International business 5th griffin chapter 11

international strategic management international business, 5th edition chapter 11 Chapter Objectives • Characterize the challenges of international strategic management • Assess the basic strategic alternatives available to firms • Distinguish and analyze the components of international strategy 11-2 Chapter Objectives • Describe the international strategic management process • Identify and characterize the levels of international strategies 11-3 International Strategic Management International strategic management is a comprehensive and ongoing management planning process aimed at formulating and implementing strategies that enable a firm to compete effectively internationally 11-4 Strategic Planning The process of developing a particular international strategy is often referred to as strategic planning 11-5 Fundamental Questions • What products and/or services does the firm intend to sell? • Where and how will it make those products or services? • Where and how will it sell them? • Where and how will it acquire the necessary resources? • How does it expect to outperform its competitors? 11-6 Factors Affecting International Strategic Management 11-7 • Language • Financing • Culture • Market research • Politics • Advertising • Economy • Money • Governmental interference • Transportation/ communication • Labor • Control • Labor relations • Contracts Sources of Competitive Advantage Global efficiencies Multinational flexibility Worldwide learning 11-8 Global Efficiencies Location efficiencies Economies of scale 11-9 Economies of scope Location Efficiencies Mercedes-Benz has achieved economies of scale by focusing production of its M-class at its assembly plant in Vance, Alabama 11-10 Developing International Strategies Strategy formulation Strategy implementation 11-18 Figure 11.2 Steps in International Strategy Formulation Develop a mission statement Perform a SWOT analysis Set strategic goals Develop tactical goals and plans Develop a control framework 11-19 Mission Statements • Clarifies the organization’s purpose, values, direction • Communicates firm’s strategic direction • Specifies firm’s target customers and markets, principal products, geographical domain, core technologies, concerns for survival, plans for growth and profitability, basic philosophy, and desired public image 11-20 Mission Statements • Wells Fargo – Satisfy all our customers’ financial needs, help them succeed financially, be known as one of America’s great companies and the number-one financial services provider in each of our markets • Carpenter Technology – Major, profitable, and growing international producer and distributor of specialty alloys, materials, and components 11-21 SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats 11-22 Environmental Scanning An environmental scan is a systematic collection of data about all elements of the firm's external and internal environments, including markets, regulatory issues, competitors' actions, production costs, and labor productivity 11-23 Figure 11.3 The Value Chain 11-24 Strategic Goals Strategic goals are the major objectives the firm wants to accomplish through pursuing a particular course of action 11-25 Tactical Goals and Plans • Middle management issues • Details of implementation 11-26 • Examples – Hiring – Compensation – Career paths – Distribution and logistics Control Framework A control framework is the set of managerial and organizational processes that keep the firm moving toward its strategic goals 11-27 Figure 11 Levels of International Strategy 11-28 Corporate Strategy • Single-Business Strategy • Related Diversification • Unrelated Diversification 11-29 Advantages of Related Diversification • Less dependence on single product • Greater economies of scale • Entry into additional markets more efficient and effective 11-30 Business Strategy Differentiation Overall cost leadership Focus 11-31 Functional Strategies Financial 11-32 Human resources Marketing R&D Operations ... components of international strategy 11- 2 Chapter Objectives • Describe the international strategic management process • Identify and characterize the levels of international strategies 11- 3 International. .. its strategic goals 11- 27 Figure 11 Levels of International Strategy 11- 28 Corporate Strategy • Single -Business Strategy • Related Diversification • Unrelated Diversification 11- 29 Advantages of... greater than the sum of the parts 11- 17 Developing International Strategies Strategy formulation Strategy implementation 11- 18 Figure 11. 2 Steps in International Strategy Formulation Develop a mission