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PT MBA

Session 4

Faculty: Dr Steyn Heckroodt

Date: 2014

Inspiring thought leadership across Africa

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• Outcomes:• Explain what internationalization of companies is

and use different theoretical models to explain international trade;

• Analyze how internationalization is measured and apply it to specific business cases;

• Discuss and compare different models to explain the culture of countries and companies.

Internationalization of Companies

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• Increasing involvement of enterprises in international markets

• Several theories• Mercantilists, absolute advantage, comparative

advantage, Hecksher-Ohlin, product lyfe-cycle theory, new trade theory, Porter’s national competitive theory

• Chapter 6 - Hill

Internationalization of Companies

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• The pattern of trade is influenced by four attributes

Porter

5 © Dr Heckroodt, SSource: Amended from Heckroodt, S. Strategic Thinking

– GAME OVER. Epubsa.co.za

Basic and advanced factors

Advanced – direct

correlation with

competitive ability

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• The pattern of trade is influenced by four attributes

Porter

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Dominant attribute

QualityPrice

Variety and Range

ConvenienceDemand

Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za

© Dr Heckroodt, S

Firm strategy, structure and rivalry

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• Structure and strategy: Is it appropriate to still embrace the thought paradigm that structure should follow strategy in terms of internationalisation? Motivate your answer through theory AND practice

• http://lectureonbusiness.com/blog/structure/• Structure, strategy and change: What are the critical

aspects to consider in devising your internationalisation strategy and how do these impact on the relation between strategy and structure, considering the business environment?

• http://lectureonbusiness.com/blog/strategy-selection-evolved-business-environment/

• China and labour

Critical thinking and discussion questions