Global strategy formulation involves defining a company's approach to international markets. There are four main types of global strategies - multinational, international, global, and transnational - depending on the degree of standardization and localization needed. Key dimensions to consider include market participation, standardization vs localization, activity concentration, coordination, and non-market factors. Effective global strategies require analyzing industry drivers, entry strategies, target regions or countries, and the appropriate mode of entry.
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
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COEPD - Center of Excellence for Professional Development is a primarily aBusiness Analyst and PMP Training Institute in the IT industry of India head quartered at Hyderabad. COEPD is expert in PMP Training and Business Analyst Training in Hyderabad, Chennai,Pune, Mumbai&Vizag. We offer PMP and Business Analyst Training with affordable prices that fit your needs.
COEPD conducts 4-day workshops throughout the year for all participants in various locations i.e. Hyderabad, Pune. The workshops are also conducted on Saturdays and Sundays for the convenience of working professionals.
For More Details Please Contact us:
Visit at http://www.coepd.comorhttp://www.facebook.com/BusinessAnalystTraining
Center of Excellence for Professional Development
3rd Floor, Sahithi Arcade, S R Nagar,
Hyderabad 500 038, India.
Ph# +91 9000155700,
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11 The Strategy of International BusinessBrent Weeks
To evaluate industry structure, firm strategy, and value creation
To profile the features and functions of the value chain
To assess how managers configure and coordinate a value chain
To explain global integration and local responsiveness
To profile the types of strategies firms use in international business
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
COEPD - Center of Excellence for Professional Development is a primarily aBusiness Analyst and PMP Training Institute in the IT industry of India head quartered at Hyderabad. COEPD is expert in PMP Training and Business Analyst Training in Hyderabad, Chennai,Pune, Mumbai&Vizag. We offer PMP and Business Analyst Training with affordable prices that fit your needs.
COEPD conducts 4-day workshops throughout the year for all participants in various locations i.e. Hyderabad, Pune. The workshops are also conducted on Saturdays and Sundays for the convenience of working professionals.
For More Details Please Contact us:
Visit at http://www.coepd.comorhttp://www.facebook.com/BusinessAnalystTraining
Center of Excellence for Professional Development
3rd Floor, Sahithi Arcade, S R Nagar,
Hyderabad 500 038, India.
Ph# +91 9000155700,
helpdesk@coepd.com
11 The Strategy of International BusinessBrent Weeks
To evaluate industry structure, firm strategy, and value creation
To profile the features and functions of the value chain
To assess how managers configure and coordinate a value chain
To explain global integration and local responsiveness
To profile the types of strategies firms use in international business
INTERNATIONAL BUSINESS, DIVERSIFICATION, COUNTRY SELECTION AND EVALUATION, STEPS REQUIRED IN COUNTRY SELECTION AND EVALUATION, TYPES OF RISKS, COUNTRY COMPARISON TOOLS, NON COMPARATIVE DECISION MAKING, CASE STUDY of Ford
Factors associated with Entry Mode
Timing of an Entry
FIRST MOVER ADVANTAGE
Scale of Entry & Strategic Commitments
ENTRY MODES
Explain exporting, turnkey projects and licensing entry modes with their advantages and disadvantages.
Explain franchising, joint venture and wholly owned subsidiaries with its advantages and disadvantages.
SELECTING ENTRY MODE
PROS & CONS OF ACQUISITION
PROS &CONS OF GREENFIELD VENTURES
What is strategic alliance?
What are the advantage and disadvantages of strategic alliance?
What are the factors contributing to the success of an alliance?
In the 1970s, Benjamin Tregoe developed the concept of the driving force as a way to think about an organization’s strategic intent.
“the primary determinant of the products and services an organization will and will not offer and the markets (customers, consumers, and geographies it will and will not serve.”
