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    MBA Leadership PDF

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    Marco Alabro
    This document discusses international business strategy. It defines strategy as the actions managers take to attain a firm's goals and position itself positively relative to competitors. A strategy must decide on targeted customers, products/services, and activities. It also discusses using the value chain to analyze internal activities. International expansion allows firms to transfer core competencies, realize location economies by performing activities in optimal locations, and realize experience curve economies through cost reductions over a product's life. Strategic significance also comes from realizing economies of scale.

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    MBA Leadership PDF

    Uploaded by

    Marco Alabro
    35 views10 pages
    This document discusses international business strategy. It defines strategy as the actions managers take to attain a firm's goals and position itself positively relative to competitors. A strategy must decide on targeted customers, products/services, and activities. It also discusses using the value chain to analyze internal activities. International expansion allows firms to transfer core competencies, realize location economies by performing activities in optimal locations, and realize experience curve economies through cost reductions over a product's life. Strategic significance also comes from realizing economies of scale.

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    This document discusses international business strategy. It defines strategy as the actions managers take to attain a firm's goals and position itself positively relative to competitors. A strategy must decide on targeted customers, products/services, and activities. It also discusses using the value chain to analyze internal activities. International expansion allows firms to transfer core competencies, realize location economies by performing activities in optimal locations, and realize experience curve economies through cost reductions over a product's life. Strategic significance also comes from realizing economies of scale.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    35 views10 pages

    MBA Leadership PDF

    Uploaded by

    Marco Alabro
    This document discusses international business strategy. It defines strategy as the actions managers take to attain a firm's goals and position itself positively relative to competitors. A strategy must decide on targeted customers, products/services, and activities. It also discusses using the value chain to analyze internal activities. International expansion allows firms to transfer core competencies, realize location economies by performing activities in optimal locations, and realize experience curve economies through cost reductions over a product's life. Strategic significance also comes from realizing economies of scale.

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    You are on page 1of 10

    Chapter 10

    The Strategy of International Business

    Presented by Ragia Grace Alabro


    MBA
    WHAT IS STRATEGY?

    COMPETETIVE
    STRATEGY
    POSITION

    - Micheal Porter defines strategy as “a broad formula for how a business is going
    to compete, what its goals should be, and what policies will be needed to carry out
    these goals
    Strategy Must Decide on a Few Parameters

    • What are these Parameters?


    • Who will be its targeted customers and who it will not target;
    • What products or services it will offer its chosen customers and what it
    will not offer them;
    • And how it will go about achieving all these activities it will perform
    and what activities it will not perform.
    The firm as Value Chain
    Value Chain is a strategy tool used to analyze internal activities. Its goal is
    to recognize, which activities are more valuable.

    Primary Activities Support Activities


    -the primary activities of a firm have provide the inputs that allow the
    to do with creating the product, primary activities of production and
    marketing and delivering the product marketing to occur.
    to buyers, and providing support and
    after-sale service to the buyers of the
    product.
    A firm’s strategy can be
    defined as the actions
    managers take to attain the
    goals of the firm.

    Role of
    Strategy
    A plan for the organization
    to position itself positively
    from its competitors and
    configure its value-adding
    activities on global scale.
    VALUE CREATION

    • It is the primary aim of any business entity. Creating value for customers
    helps sell products and services, while creating value for shareholders, in
    the form of increases in stock price, insures the future availability of
    investment capital to fund operations.
    • It is the purpose of the institution: to create and deliver value in an
    efficient enough way that it will generate profit after cost.
    PROFITING FROM GLOBAL EXPANSION
    • International expansion here refers to international business expansion and
    primarily international expansion strategy.
    Transferring Core Competencies
    Core Competencies - refers to skills within the firm that competitors cannot
    easily match or imitate.

    • Location economies- as the economies that arise from performing value


    creation activity in the optimal location for that activity, wherever in the
    Realizing Location
    Economies
    world that might be (transportation costs and trade barriers permitting).

    • Location economies- as the economies that arise from performing value


    creation activity in the optimal location for that activity, wherever in the
    Realizing Location
    Economies
    world that might be (transportation costs and trade barriers permitting).

    • Refers to the systematic reductions in production costs that have been


    Realizing observed to occur over the life of a product
    Experience Curve
    Economies
    Learning
    Effects

    Realizing Experience Curve Economies

    Strategic Economies of
    significance Scale
    “Good leaders need a positive agenda, not just an agenda of dealing with crisis."
    - Michael Porter

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