Organ

izatio

n Theo

ry (B

US 565-03 )

Instructo

r: Prof

. Mary

Jo Shan

e

Presen

ted by N

atchay

a Charn

sako

rn

HOW TO

SUCCESS IN

INTERNATIONAL

BUSINESS?

CONTENTS Introduction Who is a Global Business Leader International Strategic Alliance Designing Structure and Strategy Risk Management Managing Network Innovation

INTRODUCTION Activity connecting trade and

investment activities by organization across national boundaries.

WHY company should do international business?

WHAT is international business?

Cavusgil, Knight, Riesenberger, Rammal, & Rose, (2014), Daft, (2013)

Generating new markets and finding potential growth

Economic of Scale: get large volume of production

Risk diversification Competitive equality

GLOBAL BUSINESS LEADER CHARACTERISTIC Ability to motivate followers: idea and action Connect all followers together Good Decision Maker Clear vision Know themselves Have open mind

Altman and Altman (2012)

INTERNATIONAL STRATEGIES ALLIANCE The simplest way of contract. Trademarks, intellectual property,

and all trade secrets. Partnership: governments, banks,

suppliers, or distributors.

International Licensing

International Joint Venture

Two or more companies joint to generate new things

Reason of doing IJV: low cost, government policy, and skills, knowledge, and technology

Forsgren and Johanson (2014), Saha and Chattopadhyay (2015)

DESIGNING STRUCTURE & STRATEGY

STRUCTURE Allocate power and authority in the right position

Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014)

“The most successful firms create an organizational structure that best matches their strategic vision”.

Daft (2013), Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),

Formulate a strategic vision

Set an effective organizational

structure

Adequate research

*Key factor: Cultivate an Organizational Culture

Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),

RISK MANAGEMENT

Verbeke (2013), Niedergassel, Kanzler, and Leker (2011), O'Regan (2010), Sadri (2013)

RISKS Legal and Regulatory Risk Legal Training course by internal or external expertise or Joint Venture

Cultural difference Collectivistic or IndividualisticExample: Women in Saudi Arabia Gesteland (2012), “When in Rome, do as the Romans do”.

Communication Obstacle Communication Style, Language Barrier

Local Preference Product customization, Market research by focus groups

MANAGING NETWORK IN INTERNATIONAL BUSINESS

50 – 60% of joint venture fail. (Büchel & Strategy, 2013)

Maintain position in the international network

Building relationship with business network.

Sharing information

The impact of partner relationships from offspring or next generation

Initial stage: Set up a clear role Ex: 50-50 Joint venture

Büchel & Strategy (2013), Forsgren & Johanson (2014)

INNOVATION

Internationalization and innovation have positive link.

- Digital age, should not limit our creativity, Give chance to new generation

- Make difference and increase competitive advantage

- Applied to corporate culture to grow businessSpirit of Innovation International expansion, new business model e.g. P&G

Pegan and de Luca (2015), Verbeke (2013), Amit and Zott (2012)

Making sure that ready or not Knowing your competitive advantage Knowing target customer and strategy to attract

them Operating and running the business ethically and

responsibly

CONCLUSION

REFERENCESAltman, Y., & Altman, B. (2012). Who is a Global Business Leader?. People &

Strategy, 35(2), 10-11.Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT

Sloan Management Review, 53.Büchel, B., & Strategy, E. S. (2013). Managing partner relations in joint

ventures. Image.Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.

(2014). International business. Pearson Australia.Daft, R. L. (2013). Organization Theory & Design (11th ed,.Pp.348-380). Mason, OH:

South-Western, Cengage learning.Forsgren, M., & Johanson, J. (2014). Managing networks in international business.

Routledge.Kates, A., & Galbraith, J. R. (2010). Designing your organization: Using the STAR

model to solve 5 critical design challenges. John Wiley & Sons.Niedergassel, B., Kanzler, S., & Leker, J. (2011). Cross-Cultural perceptions on

knowledge sharing in Heterogeneous Collaborations. International Journal Of Innovation Management, 15(3), 563-592.

O'Regan, D. (2010). International Business Risk. Internal Auditor, 67(2), 21-23.Pegan, G., & de Luca, P. (2015). Innovation and Internationalization: Evidences from

the Italian furniture industry. International Journal Of Management Cases, 17(4), 188-207.

Saha, A., & Chattopadhyay, U. (2015). The impact of International Joint Venture on Local Economy: A Case Study of Hero Honda. South Asian Journal of Business and Management Cases, 4(1), 14-26.

Verbeke, A. (2013). International business strategy. Cambridge University Press. 

THANK YOU