2. Forming Strategies in an Organization in
order to promote cross-border business:
Where do we do what and how?
3. Strategy (what) looks at how to : Create
Capture Value and to Deliver the products
and services to the customer.
Organization (how) requires understanding
and expanding of organizational capabilities.
International management adds the
dynamics of location (where).
4. Great opportunities in the international
marketplace today
Other countries having population explosions
Strong profit potential
Growing trend – Across borders business
relationships
Slowdown in industrialized nations
Growth in newly industrialized and developing
countries
5. Efficiency: Global economics of scale,
Comparative advantage of location.
Knowledge Leverage: Use people and ideas
globally, create knowledge via multinational
scope.
Responsiveness: To customers and
stakeholders
6. Factor - Industry
Issues
• What is the relevant industry (in terms of
geographic space) for benchmarking? For
competitive analysis?
• Is globalization an imperative, an
opportunity, or a trap in my industry?
• What changes will intensify the degree of
global competition in my industry?
7. Factor – Location
Issues
• Do firms based in a particular country have
and advantage/disadvantage in my industry?
• What competitive advantages can my firm
gain by locating particular activities in
particular countries
8. Factor - Firm
Issues
• How do we balance global integration with
local responsiveness?
• Why do firms internationalize and how they
do it?
• Modes of internationalization.
• Which activities do we place and where?
9. Factor - Individual
Issues
•What skills, networks are critical to success
in specific roles
• How can these skills, networks be
developed
12. Firm (the licensor) in one country
giving other domestic or foreign firms
(licensees) the right to use a patent,
trademark, technology, production process,
or product in return for the payment of a
royalty or fee (e.g., Coca-Cola; PepsiCo)
13. Parent organization (the franchiser)
granting other companies or individuals
(franchisees) the right to use its trademarked
name and to produce and sell its goods or
services (e.g., KFC, Marriott)
14. An agreement between two or more
organizations to pool physical, financial, and
human resources to achieve common goals
(e.g., Nestlé; L’Oreal)
15. Adjusting products, services, and
practices to individual countries or regions
(e.g., Pacific Rim versus Western Europe
versus North America) (e.g., Domino’s Pizza;
Procter & Gamble)
