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.

Author: Mikalmaran Shajin
Country: Gabon
Language: English (Spanish)
Genre: Career
Published (Last): 9 August 2017
Pages: 319
PDF File Size: 11.98 Mb
ePub File Size: 14.78 Mb
ISBN: 477-9-35994-328-9
Downloads: 56833
Price: Free* [*Free Regsitration Required]
Uploader: Daigami

By contrast, similarities along these dimensions suggest great potential. Always a good reference….

How far apart are trading partners in physical terms: Related Posts 08 Jun. The more two countries differ across these dimensions, the riskier the target foreign cagr. The moment you feel the need to tightly manage someone, you have made a hiring mistake. This has been one of the biggest barriers, for instance, in the way of U. Because they affect fundamental business practices, they often affect the competitive position of firms as well. Culture happens to be the first facet of CAGE, in terms ghdmawat the acronym, but it also can be the most practically perplexing facet for managers.

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 criteria.

The hard reality of global expansion. How to choose foreign countries. The impacts of CAGE distances and differences have been demonstrated quantitatively via gravity models. The other day, a doctor was asking me about investment banking and why is it so hot.


For example, it can help explain the strength of Spanish firms in many industries across Latin America. Think of international expansion as a movement along a continuum from known markets to less-known markets; a firm can move to more CAGE-proximate neighbors before venturing into markets that are portrayed as very different from a CAGE-framework perspective.

Each dimension of CAGE is described below. Different framewok Different ethnicities; lack of connective ethnic or social networks Different religions Lack of trust Different values, norms, and dispositions. From Wikipedia, the free encyclopedia. Views Read Edit View history.

Pankaj Ghemawat: Differences and the CAGE Distance Framework

Ghemawat emphasizes that different types of distance matter to different extents depending on the industry. One method to conduct quantitative analysis of this type is to discount specifically, divide raw measures of market size or potential with measures of distance, broadly defined. By using this site, you agree to the Terms of Use and Privacy Policy.

This page was last edited on 12 Septemberat The complete article reference is here: The table [4] [5] 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. Facebook has more than million users that makes it the 3rd largest country in the world. Trade practices between countries can be significantly affected by laws and regulations enacted at the national or international level.

By analyzing the possible impact of dis- tance—in all its dimensions—you sweeten the odds of investing in profitable foreign markets.

CAGE Distance Framework – Wikipedia

If you are in a Ghemawst school, invariably you will get references to Porter and theories on Business Strategies…. Leave a Reply Cancel reply Your email address will not be published.


Whatever it is… there is no denying the fact that…. Also, types of distance af- fect industries differently.

Distinct cultural differences are observed around the following dimensions: One of the distinctions between the CAGE Framework and other country analysis frameworks is its inclusion of bilateral as well as unilateral factors.

The CAGE Framework – Distance Matters in Globalization!!!

Is value creation by Venture Capitalists a reality or myth? Such models “resemble Newton’s law of gravitation in linking interactions between countries to the product of their sizes usually their gross domestic products divided by some composite measure ghsmawat distance.

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. It should be a crucial consideration for cwge consumer goods or media company, but it is much less important for a cement or steel business. The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries.

It makes distance visible for managers. Ghemawat offers some advice on how the CAGE Framework can help managers considering international strategies:.

Because geographic distance, for instance, affects the costs of transportation, it is of particular importance to companies dealing in heavy or bulky products.