The Strategy of International Business

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Presentation transcript:

The Strategy of International Business

A firm’s strategy can be defined as the actions that managers take to attain the goals of the firm Typically, strategies focus on profitability and profit growth Profitability refers to the rate of return the firm makes on its invested capital Profit growth is the percentage increase in net profits over time

Strategy and the Firm Determinants of Enterprise Value

To increase profitability, value must be created for the consumer Value creation is measured by the difference between V (the price that the firm can charge for that product given competitive pressures) and C (the costs of producing that product) The two basic strategies for creating value are differentiation low cost

Strategic Positioning To maximize profitability, a firm must pick a position on the efficiency frontier that is viable in the sense that there is enough demand to support that choice configure its internal operations so that they support that position make sure that the firm has the right organization structure in place to execute its strategy So, a firm’s strategy, operations, and organization must all be consistent with each other in order to achieve a competitive advantage and superior profitability

Exploring Cara-cara untuk memberikan differensiasi pada aspek: Human Resource Marketing Operational Finance Cara-cara untuk Reduce Cost pada aspek