INTERNATIONAL BUSINESS, DIVERSIFICATION, COUNTRY SELECTION AND EVALUATION, STEPS REQUIRED IN COUNTRY SELECTION AND EVALUATION, TYPES OF RISKS, COUNTRY COMPARISON TOOLS, NON COMPARATIVE DECISION MAKING, CASE STUDY of Ford
Factors associated with Entry Mode
Timing of an Entry
FIRST MOVER ADVANTAGE
Scale of Entry & Strategic Commitments
ENTRY MODES
Explain exporting, turnkey projects and licensing entry modes with their advantages and disadvantages.
Explain franchising, joint venture and wholly owned subsidiaries with its advantages and disadvantages.
SELECTING ENTRY MODE
PROS & CONS OF ACQUISITION
PROS &CONS OF GREENFIELD VENTURES
What is strategic alliance?
What are the advantage and disadvantages of strategic alliance?
What are the factors contributing to the success of an alliance?
In the 1970s, Benjamin Tregoe developed the concept of the driving force as a way to think about an organization’s strategic intent.
“the primary determinant of the products and services an organization will and will not offer and the markets (customers, consumers, and geographies it will and will not serve.”
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Cultural Differences Between the United States and Saudi ArabiaMotaz Hajaj, MS, CSMA
Using Key Cultural Factors developed by Edward T. Hall, I explore the fundamental differences between these two cultures. Our experiences of the world vary greatly depending on the culture we are a part of. Understanding the basics of other cultures helps us communicate and form better relationships.
The ppts contain topics related to Introduction of Global Strategic Management. It also includes multiple choice questions related to global strategic management
Charles Hills defines globalization as "The shift towards a more integrated and interdependent world economy". Globalization has two main components - the globalization of markets and the globalization of production.
According to International Monetary Fund, globalization means "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology. Interdependency and integration of individual countries of the world is also called as globalization”.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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2. Global Strategy Formulation
• “Going global”
– Gradual process
– Core competencies, mission, structure, culture, and
processes of international corporations evolve in the
creation of global corporations.
– Truly global Strategies are extremely rare.
– To create a vision a company must accurately define
what globalization means for its particular business.
– Each company and industry will have very different
requirements for global success.
3. Globalization And Industrial
Clustering
• Clustering- some countries or regions of the
world are more efficient than others in
producing particular goods which causes a
clustering of competing firms.
– Reasons for clustering are: natural resources,
concentration of buyers, transportation cost,
labor cost, local government laws, etc.
5. Factor Conditions
• What is the degree in which the country or
regions endowments match the characteristics
and requirements of the industry.
• Two forms of endowments
– Natural conditions (ex: climate, minerals)
– Created conditions (ex: skill levels, capital,
infrastructure)
• If a industry is highly profitable and barriers to
entry are low, the forces of imitation and
diffusion cause such and industry to spread
across international borders.
6. Industry Globalization Drivers
Industry
Globalization
Potential
Economic Drivers (cost)
•Nature of industry
•Economies of scale/location
•Differences in country costs
Competitive Drivers
•Interdependence between
countries/regions
•Globalization of competitors
Market Drivers
•Evolution of customer needs
•Global customers
•Global channels
•Transferability of marketing
Government Drivers
•Trade barriers
•Regulatory climate
•Technology/standards
Industry Globalization Drivers are underlying conditions that create the
potential for an industry to become more global.
7. Market Drivers
• Market drivers are measures that define how customer behavior patterns evolve and
converge.
• Market drivers are important because they indicate whether…
– worldwide channels of distribution can develop
– market platforms are transferable
– “lead” countries can be identified in which most innovation takes place
• Many forces push companies to think more globally in order to…
– meet foreign competition head on
– better serve an increasingly global customer base
– exploit diverse capabilities and cost advantages
– take advantage of an easing global environment
• Example: HDTV
8. Cost Drivers
• Cost drivers are factors that define the opportunity for global scale or scope economics,
sourcing efficiencies reflecting differences in costs between countries and regions, and
technology advances. They shape the economics of an industry.
• In many different industries, the minimum sales volume required for cost efficiency might
not be available in a single country or region anymore.
