...INTERNATIONAL STRATEGIES (Jay B Barney) Summary International Strategies can be seen as a special case of diversification strategies. Firms implement international strategies when they pursue business opportunities that cross country borders. Like all diversification strategies, international strategies must exploit real economies of scope that outside investors find too costly to exploit on their own in order to be valuable. Five potentially valuable economies of scope in international strategies are: 1. To gain access to new customers for a firm’s current products or services 2. To gain access to low-cost factors of production, 3. To develop new core competencies 4. To leverage current core competencies in new ways and 5. To manage corporate risk. To be a source of sustained competitive advantage, a firm’s international strategies must be valuable, rare and costly to imitate and the firm must be organized to realize the full potential of its international strategies, these strategies can still be rare, for at least two reasons : 1. Given the broad range of international opportunities, firms may not compete head to head with other firm pursuing the same international strategies that they are pursuing and 2. Firms may bring valuable and rare resources and capabilities to the international strategies they pursue. Both direct duplication and substitution can affect the imitability of a firm’s international strategy. Direct duplication is not likely when firms bring...
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...International Operations Strategy Analysis Coca-Cola Coca-Cola Nokia Nokia McDonald’s McDonald’s Dow Chemical Dow Chemical IBM IBM US Steel US Steel Procter & Gamble Procter & Gamble Four Basic International Operations Strategies International enterprises who by definition have to have a presence in more than one market must endure both pressures for cost reductions and for local responsiveness. The biggest challenge for these companies is to find the right balance between the two approaches because these place conflicting demands on business operations. Practically all multinational firm use the above strategies or some variation of them when it comes to international operations. For example, Coca-Cola is well known for using relatively standard brands, formulations, packaging, positioning and distribution channels in its global markets (Vogt, 2015). Similarly, research shows that even though McDonald’s has tried to customize their offering to match local consumer preferences. However, the company’s philosophy remains loyal to the idea that the customer would experience a standardized service and quality regardless of geographical location or McDonald’s restaurant (Loukakou, 2012). Companies such as IBM and P&G face relatively different scenarios when attempting to have a presence in global markets. These companies have the luxury of not facing very high cost reduction or local responsiveness pressures. Consequently, these companies...
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...International Strategy Advanced Strategy M2/MSc 2015-2016 Corporate (or Growth) strategy: Key questions? • Should the firm focus its activities on a specific market or diversify in several segments or sectors? • Should the firm limit its business to the local market or internationalize? • Which method of growth strategy should the firm choose? • organic development or • corporate, commercial, technical alliances with other stakeholders active in the business environment (clients, suppliers, competitors, R&D centres, academic units, …)? Key questions of Corporate strategy Why and how should the firm internationalize? International strategy analytical framework Location Advantage WHY? Outside-In approach HOW? Source: Exploring Strategy, 9th edition, Pearson, 2011 Inside-out approach Incentives and basic benefits of internationalisation Incentives Basic Benefits Extend a product’s life cycle Increased market size Gain easier access to raw materials Economies of scale and learning Opportunities to integrate operations on a global scale Location advantages To support strategic orientations! Opportunities to maximize the ROI (e.g. rapidely developing technologies) Get access to consumers in emerging markets Source: Ireland, Hoskisson and Hitt, The Management of Strategy, 2011 Outside-in approach: Internationalisation drivers Why going international? The YIP’s matrix (Inter-country compensation...
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...R E S E A R C H includes research articles that focus on the analysis and resolution of managerial and academic issues based on analytical and empirical or case research International Marketing Strategies in India: An Application of Mixed Method Investigation Prathap Oburai and Michael J Baker Executive Summary KEY WORDS International Marketing Strategy Grounded Theoretic KEY WORDS Approach Privatization Case Research Methodology Indian Banking Internationalization drives and export orientation are prominent in the organizational strategies of a number of leading Indian firms and multinationals located in India. This is a significant indicator of the growing competitiveness of firms, industries, and the nation. This paper examines the sources of competitive advantage in a few selected sectors and firms and explores the internationalization possibilities and potential. International marketing strategies are complex and tend to vary widely across nations, industries, and firms. The elements that form the ingredients of international strategies are numerous and their importance is tightly interwoven to contexts. With a view to enrich the existing body of international marketing theory, the authors investigate the international marketing strategies adopted in 12 different business sectors in India in an attempt to explore and explain the similarities and differences found in this varied set of industries. The examples span the old economy industries such as the assembly...
