1. Chapter 8: Strategy Formulation and Implementation Taylor Minter, Marco Pasquinelli, and Sarah Stanley

2. Objectives Define and elaborate on strategic management Understand four basic options for international strategies for MNCs Explain how to formulate strategy Discuss how to implement strategy

3. Agenda Define strategic management Explain the three basic steps to form a strategy Examine the four approaches to strategy Explore the implementation process Discuss the case study

4. Strategic Management (SM) What is your definition? Process of determining an organization’s basic mission and long-term objectives, then implementing a plan of action for attaining these goals. Why is SM important in organizations? Dilbert

5. Strategic Management Why do we need SM? Keep track of increasingly diversified operations in an international environment Coordinate and integrate these operations with a unified and agreed-on focus Examples

6. The Strategic Management Process External Analysis Strategic Choice Strategy Implementation Competitive Advantage Objectives Internal Analysis

7. Environmental Scanning

8. Internal Resource Analysis Evaluates current managerial, technical, material, and financial resources and capabilities to better assess its internal strengths and weaknesses. Key success factor (KSF) – is a factor that is necessary for a firm to compete effectively in a market niche

9. Goal Setting For Strategy Formulation Profitability Marketing Operations Finance Human Resources

10. Formulating and Implementing Strategy Economic - worldwide strategy based on cost leadership, differentiation, and segmentation Political- utilizing strategies that are country-responsive and designed to protect local market niches ¥ € $

11. Discussion COCA COLA dELL Released Sprite Tea in China A combo of China’s 2 most popular beverages Breathe new life in China beverage market Way to gain more of Chinese market Switched to a just in time processing system to cut down on costs and inventories Computers are now build to order

12. Formulating and Implementing Strategy Administrative Coordination- the MNC makes strategic decisions based on the merits of the individual situation rather than using a predetermined economically or politically driven strategy

13. Formulating and Implementing Strategy Quality- utilizes strategies of total quality management to meet or exceed customers’ expectations and continuously improve products or services Tate’s Chicken Show us your pizza Man hungry

14. Global vs. Regional Strategies Globalization vs. national responsiveness Matrix Global strategy International strategy Transnational strategy Multi-domestic strategy McDonalds

15. Global vs. Regional Some international management experts contend that globalization and national responsiveness are diametrically opposed forces, and that to accommodate one, a multinational must relax its efforts in the other. In what way is this an accurate statement? In what way is it incomplete or inaccurate?

16. Strategy Implementation It provides goods and services in accord with the plan of action When is a time in your life or job that you have implemented a strategy?

17. Implementation The first stages of strategy implementation are choosing your location Consider which country Then choose the specific location in the country

18. Implementation To implement the strategy three areas must be used Marketing Production Finance

19. Special Circumstances When a MNC is dealing with an emerging market, which is in an unstable country and a riskier investment so strategies need to be adjusted First-Mover Strategies “Base of the Pyramid” Strategy What are the benefits of the two I and is one better than the other?

20. Special Circumstances International Entrepreneurship- a combination of innovative, proactive, and risk-seeking behavior that crosses national boundaries and is intended to create value for organizations New Ventures/born global- firms that engage in significant international activities shortly after being established

21. Case Study What type of entry and ownership approach would you recommend? Defend your choice. How could the partners use the four Ps of marketing to help implement strategy? If production must be globally coordinated, will visions have a major problem? Why or why not?