• Example: Pharmaceutical industry
– The development of many new drugs can no longer be justified on the basis of the economic returns from a single
country.
– Exploiting differences in costs for product development, manufacturing, and sourcing in different parts of the world
have become critical to success. (R&D)
• Determining which parts of the value chain are your cost drivers also assists in assessing the
need for mergers and acquisitions and guides the development of key alliances.
9. Competitive Drivers
• Competitive drivers are defined by the actions of competing firms--the extent to which
competitors from different continents enter the market, globalize their strategies and
corporate capabilities, and create interdependence between geographical markets.
• The globalization potential of an industry is also influenced by competitive drivers such as…
(1) the degree to which total industry sales are made up by export/import volume
(2) the diversity of competitors in terms of their national origin
(3) the extent to which major players have globalized their operations and created an
interdependence between their competitive strategies in different parts of the world
• Some useful questions to ask when analyzing global competitive drivers are…
– How many competitive arenas does our company compete in?
– Do we mainly face the same competitors in different parts of the world?
– Do competitors employ similar strategies in the different arenas?
– How necessary is it to coordinate competitive responses on a global scale?
10. Government Drivers
• Government drivers include such factors as favorable trade policies, a benign regulatory
climate, and common product and technology standards. The presence or absence of these
factors have a direct influence on a company’s global strategic options.
• As the politics and economics of global competition have become more closely intertwined,
companies are paying greater attention to the nonmarket dimensions of their global
strategies in an attempt to shape the global competitive environment to their advantage.
• EXAMPLE: Telecommunications industry
-Falling trade barriers and other deregulatory moves have encouraged companies to pursue more global approaches
to their business. ( Outsourcing)
12. Global Strategy Formulation
• Multinational
– Applicable when customer needs and industry
conditions vary considerably from country to
country, and a high degree of localization is
required
– Ex: Nestle- Allows the company to adapt to
differences in local taste preferences and
distribution structures
– Most strategic and operating decisions are made
at the local level
13. Global Strategy Formulation
• International
– Industries in which global strategic advantage depends on
• 1. Effectively developing new products in home market
• 2. Diffuse innovations to foreign markets through affiliate
organizations
• Example: High Technology Companies
• Global or Transnational
– When some degree of standardization is possible
– Example: Coca-Cola, McDonalds
– Some parts of the value chain are standard and others are
tailored to local needs
– Implementation can be hard due to difficult coordination
14. Global Strategy Dimensions
• 1. Market Participation
• 2. Standardization/Positioning
• 3. Activity Concentration
• 4. Coordination of decision making
• 5. Non-market factors
15. Market Participation
• It is too expensive to enter every market
available
• Companies must weigh the relative advantages
of a direct or indirect presence
• Midsize companies- key is to create a worldwide
resource network through alliances
• Good strategies- highly selective in participation,
realistic target market and profit objectives, and
balance stretch with current capabilities
16. Market Participation, Continued
• “Must” Markets
– Markets in which a company must compete to
realize its global ambitions
• “Nice-to-be-in” Markets
– Desirable, not critical
• Other factors:
• Developing global presence takes time & resources
• Pace of international expansion depends on customer
demand
17. Standardization/Positioning
• Motivations for standardization
– Reducing cost & enhancing quality
• Adopting a more global market positioning is
another form of standardization
– Ex: Disney, IBM– Global Branding
Global Mix Global Offer
Global Message Global Change
18. Global Branding Matrix
Global Mix Global Offer
Global Message Global Change
Standardized
OFFER
Tailored
Standardized Tailored
MESSAGE
19. Activity Concentration
• Companies must ask themselves 3 questions:
– What parts of the value-creation process to keep in-house
and which to outsource?
– Can we streamline our value-creation process by
eliminating duplicate operations in other parts of the
world?
– Can we relocate value added activities to more cost-
effective locations?
20. Coordination of Decision Making
• Involves aligning company resources (management,
capital, and personnel) to work towards a common
goal in order to collectively answer important
questions:
– What markets do we participate in?
