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International Business Strategy (IBS) -a
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1a-Strategy (20)2 Strategies Desired future BEST STRATEGY* Present situation
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1a-Strategy (20)3 IBS: how firms compete in internationally competitive markets –needs: horizontal linkage of various narrow disciplines –holistic approach: IBS eclectic, cross- disciplinary* Integrated approach to IBS
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1a-Strategy (20)4 Contrasting paradigms WHY? a) External context (Porter): => WHY? environment, competitors competitive advantage WHAT? b) Resource-based approach (Hamel- Prahalad) => WHAT? firm specific resources forward looking HOW? c) Process view (Mintzberg, Waters) => HOW? management: process of change actions, interactions*
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1a-Strategy (20)5 a) External context: market specific Strategic Change Strategic Change : prescriptive adjustment to external change factors (market, competitors) Integrated approach, international aspect, SWOT IBS International business Strategic management International finance Organizational development International marketing
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1a-Strategy (20)6 b) Resource-based approach: firm specific firm-based Internal firm-based perspective Competitive advantage: depend on - resources -capabilities -Competencies F Forward looking
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1a-Strategy (20)7 c) Process view HOW IBS developed? complexity, ambiguity process of change + organizational context how change affects – actions – reactions – interactions of people within organization Merge different complementary strands of thinking!*
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1a-Strategy (20)8 + spatial aspect strands
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1a-Strategy (20)9 Rope metafore While strands separated, they are interrelated From a distance: they are not distinguisable - outcome is not prescriptive It can be unravelled: lack of fit between assumptions Length: real time
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1a-Strategy (20)10 Strategic approach WHY to develop an international business in a competing environment? WHAT is the content of strategy (resources, core competencies, anticipated performance, time scale) HOW development to be achived? Configure resources! Managers? Motivation? Monitoring? Evaluating?
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1a-Strategy (20)11 I nternational B usiness S trategy is concerned process with the strategic management process, by which firms of all size firms of all size evaluate their changing international business environment and response shape an appropriate organizational response that crossing ò involves the crossing of international borders.
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1a-Strategy (20)12 Spatial perception of competitive opportunities and threats –board members –competitors –SWOT –moving headquarters Costumer base –all customers equidistant Scope and complexity –discontinuity: resource, managers –greater complexity –compatibility with market requirements
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1a-Strategy (20)13 How increasing complexity does relate functional areas? Marketing Logistics Finance Human resource management Operations
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1a-Strategy (20)17 How functions at Ford were changed according to increasing environmental complexity?
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1a-Strategy (20)18 The nature of strategy strategy: difficoult to define Mintzberg: PATTERN PLAN POSITION PERSPECTIVE PLAN: Takes the future into account and firm follows the plan Difficoulties in prediction POSITION: How products and services positioned on a market? An external contextual view of strategy PERSPECTIVE: Internal view Organization’s way of doing: people, processes PATTERN: Consistent pattern of behaviour How a firm operates?
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1a-Strategy (20)20 Strategy development Unrealized strategy Emergent strategies Realized strategies Deliberate strategies
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