Essay about Critically Discuss To What Extent Porte

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Critically discuss to what extent Porter’s Diamond is a useful concept in explaining home and host location strategies of international business? Illustrate your answer with reference to at least two case companies.

The main aim of International business is to build and sustain competitiveness for economic value creation in both domestic and overseas markets (Besanko et al. 2007). Internalization business theory however has a variety of models that can identify the environmental analysis of specific countries. These models are used for companies to internationalize and find the right location(s) overseas by taking; institutional, cultural fit and success opportunities into consideration. These models also give in-depth information on
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Excerpts from HBR-2 (1993):
“Putting the Balanced Scorecard to Work,” Robert S. Kaplan and David P. Norton, Harvard Business Review, September-October, 1993, pg 134-147.
Page 142:
… Analog Devices, a semiconductor company, served as the prototype for the balanced scorecard and now uses it each year to update the targets and goals for division managers. Jerry Fishman, president of Analog, said, "At the beginning, the scorecard drove significant and considerable change. It still does when we focus attention on particular areas, such as the gross margins on new products. But its main impact today is to help sustain programs that our people have been working on for years." Recently, the company has been attempting to integrate the scorecard metrics with hoshin planning, a procedure that concentrates an entire company on achieving one or two key objectives each year. Analog's hoshin objectives have included customer service and new product development, for which measures already exist on the company's scorecard. …

Excerpted from JMAR (1998):
Innovation Action Research: Creating New Management Theory and Practice, Robert S. Kaplan, Journal of Management Accounting Research, Vol. 10, 1998, pg. 89-118.
Page 99-101
“…For the balanced scorecard, the initial idea also came somewhat serendipitously, but also not completely by accident. The need for improved performance measurement systems had been widely
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