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Contents1. Introduction to AAA Framework:......................................................................................................3

2. A re ation in !ealthcare: "utsourcin #adiolo y ser$ices to India by %&:................................. ...'

3. Adaption by (oco)(ola in &pain:......................................................................................................'

'. Flat packa in by I*+A:...................................................................................................................,

,. -hilips adaptin to the smaller apanese *itchens:............................................................................,

/. &tarbucks closin in Israel:................................................................................................................,

0. Tata ano and its policy o a re ation:.........................................................................................../

. (o ni4ant5s AA &trate y:................................................................................................................../

6. &hi t rom Adaption to A re ation or -hilips 7edical &ystems:..................................................../

18. I97 ollows into the A re ation model:.......................................................................................011. u thansa adapts to local cuisines:...................................................................................................0

12. (onclusions:....................................................................................................................................0

#e erences:............................................................................................................................................

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1. Introduction to AAA Framework:

;hen it comes to worldwide procedure< most business pioneers and scholastics make two

suppositions: irst and oremost< that the ocal test is to strike the pri$ile e ad=ust between

economies o scale and responsi$eness to nearby conditions< and second< that the more

attention or ani4ations put on scale economies in their o$erall operations< the more lobal

their methods will be. >?hemawat< 2880@

The AAA Framework is an acronym or Adaption A re ation Arbitra e. Adaption may re er

to ettin in sync with a orei n country5s culture and le islations. >?hemawat< 2880@

A re ation re ers to a company5s decision to di erentiate di erent markets< >?hemawat<

2880@ or e ample< a %* based company wants to e ploit the hu e market in a Be$elopin

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economy such as (hina will concentrate more in (hina and less ocus on a Be$eloped

economy like %&A< or e$en its home country %*.

Arbitra e is somewhat the opposite o Adaption< it re ers to e ploitin orei n markets rather

than adaptin to it. >?hemawat< 2880@For e ample< a lot o %& based companies outsource a

lot o acti$ities to low cost destinations such as India.

et us compare some 7ulti)national corporations rom $arious industries who ha$e

employed the AAA Framework.

2. Aggregation in Healthcare: Outsourcing Radiology services to India y !":

"win to cheaper costs >as less as 1C th@ a lot o radiolo y ser$ices are outsourced to India by

the %&. This has been made possible due to the ad$ent o technolo y and an increase in the

labour orce in India who are skilled and Duali ied to per orm such ser$ices. > e$y E !u<

288/@

The process o this outsourcin is not done due to cost cuttin alone the Duality o the

work orce operatin in India< when it comes to radiolo y is e tremely e icient and e ecti$e.

It adds to the Duality. 7oreo$er< due to the time di erence< these ser$ices are ready in the %&

by the ollowin mornin .

3. Adaption by Coco-Cola in Spain:(oco)(ola withdrew its two litre bottles rom &pain a ter reali4in that most &paniards did

not own re ri erators that had compartments bi enou h to store the two litre $ariety. >*otler<

16 /@

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This is an e cellent e ample in adaptability by a hu e 7 ( like (oco)(ola. They Duickly

reali4ed that the two litre bottles would not sell as much as in &pain as in other countries. Two

litre bottles enerally are not consumed immediately. It is stored or continuous usa e.

#e ri erators are the machines that store these bottles. !ence (oco)(ola showed an e ample

o adaptability in this case.

4. Flat packaging by IKEA:Another e ample in adaptation used by a company to success ully inno$ate and enter new

markets would be the Flat packa in techniDues employed by I*+A. >?usta son et al< n.d@

The Flat packa in has helped I*+A reduce on transportation costs< and hence it has been

able to e pand to newer markets because o this ad$anta e.

5. Philips adapting to the s alle! "apanese Kitchens:ike (oco)(ola< -hilips too showed immense adaptability when it reduced the si4e o its

co ee makers to suit the smaller apanese kitchens. >*otler< 16 /@

The si4e o kitchens in apan is considerably smaller than most other parts o the world.

-hilips had a co ee maker that was too bi or most apanese homes. In order to ully tap the

potential in the apanese market< -hilips inno$ated and reduced the si4e o its co ee

machines to suit and el into the small kitchens in apan.

