The document discusses strategic management and the formulation and implementation of strategies for multinational corporations. It defines strategic management as determining an organization's mission, objectives, and plans to achieve goals. The strategic management process involves external and internal analysis, strategic choice, and strategy implementation. There are four basic approaches to international strategy: economic, political, administrative coordination, and global vs regional. Implementing a strategy requires choosing a location and coordinating marketing, production, and finance. Special circumstances like emerging markets may require adjusted strategies.

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

2. ObjectivesDefine and elaborate on strategic managementUnderstand four basic options for international strategies for MNCsExplain how to formulate strategyDiscuss how to implement strategy

3. AgendaDefine strategic managementExplain the three basic steps to form a strategyExamine the four approaches to strategyExplore the implementation processDiscuss 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 ManagementWhy do we need SM?Keep track of increasingly diversified operations in an international environmentCoordinate and integrate these operations with a unified and agreed-on focusExamples

6. The Strategic Management ProcessExternalAnalysisStrategicChoiceStrategyImplementationCompetitiveAdvantageObjectivesInternalAnalysis

7. Environmental Scanning

8. Internal Resource AnalysisEvaluates 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 FormulationProfitabilityMarketingOperationsFinanceHuman Resources

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

11. DiscussionCOCA COLAdELLReleased Sprite Tea in ChinaA combo of China’s 2 most popular beveragesBreathe new life in China beverage marketWay to gain more of Chinese marketSwitched to a just in time processing system to cut down on costs and inventoriesComputers are now build to order

12. Formulating and Implementing StrategyAdministrative 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 StrategyQuality- utilizes strategies of total quality management to meet or exceed customers’ expectations and continuously improve products or servicesTate’s ChickenShow us your pizzaMan hungry

14. Global vs. Regional StrategiesGlobalization vs. national responsivenessMatrixGlobal strategyInternational strategyTransnational strategyMulti-domestic strategyMcDonalds

15. Global vs. RegionalSome 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 ImplementationIt provides goods and services in accord with the plan of actionWhen is a time in your life or job that you have implemented a strategy?

17. ImplementationThe first stages of strategy implementation are choosing your locationConsider which countryThen choose the specific location in the country

18. ImplementationTo implement the strategy three areas must be usedMarketingProduction Finance

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

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

21. Case StudyWhat 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?