This document provides information on various topics related to international business strategy: 1. It begins with background on Japan - its location, leadership, capital, language, currency, and population. 2. It then discusses challenges of doing business in Japan, such as starting a business, dealing with permits, taxes, and enforcing contracts. 3. It provides details on the historical European Community (EC) and its goals of eliminating trade barriers. It describes the three main bodies - European Economic Community (EEC), European Coal and Steel Community (ECSC), and European Atomic Energy Community. 4. It outlines benefits and challenges of doing business in North America, such as speed, dedicated workers, and clear rules,

1. INTERNATIONAL BUSINESS STRATEGY
UNIT-4
Ms. Jissy.C
Assistant Professor

2.  Japan is an island country in East Asia,
located in the northwest Pacific Ocean. It is
bordered on the west by the Sea of Japan,
and extends from the Sea of Okhotsk in the
north toward the East China Sea and Taiwan
in the south.
 Prime minister: Yoshihide Suga Trending
 Capital: Tokyo
 National language: Japanese
 Currency: Japanese yen
 Population: 12.63 crores (2019) World Bank

3. DOING BUSINESS IN JAPAN
 Japan is the third largest economy in the world but lies in
114th place for ease of doing business. Having local
help on board is essential for overseas ventures to work
in the east Asian powerhouse.
 The Japanese economy ranks third in the world in terms
of gross domestic product (GDP), but 114th for ease of
doing business. Despite its domestic competence,
having local help on board is essential to the smooth
running of an overseas venture.
 Japan is a leading centre for innovation, boasting a
highly attractive business and living environment within
one of the world's largest economies. A survey by the
Ministry of Economy, Trade and Industry (METI) found
that Japan has a stellar reputation among Western and
Asian companies, which are attracted by its R&D
capabilities, personnel and well developed laws, such as

4.  CHALLENGES OF DOING BUSINESS IN
JAPAN
 Starting a Business
 Dealing with Construction Permits
 Getting Electricity
 Registering Property
 Getting credit and protecting investors
 Paying Taxes
 Trading Across Borders
 Enforcing Contracts
 Resolving Insolvency

5.  EUROPEAN COMMUNITY (EC)
 European Community (EC) was an economic
association formed by six European member
countries in 1957, consisting of three
communities that eventually were replaced by
the European Union (EU) in 1993. The
European Community dealt with policies and
governing, in a communal fashion, across all
member states.
 The six founded member countries of the
european community were Belgium,
GermanyFrance, Italy ,Luxembourg &
nertherlands.

6.  Goals of EC
 The primary goal of the European Community
was to foster a common trade policy that
would eliminate trade barriers, thereby
improving economic conditions for the entire
region.
 Government officials from member states
(who were well aware of the tensions still
simmering in the aftermath of World War II)
wanted to promote a high level of integration
and cooperation in order to reduce the
likelihood of future wars.

7.  The European Economic Community (EEC)
 The first of the three organizations in the European
Community :
 European Economic Community (EEC), also known
as the Common Market. The EEC was established in
1957 by the Treaty of Rome as a way to unify the
economies of Europe and reduce tensions that could
lead to war. Of particular concern was to promote a
lasting reconciliation between France and Germany.
 In order to eliminate trade barriers and implement
unified trade policies, member countries needed to
cooperate politically and arbitrate differences
peacefully. The benefit for all countries would be the
ability to engage in profitable trade across borders. In
1962, the EEC implemented an agricultural policy that
shielded EEC farmers from competition arising
from agricultural imports.

8.  European Coal and Steel Community (ECSC)
 The second organization in the European Community
was the European Coal and Steel Community (ECSC).
It was put in place to attempt to regulate
manufacturing practices across the member states. By
integrating the steel and coal industries in western
Europe, the ECSC was able to remove almost all trade
barriers among member states in coal, steel, coke,
scrap iron, and pig iron.
 The ECSC set treaty rules regarding pricing and
quotas, imposing fines on companies that broke the
rules. By the 1960s, trade in the commodities
overseen by the ECSC had risen throughout the
region. The focus of the ECSC shifted in the 1970s
toward reducing excess production in the steel
industry in order to maintain competitiveness as Japan
flooded the markets with cheap steel

9.  European Atomic Energy Community
 Lastly, the European Atomic Energy
Community (also known as "Euratom") was
created in 1958 to establish a common
market among member nations for trade in
nuclear materials and equipment. Among
Euratom's goals was to coordinate research
and promote peaceful uses for atomic energy.
The organization did not include military uses
of nuclear materials as part of its oversight.
Instead, it focused on trade issues and
establishing health and safety regulations for
atomic energy.

