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International Business Strategy (IBS) -a. Desired future. Strategies. BEST STRATEGY*. Present situation. IBS: how firms compete in internationally competitive markets needs: horizontal linkage of various narrow disciplines holistic approach: IBS eclectic, cross-disciplinary *.
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Desired future Strategies BEST STRATEGY* Present situation 1a-Strategy (20)
IBS: how firms compete in internationally competitive markets needs: horizontal linkage of various narrow disciplines holistic approach: IBS eclectic, cross-disciplinary* Integrated approach to IBS 1a-Strategy (20)
Contrasting paradigms a) External context (Porter): => WHY? environment, competitors competitive advantage b) Resource-based approach (Hamel-Prahalad) => WHAT? firm specific resources forward looking c) Process view (Mintzberg, Waters) => HOW? management: process of change actions, interactions* 1a-Strategy (20)
a) External context: market specific Strategic Change: prescriptive adjustment to external change factors (market, competitors) International finance Strategic management Organizational development International business International marketing IBS Integrated approach, international aspect, SWOT 1a-Strategy (20)
b) Resource-based approach: firm specific Internalfirm-based perspective Competitive advantage: depend on - resources • capabilities • Competencies Forward looking 1a-Strategy (20)
c) Process view HOW IBS developed? complexity, ambiguity process of change + organizational context how change affects actions reactions interactions of people within organization Merge different complementary strands of thinking!* 1a-Strategy (20)
strands + spatial aspect 1a-Strategy (20)
Rope metafore While strands separated, they are interrelated From a distance: they are not distinguisable - outcome is not prescriptive It can be unravelled: lack of fit between assumptions Length: real time 1a-Strategy (20)
Strategic approach WHY to develop an international business in a competing environment? WHAT is the content of strategy (resources, core competencies, anticipated performance, time scale) HOW development to be achived? Configure resources! Managers? Motivation? Monitoring? Evaluating? 1a-Strategy (20)
International Business Strategy is concerned • with the strategic management process, by which • firms of all size evaluate their changing international business environment and • shape an appropriate organizational response that • involves the crossing of international borders. 1a-Strategy (20)
Spatial perception of competitive opportunities and threats board members competitors SWOT moving headquarters Costumer base all customers equidistant Scope and complexity discontinuity: resource, managers greater complexity compatibility with market requirements 1a-Strategy (20)
How increasing complexity does relate functional areas? • Marketing • Logistics • Finance • Human resource management • Operations 1a-Strategy (20)
How functions at Ford were changed according to increasing environmental complexity? 1a-Strategy (20)
The nature of strategy strategy: difficoult to define Mintzberg: PERSPECTIVE: Internal view Organization’s way of doing: people, processes POSITION: How products and services positioned on a market? An external contextual view of strategy PLAN PATTERN POSITION PATTERN: Consistent pattern of behaviour How a firm operates? PLAN: Takes the future into account and firm follows the plan Difficoulties in prediction PERSPECTIVE 1a-Strategy (20)
Strategy development Deliberate strategies Realized strategies Unrealized strategy Emergent strategies 1a-Strategy (20)