Download Establishing a Global Presence Competitive Advantage

3.1 Establishing a Global
Presence
BBB4M
Key Terms
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Absolute Advantage
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Capital
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Comparative advantage
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Competitive advantage
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Developed nations
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Developing nations
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Economies of scale
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GDP
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Intellectual Capital
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International Organization
for Standardization (ISO)
Knowledge economy
Less-developed nations
Market-driven organizations
Opportunity cost
Productivity
Rationalization
Standard of living
Total quality management
Utility
Prior Knowledge
Why do companies compete to try to get
international businesses to locate in their
countries?
 What kinds of economic and social factors
would attract international business to
Canada?
 How can an unprofitable international
business improve its chances of becoming
profitable?
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What does Global Presence even
mean?
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Thoughts?
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How do we grow this Presence?
Globalization
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For reasons already known to you,
international business growth has
increased a lot since the 1950s and 1960s.
Globalization
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Because of this growth, certain companies
and therefore COUNTRIES have
established themselves as well-known, for
a lot of reasons:
-Good products
-Huge market share
-Global impact
Canada’s Case
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Canada is a country with global presence,
even though not a lot of Canadian
companies have it.
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Name two companies that are based in
Canada that have global presence?
Canada’s Case
Country is seen as stable, safe, and
attractive to investment of capital.
 Capital: Money or other assets that are
available for investment purposes.
 Most of our companies are domestic, or
only have the US beyond our borders,
with slow expansion internationally.
 A lot of companies are successful
internationally, but not visible.
 Still viewed as a resource exporter.
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Global Presence
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What about a company that has a global
presence from your countries?
Competitive Advantage
Competitive Advantage: the ultimate goal for
companies in the international marketplace is to increase
sales and profits.
 This is how companies can have a Competitive
Advantage:
 Making something better
 Cheaper
 Selling more
 Better price
 More profit
 Uniqueness
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How do you measure
Competitive Advantage?
Market share and performance (compared
to key competitors)
 Partnerships with suppliers
 Customer demand
 Customer loyalty
 Distribution
 Service
 Skilled workers/more resources
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Gross Domestic Product (GDP)
GDP: The total value ($) of all goods and
services produced in a country during a specific
time period.
 GDP per capita (per person) is the total GDP
divided by the number of people in the country.
 The higher the GDP, the more productive a
country is.
 The lower the GDP, the more OTHER
COUNTRIES are productive relative to your
country.
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Gross Domestic Product (GDP)
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What is the GDP per capita of Canada if
the population is 31.3 million people.
(Assume GDP is $722.3 million USD).
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What is the GDP per capita of the USA if
the population is 275.6 million people.
(Assume GDP is $9,255 million USD).
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Which country is more productive?
3.2 Achieving
Competitive Advantage –
An Introduction
BBB4M
Competitive Advantage
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REVIEW
Competitive Advantage is achieved when
companies and countries outperform their
competitors around the world by:
 Better pricing, higher quality, better
service, uniqueness (hard to replicate) or
profit.
 Access to markets and distribution is also
important.
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Factors Affecting Canada’s
Competitiveness
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Quality and quantity of natural resources
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Strength of the Canadian dollar and its
exchange rate
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Infrastructure
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Research and Development (PATENTS)
Factors Affecting Canada’s
Competitiveness
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Workforce Characteristics
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Societal Characteristics
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Entrepreneurship
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Government Involvement
Homework
Canada’s
Competitive Advantage – SWOT
Analysis Activity
ICE
3.1 (P.82 #2, 3)