Transcript International Business Strategy (IBS)

International Business
Strategy (IBS) -a
Strategies
Desired future
BEST STRATEGY*
Present situation
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•Integrated approach to IBS
IBS: how firms compete in internationally
competitive markets
–needs: horizontal linkage of various
narrow disciplines
–holistic approach: IBS eclectic, crossdisciplinary*
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Contrasting paradigms
a) External context (Porter): => WHY?
environment, competitors
competitive advantage
b) Resource-based approach (HamelPrahalad) => WHAT?
firm specific resources
forward looking
c) Process view (Mintzberg, Waters) =>
HOW?
management: process of change
actions, interactions*
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a) External context: market specific
Strategic Change: prescriptive adjustment
to external change factors (market, competitors)
International finance
Strategic management
Organizational development
International business
International marketing
IBS
Integrated approach, international aspect,
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SWOT
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b) Resource-based approach:
firm specific
Internal firm-based perspective
Competitive advantage: depend on
- resources
- capabilities
- Competencies
Forward looking
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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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strands
+ spatial aspect
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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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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?
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Monitoring? Evaluating?
International Business Strategy is concerned
 with the strategic management process, by
which
 firms of all size evaluate their changing
international business environment and
 shape an appropriate organizational
response that
 involves the crossing of international
borders.
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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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How increasing complexity does
relate functional areas?
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Marketing
Logistics
Finance
Human resource management
Operations
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How functions at Ford
were changed
according to increasing
environmental complexity?
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PERSPECTIVE:
Internal view
The
naturePOSITION:
of strategy
Organization’s way of doing:
How products and services
• strategy: difficoult to
define
people, processes
positioned
on a market?
• Mintzberg:
An external contextual view of
PLAN
strategy
PATTERN
PATTERN:
PLAN:
Consistent pattern of
future into account
behaviour Takes thePERSPECTIVE
and firm follows the plan
How a firm operates? 1a-Strategy (20)
Difficoulties in prediction
POSITION
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Strategy development
Deliberate strategies
Unrealized strategy
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Emergent strategies
Realized strategies
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