CAGE-Distance-Framework-Template.pptx

CAGE Distance Framework The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic (CAGE) differences or distances between countries that companies should address when crafting international strategies. It was developed by Pankaj Ghemawat, an international strategy exp...

CAGE Distance Framework The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic (CAGE) differences or distances between countries that companies should address when crafting international strategies. It was developed by Pankaj Ghemawat, an international strategy expert, to offer businesses a way to evaluate countries in terms of the “distances” between them. 1  For each of the elements of the CAGE Distance Framework, enter CAGE Distance Framework what you know about the two countries you want to compare to identify how much “distance” exists between them. Identify implications for your strategy, project, or other related activities. Country A Country B List the cultural norms, values and social beliefs, also known as the unwritten rules, that shape the behavior of individuals and C Cultural organizations. Various societies also differ in their attitudes toward globalization and Distance market power that have important consequences in terms of both formalized trade regulations and general attitudes toward how businesses are run. List the differences in history and politics Administrat among countries, especially those which do A ive Distance not share colonial ties. Also, a lack of shared currency, political hostilities, and government corruption contribute to Administrative distance. Geographic distance refers not only to the physical distance between two countries, G Geographic but also a country’s physical size, whether it shares borders with hostile or non-hostile Distance neighbors, and access to trade routes such as the ocean and other topographical features. List these attributes. Two of the biggest determinants of economic distance are the Cost of Labor and level of E Economic Consumer wealth between countries. It is more difficult for a company from a wealthy Distance country to enter a poorer country and be successful there, but not impossible. List these determinants. 2 Actions Create an action plan focused on creating and implementing your CAGE Distance Framework. Consider the people, processes, and technologies that will be needed to support your framework, and the specific actions needed to implement your strategy or project based on your insights. Actions Owner Due Date Enter action here Enter owner Enter due date 3