Distance still matters by pankaj ghemawat biography
By considering the potential impact of distance on your industry, you may identify highly promising global-investment opportunities.!
Distance Still Matters: The Hard Reality of Global Expansion – Pankaj Ghemawat
Introduction:
In today’s world companies are ambitious to undertake a global expansion projects.
In class we focused a lot on culture as an important factor when considering international expansion for company or employee career. This article by Pankaj Ghemawat identifies a key point or a main reality that company needs to keep in mind is the distance component that can impact the effectiveness of the deal.
By distance he basically means performing a gap analysis on four dimensions: 1) culture, 2) administrative,3) geographic and 4) economics.
Distance Still Matters.
Much of this is a common knowledge the article tries to quantifies the impact of each factors with examples and detail research. It provides a case study of launching a restaurant internationally by comparing the four dimensions of distance with traditional analysis done by company using country portfolio analysis (CPA).
Analysis:
The type of