Country portfolio analysis, a commonly used tool among companies when evaluating potential target markets, only focus on potential sales instead of including cost and risk into the equation. However, some researchers today have become aware of the importance of taking these costs and risks into account. One of these researchers is Pankaj Ghemawat, who has developed a framework called CAGE which is supposed to be a complementary tool to the country portfolio analysis model. In this thesis we study if Swedish MNCs consider the factors suggested in the CAGE-framework when evaluating emerging markets. Furthermore, we suggest some adjustments to the evaluation process.Data have been collected through a web-based questionnaire. The respondents were all headquarter managers in Swedish multinational corporations (MNCs). Our results show that the two most overlooked distances of the CAGE-framework are the cultural and the geographic distances. Hence, the two most considered were the economic and administrative distances. This is in partial accordance with Ghemawat’s theory …
Contents
1. Introduction
1.1 Research Question
2. Background
2.1 Emerging Markets
2.2 Swedish MNCs and Emerging Markets
2.3 Distances between Emerging and Developed Markets
2.4 Evaluating Emerging Markets
3. Theoretical Background on Evaluation of Markets
3.1 The CAGE Distance Framework
4. Method
4.1 Quantitative Approach of Analysis
4.2 The Questionnaire
4.3 Sample and Respondents
4.4 Modifications to the CAGE-framework
4.5 The Responses and their Implications
5. Results and Analysis
5.1 Cultural Distance
5.2 Administrative Distance
5.3 Geographic Distance
5.4 Economic Distance
5.5 General Analysis
6. Conclusions
6.1 Future Research
7. References
7.1 Published Sources
7.2 Electronic Sources
7.3 Verbal Sources
8. Appendices
1 – Emerging Markets
2 – Questionnaire
3 – Companies in the Sample
Author: Lundström, Fredrik,Andersson, Christofer
Source: Uppsala University Library
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