© 2002 Thomson Learning, Inc. CHAPTER 12 Strategic Planning in International Business Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans

© 2002 Thomson Learning, Inc. To outline the process of strategic planning in the context of the global marketplace To outline the process of strategic planning in the context of the global marketplace To examine both the external and internal factors that determine the conditions for development of strategy and resource allocation To examine both the external and internal factors that determine the conditions for development of strategy and resource allocation To illustrate how best to utilize the environmental conditions within the competitive challenges and resources of the firm to develop effective programs To illustrate how best to utilize the environmental conditions within the competitive challenges and resources of the firm to develop effective programs To suggest how to achieve a balance between local and regional/global priorities and concerns in the implementation of strategy To suggest how to achieve a balance between local and regional/global priorities and concerns in the implementation of strategy LEARNING OBJECTIVES

© 2002 Thomson Learning, Inc. GlobalizationGlobalization Globalization: business orientation based on the belief that the world is becoming more homogenous and that distinctions between markets will disappear Globalization: business orientation based on the belief that the world is becoming more homogenous and that distinctions between markets will disappear © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 12.1 – Evolution of Global Strategy

© 2002 Thomson Learning, Inc. GlobalizationGlobalization Multi-Domestic Strategy Multi-Domestic Strategy Globalization Drivers Globalization Drivers Market Factors Market Factors Cost Factors Cost Factors © PhotoDisc

© 2002 Thomson Learning, Inc.

GlobalizationGlobalization Environmental Factors Environmental Factors Mininationals Mininationals Competitive Factors Competitive Factors The Outcome The Outcome © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 12.2 – The Global Landscape

© 2002 Thomson Learning, Inc. The Strategic Planning Process Strategic planning is needed to match markets with products and other resources more effectively and efficiently to strengthen the company’s long-term competitive advantage Strategic planning is needed to match markets with products and other resources more effectively and efficiently to strengthen the company’s long-term competitive advantage © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 12.3 – Globalization Strategy Formulation

© 2002 Thomson Learning, Inc. The Strategic Planning Process Understanding and Adjusting the Core Strategy Understanding and Adjusting the Core Strategy Market and Competitive Analysis Market and Competitive Analysis Internal Analysis Internal Analysis Formulating Global Marketing Strategy Formulating Global Marketing Strategy Choice of Competitive Strategy Choice of Competitive Strategy © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 12.4 – Competitive Strategies

© 2002 Thomson Learning, Inc. The Strategic Planning Process Cost Leadership Cost Leadership Differentiation Differentiation Country – Market Choice Country – Market Choice Portfolio Models Portfolio Models © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 12.5 – Example of a Market-Portfolio Matrix

© 2002 Thomson Learning, Inc. Figure 12.6 – Example of Strategic Interconnectedness Matrix

© 2002 Thomson Learning, Inc. The Strategic Planning Process Segmentation Segmentation © PhotoDisc

© 2002 Thomson Learning, Inc. Figure 12.7 – Bases for Global Market Segmentation

© 2002 Thomson Learning, Inc. The Strategic Planning Process Global Program Development Global Program Development Product Offering Product Offering Marketing Approach Marketing Approach Glocalization Glocalization © PhotoDisc

© 2002 Thomson Learning, Inc.

The Strategic Planning Process Location of Value-Added Activities Location of Value-Added Activities Competitive Moves Competitive Moves Cross-Subsidization Cross-Subsidization Implementing Global Programs Implementing Global Programs Challenges Challenges Not-Invented-Here Syndrome Not-Invented-Here Syndrome Localizing Global Moves Localizing Global Moves Management Processes Management Processes Organizational Structures Organizational Structures Global Account Management Global Account Management Corporate Culture Corporate Culture © PhotoDisc