INTERNAL TRIGGERS

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INTERNAL TRIGGERS

• Internal triggers to the internatiomalization
  process
• Shaping an international vision and mindset
• Organisational dynamics
• Managing organisational change
• Assessing and changing corporate culture
• Resource capability and competitive advantage
• Managing organisational change to improve
• business performance

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External triggers
INTERNATIONALISATION
Market penetration
Industry competition
Product extension
Meta trends
Restricted national market scope
Internl business development
Geographical expansion
Product development
Organizational dynamics
Vision mindset
RETRENCHMENT
Internal triggers
Figure 2.1. Developing an international business
strategy
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• Firms
• in the same industry
• in the same environment
• commonly follow differing strategies
• Why?
• Different managerial beliefs about sources,
  competitive advantages
• Different way of management
• Implementation
• Doing the right things (effectivity)
• Doing the things right (efficiency)

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• Internal context
• What are the tangible and intangible reources?
• How core skills and capabilities are developed?
• These are firm specific gt strategic answer
  dependent on organizational dynamics
• Result sustainable competitive advantage
• Organizational change (discontinuity)
• Creating a shared mindset
• Building competencies
• Changing corporate values

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External and internal triggers to a stage change
External triggers
Discontinuity new international strategic thrust
Current phase
Next phase
Internal triggers
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Components of internal context

• Vision/mindset
• geographic scope, strategic development
• driven through the firms mindset
• role of senior management
• Organisational dynamics ability and willingness
  to implement strategy
• Vital people and processes to implement vision
• Unique skills, technologies (core competences)
• Ability to adopt and innovate (organizational
  learning)
• Administrative heritage

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Vision / mindset Organizational dynamics
Match?
Balanced
y
n
Generate forces for changes
Dampened
Sustained
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Internal triggers to change
Vision/ mindset
Succession events
Internal context
Succession events
Organisational dynamics
Internal triggers
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Succession events

• Planned retirement
• natural event, easier to manage
• minor or fundamental changes to strategy
• Not planned in time of dificoulties
• Occure abruptly, forced
• Internal appointment or a new person
• Setting vision
• Style of implementation can be unacceptable
• Changes in style, strategy, vision, mindset (BP)

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• What was Hortons vision?
• What are the actions of the project?
• Were the actions accepted?
• What is the directors point of view?

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• Balance
• match between vision/mindset and organisational
  dynamics
• Mismatch tensions
• Appreciate
• why and when they change,
• how an initial change is dampened or sustained
• Change sustained both shows in the same direction

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Volvo-Renault proposed merger

• 1990 announced agreement to form strategic
  alliance
• 1991 exchange of cross-shareholdings
• Full merger proposed by 1993
• Failure
• shareholder terms are unacceptable
• Critics chairman Gyllenhammer (1971- , style of
  manegement, preparations secretly, no info)
• Gyllenhammer forced resign with 4 board members
• Volvo uncertain future
• small domestic market
• little product range
• difficulties in existing Volvo-Renault alliance
• Importance of internal factors!

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• Changes accepted, style unaccepted gt
• new CEO, old strategy implemented (BP)
• Vision changes and style not accepted gt
• new CEO, new strategy (Volvo)

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Sample - vision is changing
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• What is the so called sharpbend?
• What is turnaround?
• Short term corrective action advantages,
  disadvantages
• Long term corrective actions - advantages,
  disadvantages

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Equelibrium portfolio
FINANCIAL PRESSURE
High
ST R U C T U R A L I PRESSURE
High adaptation Low integration
High adaptation High integration
Low adaptation Low integration

High
Low
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Vision/mindset on international field
Domestic bias
National specialities in operation
Cultural differences
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Map of national cultures(Hofstede)
Distance from power
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44
94
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Market f.i. USA
Family f.i. India
Avoidance of uncertainty
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Smoothly working machine f.i.. Germany Hungary
Pyramid f.i. Japan
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Organisational dynamics
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Competencies-resources
Resources

• Market access
• Integrity related
• Functionally related

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Administrative heritage
Assets Human resources Decisions Resource
configuration Cultural elements
History of the organisation
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Managing organisational changefundamental/increme
ntal
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The components of organisational change
Creating a new shared mindset
Improved business performance
Building competencies/ capabilities
Changing corporate culture
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Refreezing
Discontinuity
Change
Discontinuity
Unfreezing
Time
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Reactions connected to the change
Activity and self appreciation
7. Building-in
2. Denial
6. Awareness
3. Depression
5. Tryout
4. Acceptance
1.Shock
Time
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Resistance of change and change strategies
Lack of understanding and trust
Personal self-interest
Alternative assessment
Individuals fears and concerns
Negotiation and agreement
Education and communication
Manipulation
Participation and involvement
Coercion
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Web of the corporate culture
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ORGANISATIONS INTERNAL CONTEXT
Scope
Competitive advantage
Differentiation
Cost
Time
Linkages
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ORGANISATIONAL LEARNING
Continual process re-examine match of
performance aspirations
Mismatch between performance aspirations
Initial change strategies
Revised change strategies
Business performance
Time