#. Sta!b$cks closing in Is!ael:&tarbucks bein orced to withdraw its operations in Israel can be cited as an e ample o

A re ation by the company. >*alnins E &troock< 2811@

A hu e multinational corporation< &tarbucks had to e it Israel due to lack o proper plannin .

!owe$er< the e it itsel can be seen as an e ample o A re ation. &tarbucks closed

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operations in Israel due to a mismatch o corporate cultures with its oint Genture -artner

Belek Israel Fuel (ompany >BIF(@ in Israel. >*alnins E &troock< 2811@

%. &ata 'ano and its policy o( agg!egation:Tata ano< owned and manu actured by Tata 7otors is an economy our wheeler< costin

around H28?o$indara=an E #amamurti<

2811@

This could be cited as an e ample o re$erse inno$ation in a lobali4ed economy< howe$er it

has a re ation attributes to it.

). Cogni*ant+s AA St!ategy:(o ni4ant< started with its operations in India< but soon e panded to %&A. Their chan e in

markets is not a routine one. They ha$e success ully implemented a dual model in either

country. +ach model is speci ic to either country >one or India< one or %&A@. >?hemawat<

2880@

(o ni4ant is an e ample o Adaptation as well as Arbitra e. ;hile it may be uncommon or a

company to practise both< as they are contradictory in nature< (o ni4ant has mana ed to

achie$e this eat. ;hile they hire more non Indians than Indians in their or ani4ation< the

employees are sent to India or cultural assimilation. >?hemawat< 2880@7oreo$er< all

proposals are =ointly carried out in India as well as %&A. >?hemawat< 2880@

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,. Shi(t (!o Adaption to Agg!egation (o! Philips edical Syste s:;hile -hilips 7edical systems >-7&@ mainly concentrated on adaptin techniDues in its local

countries< its hi hly e icient competitors rom apan were concentratin on A re ation<

>?hemawat< 2880@which was makin -7& lose out on a reat deal o market share.

!owe$er< soom -7& reali4ed that adaption wasn5t the solution or them and =oined the

strate y o a re ation. >?hemawat< 2880@

/. I0 (ollo1s into the Agg!egation odel:A similar problem was si hted with I97< as in the case o -7& >abo$e@. >?hemawat< 2880@

;ith its hi h adaptin country centric mana ement< I97 was losin out on achie$in

economies o scale. >?hemawat< 2880@ !owe$er< it too shi ted to a re atin policies< by

ocussin on re ions rather than bein country speci ic.

. 2$(thansa adapts to local c$isines:

A ter ma=or problems and complaints with its on board meals< u thansa inally decided to

ser$e country speci ic meals< especially in the countries o its operation. This shows an

adapti$e techniDue by the ?erman Airline. > u thansa< 281,@

. Concl$sions:For a lar e portion o the pre$ious 2, years< the talk o lobali4ation has been ocused on

business sectors. ust as o late has the spotli ht turned to eneration< as irms ha$e ended up

mind ul o the arbitra e opportunities accessible throu h o shorin . This wonder seems to

ha$e outpaced key considerin it. umerous scholastic compositions stay concentrated on the

lobali4ation >or non lobali4ation@ o business sectors. Furthermore =ust a modest di$ision o

the numerous or ani4ations that participate in o shorin seem to contemplate it deliberately:

"nly 1 o the respondents to a late re$iew led by Arie ewin at Buke %ni$ersity say that

their or ani4ation has a corporate wide methodolo y in this respect. The AAA system i$es a

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premise to considerin worldwide methodolo ies that en$elops e$ery one o the three

compellin reactions to the substantial contrasts that emer e at national rin es. (learer

considerin the ull scope o techniDue choices ou ht to e pand the apparent open doors<

hone key decisions< and up rade worldwide e ecution.

e(e!ences:?hemawat< -. >2880@ Differences: The Central Challenge of Global Strategy < 7arch< ["nline]<A$ailable: https:CChbr.or C2880C83Cmana in )di erences)the)central)challen e)o ) lobal)strate y [1,

anuary 281,].

?o$indara=an E #amamurti >2811@ J#+G+#&+ I "GATI" < +7+#?I ? 7A#*+T&