International Business Strategy (IBS) -a

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International Business Strategy (IBS) -a
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Strategies
Desired future
BEST STRATEGY
Present situation
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Integrated approach to IBS

• IBS how firms compete in internationally
  competitive markets
• needs horizontal linkage of various narrow
  disciplines
• holistic approach IBS eclectic,
  cross-disciplinary

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Contrasting paradigms

• a) External context (Porter) gt WHY?
• environment, competitors
• competitive advantage
• b) Resource-based approach (Hamel-Prahalad) gt
  WHAT?
• firm specific resources
• forward looking
• c) Process view (Mintzberg, Waters) gt HOW?
• management process of change
• actions, interactions

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a) External context market specific

• Strategic Change prescriptive adjustment
• to external change factors (market, competitors)

International finance
Strategic management
Organizational development
International business
International marketing
IBS
Integrated approach, international aspect, SWOT
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b) Resource-based approach firm specific

• Internal firm-based perspective
• Competitive advantage depend on
• - resources
• capabilities
• Competencies
• Forward looking

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c) Process view

• HOW IBS developed?
• complexity, ambiguity
• process of change organizational context
• how change affects
• actions
• reactions
• interactions of people within organization
• Merge different complementary strands of
  thinking!

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strands
spatial aspect
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Rope metafore

• While strands separated, they are interrelated
• From a distance they are not distinguisable -
  outcome is not prescriptive
• It can be unravelled
• lack of fit between assumptions
• Length real time

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Strategic approach

• WHY to develop an international business in a
  competing environment?
• WHAT is the content of strategy
• (resources, core competencies, anticipated
  performance, time scale)
• HOW development to be achived? Configure
  resources! Managers? Motivation? Monitoring?
  Evaluating?

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• International Business Strategy is concerned
• ? with the strategic management process, by which
  
• ? firms of all size evaluate their changing
  international business environment and
• ? shape an appropriate organizational response
  that
• involves the crossing of international borders.

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• Spatial perception of competitive opportunities
  and threats
• board members
• competitors
• SWOT
• moving headquarters
• Costumer base
• all customers equidistant
• Scope and complexity
• discontinuity resource, managers
• greater complexity
• compatibility with market requirements

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How increasing complexity does relate functional
areas?

• Marketing
• Logistics
• Finance
• Human resource management
• Operations

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• How functions at Ford
• were changed
• according to increasing
• environmental complexity?

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The nature of strategy
PERSPECTIVE Internal view Organizations way of
doing people, processes
POSITION How products and services positioned
on a market? An external contextual view of
strategy

• strategy difficoult to define
• Mintzberg

PLAN
PATTERN
POSITION
PATTERN Consistent pattern of behaviour How a
firm operates?
PLAN Takes the future into account and firm
follows the plan Difficoulties in prediction
PERSPECTIVE
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Strategy development
Deliberate strategies
Realized strategies
Unrealized strategy
Emergent strategies