e.g., hybrid vehicles) and joint ventures for manufacturing in specific regions. A challenge is managing these complex relationships and ensuring alignment of goals.  
  • Volkswagen: Engages in joint ventures and alliances to expand its global reach and access new technologies. Integrating different corporate cultures and managing potential conflicts of interest are key challenges.  
  • Pfizer: Utilizes alliances and partnerships for research and development, as well as for marketing and distribution in certain markets. Protecting intellectual property and managing regulatory hurdles are significant challenges.  
  • Novartis: Collaborates with other pharmaceutical companies and research institutions to accelerate drug development and expand its product portfolio. Maintaining ethical standards and navigating complex regulatory landscapes are ongoing challenges.  

d. Joint Ventures:

  • Toyota: Has joint ventures for manufacturing in various countries, allowing it to establish local presence and navigate trade barriers.  
  • Volkswagen: Utilizes joint ventures, particularly in emerging markets, to gain access to new markets and manufacturing capacity.  
  • Pfizer: Engages in joint ventures for specific product development or marketing in certain regions.  
  • Novartis: Forms joint ventures for research collaborations or to market specific products in partnership with other companies.  

e. Additional Information:

  • Toyota: Strong emphasis on quality control and continuous improvement.  
  • Volkswagen: Focus on brand diversification and expanding its electric vehicle offerings.  
  • Pfizer: Invests heavily in research and development and has a strong focus on innovation.  
  • Novartis: Balances its focus on innovative medicines with its generics and biosimilars business.

3. Summary (Lessons Gained):

This comparison reveals the diverse strategies employed by global organizations within the same industry. Toyota’s focus on lean manufacturing and localization contrasts with Volkswagen’s multi-domestic approach. Similarly, Pfizer’s global standardization strategy differs from Novartis’s blended approach. These differences highlight the importance of aligning global strategies with organizational structure, resources, and market conditions.

Managing global alliances and joint ventures presents ongoing challenges, requiring careful attention to cultural differences, intellectual property, and regulatory compliance. Ultimately, success in the global arena depends on a company’s ability to adapt to change, innovate, and build strong relationships with stakeholders across different cultures and markets.  

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