3 International Competitive Strategies (3).pptx

IB

1. 1 3. International Competitive Strategies

2. 2 A9-10-11-12 A9-12. Identify and discuss the organizational chart and international strategy of IKEA, Toyota, Coca Cola & Apple History of the company: review from international business & international business strategy approaches Organizational chart and international strategy of the company over the years/milestones Emerging issues of its organizational chart and international strategy at this moment (pressures)

3. 3 A13-14-15-16 A13-16. Identify and discuss the organizational chart and international strategy of Vietnam Airlines, Vietjet Air, Wrap & Roll, Grab History of the company: review from international business & international business strategy approaches Organizational chart and international strategy of the company over the years/milestones Emerging issues of its organizational chart and international strategy at this moment (pressures)

4. What is International Strategy? International strategy refers to the way firms make choices about acquiring and using scarce resources in order to achieve their international objectives It involves decisions about which markets to enter with which products, when and how all the various functions and activities of the company and how they interact ensuring that strategy is consistent across functions, products, and regional units a variety of unique demands associated with operating internationally 4

5. Formulate Competitive Strategies For the International Market Place Formulation of international strategy must consider two opposing forces Reduction of costs : achieved best through standardization and global integration of operations Adaptation to local markets : achieved best through more local autonomy Basic strategy types address pressures for cost reduction and local adaptation Home Replication Multidomestic Regional Global Transnational 5

6. Cost and Adaptation Pressures and Their Implications for International Strategies 6 Adapted from C. Bartlett and S. Ghoshal . Managing Across Borders: The Transnational Solution , 2002 2nd ed., Cambridge: Harvard Business Press

7. Strategy and organization structure Major strategic decisions are centralized at the firm’s headquarters while operating decisions are decentralized Global strategy : aim to realize location and experience economies Centralization of some operating decisions Multi-domestic firms: aim for local responsiveness Decentralizing operating decisions to foreign subsidiaries International firms: maintain centralized control over their core competency and decentralize other decision to foreign subsidiaries Transnational firms: aim to realize location and experience curve economies Centralized control over global production centers Need to be locally responsive 7