0% found this document useful (0 votes)
13 views26 pages

Strategy and International Business 1

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
13 views26 pages

Strategy and International Business 1

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 26

STRATEGY AND

INTERNATIONAL
BUSINESS
GROUP 5
BSA-2C
Table Of
Content
Business and Corporate Strategy
Generic Strategies
International Strategy
The Five Elements of Strategy
Managing the International
Business with the P-O-L-C
Framework
What is strategy?
A strategy is the central, integrated, externally oriented
concept of how a firm will achieve its objectives.

Strategy formulation (or simply strategizing) is the


process of deciding what to do.

Strategy implementation is the process of performing all


the activities necessary to do what has been planned.
Corporate & Business Strategy

Figure 1.0 “Corporate and Business Strategy”


Corporate strategy refers to the overall plan or direction of an
organization in pursuit of its long-term objectives.

Business strategy refers to the ways in which a firm plans to achieve its
objectives within a particular business.
Overview of International
Strategies

•Key Types of International Strategies:

1. Multidomestic Strategy – Focus on local responsiveness.


2. Global Strategy – Centralized and standardized for
efficiency.
3. Transnational Strategy – Combines global efficiency with
local responsiveness.

Goal: Achieve competitive advantage by leveraging core


competencies and minimizing competitor replication.
Multidomestic Strategy
Features:
•Decentralized decision-making.
•Customized products for local markets.
•Focus on local competition and responsiveness.

Advantages: Meets local needs effectively, enhances


market share.

Disadvantages: Higher costs, limited economies of scale.

Example: Yum! Brands (KFC, Pizza Hut) adapts offerings to


local tastes (e.g., tempura in Japan, rice in Thailand).
Global strategy
•Centralized control; standardized products.
•Benefits: Economies of scale, lower risks, uniform
branding.
•Challenges: Reduced local market share,
coordination complexity.
•Example: CEMEX uses economies of scale and
technology to dominate markets.
Transnational
Strategy
•Balance of global efficiency and local adaptation.
•Benefits: Outperforms single-focused strategies.
•Challenges: Managing dual goals of flexibility and
coordination.
•Example: Ford’s “world car” and BMW’s global
design approach.
Adapting Strategies to
Local Environments
•Importance of Adaptation: Local laws, culture, and
consumer needs affect strategy success.
•Examples:
•Dell in India/China: Shifted from direct-to-customer
model to intermediaries.
•Microsoft in the EU: Regulatory challenges led to fines
and product adjustments.
•GE-Honeywell: Merger blocked by the European
Commission due to competition concerns.
•Conclusion: Flexibility and understanding of local
environments are critical for international success.
Generic Strategies
Business-Level Strategies
Business-level strategies are intended to create differences
between a firm’s position and those of its rivals. To position
itself against its rivals, a firm must decide whether to
perform activities differently or perform different activities. A
firm’s business-level strategy is a deliberate choice in regard
to how it will perform the value chain’s primary and support
activities in ways that create unique value.
Types of Business-Level Strategies:

Cost-Leadership Strategy
the firm seeks to make its products or provide its services at the
lowest cost possible relative to its competitors while maintaining a
quality that is acceptable to consumers.

Differentiation Strategy
stems from creating unique value to the customer through
advanced technology, high-quality ingredients or components,
product features, superior delivery time, and the like.

Integrated Cost-Leadership/Differentiation
Strategy
combination of the cost leadership and the differentiation
strategies. Firms that can achieve this combination often perform
better than companies that pursue either strategy separately.
FIVE KEY ELEMENTS OF
STRATEGY DIAMOND
MODEL:

1. ARENAS
2. VEHICLES
3. DIFFERENTIATION
4. STAGING AND PACING
5. ECONOMIC LOGIC
FIVE KEY ELEMENTS OF
STRATEGY DIAMOND
MODEL:
1. ARENAS

The specific geographic markets


and the channels and value-
chain activities in those
markets.
FIVE KEY ELEMENTS OF
STRATEGY DIAMOND
MODEL:
2. DIFFERENTIATORS

How being international differentiates the


organization from competitors, makes
products or services more attractive to
future customers, and strengthens the
effectiveness of the differentiators in the
chosen arenas.
FIVE KEY ELEMENTS OF
STRATEGY DIAMOND
MODEL:
3. VEHICLES

The preference to use organic investment


and growth, alliances, or acquisitions as
expansion vehicles.
FIVE KEY ELEMENTS OF
STRATEGY DIAMOND
MODEL:
4. STAGING AND PACING

When you start expanding, how


quickly you expand and the sequence
of your expansion efforts.
FIVE KEY ELEMENTS OF
STRATEGY DIAMOND
MODEL:
5.ECONOMIC LOGIC

How your international strategy contributes


to the overall economic logic of your
business and corporate strategies.
P-O-L-C
FRAMEWORK
PLANNING
involves setting objectives and
determining the best course of
action to achieve these goals.
The planning process typically
includes:
1. Conducting a SWOT analysis
2. Establish clear goals and objectives
3. Develop strategies
ORGANIZING
involves structuring the organization
to implement the plans effectively.
This includes:
1. Defining roles and responsibilities
within teams.
2. Deciding on departmental structures.
3. Allocating resources efficiently.
LEADING
focuses on guiding and motivating
employees to achieve organizational
goals.
Requires:
1. Adapting leadership styles to fit various
cultural norms and expectations.
2. Communicating effectively across
diverse teams.
3. Fostering an inclusive environment that
encourages collaboration and innovation
CONTROLLING
involves monitoring progress towards
goals.
Includes:
1. Establishing performance metrics to
evaluate success.
2. Implementing feedback mechanisms to
identify areas for improvement.
3. Adjusting strategies as necessary based
on performance data and changing
external conditions
THANK YOU!
MEMBERS:
Llarves, Aireen A.
Madronio, Alexa Kate S.
Marilag, Christine Joy V.
Matos, Rosemarie P.
Mojico, Jazel Joy N.
Pabor, Blesie P.
QUIZ
1.It is the process of performing all the activities
necessary to do what has been planned.
2. refers to the overall plan or direction of an
organization in pursuit of its long-term objectives.
3.involves setting objectives and determining the
best course of action to achieve these goals.
4.stems from creating unique value to the customer
through advanced technology, high-quality
ingredients or components, product features,
superior delivery time, and the like.
5-6. Give at least 2 key elements from the strategy
diamond model.
7. Focus on local competition and responsiveness.
8. focuses on guiding and motivating employees to
achieve organizational goals.
9. refers to the ways in which a firm plans to
achieve its objectives within a particular business.
10. Is the goal of international strategies is to
Achieve competitive advantage by ignoring core
competencies and maximizing competitor
replication. TRUE OR FALSE?
ANSWERS:
1. Strategy implementation
2. Corporate strategy
3. Planning
4. Differentiation Strategy
5-6. ARENAS, VEHICLES, DIFFERENTIATION,
STAGING, ECONOMIC LOGIC
7. Multidomestic Strategy
8. LEADING
9. Business strategy
10.FALSE

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy