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International Strategic Management


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Strategy and opportunity assessment; Role of strategy in IB; Estimating market potential; Choosing a strategy; Entering and operating in international markets - exporting and importing, collaborating ventures and strategic alliances, licensing, franchising; Global outsourcing; MNCs and Foreign Direct Investment in the world economy - concept, types and trends.

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International Strategic Management

  1. 1. INTERNATIONAL STRATEGIC MANAGEMENT Riya Neupane Bibek Shrestha Sushma Gautam Anupama Poudel Namuna Shrestha Srijan Lamichhane
  2. 2. International Strategic Management
  3. 3. Components of IB strategy
  4. 4. Role of strategy in IB
  5. 5. Accessing Global market opportunities Accessing organizational readiness to internalize Accessing the suitability of product and services for foreign market Screening the countries to identify target market Accessing industry market potential Choosing the foreign business partners Estimating countries self potential
  6. 6. Estimating/Assessing Market Potential
  7. 7. Stages of Estimating Market Potential
  8. 8. 1. Estimating Industry Market Potential
  9. 9. Indicators for Assessing Market Potential and Opportunities
  10. 10. Indicators for Assessing Market Potential and Opportunities
  11. 11. Methods for Estimating Industry Market Potential
  12. 12. 2. Estimating company sales potential
  13. 13. Determinants of Company Sales Potential
  14. 14. Determinants of Company Sales Potential
  15. 15. Choosing a Strategy ( Types of Strategy and Strategic Choice )
  16. 16. Global Entry and Operation Mode
  17. 17. Trade mode
  18. 18. Collaborative ventures and Strategic alliances
  19. 19. Licensing and Franchising
  20. 20. Foreign Direct Investment(FDI) •FDI is a Investment placed directly in business operations in a foreign countries •It is a act of moving business activities across the national border
  21. 21. TRENDS OF FDI • Fall in global FDI inflow • Rise in inward FDIs to developing economies • Rise in FDIs inflows toAsian developing countries • Fall in FDIs within the regional blocks • Continuous shift of FDIs to service sector
  22. 22. Types of FDI Green Field Investment And Acquisition Foreign Portfolio Investment
  23. 23. OUTSOURCING Why outsourcing?
  24. 24. GLOBAL SOURCING Why global sourcing?
  25. 25. MULTINATIONAL COMPANY(MNC) (Major actor of international business) A company which operates it’s operation in two or more countries simultaneously. Subsidiaries companies (Host Countries) Parent Company (Home Country.) Give orders. Report to HO.
  26. 26. More information about MNC • AfterWorldWar II there has been rapid growth in MNC. • MNCs alone cover 2/3 rd of world trade and remaining 1/3 rd by intra-firms. • MNCs look world map as it has no boundaries.
  27. 27. Different from trans-national corporation (TNC) TNC is a company that maintain significant operations in more than one country but decentralizes management to the local country.
  28. 28. CHARACTERSTICS OF MNC (Quality that makes something or somebody identifiable.) 1. Simultaneous operation in multiple countries. 2. Factors of production from multiple countries 3. System from the home country applied to the host countries. 4. Virtual independence for subsidiaries.
  29. 29. TYPES OF MNCs Basis of management orientation. Ethnocentric Regiocentric Basis of organization purpose Raw Material Seeker Market seeker Polycentric Cost minimizer Geocentric
  30. 30. HOME COUNTRY HOST COUNTRIES ADVANTAGES AND DISADVANTAGES OF MNCs ADVANTAGES DISADVANTAGES Political Benefits Economic Economic Benefits Political Cultural Benefits Cultural Environmental Cost of FOP equitable around the world and also they help to stabilize price of countires. Flush out valuable capital and competitive technologies in foreign countries weakening country’s competitive advantages.
  31. 31. QUESTIONS?