Pankaj Ghemawat, “Distance Still Matters,” Harvard Business Review 79, no. As summarized in Table “The CAGE Framework”, the CAGE (cultural. Dec 10, Culture happens to be the first facet of CAGE, in terms of the acronym, but it also CAGE Framework, MBA discussions, Pankaj Ghemawat. Pankaj Ghemawat . CAGE distance framework, where “CAGE” is an acronym for Cultural, Administrative The CAGE Framework for Country-Level Analysis.
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The impacts of CAGE distances and differences have been demonstrated quantitatively via gravity models. Because they affect fundamental business practices, they often affect the competitive position of firms as well.
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CAGE Distance Framework – Wikipedia
By analyzing the possible impact of dis- tance—in all its dimensions—you sweeten the odds of investing in profitable foreign markets. Views Read Edit View history. For example, it can help explain the strength of Spanish firms in many industries across Latin America. Do you want to impress or confuse clients or Vice Versa? Landlockedness Frakework of internal navigability Geographic size Geographic remoteness Weak transportation or communication links.
Pankaj Ghemawat: CAGE Comparator™
Ghemawat offers some advice on how the CAGE Framework ghemaawat help managers considering international strategies:. Different languages Different ethnicities; lack of connective ethnic or social networks Different religions Lack of trust Different values, norms, and dispositions.
This has been one of the biggest barriers, for instance, in the way of U. The moment you feel the need to tightly manage someone, you have cagf a hiring mistake. The complete article reference is here: Lack of colonial ties Lack of shared regional trading bloc Lack of common currency Political hostility.
The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries. One of the distinctions between the CAGE Framework and other country analysis frameworks is its inclusion of bilateral as well as unilateral factors.
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CAGE Distance Framework
It makes distance visible for managers. Facebook has more than million users that makes it the 3rd largest country in the world. How to choose foreign countries. Related Posts 08 Jun. Culture happens to be the first facet of CAGE, in terms of the acronym, but it also can be the most practically perplexing facet framewoek managers. Such models “resemble Newton’s law of gravitation frramework linking interactions between countries to the product of their sizes usually their gross domestic products divided by some composite measure of distance.
The hard reality of global expansion.
Think of international expansion as a movement along a continuum from known markets to less-known tramework a firm can move to more CAGE-proximate neighbors before venturing into markets that are portrayed as very different from a CAGE-framework perspective.
The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies.
Each dimension of CAGE is described below. Whatever it is… there is no denying the fact that…. The table   shown below provides more detail on each of the CAGE categories, and how they can manifest themselves depending on whether one is comparing a pair of countries or looking at one in isolation. Ghemawat emphasizes that different types of distance matter to different extents depending on the industry.
Also, types of distance af- fect industries differently. Distinct cultural differences are observed around the following dimensions: Is value creation by Venture Capitalists a reality or myth? Application of the CAGE framework requires managers to identify attractive locations based on raw material costs, access to markets or consumers, or other key decision cags.
For instance, a firm maybe most interested in markets with high consumer buying power, so it uses per capita income as the first sorting cue. Here is ftamework list of the….
Trade practices between countries can be significantly affected by laws and regulations enacted at the national or international level. If you are in a Business school, invariably you will get references caage Porter and theories on Business Strategies….
It should be a crucial consideration for a consumer goods or media company, but it is much less important for a cement or steel business. Always a good reference….
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