UNIT V Strategy of International Business Business Strategy
UNIT V Strategy of International Business
Business Strategy
Corporate Culture
Corporate Culture • The beliefs and values shared by people who work in an organization – – How people behave with each other How people behave with customers/clients How people view their relationship with stakeholders People’s responses to energy use, community involvement, absence, work ethic, etc. – How the organization behaves to its employees – training, professional development, etc. • May be driven by: • Vision – where the organization wants to go in the future • Mission Statement – summary of the beliefs of the organization and where it is now
Corporate Culture • May be reflected in: – Attitude and behaviour of the leadership – Attitude to the role of individuals in the workplace – open plan offices, team based working, etc. – Logo of the organisation – The image it presents to the outside world – Its attitude to change
Strategic Planning
Strategic Planning • The Vision – Communicating to all staff where the organisation is going and where it intends to be in the future – Allows the firm to set goals • Aims and Objectives: – Aims – long term target – Objectives – the way in which you are going to achieve the aim
Strategic Planning • Example: • Aim may be for a chocolate manufacturer to break into a new overseas market • Objectives: – Develop relationships with overseas suppliers – Identify network of retail outlets – Conduct market research to identify consumer needs – Find location for overseas sales team HQ
Strategic Planning • Once the direction is identified: Analyse position Develop and introduce strategy Evaluate: – Evaluation is constant and the results of the evaluation feed back into the vision
What is International Business? International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations.
Types of International Business Export-import trade Foreign direct investment Licensing Franchising Management contracts
Need for International Business More and more firms around the world are going global, including: Manufacturing firms Service companies (i. e. banks, insurance, consulting firms) Art, film, and music companies
Need for International Business International business: causes the flow of ideas, services, and capital across the world offers consumers new choices permits the acquisition of a wider variety of products facilitates the mobility of labor, capital, and technology provides challenging employment opportunities reallocates resources, makes preferential choices, and shifts activities to a global level
Recent Changes in International Business Total world trade declined dramatically after 2000, but is again on the rise. The rate of globalization is accelerating. Regionalization is taking place, resulting in trading blocs. The participation of countries in world trade is shifting. 14
- Slides: 14