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CONTENTS
 Introduction
 Who is a Global Business Leader
 International Strategic Alliance
 Designing Structure and Strategy
 Risk Management
 Managing Network
 Innovation
INTRODUCTION
 Activity connecting trade and
investment activities by organization
across national boundaries.
WHY company should do
international business?
WHAT is international
business?
Cavusgil, Knight, Riesenberger, Rammal, & Rose, (2014), Daft,
 Generating new markets and finding
potential growth
 Economic of Scale: get large volume of
production
 Risk diversification
 Competitive equality
GLOBAL BUSINESS LEADER CHARACTERISTIC
 Ability to motivate followers: idea and action
 Connect all followers together
 Good Decision Maker
 Clear vision
 Know themselves
 Have open mind
Altman and Altman (2012)
INTERNATIONAL STRATEGIES ALLIANCE
 The simplest way of contract.
 Trademarks, intellectual property, and all
trade secrets.
 Partnership: governments, banks,
suppliers, or distributors.
International
Licensing
International
Joint Venture
 Two or more companies joint
to generate new things
 Reason of doing IJV: low cost,
government policy, and skills,
knowledge, and technology
Forsgren and Johanson (2014), Saha and Chattopadhyay (2015)
DESIGNING STRUCTURE & STRATEGY
 STRUCTURE  Allocate power and authority in the right
position
 Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014)
“The most successful firms create an organizational structure that
best matches their strategic vision”.
Daft (2013), Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),
Formulate a strategic
vision
Set an effective
organizational structure
Adequate research
*Key factor: Cultivate an Organizational Culture
Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),
RISK MANAGEMENT
Verbeke (2013), Niedergassel, Kanzler, and Leker (2011), O'Regan (2010), Sadri (2013)
RISKS
Legal and Regulatory Risk  Legal Training course by internal or external
expertise or Joint Venture
Cultural difference  Collectivistic or Individualistic
Example: Women in Saudi Arabia
Gesteland (2012), “When in Rome, do as the Romans do”.
Communication Obstacle  Communication Style, Language Barrier
Local Preference  Product customization, Market research by focus
groups
MANAGING NETWORK IN INTERNATIONAL
BUSINESS
50 – 60% of joint venture fail. (Büchel & Strategy, 2013)
Maintain position in the international network
Building relationship with business network.
Sharing information
The impact of partner relationships from offspring
or next generation
Initial stage: Set up a clear role Ex: 50-50 Joint
venture
Büchel & Strategy (2013), Forsgren & Johanson (2014)
INNOVATION
Internationalization and innovation have positive link.
- Digital age, should not limit our creativity, Give chance to
new generation
- Make difference and increase competitive advantage
- Applied to corporate culture to grow business
Spirit of Innovation  International expansion, new
business model e.g. P&G
Pegan and de Luca (2015), Verbeke (2013), Amit and Zott (2012)
 Making sure that ready or not
 Knowing your competitive advantage
 Knowing target customer and strategy to attract them
 Operating and running the business ethically and responsibly
CONCLUSION
REFERENCES
Altman, Y., & Altman, B. (2012). Who is a Global Business Leader?. People & Strategy, 35(2), 10-11.
Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan
Management Review, 53.
Büchel, B., & Strategy, E. S. (2013). Managing partner relations in joint ventures. Image.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International
business. Pearson Australia.
Daft, R. L. (2013). Organization Theory & Design (11th ed,.Pp.348-380). Mason, OH: South-Western,
Cengage learning.
Forsgren, M., & Johanson, J. (2014). Managing networks in international business. Routledge.
Kates, A., & Galbraith, J. R. (2010). Designing your organization: Using the STAR model to solve 5
critical design challenges. John Wiley & Sons.
Niedergassel, B., Kanzler, S., & Leker, J. (2011). Cross-Cultural perceptions on knowledge sharing in
Heterogeneous Collaborations. International Journal Of Innovation Management, 15(3), 563-592.
O'Regan, D. (2010). International Business Risk. Internal Auditor, 67(2), 21-23.
Pegan, G., & de Luca, P. (2015). Innovation and Internationalization: Evidences from the Italian
furniture industry. International Journal Of Management Cases, 17(4), 188-207.
Saha, A., & Chattopadhyay, U. (2015). The impact of International Joint Venture on Local Economy: A
Case Study of Hero Honda. South Asian Journal of Business and Management Cases, 4(1), 14-
26.
Verbeke, A. (2013). International business strategy. Cambridge University Press.
THANK YOU

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How To Success in International Business?

