III. Global Strategy | Strategy Groove

P&G Concedes Missteps in Expansion – The Wall Street Journal.

May 23, 2012 Leave a comment

P&G Concedes Missteps in Expansion

http://online.wsj.com/article/SB10001424052702304707604577422492258467260.html

Procter & Gamble Co. PG +0.28%said it would stop spending money on further expansion in emerging markets until it stabilizes its largest and most profitable businesses, putting on hold a key priority of Chief Executive Bob McDonald.

Mr. McDonald has steered the company aggressively into new corners of the globe in order to boost the number of customers under P&G’s reach. But the limits of that strategy were evident last month when the company reported a drop in earnings and falling market share for the first three months of the year.

Chief Financial Officer Jon Moeller, addressing Wall Street analysts and investors Wednesday, said the consumer-products giant may have been overzealous in chasing growth overseas. He laid out a strategy to prioritize spending in its coming fiscal year around its 40 largest business lines, mainly in North America and China.

Filed under III. Global Strategy

Wal-Mart’s Mexican Mess – The Wall Street Journal.

April 24, 2012 Leave a comment

I thought you would be interested in the following story on WSJ.com.

Wal-Mart’s Mexican Mess

http://online.wsj.com/article/SB10001424052702303978104577362322760689462.html

Wal-Mart‘s WMT +2.02%Mexican crisis is a $10 billion problem. At least that was the stock market’s first take. Investors wiped that amount of the company’s market capitalization following allegations in the New York Times of bribery at its Wal-Mart de Mexico subsidiary.

At first glance, the 5% share price fall looks harsh given that Wal-Mart’s 69% stake in the subsidiary generated about 5% of its sales last year. The business is not about to vanish overnight. But investors are right to be cautious.

First, the international business, of which Mexico is a key part, helped Wal-Mart boost sales by an average of 5.2% annually over the last five years. The U.S. business grew only 3.2% a year. Wal-Mart’s ability to expand further in Mexico might now be affected. Hobble Wal-Mart’s international operations and it is left with a U.S. business that competes with the Internet and has become increasingly reliant on a low-margin grocery business.

Filed under II. Competitor Analysis, III. Global Strategy

Chinese Capital Flows to Japanese Firms – The Wall Street Journal.

April 16, 2012 Leave a comment

I thought you would be interested in the following story on WSJ.com.

Chinese Capital Flows to Japanese Firms

http://online.wsj.com/article/SB10001424052702303624004577339231693607396.html

TOKYO—As the fortunes of Asia’s two largest economies diverge, Chinese companies are stepping up acquisitions in Japan—a trend likely to accelerate as it relies on China’s growing wealth to help rebuild Japan’s businesses.

Over the past several months, Chinese companies have stepped in to save a string of Japanese companies that were desperate for funding.

Filed under III. Global Strategy

Foxconn buys into Sharp for iDevice screens – Rethink Wireless

March 28, 2012 Leave a comment

http://www.rethink-wireless.com/2012/03/28/foxconn-buys-sharp-idevice-screens.htm

The massive importance of Apple in the Taiwanese manufacturing base was highlighted this week by news from key partner Foxconn. The company and its founder Terry Gou will invest $1.6bn in Sharp’s display unit, as Apple looks to bolster the Japanese firm as a counterweight to Samsung.

Filed under II. Governing Collaboration, III. Global Strategy, IV. Corporate Strategy

Roche Cuts Drug Prices in India – The Wall Street Journal.

March 23, 2012 Leave a comment

I thought you would be interested in the following story on WSJ.com.

Roche Cuts Drug Prices in India

http://online.wsj.com/article/SB10001424052702303812904577297673910205972.html

Roche Holding AG is cutting the price of two expensive cancer drugs in India—and giving them new names—in an effort to gain market share and avoid competition from generic drugs in the fast-growing economy.

The move marks a shift for the Swiss drug maker, which long has argued that consumers everywhere should pay the same price for its medications. By giving the drugs new names in India, Roche hopes to avoid losing pricing power elsewhere, though it isn’t clear the company will succeed on that score.

Filed under I. Industry Analysis, III. Global Strategy

Forcing a French Connection for GM – The Wall Street Journal.

February 29, 2012 Leave a comment

I thought you would be interested in the following story on WSJ.com.

Forcing a French Connection for GM

http://online.wsj.com/article/SB10001424052970203833004577251593997518140.html

With General Motors GM +5.62%limited in what it can do about its woeful European operations, taking a stake in France’s No. 2 car maker might not be such a bad idea.

Word that GM is considering buying into an alliance with PSA Peugeot Citroën UG.FR +2.11%has drawn a collective yawn from investors. The deal seems unlikely to address the overcapacity problems dogging GM’s money-losing European business, Opel-Vauxhall.

Filed under I. Creating Joint Value, III. Global Strategy

Tata’s Jaguar Land Rover Selects China Partner – The Wall Street Journal.

February 21, 2012 Leave a comment

I thought you would be interested in the following story on WSJ.com.

Tata’s Jaguar Land Rover Selects China Partner

http://online.wsj.com/article/SB10001424052970204909104577236941590459910.html

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