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...3H Strategy & International Business 2001-2002 Session 8 – Positioning & RBAs compared A. INTRODUCTION TO SESSION The past two Sessions have outlined a series of models and frameworks that provide insights into the external environment and the strategic capabilities possessed by organisations. Many of these models and frameworks have developed as a consequence of a twenty-year debate over the way in which organisations seek to develop sustainable competitive advantage. In broad terms, two distinct approaches have emerged from the debate about this central issue within strategy content: the positioning approach and the resource-based approach (or more accurately, approaches). Much of the debate has concentrated upon two key questions: • Is competitive advantage achieved by concentrating on either low cost or differentiation or should a strategy seek to exploit both low cost and differentiation? • Does an organisation develop strategy to respond to or shape the environment in which it exists – is strategy outside-in or inside-out? As the primary purpose of the tools of strategic analysis is to help organisations to develop and implement successful strategies, then an understanding of the underlying context in which these models and frameworks can be applied is an important requirement. By exploring the development of these competing approaches to competitive advantage and the debate between them, this Session sets out to provide this contextual understanding...
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...International advertising strategies International advertising strategies Theodore Levitt's seminal article ‘The Globalisation of Markets' (Harvard Business Review 1983) caused many companies to examine their international advertising strategies and to adopt a global strategy. What problems do you see in such an approach? Advertising is a universal business activity today. As media has spread across the world and marketers have expanded it reaching different unexplored counties, advertising is gaining impetus in the whole globe and it is easy to identify when you move from a place to another or simply when you travel that you realize that advertising is the most visible manifestation of the globalization of business in general and of brands in particular. Advertising allows consumers to “compare goods, which often results in lower prices and improved product quality; advertising stimulates the economy by encouraging consumption; and it has the potential to improve living standards” (Mueller, 1996, p. 256). When you talk about International Advertising it is means that you are talking about cross-border advertising and it is possible to have a specific connotations that you can adopted as a global strategy. According to Jones, J. (2000) there is two countries who believe that their advertising is the best in the world: United Kingdom and United States, and he stressed that the language (English) has becoming the primary worldwide language, at least for business; that belief...
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...Lydie Nguz Maruv International Business Strategy-Shurgard case-question 3 Question 3-What do I think are the main challenges that Shurgard will face for its European expansion (Other than “growth”), What would be my specific recommendations as regards each of these challenges? Why? In my opinion, the main challenges that Shurgard will face for its European expansion are the following: 1. The unfamiliarity of the self- storage concept in Europe and hence lack of professional expertise; 2. Differences between European countries, it’s not one size fits all; 3. Inexistence of specific regulation concerning self-storage business; 4. European labor regulation, which implies that it is harder to hire or fire people and relocate them(France); 5. Difference between European consumers and US consumers as regard price elasticity; 6. Difficulty to fund expansion as potential investors might be very demanding; 7. Marketing critical to a quick rent up in order to create basic awareness and demand; Concerning the first challenge, the fact that self-storage didn’t exist in Europe, means it is both a risk and an advantage to be the first mover. So, Shurgard has to make sure in its expansion process, that there is a real market opportunity in countries where it wants to operate. It involves that there are potential customers who are looking for this kind of services. I my opinion, if a business doesn’t exist somewhere it don’t mean per...
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...Question 1 (is on Theme 3: International Management Strategy Issues) “For a newly internationalised company, like Elecdyne, discuss one of the following sets of issues (from 1-4), plus you must discuss issue 5.” 1. The centralisation-decentralisation debate You should identify where the various functions of management sit in terms of being upstream, downstream, neither, or both, and how developments in technology may affect these functions in the next 10 years. | 2. Social innovation and networking You should undertake an analysis of the social innovation based opportunities that might develop for a newly internationalised company, like Elecdyne in different sectors (e.g. health and education) over the next 10 years. | 3. Sustainability and the potential impact of related issues on the company’s innovation, production and / or logistics functionsYou should analyse the sustainability based opportunities that might develop for a newly internationalised company, like Elecdyne over the next 10 years and evaluate the potential impact of these on the company’s innovation, production and / or logistics functions. | 4. Corporate social responsibility (CSR), including 5 key CSR related issues, Pyramid of CSR etc. You should evaluate the issue of corporate social responsibility using the “Pyramid of CSR framework” and analyse 5 key CSR related issues (recycling, ethical business, working condition, environmental issues, and philanthropy activities) or factors that...
