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International Business Strategy (IBS) -a 1a-Strategy (20)2 Strategies Desired future BEST STRATEGY* Present situation.

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Presentation on theme: "International Business Strategy (IBS) -a 1a-Strategy (20)2 Strategies Desired future BEST STRATEGY* Present situation."— Presentation transcript:

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2 International Business Strategy (IBS) -a

3 1a-Strategy (20)2 Strategies Desired future BEST STRATEGY* Present situation

4 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

5 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*

6 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

7 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

8 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!*

9 1a-Strategy (20)8 + spatial aspect strands

10 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

11 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?

12 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.

13 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

14 1a-Strategy (20)13 How increasing complexity does relate functional areas? Marketing Logistics Finance Human resource management Operations

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18 1a-Strategy (20)17 How functions at Ford were changed according to increasing environmental complexity?

19 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?

20 1a-Strategy (20)19

21 1a-Strategy (20)20 Strategy development Unrealized strategy Emergent strategies Realized strategies Deliberate strategies


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