10. Doing business in Europe – the top opportunities
 1 Generally homogenic
 2 Data privacy
 3 Little to no corruption
 4 The possibility of selecting a business-friendly
territory as country of origin
 5 A strong institutional framework and long-term
stability
Major Challenges
 A mass of bureaucracy
 Financial crisis
 Rise of nationalistic tendencies

11.  DOING BUSINESS IN NORTH AMERICA
 The Doing Business North America (DBNA)
project annually provides objective measures
of the scale and scope of business
regulations in 115 cities across 92 states,
provinces, and federal districts of the U.S.,
Canada, and Mexico. It uses these measures
to score and rank cities in regard to how easy
or difficult it is to set up, operate, and shut
down a business.

12. BENEFITS OF DOING BUSINESS IN NORTH
AMERICA
 Speed And Accuracy
 Hard Working And Dedicated Employees
 Equal Footing
 Openness To New Ideas And Opportunities
 Clear Rules And Instructions
 Diverse Population

13.  CHALLENGES OF DOING BUSINESS IN
THE US
 1. Starting a Business
 2. Dealing with Construction Permits and Getting
Electricity
 3. Registering Property
 4. Getting Credit
 5. Protecting Investors
 6. Paying Taxes
 7. Trading across Borders
 8. Enforcing Contracts
 9. Resolving Insolvency
 10. Culture

14.  CORPORATE STRATEGY
Corporate strategy is a companywide plan to choose
and develop particular markets in which to compete
while improving the various divisions or units of the
business.
 components of corporate strategy
Diversification means expanding the market area
or moving into new industries.
Vertical integration refers to when a company
expands into areas previously covered by suppliers

15. TYPES OF CORPORATE
STRATEY
Stability
Strategy
Expansion
strategy
Retrenchment
strategy
Combination
strategy

16.  Stability Strategy:
When a company finds that it should continue in
the existing business and is doing reasonably
well in that business but no scope for significant
growth, the stability is the strategy to be adopted
Jauch and Glueck observe, ‘a stability strategy is
a strategy that a firm pursues when-
It continues to serve the customers in the same
product or service, market, and function sectors
as defined in its business definition, or in very
similar sectors.
Its main strategic decisions focus on incremental
improvement of functional performance.’

17.  Reasons for Adopting Stability Strategy
 The company is doing fairly well or perceives itself as successful
and expects the same in the future.
 The stability strategy is less risky.
 The stability strategy can evolve because the managers prefer
action to thought and do not tend to consider any other alternatives
 To follow a stability strategy, it is easier and more comfortable for
all concerned as activities take place in routines.
 The management pursuing stability strategy does not have the
mind-set of a strategist to appraise the environmental opportunities
and threats and take advantage of the opportunities.
 The company that has core competence in the existing business
does not want to take the risk of diverting attention from the current
business by opting for diversification.

18.  Expansion Strategy:
 Jauch and Glueck defines expansion strategy ‘as a
strategy that a firm pursues when-
It serves the public in additional product or
service sectors or adds markets or functions to its
definition.
It focuses its strategic decisions on major
increases in the pace of activity within its present
business definition

19.  Reasons for Adopting Expansion Strategy:
 1. If business environments are volatile,
expansion may be a necessary strategy for
survival.
 2. Many executives may feel more satisfied with
the prospects of growth expansion.
 3. Chief Executive Officer may feel pride in
presiding over organizations perceived to be
growth-oriented.
 4. Some executives believe that expansion is in
the benefit of the society.
 5. Expansion provides more financial and other
rewards.
 6. Expansion enables to reap advantages from
the experience curve and scale of operations.

20. Types of corporate level strategy