– How should resources be allocated?
– How do we compete?
“Many companies have found that integrating and
coordinating activity on a global scale is at least as
important as control” (SAVFTT pg. 188)
21. Nonmarket Demensions
• Increasingly, global corporate success is influenced
by nonmarket factors that are governed by social,
political, and legal arrangements. Different countries
have vastly different political, economic, and legal
systems. An effective global strategy addresses both
elements; it has market dimensions that seek to
create value through economic performance and
nonmarket strategy dimensions aimed at unlocking
competitive opportunity.
22. Entry Strategies
• Exporting – low risk, but has high costs when compared to
the small amount of control over marketing and distribution.
Does not allow firsthand experience in staking out a
competitive position abroad.
• Licensing – low cost and carries limited risk, but issuing firm
has low control and limited returns.
• Joint Ventures – allow risk sharing and give the firm some
degree of flexibility. Profits must also be shared.
• Acquisitions/Startups – the ultimate commitment. Firm
has all the risk, but if successful enjoys all the return.
27. Mode of Entry
• Wal-Mart
– Chose an acquisition to enter Canada.
• Very similar markets.
– Used a 50-50 Joint venture to enter Mexico
• Needed to expertise of Mexico’s largest retailer, Cifra,
due to the income and cultural differences.
– Chose two different strategies in South America.
Went with a 60-40 joint venture in Brazil and a
wholly owned subsidiary in Argentina.
28. Global Transfer of Skills
• Wal-Mart was able to get Canada’s Woolco
out of the red by using a US model. Within
three years, they were the leading discount
retailer in Canada.
• The transition included Wal-Mart sending a
team to help employees understand “the Wal-
Mart way”, renovating every store, and
familiarizing customers with low prices, good
customer service, and a broad mix.
29. Local Adaptation
• Wal-Mart had many difficulties in China and
had to experiment many different approaches
that would best align with the Chinese culture.
– There were low levels of disposable income and
unpredictable government policies and
regulations they had to deal with.
– Adaptations was vital. Wal-Mart created smaller
stores, hybrid stores, carried more products and
different foods.
30. Local Competition
• Acquiring a dominant player.
– Wetkauf hypermarket chain in Germany. Competing
against them would not have been a good strategy.
• Acquiring a weak player.
– Woolco in Canada. Is a good strategy if the company
can turn the weak player into a strong player.
• Launching a frontal attack on the incumbent.
– Carrefour in Brazil. Created a price war, especially
with food, so Wal-Mart had to focus on customer
service and merchandise mix. Only a good strategy if
you have a huge competitive advantage.
31. Gains and Setbacks
• Wal-Mart’s international stores account for
around 40% of their stores, but less than 25%
of their profits. It’s a huge “playground” so to
speak. Their global strategies have not always
been successful though…
– Wal-Mart in Germany. Had to sell it’s stores and
lost over $1 billion because they were not able to
achieve the economies of scale they needed.
32. Global Strategy and Risk
• Political Risk – relates to politically induced actions
and policies initiated by a foreign government
– Can be broken into two sub-categories: Global risk and
country-specific risk
• Legal Risk – is assessed by analyzing the
foundations of a country’s legal system and
determining whether or not the laws are properly
enforced
– Numerous countries have laws protecting multinational’s
rights, but are rarely enforced
33. Global Strategy and Risk
• Financial/Economic Risk – comparable to
operating and financial risk at home
– Currency competitiveness and fluctuation
• Societal/Cultural Risk – involves understanding
elements such as the standard of living, patriotism,
religious factors, or the presence of charismatic
leaders.
34. Global Strategy and Risk
• Exploiting Similarities and Differences
– “How much to adapt the business model—how much to
standardize from country to country versus how much to
localize to respond to local differences”—defines global
strategy in terms of exploiting similarities.
– A single focus on possible tradeoffs between global scale
economies and local considerations obscures strategic
opportunities bases on the exploitation of differences.
– arbitrage