Strategic business management

1. Eileen Roddy
Associate Dean International
Strategic International
Business Management

2. Content
•Strategy at the international and
national level
•Glocal issues (think global act
local)
•Assessment
•Individual assignment and
group assignment
•Core handbook
•Why important?
Aims
•Clear appreciation of global
management issues
•Be aware and able to critique key
strategic models and assumptions
and limitations
•Demonstrate clear appreciation
of the major debates about
structure, culture, leadership,
motivation
•Ability to strategically analyse an
organisation
Module: An introduction

3. 1. International Business Management
2. National Competitiveness in Global Strategy
3. External ,Internal and Implementation of Strategy
4. Structure, Culture and Creativity
5. Strategy Determination ; retailing as an example
6. Global Management and Leadership
Key Topics

4. a) The history of international business development
b) Globalisation drivers
c) The global business environment
d) The politico-legal environment
e) The economic environment
f) The cultural environment
g) The technological environment
h) The competitive advantage of nations
Topic 1: International Business Strategy and
Globalization

5. • Ancient trading empires (up to 1400 AD)
• Era of exploration (1400-1700)
• Empires and mercantilism
• The industrial revolution and colonialism
• The inter world war years 1918-1936
• Rise of the multinationals 1945-1970
• Why do countries trade
• Mercantilism and Absolute Advantage
• Comparative advantage
• Factor proportions (FP) theory
Beginnings of world trade

6. • Economies of scale plus first mover advantage
• Specialisation (country becomes market leader)
• Critical mass creation (market share, customer recognition,
turnover etc.)
• Barriers to entry in some sectors
• Services and supporting industries adds to critical mass and
increase specialisation
• US Aircraft industry was supported by government post 1950s
New Trade Theory; Helpman and
Krugman (1985)

7. • Coase (1937) – firms hit a ‘tipping point ‘ in their growth where
costs of organic growth outweigh the costs of continued
expansion
• Some firms become MNEs
• Others use collaboration and partnering
• Transaction cost analysis has ex-ante and ex-post costs
• Ex-ante costs e.g. Market research costs
• Ex-post costs e.g. Collaborative monitoring and on-going
relationship costs
Transactional Cost Analysis

8. Leading exporters
1. China
2. Germany
3. USA
4. Japan
5. France
6. South Korea
7. Italy
8. Netherlands
Value US $ billions
1.1,506
2.1,337
3.1,270
4.765
5.509
6.466
7.458
8.451
World’s leading Exporters
(2010)

9. Leading importers
1. USA
2. China
3. Germany
4. Japan
5. France
6. Italy
7. UK
8. Hong Kong
Value US $ billions
1.1,903
2.1,307
3.1,120
4.637
5.578
6.560
7.547
8.413
World’s leading importers
(2010)

10. • Go onto the internet
• Briefly report on the major players and
changes therein since 2010.
• (World Trade Organisation http://www.wto.org)
Exercise :On the Internet research the
world’s leading exporters/importers

11. • Market drivers e.g. world brands
• Competitive drivers e.g. New entrants BRICs
• Government drivers e.g. denationalisation
• Cost drivers e.g. economies of scale
• Other drivers e.g. Financial markets global reach
• 4 key factors in globalisation – politics,economics, finance and
technology
Globalisation drivers

12. • Obtain reciprocal advantages
• Joint actions to solve problems e.g.joint
ventures
• Mass issues to be managed e.g. Carbon
management, oceans , resources
• Different business models – shared services,
off-shoring, on-shoring etc.
More cross national co-
operation

13. Pick one of the following industries/industry sectors:
• Financial services
• The perfume industry
• The automotive industry
• The tourism industry
• The aircraft passenger carrier industry
Discuss the opportunities (and threats) and the changes that have
occurred and are occurring in your chosen global sector, from a
political, economic, financial and technological perspective. Write
a brief report and submit to your tutor.
Globalisation : Threats and Opportunities

14. •World Trade Organisation
(previously GATT)1947
•United Nations (1945)
•The International Monetary Fund
(IMF)
•World Bank Group (WBG)
•IBRD (1976) and International
Business
•The Regional Trading Blocs(EU,
NAFTA, MERCOSUR, Andean
Pact, ASEAN,APEC)
•Political economic integration
•Free Trade Areas
•Customs Union
•Common Market
•Economic Union
The Global Business Environment

15. • As a medium sized company making and selling cards , you only
operate in the domestic market but wish to expand into new
markets
• Initial analysis suggests opportunities in Chile, China,Brazil,Czech
Republic, The Netherlands, Eire and Japan
• What information do you need per market, where can it be
sourced and attempt to rank your chosen criteria
Exercise : Greeting card company

16. Type of political system
Type of political control
Political instability :
The Feierabend Index
Political vulnerability
Political Risk and management
Relative bargaining power
Integrative techniques (inc joint
ventures)
Protective and defensive
techniques
Legal environment and
legislation
•Culture and Environment (see
topic 3)
The Politico-Legal Environment

17. Economic
•World population increases
•Most populous nations
•Age group distributions
•Most wealthy economies and least
wealthy
•Problems with measures like purchasing
power parity (PPP)
•Country risk ratings,f inancial and
economic risk
•Perceived environmental uncertainty
•Index of economic freedom
Technological
•Positives and negatives of technology
•Technology and business
•Technology audit
•Technology strategy and product and
service
•Technology and management control
•Innovation and diffusion – The innovation
continuum
•Predicting technology change
•Social networks and technology
The Economic and Technological
Environments

18. •A review of the areas
considered in topic 1
Topic 1