International Strategy and Organization Planning and Strategy Planning
- Slides: 36
International Strategy and Organization
Planning and Strategy Planning Identifying and selecting objectives and deciding how to achieve those objectives Strategy Set of planned actions that managers take to help a company meet its
Strategy-Formulation Process
Identify Mission and Goals Mission statements must consider: Company activities ü Business objectives ü Stakeholders ü Stockholders ü Customers ü Residents ü Environment ü and much more…
Identify Core Competency Special ability of a company that competitors find extremely difficult or impossible to equal Coordination of multiple skills Lengthy period to develop Difficult to imitate
Value-Chain Analysis Divide company activities into primary and support activities and identify those that create value for customers Each activity is a source of either strength or weakness Insights gained are fed into the strategy formulation process
Value Chain Components
Primary Activities. Inbound Logistics. Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation. Operations. This is where goods are manufactured or assembled. Individual operations could include room service in an hotel, packing of books/videos/games by an online retailer, or the final tune for a new car's engine. Outbound Logistics. The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer.
Marketing and Sales. In true customer orientated fashion, at this stage the organisation prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix. Service. This includes all areas of service such as installation, after-sales service, complaints handling, training and so on.
Support Activities. Procurement. This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organisations), and e. Purchasing (using IT and webbased technologies to achieve procurement aims).
Technology Development. Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments.
Human Resource Management (HRM). Employees are an expensive and vital resource. An organisation would manage recruitment and s election, training and development, and rewards and remuneration. The mission and objectives of the organisation would be driving force behind the HRM strategy. Firm Infrastructure. This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS), and other mechanisms for planning and control such as the accounting department.
Business Environment National differences are inherent in analyzing a company’s unique abilities Ø Cultural differences Ø Political processes Ø Legal matters Ø Economic systems Ø Labor issues Ø Consumer forces and much more…
Multinational/Multidomestic Strategy Adapting products and their marketing strategies in each national market to suit local preferences + Respond quickly to buyer preferences – Difficult to exploit economies of scale
Multi-Domestic Strategy and operating decisions are decentralized to strategic business units (SBU) in each country Products and services are tailored to local markets Business units in each country are independent of each other Assumes markets differ by country or regions Focus on competition in each market Prominent strategy among European firms due to broad variety of cultures and markets in Europe
Global Strategy Offering the same products using the same marketing strategy in all national markets + Cost savings from standardization – May overlook varying buyer preferences
Global Strategy Products are standardized across national markets Decisions regarding business-level strategies are centralized in the home office Strategic business units (SBU) are assumed to be interdependent Emphasizes economies of scale Often lacks responsiveness to local markets Requires resource sharing and coordination across borders (which also makes it difficult to manage)
Levels of Company Strategy
Growth Strategy Increase the scale (size of activities) or scope (kinds of activities) of operations Internally generated growth Mergers and acquisitions Joint ventures Strategic alliances
Retrenchment Strategy Reduce the scale or scope of a corporation’s businesses Conditions Actions Ø Lay off workers Ø Poor economic conditions Ø Close inefficient factories Ø Increased competition Ø Sell unprofitable businesses
Stability Strategy Guard against change and avoid growth or retrenchment è No opportunities or threats è Strengths fully exploited è Weaknesses fully protected è Stated objectives are met
Combination Strategy Mix of growth, retrenchment, and stability strategies across a corporation’s business units Invest in promising units Retrench for less exposure Stabilize other units
Business-Level Strategies
Low-Cost Strategy Exploit economies of scale to have the lowest cost structure of any competitor in an industry Mantra is cutting costs Quality remains important Scale is barrier for new entrants Perhaps low customer loyalty
Differentiation Strategy Design products to be perceived as unique by buyers throughout an industry Differentiators Effects Quality Price premium Customer loyalty Brand image Product design Portion of market only Higher production costs
Focus Strategy Focus on narrowly defined market segment by being the low-cost leader, differentiating, or both Many sub-segments today Need distinctive product Specific geography, ethnicity, etc.
Organizational Structure Centralized decision making Decentralized decision making + Coordination is paramount + Financial control and cost + Local responsiveness savings is key + Fast-changing environment
Arguments for Centralization easier to coordinate decisions consistent with organizational objectives means to push through major changes avoids duplication of activities
Arguments for Decentralization top management overburdened more motivation at lower levels more flexibility better decisions on the spot by people directly involved more accountability
International Division Structure
International Area Structure
Global Product Structure
Global Matrix Structure
Work Teams Self-managed Cross-functional team Global team Employees from one Group of employees. Top managers from department take on from similar levels butheadquarters and responsibilities of different functional subsidiaries solve former supervisors departments company problems
Malaysia Airlines It is the mission of Malaysia Airlines System Berhad, as a corporation, to provide a transport service that ranks among the best in terms of safety, comfort and punctuality, distinguished and loved for its personal touch and warmth. We aim to set new world standards continually with our enhanced inflight services, reliable ground support and excellent infrastructure and to respond to consumer demand for worldwide coverage.
TM Vision "Our vision is to be the Communications Company of choice - focused on delivering Exceptional Value to our customers and other stakeholders“ Mission To achieve our vision, we are determined to do the following: Be the recognised leader in all markets we serve. Be a customer-focused organisation that provides one-stop total solution. Build enduring relationships based on trust with our customers and partners. Generate shareholder value by seizing opportunities in Asia Pacific and other selected regional markets. Be the employer of choice that inspire performance excellence.
- Multi domestic strategy
- Block organization example
- Process organization in computer organization
- International metrology organization headquarters
- Voluntary health agencies
- Car bumper height
- Designing organization for international environment
- International coffee organization
- Designing organization for international environment
- International labour organization
- The organization of international business
- International civil aviation organization jobs
- International metrology organization headquarters
- Iso casco
- International organization for standardization
- Strategy is implemented through projects.
- Selection project mc
- "leads international" "international marketing"
- Advantages and disadvantages of autonomy in png
- Global marketing organization
- Organization and management chapter 3 planning
- Global marketing management planning and organization
- Home replication strategy
- Superior strategy execution capabilities are
- Hierarchical plans
- There is low interdependence performance ambiguity
- Louis vuitton conclusion
- Multidomestic international strategy
- The strategy of international business chapter 13
- Icbsc
- Global-local dilemma examples
- Chapter 2 operations strategy in a global environment
- Waterfall approach in international marketing
- Starbucks 4 p's
- Define international strategy
- 3 drivers of globalization
- International competitive strategy