【工商管理专业 MBA Lecture 】Lecture_10.ppt

INTERNATIONAL CONTEXT Dr Ita ODonovan Beechgrove Associates1 Opportunities and Outcomes of International Strategy Beechgrove Associates2 ExportingExporting LicensingLicensing Strategic Strategic alliancesalliances AcquisitionsAcquisitions Establishment of Establishment of a new subsidiarya new subsidiary International International business-level business-level strategystrategy Multidomestic Multidomestic strategystrategy Global strategyGlobal strategy Transnational Transnational strategystrategy Increased market Increased market sizesize Return on Return on investmentinvestment Economies of Economies of scale and learningscale and learning Advantage in Advantage in locationlocation Identify International Identify International OpportunitiesOpportunities Explore Resources Explore Resources and Capabilitiesand Capabilities Use Core Use Core CompetenceCompetence International International StrategiesStrategies Modes of EntryModes of Entry Opportunities and Outcomes of International Strategy Beechgrove Associates3 Better Better performanceperformance InnovationInnovation ExportingExporting LicensingLicensing Strategic Strategic alliancesalliances AcquisitionsAcquisitions Establishment Establishment of a new of a new subsidiarysubsidiary Use Core Use Core CompetenceCompetence Modes of EntryModes of Entry Management problems and risk Management problems and risk Strategic Strategic Competitiveness Competitiveness OutcomesOutcomes Motivations for International Expansion Increase Market ShareIncrease Market Share domestic market may lack the size to support efficient domestic market may lack the size to support efficient scale manufacturing facilitiesscale manufacturing facilities Return on InvestmentReturn on Investment large investment projects may require global markets large investment projects may require global markets to justify the capital outlaysto justify the capital outlays weak patent protection in some countries implies that weak patent protection in some countries implies that firms should expand overseas rapidly in order to firms should expand overseas rapidly in order to preempt imitatorspreempt imitators Beechgrove Associates4 Motivations for International Expansion Economies of Scale or LearningEconomies of Scale or Learning expanding size or scope of markets helps to expanding size or scope of markets helps to achieve economies of scale in manufacturing as achieve economies of scale in manufacturing as well as marketing, R & D or distributionwell as marketing, R & D or distribution can spread costs over a larger sales basecan spread costs over a larger sales base increase profit per unitincrease profit per unit Location AdvantagesLocation Advantages low cost markets may aid in developing low cost markets may aid in developing competitive advantagecompetitive advantage may achieve better access to:may achieve better access to: Beechgrove Associates5 Raw materialsRaw materials Lower cost laborLower cost labor Key customersKey customers EnergyEnergy International Business-Level Strategy: Determinants of National Advantage Factors of production: Factors of production: the inputs necessary to the inputs necessary to compete in any industrycompete in any industry laborlabor landland natural resourcesnatural resources capitalcapital infrastructureinfrastructure basic factors include natural and labor resourcesbasic factors include natural and labor resources advanced factors include digital communication advanced factors include digital communication systems and educated workforcesystems and educated workforce Beechgrove Associates6 Beechgrove Associates7 Beechgrove Associates8 Beechgrove Associates9 International Business-Level Strategy: Determinants of National Advantage : : Demand conditionsDemand conditions characterized characterized by the nature and size of buyers by the nature and size of buyers needs in the home market for the industrys needs in the home market for the industrys goods or servicesgoods or services size of market segment can lead to scale-efficient size of market segment can lead to scale-efficient facilitiesfacilities efficiency can lead to domination of the industry in efficiency can lead to domination of the industry in other countriesother countries specialized demand may create opportunities beyond specialized demand may create opportunities beyond national boundariesnational boundaries Beechgrove Associates10 International Business-Level Strategy: Determinants of National Advantage Related and supporting industriesRelated and supporting industries: : supporting supporting services, facilities, suppliers and so onservices, facilities, suppliers and so on support in designsupport in design support in distributionsupport in distribution related industries as suppliers and buyersrelated industries as suppliers and buyers Beechgrove Associates11 International Business-Level Strategy: Determinants of National Advantage Firm strategy, structure, and rivalryFirm strategy, structure, and rivalry: : the the pattern of strategy, structure, and rivalry pattern of strategy, structure, and rivalry among firmsamong firms common technical trainingcommon technical training methodological product and process improvementmethodological product and process improvement cooperative and competitive systemscooperative and competitive systems Beechgrove Associates12 Beechgrove Associates13 Beechgrove Associates14 Source: MIT Sloan Beechgrove Associates15 Source: MIT Sloan Beechgrove Associates16 Source: MIT Sloan Beechgrove Associates17 International Corporate-Level Strategy Beechgrove Associates18 Need for Local ResponsivenessNeed for Local Responsiveness Need for Global IntegrationNeed for Global Integration LowLow HighHigh LowLowHighHigh GlobalGlobal strategystrategy TransnationalTransnational strategystrategy MultidomesticMultidomestic strategystrategy Beechgrove Associates19 International Corporate-Level Strategy: Multidomestic Strategy Beechgrove Associates20 MultidomesticMultidomestic strategystrategy Strategy and operating decisions are Strategy and operating decisions are decentralized to strategic business units decentralized to strategic business units (SBU) in each country(SBU) in each country Products and services are tailored to local Products and services are tailored to local marketsmarkets Business units in one country are Business units in one country are independent of each other independent of each other Assumes markets differ by country or Assumes markets differ by country or regionsregions Focus on competition in each marketFocus on competition in each market Prominent strategy among European firms Prominent strategy among European firms due to broad variety of cultures and markets due to broad variety of cultures and markets in Europein Europe International Corporate-Level Strategy: Global Strategy Beechgrove Associates21 GlobalGlobal strategystrategy Products are standardized across Products are standardized across national marketsnational markets Decisions regarding business-level Decisions regarding business-level strategies are centralized in the home strategies are centralized in the home officeoffice Strategic business units (SBU) are Strategic business units (SBU) are assumed to be interdependentassumed to be interdependent Emphasizes economies of scaleEmphasizes economies of scale Often lacks responsiveness to local Often lacks responsiveness to local marketsmarkets Requires resource sharing and Requires resource sharing and coordination across borders (which also coordination across borders (which also makes it difficult to manage)makes it difficult to manage) International Corporate-Level Strategy: Transnational Strategy Beechgrove Associates22 TransnationalTransnational strategystrategy Seeks to achieve both global Seeks to achieve both global efficiency and local responsivenessefficiency and local responsiveness Difficult to achieve because of Difficult to achieve because of simultaneous requirementssimultaneous requirements - -strong central control and strong central control and coordination to achieve efficiency coordination to achieve efficiency - -decentralization to achieve local decentralization to achieve local market responsivenessmarket responsiveness Must pursue organizational learning Must pursue organizational learning to achieve competitive advantageto achieve competitive advantage Strategic Competitiveness Outcomes: Returns International diversification and returnsInternational diversification and returns : : firm firm expands the sales of its goods or services across the expands the sales of its goods or services across the borders of global regions and countries into different borders of global regions and countries into different geographic locations or marketsgeographic locations or markets may increase a firms returnsmay increase a firms returns such firms usually achieve the most positive stock such firms usually achieve the most positive stock returnsreturns firm may achieve economies of scale and firm may achieve economies of scale and experience, location advantages, increased market experience, location advantages, increased market size and opportunity to stabilize