International Strategy

1
International Strategy

• SOM 497
• Session 13

2
Strategys Hierarchy
Corporative Level Strategy
International Level Strategy
Digital Strategy
Business Level Strategy
Operations / Tactics
3
International Strategy

• What is an International Strategy?
• An strategy that is both global globally aware
• An strategy breaches outside the organizations
  country of birth
• Global Analysis Global Formulation Global
  Implementation

4
Where to go (or not)?-Porters Advice-

• Factors Affecting a Nations Competitiveness
• Factor Conditions
• Develop the factors (resources) Labor
  Infrastructure
• Demand Conditions
• Innovation production driven by Demand
• Related Supported Industries
• Presence or absence of suppliers and related
  industries
• Firm Strategy, Structure Rivalry
• Rivalry dynamics

5
Where to go or not?-Decoded-

• Factors Affecting a Nations Competitiveness
• Factor Conditions
• Demographic, Sociocultural, Political/legal,
  Technology, Economic, Global Social Capital
• Demand Conditions
• Demographic, Sociocultural, Political/legal,
  Technology, Economic, Global Social Capital
• Threat of substitutes, Power of buyers, Threat
  of New Entrants
• Related Supported Industries
• Sociocultural, Political/legal, Technology,
  Economic, Global, Social Capital
• Power of Suppliers, Threat of substitutes, Threat
  of New Entrants
• Firm Strategy, Structure Rivalry
• Demographic, Sociocultural, Political/legal,
  Technology, Economic, Social Capital
• Rivalry

6
International Strategy

• Why International Strategies are pursue?
• Performance Enhancement
• Market Size (e.g. Demographics, Power of Buyer)
• Extend Products life-cycle (The ethic dilemma)
• Cost Reduction
• Economies of Scale (e.g. Demographics, Power of
  supplier)
• Optimal Value Chain (5-Forcers Value Chain)
• Risk Reduction
• Optimal Value Chain (5-Forcers Value Chain)
• Market Size (e.g. Demographics, Power of Buyer)
• Global (e.g. economic, 5-Forcers Value Chain)

7
How to fit abroad?
High
Global Strategy
Transnational Strategy
Coke
ABB
Pressures to Lower Costs
International Strategy
Multidomestic Strategy
McDonald
Wal-Mart
Low
Low
High
Pressures for Local Adaptation
8
How to go abroad?
Wholly Owned Subsidiary
High
Joint Venture
Strategic Alliance
Extent of Investment Risk
Franchising
Licensing
Exporting
Low
High
Low
Degree of Ownership Control
9
Team Class Activity

• Using
• The External Environment Internal Environment
  tools
• All the homework Class exercises
• The TerraCycle webpage info your research about
  the company
• Start preparing the Strategic Analysis Planning
• 1st do a general Strategic Analysis
• 2nd discuss the current
• Corporative, Business International level
  Strategies
• Write down
• Your team notes and approaches to this task