Distance Still Matterthe Hard Reality of Global Expansion Essay

CAGE Distance FrameworkDistance Still Matters analyses some(prenominal) factors that impact both success and failure in global working out strategies. The challenges discussed are dimensions of keep. The four dimensions of exceed discussed are cultural, administrative, geographic and economic. Cultural distance is essentially the differences in confabulation, interaction, religion, race and social norms. Administrative or governmental distance refers to the absence of colonial ties, shared political association and institutional weaknesses. Examples of political barriers are tariffs, lot quotas and restrictions on foreign enthronement. Political associations in the midst of countries, classifiablely that exist in a colony/colonizer consanguinity facilitates international trade delinquent to similarities in administrative dynamics. Geographic distance is created due to remoteness or the lack of access due to transportation, communication limitations or differences in siz e of it and climate. Economic distance is created by a discrepancy in resources such as financial, intellectual, human and natural. unity TVStar TVs attempt to expand into the global media tv commercialise was given as an example of a failed initiative due to the lack of focus on dimensions of distance between foreign markets. 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 universe starved for diverse media choices. Star projected that English language schedule would transition into the Asian culture, especially with the socio-economic elite (top 5%). The strategy to soak up a competitive advantage over broadcaster was to use orbiter technology to transmit programming.Stars expansion attempt failed, written text losses of $141 million in 1999 and $500 million between 1996 and 1999. Without protracted Asian market enquiry this initiative was unrealistic. A n assumption was made 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. excessively many assumption were made that the international media television market was resistive to dimensions of distance such and cultural and political.RecommendationIdentify a audition market and run a pilot test with several typical English-speaking programming options.CPA ApproachThe CPA approach or the Country Portfolio Analysis looks at how the actual and potential markets measuring per capita income and per capita diligence consumption. The two indicators plotted on a grid creating bubbles that represent the size of each countrys mark et Tricon Restaurants International (TRI)Tricon spun off from Pepsico in 1997. The companys core business is managing fast food chain such as Pizza Hut, Taco Bell and KFC both domestically and internationally in 27 countries. In 1998 the company began evaluating the possibility of consolidating trading operations within high performing markets. Two thirds of TRIs revenues and even a higher proportion of profits came from 7 of the 27 markets. Based altogether on market size, TRIs initially plan was to dispose of its investment in Mexico. Mexico fast food market ranked 16th of 20, with a total fast food consumption of $700 million. Using the CPA approach, TRI set Mexico as a top 3 priority based on geographic distance from Dallas, TX (TRIs Headquaters), common land borders and favorable trade agreements with the United States. (Beamish, 2011)ReferencesBeamish W. Paul and Bartlett Christopher, Transnational Management Text, Cases, and Readings in Cross-Border Mangement, pg. 95-105