Chapter 11 IB

Chapter 11
International Strategic
Management
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 11 - 1
Learning Objectives
Characterize the challenges of international
strategic management
Assess the basic strategic alternatives that
are available to firms
Distinguish and analyze the components of
international strategy
Learn the process of international strategic
management
Review levels of international strategies
Chapter 11 - 2
The Challenges of
Management
Chapter 11 - 3
Management
Planning
Strategy
Chapter 11 - 4
Fundamental Questions for

a Firms Strategic Planners
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?
Chapter 11 - 5
International Strategy
1. Developing
2. Implementing
3. Monitoring
4. Controlling
Chapter 11 - 6
Competitive Advantage
Global Efficiencies
Multinational Flexibility
Worldwide Learning
Chapter 11 - 7
Summary of Discussion
Chapter 11 - 8
Strategic Alternatives
Chapter 11 - 9
Home Replication
Core
Competency
Specific
Advantage
Chapter 11 - 10
Multidomestic Strategy
Operating Subsidiaries with
High Low
Local-Market Focus
Differences Among National Markets
Economies of Scale
Cost of Coordination
Chapter 11 - 11
Global Strategy
World Market = Single Entity
Standardizes Goods and Services
Pursues Economies of Scale
Centralizes Power and Decision Making
Chapter 11 - 12
Transnational Strategy
Pursues Dual Goals
Global-Scale
Efficiency
Local
Flexibility
Chapter 11 - 13
High
Global
Transnational
Low
Global Integration
Strategies for Balancing

Integration and Responsiveness
Home Replication
Multidomestic
Low
High
Local Responsiveness
Chapter 11 - 14
Chapter 11 - 15
Components of an
International Strategy
Chapter 11 - 16
Distinctive Competence
Cutting-Edge Technology
Efficient Distribution Networks
Superior Organizational Practices
Well-Respected Brand Names
Chapter 11 - 17
Scope of Operations
Market
Niches
Geographic
Regions
Chapter 11 - 18
Resource Deployment
Products
Geography
Combination
Chapter 11 - 19
Synergy
Whole Exceeds the Sum of Parts

Chapter 11 - 20
Chapter 11 - 21
Developing International
Strategies
Chapter 11 - 22
Steps in International
Strategy Formulation
1. Develop Mission Statement
2. Perform SWOT Analysis
3. Set Strategic Goals
4. Develop Tactical Goals and Plans
5. Develop Control Framework
Chapter 11 - 23
Mission Statement
Purpose
Values
Directions
Chapter 11 - 24
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Chapter 11 - 25
Porters Value Chain

Primary Activities
Support 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
Chapter 11 - 26
Strategic Goals
Measurable
Feasible
Time-Limited
Chapter 11 - 27
Develop Tactics
Strategic
Goals
Daily
Activities
Chapter 11 - 28
Control Framework
Managerial Processes
Strategic Goals
Organizational Processes
Chapter 11 - 29
Chapter 11 - 30
Levels of International
Strategy
Chapter 11 - 31
Corporate Strategy
Single Business
Related Diversification
Unrelated Diversification
Chapter 11 - 32
Business Strategy
Related Diversification
Unrelated Diversification
Strategic Business Unit (SBU)
Differentiation
Overall Cost
Leadership
Focus
Chapter 11 - 33
Three Strategies
Differentiation
Cost Leadership
Focus Strategy
Chapter 11 - 34
Functional Strategies
Core
Finances
Competency
Resources
Operations
and Supplies
Human
New Markets
Resources
Research and
Industry Rivals
Development
Chapter 11 - 35
Chapter 11 - 36
Chapter 11
Management
Chapter 11 - 37
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher. Printed in
the United States of America.
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Chapter 11

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Fundamental Questions for

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Strategies for Balancing

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Whole Exceeds the Sum of Parts

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Porters Value Chain

Organizational Structure and Culture

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Strategic Business Unit (SBU)

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

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