  • 1.
  • 2. CONTENTS  Introduction  Who is a Global Business Leader  International Strategic Alliance  Designing Structure and Strategy  Risk Management  Managing Network  Innovation
  • 3. INTRODUCTION  Activity connecting trade and investment activities by organization across national boundaries. WHY company should do international business? WHAT is international business? Cavusgil, Knight, Riesenberger, Rammal, & Rose, (2014), Daft,  Generating new markets and finding potential growth  Economic of Scale: get large volume of production  Risk diversification  Competitive equality
  • 4. GLOBAL BUSINESS LEADER CHARACTERISTIC  Ability to motivate followers: idea and action  Connect all followers together  Good Decision Maker  Clear vision  Know themselves  Have open mind Altman and Altman (2012)
  • 5. INTERNATIONAL STRATEGIES ALLIANCE  The simplest way of contract.  Trademarks, intellectual property, and all trade secrets.  Partnership: governments, banks, suppliers, or distributors. International Licensing International Joint Venture  Two or more companies joint to generate new things  Reason of doing IJV: low cost, government policy, and skills, knowledge, and technology Forsgren and Johanson (2014), Saha and Chattopadhyay (2015)
  • 6. DESIGNING STRUCTURE & STRATEGY  STRUCTURE  Allocate power and authority in the right position  Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014) “The most successful firms create an organizational structure that best matches their strategic vision”. Daft (2013), Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),
  • 7. Formulate a strategic vision Set an effective organizational structure Adequate research *Key factor: Cultivate an Organizational Culture Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),
  • 8. RISK MANAGEMENT Verbeke (2013), Niedergassel, Kanzler, and Leker (2011), O'Regan (2010), Sadri (2013) RISKS Legal and Regulatory Risk  Legal Training course by internal or external expertise or Joint Venture Cultural difference  Collectivistic or Individualistic Example: Women in Saudi Arabia Gesteland (2012), “When in Rome, do as the Romans do”. Communication Obstacle  Communication Style, Language Barrier Local Preference  Product customization, Market research by focus groups
  • 9. MANAGING NETWORK IN INTERNATIONAL BUSINESS 50 – 60% of joint venture fail. (Büchel & Strategy, 2013) Maintain position in the international network Building relationship with business network. Sharing information The impact of partner relationships from offspring or next generation Initial stage: Set up a clear role Ex: 50-50 Joint venture Büchel & Strategy (2013), Forsgren & Johanson (2014)
  • 10. INNOVATION Internationalization and innovation have positive link. - Digital age, should not limit our creativity, Give chance to new generation - Make difference and increase competitive advantage - Applied to corporate culture to grow business Spirit of Innovation  International expansion, new business model e.g. P&G Pegan and de Luca (2015), Verbeke (2013), Amit and Zott (2012)
  • 11.  Making sure that ready or not  Knowing your competitive advantage  Knowing target customer and strategy to attract them  Operating and running the business ethically and responsibly CONCLUSION
  • 12. REFERENCES Altman, Y., & Altman, B. (2012). Who is a Global Business Leader?. People & Strategy, 35(2), 10-11. Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53. Büchel, B., & Strategy, E. S. (2013). Managing partner relations in joint ventures. Image. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia. Daft, R. L. (2013). Organization Theory & Design (11th ed,.Pp.348-380). Mason, OH: South-Western, Cengage learning. Forsgren, M., & Johanson, J. (2014). Managing networks in international business. Routledge. Kates, A., & Galbraith, J. R. (2010). Designing your organization: Using the STAR model to solve 5 critical design challenges. John Wiley & Sons. Niedergassel, B., Kanzler, S., & Leker, J. (2011). Cross-Cultural perceptions on knowledge sharing in Heterogeneous Collaborations. International Journal Of Innovation Management, 15(3), 563-592. O'Regan, D. (2010). International Business Risk. Internal Auditor, 67(2), 21-23. Pegan, G., & de Luca, P. (2015). Innovation and Internationalization: Evidences from the Italian furniture industry. International Journal Of Management Cases, 17(4), 188-207. Saha, A., & Chattopadhyay, U. (2015). The impact of International Joint Venture on Local Economy: A Case Study of Hero Honda. South Asian Journal of Business and Management Cases, 4(1), 14- 26. Verbeke, A. (2013). International business strategy. Cambridge University Press.

Editor's Notes

  1. For example, Procter & Gamble Company failed to aggressively redesign organizational structure to a global organization because of their conservative company culture. The reason was insufficient research and poor planning and implementation.
  2. The characteristic of high-context communication is collectivistic, thoughtful, human relation, instinctive, and contemplative. Moreover, most of information and meaning rests on a physical context or on people. Also, they also use indirect verbal expressions and non-verbal instead of directly specific on detail. In contrast with the characteristic of low-context communication, which is individualistic, logical, and action-orientated.