1 / 13

International Strategic Management

International Strategic Management. Is It Important Enough to Be Worth the Complexities?. You do not choose to become global. The market chooses for you; it forces your hand. Alain Gomez, CEO, Thomson, S.A. Some Reasons.

prewitt
Download Presentation

International Strategic Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Strategic Management

  2. Is It Important Enough to Be Worth the Complexities? You do not choose to become global. The market chooses for you; it forces your hand.Alain Gomez, CEO, Thomson, S.A.

  3. Some Reasons • To enter more favorable markets, e.g., faster growing, more profitable, better government climate... • To reach new customers • To gain access to lower-cost labor markets and/or key/lower-cost raw materials • To spread business risk across a wider base • To gain other advantages inherent in location

  4. Different International Strategies • Multidomestic or multinational • Global or international • Transnational

  5. Application of Strategic Management Process • Use same 3-phase process • External environment(s) differ and are especially important • Many constraints • May have to do diagnosis & develop strategies for different countries

  6. Diagnosis • External environment makes the difference between countries • External scanning & analysis is especially important • Can use same 5-force model (by country or region) and same four aspects of general environment • Still need SWOT and Critical Issues (may be specific to country or region)

  7. Formulation • Still corporate-level, competitive, & other strategies • Still need rich range of alternatives • May need different strategies in each nation or region • Vertical integration has more disadvantages • Partners are usually needed • Need to decentralize more, but this creates problems

  8. Formulation: Corporate Level • Multidomestic or multinational • Global or international • Transnational

  9. Business Level Strategies • Licensing • Management contracts • Exporting • Joint ventures, production sharing, subcontract arrangements • Turnkey construction contracts • BOT (build, operate, transfer) contracts • Acquisitions • Green-field development

  10. Implementation • Usual considerations in planning actions: • Resources • Support • Reward systems • Timing • Organization structure • Culture • Tracking & control systems

  11. Needs for partners again (choice and relationships are critical) • Organizing (decentralization vs. centralization) • Staffing • Manage key cultural differences: • Power distance • Uncertainty avoidance • Individualism-collectivism • Masculinity-femininity • Time orientation

  12. Implementation (cont.) • Increased need for information & good financial measures to maintain control • Political risks • Economic risks • Importance & difficulty of maintaining good host country relationships

More Related