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© 2002 Thomson Learning, Inc.
CHAPTER 12CHAPTER 12
Strategic Planning in Strategic Planning in International BusinessInternational Business
Text by Profs. M. Czinkota, I. Ronkainen, Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffettand M. MoffettMultimedia Presentation byMultimedia Presentation byProf. Milton PressleyProf. Milton PressleyThe University of New OrleansThe University of New Orleans
[email protected]@uno.edu
© 2002 Thomson Learning, Inc.
• To outline the process of strategic planning in To outline the process of strategic planning in the context of the global marketplacethe context of the global marketplace
• To examine both the external and internal To examine both the external and internal factors that determine the conditions for factors that determine the conditions for development of strategy and resource development of strategy and resource allocationallocation
• To illustrate how best to utilize the To illustrate how best to utilize the environmental conditions within the environmental conditions within the competitive challenges and resources of the competitive challenges and resources of the firm to develop effective programsfirm to develop effective programs
• To suggest how to achieve a balance between To suggest how to achieve a balance between local and regional/global priorities and local and regional/global priorities and concerns in the implementation of strategyconcerns in the implementation of strategy
LEARNING OBJECTIVESLEARNING OBJECTIVESLEARNING OBJECTIVESLEARNING OBJECTIVES
© 2002 Thomson Learning, Inc.
GlobalizationGlobalizationGlobalizationGlobalization• Globalization: business orientation Globalization: business orientation
based on the belief that the world is based on the belief that the world is becoming more homogenous and becoming more homogenous and that distinctions between markets that distinctions between markets will disappearwill disappear
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© 2002 Thomson Learning, Inc.
Figure 12.1 – Evolution of Global StrategyFigure 12.1 – Evolution of Global StrategyFigure 12.1 – Evolution of Global StrategyFigure 12.1 – Evolution of Global Strategy
© 2002 Thomson Learning, Inc.
GlobalizationGlobalizationGlobalizationGlobalization• Multi-Domestic StrategyMulti-Domestic Strategy• Globalization DriversGlobalization Drivers
• Market FactorsMarket Factors• Cost FactorsCost Factors
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© 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
GlobalizationGlobalizationGlobalizationGlobalization• Environmental FactorsEnvironmental Factors
• MininationalsMininationals
• Competitive FactorsCompetitive Factors• The OutcomeThe Outcome
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© 2002 Thomson Learning, Inc.
Figure 12.2 – The Global LandscapeFigure 12.2 – The Global LandscapeFigure 12.2 – The Global LandscapeFigure 12.2 – The Global Landscape
© 2002 Thomson Learning, Inc.
The Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning Process• Strategic planning is needed to match Strategic planning is needed to match
markets with products and other markets with products and other resources more effectively and resources more effectively and efficiently to strengthen the company’s efficiently to strengthen the company’s long-term competitive advantage long-term competitive advantage
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© 2002 Thomson Learning, Inc.
Figure 12.3 – Figure 12.3 – Globalization Globalization Strategy Strategy FormulationFormulation
Figure 12.3 – Figure 12.3 – Globalization Globalization Strategy Strategy FormulationFormulation
© 2002 Thomson Learning, Inc.
The Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning Process• Understanding and Adjusting the Core Understanding and Adjusting the Core
StrategyStrategy• Market and Competitive AnalysisMarket and Competitive Analysis• Internal AnalysisInternal Analysis
• Formulating Global Marketing StrategyFormulating Global Marketing Strategy• Choice of Competitive StrategyChoice of Competitive Strategy
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© 2002 Thomson Learning, Inc.
Figure 12.4 – Competitive StrategiesFigure 12.4 – Competitive StrategiesFigure 12.4 – Competitive StrategiesFigure 12.4 – Competitive Strategies
© 2002 Thomson Learning, Inc.
The Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning Process• Cost LeadershipCost Leadership• Differentiation Differentiation
• Country – Market ChoiceCountry – Market Choice• Portfolio ModelsPortfolio Models
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© 2002 Thomson Learning, Inc.
Figure 12.5 – Example of a Market-Portfolio Matrix Figure 12.5 – Example of a Market-Portfolio Matrix Figure 12.5 – Example of a Market-Portfolio Matrix Figure 12.5 – Example of a Market-Portfolio Matrix
© 2002 Thomson Learning, Inc.
Figure 12.6 – Example of Strategic Figure 12.6 – Example of Strategic Interconnectedness MatrixInterconnectedness Matrix
Figure 12.6 – Example of Strategic Figure 12.6 – Example of Strategic Interconnectedness MatrixInterconnectedness Matrix
© 2002 Thomson Learning, Inc.
The Strategic The Strategic Planning ProcessPlanning ProcessThe Strategic The Strategic Planning ProcessPlanning Process
• SegmentationSegmentation
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© 2002 Thomson Learning, Inc.
Figure 12.7 – Bases for Global Market Figure 12.7 – Bases for Global Market SegmentationSegmentation
Figure 12.7 – Bases for Global Market Figure 12.7 – Bases for Global Market SegmentationSegmentation
© 2002 Thomson Learning, Inc.
The Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning Process• Global Program DevelopmentGlobal Program Development
• Product OfferingProduct Offering• Marketing ApproachMarketing Approach
• GlocalizationGlocalization
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© 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
The Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning Process• Location of Value-Added ActivitiesLocation of Value-Added Activities• Competitive MovesCompetitive Moves
• Cross-SubsidizationCross-Subsidization
• Implementing Global ProgramsImplementing Global Programs• ChallengesChallenges
• Not-Invented-Here SyndromeNot-Invented-Here Syndrome
• Localizing Global MovesLocalizing Global Moves• Management ProcessesManagement Processes
• Organizational StructuresOrganizational Structures• Global Account ManagementGlobal Account Management
• Corporate CultureCorporate Culture
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