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.

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The CAGE Framework – Distance Matters in Globalization!!! | EnrichWise

Leave a Reply Cancel reply Your email address will not be published. Landlockedness Lack of internal navigability Geographic size Geographic remoteness Weak transportation or communication links.

Retrieved from ” https: Views Read Edit View history. Culture happens to be framewotk first facet of CAGE, in terms of the acronym, but it also can be the most practically perplexing facet for managers. One of the distinctions between the Framewrok Framework and other country analysis frameworks is its inclusion of bilateral as well as unilateral factors.

Such models fframework 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 of 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.

The impacts of CAGE distances and differences have been demonstrated quantitatively via gravity models. 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.


Is value creation by Venture Capitalists a reality or myth? Distinct cultural differences are observed around the following dimensions: It should be a crucial consideration for a consumer goods or media company, but it is much less important for a cement or steel business. Also, types of distance af- fect industries differently. Trade practices between countries can be significantly vage by laws and regulations enacted at the national or international level.

By using this site, you agree to the Terms of Use and Privacy Policy. The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries.

The complete article reference is here: Comment Name Email Website. Because they affect ghemawaf business practices, they often affect the competitive position of firms as well.

Pankaj Ghemawat: CAGE Comparator™

This has been one of the biggest barriers, for instance, in the way of U. Each dimension of CAGE is described below.

Different languages Different ethnicities; lack of connective ethnic or social networks Different religions Lack of trust Different values, norms, and dispositions. Ghemawat offers some advice on how the CAGE Gjemawat can help managers considering international strategies:. Ghemawat emphasizes that different types of distance matter to different extents depending on the industry.

By contrast, similarities along these dimensions suggest great potential. This page was last edited on 12 Septemberat Always a good reference….


CAGE Distance Framework

It makes distance visible for managers. The moment you feel the need to tightly manage someone, you have made a hiring mistake.

If you are in a Business school, invariably you will get references to Porter and theories on Business Strategies…. Whatever it is… there is no denying the fact that…. How to ghemwwat foreign countries.

From Wikipedia, the free encyclopedia. One method to conduct quantitative analysis of this type is to discount specifically, divide framewor measures of market size or potential with measures of distance, broadly defined. For example, it can help explain the caye of Spanish firms in many industries across Latin America. The more two countries differ across these dimensions, the riskier the target foreign market.

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. Facebook has more than million users that gheawat it the 3rd largest country in the world. Lack of colonial ties Lack of shared regional trading bloc Lack of common currency Political hostility. The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies.