International business
GROUP presentation :
TOPICS
• External environment assessment
• Internal environment assessment
• Strategy implementation
• Goal setting
External environment assessment
Information gathering : Asking experts in industry
Using historical trends
Asking knowledgeable manager
Using computer to stimulate industry environment
Competitive intelligence :
gathering information about competitors and competitive environment
Information assessment :
“five forces model”
Information assessment:
Internal environment assessment
physical resources and personnel
competencies
The way in which value chain analysis can
be used to bring these resources together in
the most synergetic and profitable manner .
Physical resources :
• Cash , inventory , machinery and equipment accounts
• Location and disposition
• Degree of integration: SBU “business within business”
• Vertical integration :the ownership of assets involved in
producing a good or service and delivering it to final customer .
E.g. times magazine
• Virtual integration : the ownership of core technologies and
manufacturing capabilities needed to produce output .
Personnel competencies : “ ability and talents of people “
Value chain analysis :
Primary + support activities
profit margin
Corporate Value Chain Analysis
DistributionAnd
OutboundLogistics
Operations
PurchasedSupplies
andInboundLogistics
Sales and Marketing
ServiceProfit
Margin
Product R&D, Technology, Systems Development
Human Resources Management
General Administration
Primary Activities and Costs
Support Activities and Costs
Strategy types : Cost strategy :a strategy based on low price and is
achieved through approaches such as vigorous pursuit of
cost reduction and overhead control and minimize in
areas like sales and marketing .
Differentiated strategy :a strategy that directed towards
creating something that is perceived as being unique .
Focus strategy :a strategy that concentrates on a
particular buyer group and segments that niche based on
product line or geographic market .
Setting Strategic Goals
• Goals
– Are very broad statements of the results that an organization wishes to achieve in the long run.
– Relate to the mission and vision of the organization and specify the level of performance that the organization wants to achieve.
• SMART goals are:
– Specific…Measurable…Achievable…Results-oriented…Timeline
Strategy implementation :
Strategy implementation is the process of attaining
goals by using organizational structure to execute the
formulated strategy properly.
Three most important are :
Location
ownership decision
Functional area implementation
Location
ADVANTAGES :
• Local facilities provide a cost advantage to producer
• Residents may prefer locally produced products
• Low govt. restriction e.g. tariffs , quotas
DISADVANTAGES :
• Unstable political climate
• Revolution / armed conflicts
Ownership decision :
• International joint venture :an agreement between two
or more partners to own and control an overseas
business
• Strategic alliance : an agreement between two or more
competitive multinational enterprise
Functional area implementation Marketing:
• Identify customer needs
• Four P’s
• Focus strategies
• Apprises manufacturing department
Manufacturing :
• Make avail right product at right time
• Procurement + technology =ensure quality
Finance :
• Controlled out home office
• Careful constructed budget to control overall strategic plan
• Marketing
• Manufacturing