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...The Strategy of International Business The chapter reviews basic principles of the strategies available for globally expanding businesses, it also reviews the different ways in which a business can maximize their profit while maintaining a well planed and followed expansions/global strategy. One important fact is to focus on the main objective of any firm; “Maximizing shareholder value” any strategy is mostly designed and built around this objective. To evaluate and review the strategies presented in this chapter two current events are visited at the end of the paper; Nokia’s cost reduction strategy and Hollywood’s Global Expansion strategy. Hollywood for one is focused on the global market and the ability to successfully expand through these markets, since 1980s as mentioned by Jeff Kleeman the executive producer of “The Change-Up” (Lang, 2011) Hollywood were targeting the global market but now they are more focused on the how rather than just the revenues from these global markets. Nokia’s global strategy on the other hand is aligning workforce with site operations. Nokia is one of the successful telecommunication companies worldwide with more than a billion users worldwide. (Nokia Corporation, 2011) Chapter Summary The Strategy of International Business chapter reviews some basic principles of international business strategies and how these strategies can be used to profit from international expansions. The chapter defines strategy as “the actions managers take...
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...different ways. Two of the primary focuses are staying on top of your competitor and the ability to provide to each and every potential consumer. With this said, one increasingly popular way to gain this competitive advantage is to pursue international markets. Expanding a business into international markets brings about a world of opportunities to increase market size for your product and or services, can increase the companies earnings, increases the worth and attractiveness of the service or product and gaining knowledge of economies of scale. This kind of expansion also faces negative consequences. The possibility of political and economic risk can create an uncertain market environment for business as well as government rules and regulations that can alter business practices in such a way that it produces negative results for a company. The challenge is finding the right international market to diversify in that will produce positive results and formulating a strategic plan to conduct business practices that cater to the particular international environment in accordance with their rules, regulations and procedures. As we study Handspring now known as Palm, we find that they have exploited opportunities in several international markets. Palm, a market leader in Palm OS handhelds operates in North America, Asia Pacific, Europe, Africa, Latin America, and the Middle East. According to market research, Palm holds more than 38 percent market- share of the world wide...
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...Strategy A joint venture is a strategic alliance between two or more individuals or entities to engage in a specific project or undertaking. Partnerships and joint ventures can be similar but in fact can have significantly different implications for those involved. A partnership usually involves a continuing, long-term business relationship, whereas a joint venture is based on a single business project. Parties enter Joint Ventures to gain individual benefits, usually a share of the project objective. This may be to develop a product or intellectual property rather than joint or collective profits, as is the case with a general or limited partnership. A joint venture, like a general partnership is not a separate legal entity. Revenues, expenses and asset ownership usually flow through the joint venture to the participants, since the joint venture itself has no legal status. Once the Joint venture has met its goals the entity ceases to exist. A written joint venture agreement should cover: * The parties involved * The objectives of the joint venture * Financial contributions you will each make whether you will transfer any assets or employees to the joint venture * Intellectual property developed by the participants in the joint venture * Day to day management of finances, responsibilities and processes to be followed. * Dispute resolution, how any disagreements between the parties will be resolved * How if necessary the joint venture can be terminated...
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...נושא 1: מבוא אסטרטגיה וטקטיקה אסטרטגיה – מגיעה ממונחים צבאיים (איך להיערך לקרב, איך לנצח במלחמה). האסטרטגיה מתווה לנו מה נכון לעשות., ומה לא נכון לעשות. שני המשתנים הם מאוד דינמיים בהתאם לזמן ולמידע שיש לנו .למושג יש נטייה לחמוק מהיותו דינאמי ומותאם לשינו יים סביבתיים, אך זה מאפשר לנו למעשה לבחון בכל נקודת זמן האם הדרך בה אנו נוקטים היא טובה או לא. ככל שנצבור יותר ידע על הפעילות האסטרטגית של המתחרה שלנו כך שלנו תהיה טובה יותר. טקטיקה – פעולה הנגזרת מתוך האסטרטגיה. הפעולות שהחברה עושה בפועל, שקופות לכולם. מעידות על כוונות, מיתוג, מיצוב, נתונה לפרשנות על ידי התוצר החיצוני והמחירים שהיא דורשת. לדוגמא – תמחור גבוה. מה עומד מאחוריו? איכות גבוהה, מיצוב גבוה של החברה. התמחור – זוהי הטקטיקה. מה שמעבר –אסטרטגיה. ניתנה הדוגמא על Appleמול , Microsoftנחתם בין החברות חוזה לעבודה משותפת, רק שבאפל לא שמו לב לסעיף שאומר שהממשק שיפותח יהיה שייך למיקרוספט. הדוגמא באה להמחיש כי חברה לא יכולה לדעת מהי האסטרטגיה של החברה השנייה אלא ניתן ללמוד רק דרך התוצאות בשטח ולנסות ללכת צעד אחורה על מנת להבין מה הנחה אותם. אסטרטגיה שיווקית- מאז ועד היום תקצוב : – Budgetingכל שנה קובעים תקציב לשנה ע"י מחלקת כספים-< לגורם המכתיב אין נטייה שיווקית, חוסר דינאמיות. התהליך הוא ארוך ושנה לרוב לא מספיקה על מנת לראות תוצאות ממשיות. .I 1. תכנון ארוך טווח: – Long-Rang Planningבשליטת מחלקת הכספים . 2. תכנון אסטרטגי : – Strategic Planningיש מימדים שהם השקעה לאורך זמן כמו מיצוב ומיתוג, ולא משהו קונקרטי בעל תקציב ספציפי. אנשי השיווק נכנסים לתמונה ובונים...
