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1、INTERNATIONAL CONTEXT,Dr Ita ODonovan,Beechgrove Associates,1,Beechgrove Associates,2,Opportunities and Outcomes of International Strategy,Exporting Licensing Strategic alliances Acquisitions Establishment of a new subsidiary,International business-level strategy Multidomestic strategy Global strate
2、gy Transnational strategy,Increased market size Return on investment Economies of scale and learning Advantage in location,Identify International Opportunities,Explore Resources and Capabilities,Use Core Competence,International Strategies,Modes of Entry,Beechgrove Associates,3,Opportunities and Out
3、comes of International Strategy,Better performance,Innovation,Exporting Licensing Strategic alliances Acquisitions Establishment of a new subsidiary,Use Core Competence,Modes of Entry,Strategic Competitiveness Outcomes,Motivations for International Expansion,Increase Market Share domestic market may
4、 lack the size to support efficient scale manufacturing facilities Return on Investment large investment projects may require global markets to justify the capital outlays weak patent protection in some countries implies that firms should expand overseas rapidly in order to preempt imitators,Beechgr
5、ove Associates,4,Motivations for International Expansion,Economies of Scale or Learning expanding size or scope of markets helps to achieve economies of scale in manufacturing as well as marketing, R & D or distribution can spread costs over a larger sales base increase profit per unit Location Adva
6、ntages low cost markets may aid in developing competitive advantage may achieve better access to:,Beechgrove Associates,5,Raw materials Lower cost labor,Key customers Energy,International Business-Level Strategy: Determinants of National Advantage,Factors of production: the inputs necessary to compe
7、te in any industry labor land natural resources capital infrastructure basic factors include natural and labor resources advanced factors include digital communication systems and educated workforce,Beechgrove Associates,6,Beechgrove Associates,7,Beechgrove Associates,8,Beechgrove Associates,9,Inter
8、national Business-Level Strategy: Determinants of National Advantage,: Demand conditions characterized by the nature and size of buyers needs in the home market for the industrys goods or services size of market segment can lead to scale-efficient facilities efficiency can lead to domination of the
9、industry in other countries specialized demand may create opportunities beyond national boundaries,Beechgrove Associates,10,International Business-Level Strategy: Determinants of National Advantage,Related and supporting industries: supporting services, facilities, suppliers and so on support in des
10、ign support in distribution related industries as suppliers and buyers,Beechgrove Associates,11,International Business-Level Strategy: Determinants of National Advantage,Firm strategy, structure, and rivalry: the pattern of strategy, structure, and rivalry among firms common technical training metho
11、dological product and process improvement cooperative and competitive systems,Beechgrove Associates,12,Beechgrove Associates,13,Beechgrove Associates,14,Source: MIT Sloan,Beechgrove Associates,15,Source: MIT Sloan,Beechgrove Associates,16,Source: MIT Sloan,Beechgrove Associates,17,International Corp
12、orate-Level Strategy,Beechgrove Associates,18,Need for Local Responsiveness,Need for Global Integration,Low,High,Low,High,Beechgrove Associates,19,Beechgrove Associates,20,International Corporate-Level Strategy: Multidomestic Strategy,Strategy and operating decisions are decentralized to strategic b
13、usiness units (SBU) in each country Products and services are tailored to local markets Business units in one country are independent of each other Assumes markets differ by country or regions Focus on competition in each market Prominent strategy among European firms due to broad variety of culture
14、s and markets in Europe,Beechgrove Associates,21,International Corporate-Level Strategy: Global Strategy,Products are standardized across national markets Decisions regarding business-level strategies are centralized in the home office Strategic business units (SBU) are assumed to be interdependent
15、Emphasizes economies of scale Often lacks responsiveness to local markets Requires resource sharing and coordination across borders (which also makes it difficult to manage),Beechgrove Associates,22,International Corporate-Level Strategy: Transnational Strategy,Seeks to achieve both global efficienc
16、y and local responsiveness Difficult to achieve because of simultaneous requirements strong central control and coordination to achieve efficiency decentralization to achieve local market responsiveness Must pursue organizational learning to achieve competitive advantage,Strategic Competitiveness Outcomes: Returns,International diversification and returns: firm expands the sales of its goods or services across the borders of global regions and countries into different geographic locations o
