Let's look at another framework which somehow, summarizes when we have discussed so far. I wanted to get this globalization as a process, especially for supply chain management perspective. If that is the case I probably need to look at this dynamic timing. So as we already talked about, there are some decision factors, pre-entry decision factors, and entry decision factors and post entry, going concern, and then exit or transition. [BLANK_AUDIO] Really general effectors, I want to talk about. And then from more, you know, supply chain manage perspective, structure vectors. And then other strategic operations factors. And then sort of some theoretical foundations. We already talked about some of these decision factors at the pre-entry state. Company probably wanted to get it's own globalization motivation and then some of these more organizational factors, organizational considerations. And then for the entry stage entry mode most be decided by taking into account cultural, economic, political distances. So whether we going to have wholly unsubsidary, or joint venture. And then post-entry decision factors about how to expand, how to grow our operations inside that market in conjunction with other operations, and other activities, and other parts of the global market and finally, probably needed to decide whether we move out of that market or we needed to regenerate or demany. So that's transition strategy, especially, you know, if I give you some example. If this is for the life cycle, then in the end, we probably do get we probably have to decide whether we degenerated or we just stay there or we just are, of the situation. In other words we need to exit. So, that's transition strategy. Structure factors, pre-entry stage we have to decide configuration, coordination for the global supply chain, right? We have to have a clear idea about this structure dimension, infrastructure dimension during this pre-entry stage and then at the time of entry. Strategic alliances probably. Or if we decided to have [INAUDIBLE] the subsidiary, [INAUDIBLE] entry or acquisition. And then during this post-entry period, we have to manage our strategic alliances. Creating our subsidiaries. From a, you know, supply change management perspective, pre-entry stage, we have to define and design the supply chain. And then it is implementing the supply chain principles at the entry state. And then finally we have to take into account all this very, you know, detailed and specific approaches. Flexibility, how to, make sure that we have flexibility. How to manage technology. Postponement, disc-based production printing, localization, and probably VMI press. So these are the specific tools, or the spastic mechanisms we can use to grow and expand inside the full market. What is the overall achieved theory [INAUDIBLE] foundation first we want to make sure there is learning that we learn from the market and we make sure that deal with this uncertainty and we deal with disk, okay? This part is uncertainty. Market learning in dynamic. These are the, some of the principles that apply throughout this globalization process. And here I said that learning propensity model. And I want to explain this model a little bit further. As I said, we want to get globalization as dynamic forces. And how this dynamic process occurs. First, maybe pre-entry, right? Pre-entry levels. Or, you know, just the inside the distributer's mind. There are some determining factors. In other words there are really fundamental forces, right? This is fundamental forces. Fundamental forces like we have to determine our organizers and capabilities, and how much resources we can garner. And what about the top management willing commitment. These determining factors will determine part of our competitive advances. In other words part of our core competence. Manufacturing cost, and what is the competitor position in the domains market? And based on this determining factor and competitive advantage, the firm, or the management, forges it's global strategy, scale, and scope, and speed, and so on and so forth. And they also make decisions regarding, technological advancement. For example, if we talk about some open mobile industry. You know, new car development or new product development. Based on this global strategy, initially there is just a perceived effectiveness. Usually, you don't have any evidence that your chosen strategy will work better. You have just perception because that strategy is consistent with the determining factors, and that strategy's consistent with your competitive advantages. Therefore you believe that, okay, this strategy will work better. The thing is that once you have this perception, you actually resource the location, you actually do the resource location and decision making consistent with the global strategy. And then you have to decide whether your initial activities, your initial implementation of your global strategies are successful or not. Yes, then although when it started it was just perception now it is idealized. In other words now you know that method works better and there is idealized effective and so the chosen global strategy and therefore it will reinforce. And if we go this cycle, again and again, this is reinforcing cycle. In other words there is a virtuous cycle. On the other hand, if we do some implementation. If we implemented the global strategy but the outcome is unsuccessful, then somehow we need you to devise and we need to adjust our global strategy. So this is like a disk [UNKNOWN] don't want to, we don't want to take up too much of this. If we know that our chosen strategy does not work then we need to devise a new [UNKNOWN] to adjust. But at least this adjust and the device occurs inside the idea enforcing cycle. And if I may, I want to compare these as single loop. [BLANK_AUDIO] Single loop learning. But what about, how can we make changes in determining factors? It comes from this entire deem forcing of singular learning. Over time we gather more evidence. For or against our determining factors, so this is a long-term, right? Sometimes some companies you know, do not pay much attention to this but the manager, the time manager or CEO must consider this route very seriously. Because sometimes, the determining factors to fundamental forces are no longer consistent to with the environment, the vicious environment, the market. Then, you will get into a serious problem. Therefore, before it's too late, you got to have some do's and mechanisms to make sure you rectify your determining factors. If they are too much deviating from market environment. So that's long-term solution. Long-term problem solving. And this is if I also compare, this is going to be double-up learning initiative. [BLANK_AUDIO] So, here, I suggest, you know, a modified, modified [INAUDIBLE] propensity model, that can be applied to the globalization. Globalization is, dynamic process. You recall that I talked about 3's, which is scale, horizontal expansion, and scope, which is vertical expansion, and speed. Basically how fast I can expand my scale and scope. Let's think about this issue about how fast, how fast, how fast. [BLANK_AUDIO] Sometimes, let's say, some company expands its scale and scope. For example, fiscal capacity very fast. Faster than it's managerial capability. In other words the debit of education, debit over education, or debit over training. But actually this is overall management capability management ability management capability ability to manage global orientations. [BLANK_AUDIO] Okay so sometimes the company expands or grow its scale and scope faster than they increase over its managerial capability. And if that happens then this may cause a serious problem. Let's say, here. The gap is too much, for example here. In other words managerial capabilities is much larger than physical capacity called the scale and scope. If that is the case, it's inefficient, right? You have more [INAUDIBLE] then your scale and scope. So you can better. But somehow you are wasting your manager's capability, managerial capability. On the other hand, if we are in this situation, in other words you have a certain level of managerial capability but you have too much scale and scope, much more than your managerial capability, then that's unstable and then you have to, you have to face the disk of collapse. Your global operations would collapse. And I will show that kind of example, several times. When there is lack of balance between your managerial capability and scale and scope then that is sustainable and now let's say you plan to increase your scale and scope at this level in your 2020 if that is the case, then what should you do? If that is our that is your planned increase in your managerial capability then year 2020, it will be unstable, unsustainable. Therefore what you have to do is, you've got to change this slope of your management capability increase. So probably you have to plan, so that your capability increases in, that way. And therefore, in year 2020, there is balance between your capability and your scale and scope. So, when you look at this sum of cases, sum of cases, you see that some company, some company increases its scale and scope, too much, too fast. And it will, go beyond it own managerial capability. And if the gap between the managerial capability and the company's scale and scope too much, too much then the company will collapse. And we observe some [UNKNOWN] like, you know, larger scale decrease in the automobile industry. And, sometimes we wonder how that kind of problem occurs. Then I just say that although there are, there can be many different reasons why they're happen, but sometimes I know that the big gap between the capacity and managerial capability is one of the surest you know factors, one of those factors that adds to is huge it [UNKNOWN] in the automobile industry. Scale and scope expansion in the globalization are very important, but make sure you don't, you don't increase your or expand your scale and scope too fast, taster than the increase in your managerial capability if you want to avoid any disco collapse [BLANK_AUDIO]
