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Redefining Global Strategy: Crossing Borders in A World Where Differences Still Matter by Pankaj Ghemawat

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5

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Aggregation

Overcoming Differences

We intend to continue moving forward with globalization … by further enhancing the localization and independence of our operations in each region.

—Fujio Cho, Toyota, 2003

CHAPTER 4 DEALT WITH the first of our AAA strategies for dealing with distances and crossing borders successfully: adaptation to adjust to differences. This chapter deals with the second of the three As, aggregation to overcome differences. Aggregation is all about using various grouping devices to create greater economies of scale than country-by-country adaptation can provide.

Aggregation means inventing and implementing cross-border mechanisms that operate at levels somewhere between an individual country and the whole ...

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