International Business Environments and Operations, 13/e Global Edition

International Business
Environments and Operations,
13/e
Global Edition
Part Five
Global Strategy, Structure, and
Implementation
11-1
Copyright © 2011 Pearson Education
Chapter 11
The Strategy
of
International
Business
11-2
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Chapter Objectives
• To identify how managers develop strategy
• To examine industry structure, firm strategy, and
value creation
• To profile the features and functions of the value
chain framework
• 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
11-3
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The Role of Strategy in
International Business
11-4
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Industry, Strategy ,and Firm
Performance
• Industry organization paradigm leading
strategy perspectives
• The exceptions of imperfect competition
• The idea of industry structure: The Five
Forces Model
11-5
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Five Forces Model
11-6
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Industry Change
Industry structure changes because of events like
• Competitors’ moves
• Government policies
• Changes in economics
• Shifting buyer preferences
• Technological developments
• Rate of market growth
11-7
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Strategy and Value
• Strategy helps managers assess the
company’s present situation, identify the
direction the company should go, and
determine how the company will get there.
• Creating Value
– Cost Leadership
– Differentiation
11-8
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The Firm as Value Chain
• What is the value chain?
• Using the value chain
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Configuration
Macro Cost Factors
Cluster Effects
Logistics
Digitization
Economies of Scale
Business Environment
11-9
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Coordination
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Coordination Concerns
National Cultures
Learning Curve
Operational Obstacles
Subsidiary Networks
11-10
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Change and the Value Chain
• The configuration and coordination of value
chains respond to changes in customers,
competitors, industries, and environments.
• Caveat: The Risk of Strategy
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Global Integration versus Local
Responsiveness
• Pressures for Global Integration
– Globalization of Markets
– Efficiency Gains of Standardization
• Pressures for Local Responsiveness
– Consumer Divergence
– Host Government Policies
11-12
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When Pressures Interact
The Integration-Responsiveness grid helps
managers measure the global and local
pressures that influence the configuration and
coordination of their value chains.
11-13
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Integration Responsiveness Grid
11-14
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Types of Strategy
11-15
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Future: What’s New in the World
of Strategy Types
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Evolution of the Multinational Corporation
Visions of the Future
The “Metanational” Company
“Micro-Nationals”
The “Cybercorp”
11-16
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All rights reserved. No part of this
publication may be reproduced, stored in
a retrieval system, or transmitted, in any
form or by any means, electronic,
mechanical, photocopying, recording, or
otherwise, without the prior written
permission of the publisher. Printed in the
United States of America.
11-17
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