Discussion questions

The Challenges of International Strategic

Management

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• What products and services to sell?

• Where and how to make them?

• Where and how to sell them?

• Where and how to get resources?

• How to outperform the competition?

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Fundamental Questions for a Firm’s Strategic Planners

Competitive Advantage

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Global Efficiencies

Multinational Flexibility

Worldwide Learning

Strategic Alternatives

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Home Replication

Core

Competency

Specific

Advantage

Multidomestic Strategy

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Operating Subsidiaries with

Local-Market Focus

•Differences Among National Markets

•Economies of Scale

•Cost of Coordination

High Low







Global Strategy

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World Market = Single Entity

Standardizes Goods and Services

Pursues Economies of Scale

Centralizes Power and Decision Making

Transnational Strategy

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Pursues Dual Goals

Global-Scale

Efficiency

Local

Flexibility

Strategies for Balancing Integration and Responsiveness

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Global

Home Replication

Transnational

Multidomestic

Local Responsiveness

G lo

b a

l In

te g

ra ti

o n

H ig

h

Lo w

Low High

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Scope of Operations

Geographic Regions

Market Niches

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Synergy

Whole Exceeds the Sum of Parts

Developing International Strategies

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1. Develop Mission Statement

2. Perform SWOT Analysis

3. Set Strategic Goals

4. Develop Tactical Goals and Plans

5. Develop Control Framework

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Steps in International Strategy Formulation

Mission Statement

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•Purpose

•Values

•Directions

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SWOT Analysis

Strengths

Opportunities

Weaknesses

Threats

Porter’s Value Chain

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Primary Activities

R&D and

Design Manufacture Marketing Distribution

After-Sales

Service

Organizational Structure and Culture

Management of Information Systems

Human Resource Management

Supply Chain Management

S u p p o rt

A ct

iv iti

e s

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Strategic Goals

•Measurable

•Feasible

•Time-Limited

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Develop Tactics

Chapter 11 - 18

Strategic

Goals

Daily

Activities

Control Framework

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Strategic Goals

Managerial Processes

Organizational Processes