International Business Strategy Dr Sue Bridgewater International Business
International Business Strategy Dr Sue Bridgewater
International Business Context Environment "fit" Organisation Strategy "fit" Warwick Business School 2
International Business Challenges Capital Intensive Production Technology and Knowledge Flows Global Customers Global Competition Triads and Mega-markets Strategic Alliances Liberalisation Countertrade Warwick Business School 3
Globalisation: What happened next? Warwick Business School 4
Official partners of FIFA http: //www. fifa. com/worldcup/organisation/partne rs/index. html Warwick Business School 5
What is Global Foreign Assets Foreign Sales Foreign Employment BUT could also mean: Market Access Market Opportunities Sourcing Products/Services Customer Requirements Technology Competition Co operation Company’s Strategy Warwick Business School 6
World’s Largest (Fortune Global 500 $m 2010) Rank Name Revenue Profit 1 Wal Mart 408, 214 14, 335 2 Royal Dutch Shell 285, 129 12, 518 3 Exxon Mobil 284, 650 19, 280 4 BP 246, 138 16, 578 5 Toyota 204, 106 2, 256 6 Japan Post Holdings 202, 196 4, 849 7 Sinopec 187, 518 5, 756 8 State Grid 184, 496 -343 9 AXA 175, 257 5, 012 10 China Nat Petroleum 165, 496 10, 272 11 Chevron 163, 527 10, 483 12 ING Group 163, 204 -1, 300 13 General Electric 156, 779 11, 025 14 Total 155, 887 11, 741 15 Bank of America 150, 450 6, 276 Warwick Business School 7
MNEs by size of foreign subsidiaries (Rugman and Collinson) Rank Size FA MNE Co. O % Foreign Assets Intra-regional sales 1 General Electric US 59. 81 62. 8 2 Vodafone EU 95. 48 71. 2 3 Ford US 58. 91 63. 2 4 General Motors US 36. 22 77. 4 5 BP EU 79. 97 35. 1 6 Exxon Mobil US 69. 09 69. 7 7 Royal Dutch/Shell EU 67. 37 35. 8 8 Toyota Japan 52. 59 41. 4 9 Total EU 86. 1 53. 2 10 France Telecom EU 65. 32 80. 8 Warwick Business School 8
Fortune 500 Companies (by $million) Rank Company Revenue Profit 1 Wal Mart 408, 214 14, 335 2 Exxon. Mobil 284, 650 19, 280 3 Chevron 163, 527 10, 483 4 General Electric 156, 779 11, 025 5 Bank of America 150, 450 6, 2767 6 Conoco. Phillips 139, 515 4, 858 7 AT&T 123, 018 12, 535 8 Ford Motor Company 118, 308 2, 717 9 JO Morgan Chase 115, 632 11, 728 10 Hewlett Packard 114, 552 7660. 0 Warwick Business School 9
Global Drivers Globalisation of the World Economy On a political map, the boundaries between countries are as clear as ever. But on a competitive map showing the real flows of financial and industrial activity, those boundaries have largely disappeared. Warwick Business School 10
Californianisation of the world n Fifteen years ago Japanese slept on mats in cotton quilts, shopped daily, grabbed a quick meal at a noodle shop, and drank green tea at breaks. . . Now they sleep on beds under sheets, shop once a week to fill their freezers, hit Mc. Donalds for fast food and have coffee and doughnuts at teatime. " Kenichi Ohmae (1990) The Borderless World Warwick Business School 11
Launch of Apple i pad Warwick Business School 12
Head to head Warwick Business School 13
How to compete? AB Warwick Business School Budvar 14
Triad vs Mega-market Warwick Business School 15
Liberalisation Geographic blocking eg: North Korea Politically “Great firewall of China? ” Could be blocked by price or other barriers. Companies can be first-movers if they are fast to respond to removal of “blockages” Warwick Business School 16
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