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CORPORATE LEVEL STRATEGIES Internationalization, Cooperation,Digitalisation Submitted to: Mr. Utkarsh Mangal Anjali.

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Presentation on theme: "CORPORATE LEVEL STRATEGIES Internationalization, Cooperation,Digitalisation Submitted to: Mr. Utkarsh Mangal Anjali."— Presentation transcript:

1 CORPORATE LEVEL STRATEGIES Internationalization, Cooperation,Digitalisation Submitted to: Mr. Utkarsh Mangal Anjali

2 Corporate Level strategies
Corporate level strategies are basically about decisions .. Allocating resources Transferring resources Managing and nurturing a portfolio of businesses.

3 Internationalisation
Meaning of ICD . Internationalisation strategies Cooperation strategies Digitalisation strategies

4 Internationalisation strategies

5 Context for IS International strategies are a type of expansion strategies, major factors, technologies, developments beyond the domestic or national market.

6 Pressures for local responsiveness
Decision to adopt IS -Demand on a firm to minimize its unit cost - Attain benefit from economies of scale - national level differ. Cost pressure Pressures for local responsiveness

7 Types of IS international Global Transnational Multi domestic

8 International Strategy : Create value by transferring product or service in foreign where not available. Multidomestic Strategy: When org. try to achieve a high level of local responsiveness by matching P & S to the national condition. Global Strategy : When rely on low cost approach and want to attain benefit of local economies and offering standardised P&S Transnational Strategy : when adopt a combined approach of low cost or high level responsiveness , for their P&S.

9 Classification of entry modes
Export entry modes Contractual entry modes Investment modes

10 Advantages . Realising economies of scale Realising economies of scope
Expansion & extension of markets Access to resources overseas

11 High bureaucratic costs Higher distribution costs
Disadvantages . Higher risks Cultural diversity High bureaucratic costs Higher distribution costs Trade barriers

12 Cooperative strategies

13 Meaning The term co operation expresses the idea of simultaneous competition and cooperation among rival firms for mutual benefit. CS could take into account the possibility of mutual cooperation with competition.

14 Type of CS . mergers Strategic alliances Joint ventures

15 Mergers Horizontal mergers Vertical mergers Concentric mergers
Conglomerate mergers

16 Why the buyer wishes to merge Why the seller wishes to merge
Reasons for mergers . Why the buyer wishes to merge Why the seller wishes to merge

17 Issues in mergers Strategic issues Financial issues Managerial issues
Legal issues

18 Joint venture strategies
Long term contractual agreement By two or more parties To beneficial economic activities Exercise joint control

19 Type of joint ventures . NTPC LTD & Indian Railway Bhartiya Rail Biijee Action Aid India and Tata institute of SS DLF and Nakheel,UAE for Township in india Kirloskar Brothers Ltd. And SPP pumps Ltd,UK for catering Apollo Tyres and Continental AG of GERMENY in Malaysia Between two Indian organisations in one industry Between two Indian organisations across different industries Between Indian org. and foreign org. Between Indian org. and foreign org. in foreign country Between Indian and foreign org. in third country

20 Strategic issues in joint ventures
Increasing the market Share Environmental Threats Legal regulatory Hurdles

21 Advantages/Disadvantages
. Minimum risk Reduce investment Synergetic advantage Participation Problems in participation Conflicts Lack of coordination Cultural

22 Strategic Alliances Strategic alliances as a cooperative arrangement between two or more companies. Yoshino and Rangan define strategic alliances in three characteristics Two or more firms unite to pursue a set of agreed upon goals Control over the performance of assigned tasks Partner contribute on a continuing

23 Reasons for S Alliances
Entering new markets Reducing manufacturing costs Developing & diffusing technology

24 Digitalisation Strategies

25 Meaning Digitalisation is a vast subject, encompassing a number of areas such as business, social or technology. Computerisation Electronisation Digitisation

26 Digitalisation within and beyond organisations
Computerisation of records Inetrconnectivity Management Information system Leading better decision making

27 Principles Acc. To Larry downes and Chunka mui Stage 1
Outsourcing to the customer Cannibalising their markets Treat same each customer Creating groups Stage 2 Replacing rude interfaces Continuity for customer Giving away information Structuring transactions Stage 3 Treating assets as liabilities Destroying one value chain Managing innovation Hiring children

28 Digitalisation value chain
Deconstruction: product can be delivered through traditional means, but input in the physical product can be delivered digitaly. Ex: Computers Disintermediation: When some process in the value chain are eliminated. Ex: Online booking Re-intermediation: When processes in the value chain are supplemented by one or more intermediaries. Ex: Booksellers Industry morphing: Situation where traditional Industries are transforming into new type of industry. Ex: Banking

29 Cannibalisation: A set of activities are being replaced by new set of activities. Ex: internet booking Techno-intensification: A situation where new technology is used and reduce the use of human resourse. Re-channelling: Manufacturer focus on manufacture or marketing activities are done by outsourcing.

30 Digitalised business or E-business
In 1997 IBM created E-business system It is about using the internet infrastructure and related technologies to enable business anywhere and anytime Net enabled organisation or web enabled organisation

31 Works.. Using the website to disseminate product information only
Using the website as a minor distribution channel for selling directly to customers Using the website as one of the major distribution channels to access customers Using the website as the primary distribution channel to access buyers Using the website as the exclusive channel to transact sales with customes

32 Digitalisation strategies
. E- market pattern E- portal pattern E- Channel pattern

33 Comparison of digital strategy
. Digital strategy Traditional strategy

34 Summary This chapter takes forward the theme of expansion strategies and discusses three types of expansion strategies : internationalisation, cooperation and digitalisation.

35


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