international strategic management

24 Agu

chapter 11

international            strategic management

Download IB-CH11 International Strategic Management

Characterize the challenges of international strategic management

Assess the basic strategic alternatives available to firms

Distinguish and analyze the components of international strategy

Chapter Objectives 2

Describe the international strategic management process

Identify and characterize the levels of international strategies


International Strategic Management

International strategic management is a comprehensive and ongoing management planning process aimed at formulating and implementing strategies that enable a firm to compete effectively internationally.

Strategic Planning

The process of developing a particular international strategy is often referred to as strategic planning.

Fundamental Questions

What products and/or services does the firm intend to sell?

Where and how will it make those products or services?

Where and how will it sell them?

Where and how will it acquire the necessary resources?

How does it expect to outperform its competitors?

Factors Affecting International        Strategic Management





Governmental interference


Labor relations


Market research



Transportation/ communication



Sources of Competitive Advantage

Global Efficiencies

Location Efficiencies

Mercedes-Benz has achieved economies of scale by focusing production of its  M-class at its assembly plant in Vance, Alabama.

Strategic Alternatives

Figure 11.1 Strategic Alternatives

Components of International Strategy

Distinctive Competence

Answers the question

What do we do exceptionally well, especially as compared to our competitors?

Represents important resource to the firm

Scope of Operations

Answers the question

Where are we going to conduct business?

Aspects of scope

Geographical region

Market or product niches within regions

Specialized market niches

Resource Deployment

Answers the question

Given that we are going to compete in these markets, how will we allocate our resources to them?

Resource specifics

Product lines

Geographical lines


Answers the question

How can different elements of our business benefit each other?

Goal is to create a situation where the whole is greater than the sum of the parts

Developing International Strategies

Figure 11.2 Steps in International
Strategy Formulation

Mission Statements

Clarifies the organization’s purpose, values, direction

Communicates firm’s strategic direction

Specifies firm’s target customers and markets, principal products, geographical domain, core technologies, concerns for survival, plans for growth and profitability, basic philosophy, and desired public image

Mission Statements

Wells Fargo

Satisfy all our customers’ financial needs, help them succeed financially, be known as one of America’s great companies and the number-one financial services provider in each of our markets

Carpenter Technology

Major, profitable, and growing international producer and distributor of specialty alloys, materials, and components

SWOT Analysis





Environmental Scanning

An environmental scan is a systematic collection of data about all elements of the firm’s external and internal environments, including markets, regulatory issues, competitors’ actions, production costs, and labor productivity.

Figure 11.3 The Value Chain

Strategic Goals

Strategic goals are the major objectives the firm wants to accomplish through pursuing a particular course of action.

Tactical Goals and Plans

Middle management issues

Details of implementation




Career paths

Distribution and logistics

Control Framework

A control framework is the set of managerial and organizational processes that keep the firm moving toward its strategic goals.

Figure 11. 4 Levels of
International Strategy

Corporate Strategy

Single-Business Strategy

Related Diversification

Unrelated Diversification

Advantages of Related Diversification

Less dependence on single product

Greater economies of scale

Entry into additional markets more efficient and effective

Business Strategy

Functional Strategies


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Ditulis oleh pada 24/08/2012 in Akutansi International


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