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...A REPORT ON THE INTERNATIONAL MARKETING STRATEGIES USED BY GE COMPANY By barbradozier TABLE OF CONTENTS ABSTRACT……………………………………………………………………..……ii EXECUTIVE SUMMARY…………………………………………………………..iv INTRODUCTION……………………………………………………… ………….1 REPORT PROCEDURE…………………………………………………………..…1 THE 4 P’S……………………………………………………………………………2 PRODUCT……………………………………………… …….……2 PRICE………………………………………………………………..2 PLACE…………………………………………………………….…2 PROMOTION…………………………………………………….….2 SWOT ANALYSIS………………………………………………………………….3 STRENGTHS………………………………………………………..3 WEAKNESSES……………………………………………………..3 OPPORTUNITIES…………………………………………………..4 THREATS……………………………………………………………5 INTERNATIONAL MARKETING STRATEGIES BEING USED…………… …5 WAYS THAT CAN IMPROVE INTERNATIONAL STRATEGY………………..9 IMPORTANCE OF INTERNATIONAL MARKETING………………………….10 WAYS OF IMPROVING THE STRATEGIES……………………………………10 RECOMMENDATIONS……………………………………………………………11 CONCLUSION……………………………………………………………………..11 BIBILIOGRAPHY…………………………………………………………………13 EXECUTIVE SUMMARY This report examines the international marketing strategies used by General Electric Company in its quest to tap the international market. The purpose of the report is to provide the company with the information necessary to amend and improve on their marketing strategy. Over the years GER has highly diversified its operations and is now operating 11 major lines of businesses which include transportation, consumer finance, commercial finance, insurance and energy. It is also involved in healthcare,...
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...International Recruitment, Selection, and Training Strategies The world has been rapidly transforming due to the changes in technology, innovations, and the reduction of trade barriers into and out of countries which have permitted globalization. Due to globalization human resource management has been forced to take a more international approach, and has demonstrated that a more effective management of human resources internationally is imperative for the success of companies in international business (Shen). Therefore international organizations need to understand the roll that plays the international human resource management (IHRM) department, and the importance of adopting an effective recruiting, selecting, and training strategies that will enable the company to select the right talent for the right places. IHRM plays a very important and challenging roll in the international setting of organizations because “they must develop practices which will maintain congruence with the overall strategic plan of their respective multinational corporations, while balancing the economic, social, political, and legal constraints of the host countries” (Caligiuri). Companies understand that the only way to develop strong and successful global leaders, which are keys to competitive advantage, is through an IHRM department that has a well develop competitive strategy in place. Multinational Corporations (MNCs) like Unilever and Huawei Technologies Co., a Chinese networking and telecommunications...
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...Merger, Acquisitions, and International Strategies: One of the greatest indicators of the success or failure of a corporation is their ability to acquire/merge or to be acquired/merged. Companies have been able to maximize their profits by merging or acquiring other businesses within their industry, which has many benefits that extend past dollars and cents. Corporations who are able to acquire or merge with other companies are able to expand upon their ability to forge partnerships with other corporate leaders. They are often able to expand their services internationally to gain more profits and extend their brand. Corporations, such as McDonald's Corporation, have been able to benefit from acquisitions in ways that corporations, such as Sonic Corporation, have not. Through the evaluation of the strategies that were utilized by McDonald's Corporation to acquire Boston Market, its impact on the corporation, and its international business-level and corporate-level strategies, one can better understand strategies that Sonic Corporation could develop to increase their profits through acquisitions and mergers, as well as business-level and corporate-level strategies they can develop to expand their services internationally. McDonald's Corporation has enjoyed great success as one of the largest food-service retailing chains in the world, with 30,000 restaurants that “operate in more than 100 countries on six continents (Funding Universe, 2012).” Founded in San Bernardino...
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