Transcript 幻灯片 1
Bilingual Series-Strategic Management Chapter 8 International Strategy Strategic Inputs Chapter 2 External Environment Strategic Intent Strategic Mission Chapter 3 Internal Environment Chapter 4 Chapter 5 Business-Level Competitive Strategy Dynamics Chapter 7 Acquisitions & Restructuring Outcomes Strategic Strategic Actions Strategy Formulation Feedback Chapter 8 International Strategy The Strategic Management Process Strategy Implementation Chapter 6 Corporate-Level Strategy Chapter 10 Corporate Governance Chapter 11 Structure & Control Chapter 9 Cooperative Strategies Chapter 12 Strategic Leadership Chapter 13 Strategic Competitiveness Above Average Returns Entrepreneurship & Innovation International Strategy Opportunities and Outcomes Identify International Opportunitie s Explore Resources and Capabilities International Strategies Increased Market Size Return on Investment Economies of Scale and Learning Location Advantage International BusinessLevel Strategy Multidomesti c Strategy Global Strategy Transnation al Strategy Use Core Competenc e Modes of Entry Strategic Competitivenes Management s Problems Outcomes and Risk Exporting Higher Performance Returns Exporting Strategic Alliances Acquisition Innovatio n Establishment of New Subsidiary Management Problems and Risk International Strategy Lifecycle Selling Products or Services Outside a Firm’s Domestic Market 2 Product Demand Develops and Firm Exports Products Firm Introduces 1 Innovation in Domestic Market Production Becomes 5 Standardized and is Relocated to Low Cost Countries 3 Foreign Competition Begins Production 4Firm Begins Production Abroad Motivations for International Expansion Increase Market Share Domestic market may lack the size to support efficient scale manufacturing facilities Example: Japanese electronics or automobile manufacturers Return on Investment Large investment projects may require global markets to justify the capital outlays Example: Aircraft manufacturers Boeing or Airbus Weak patent protection in some countries implies that firms should expand overseas rapidly in order to preempt imitators Motivations for International Expansion Economies of Scale or Learning Expanding size or scope of markets helps to achieve economies of scale in manufacturing as well as marketing, R & D or distribution - Can spread costs over a larger sales base - Increase profit per unit Location Advantages Low cost markets may aid in developing competitive advantage May achieve better access to: - Raw materials - Key customers - Lower cost labor - Energy - Key suppliers - Natural resources Porter’s Determinants of National Advantage Home Country of Origin Is Crucial to International Success Related & Supporting Industries Factor Conditions - Japanese cameras & copiers - Italian shoes & leather Basic Factors Demand - Land, labor Conditions Advanced Factors Home country may - Highly educated workers support scale - Digital communications efficient operations Generalized Factors by itself - Capital, infrastructure Firm Strategy, Structure & Rivalry Specialized Factors - Skilled personnel Intense rivalry fosters industry competition International Strategy Opportunities and Outcomes Identify International Opportunitie s Explore Resources and Capabilities International Strategies Increased Market Size Return on Investment Economies of Scale and Learning Location Advantage International BusinessLevel Strategy Multidomesti c Strategy Global Strategy Transnation al Strategy Use Core Competenc e Modes of Entry Strategic Competitivenes Management s Problems Outcomes and Risk Exporting Higher Performance Returns Exporting Strategic Alliances Acquisition Innovatio n Establishment of New Subsidiary Management Problems and Risk Business-Level International Strategies International Low Cost Usually located in home country Export to international markets Low value added operations in foreign countries High value added operations in home country International Differentiation Countries with advanced or specialized factor conditions most likely to use this strategy Example: Japan, Germany, U.S. Business-Level International Strategies International Focus Strategies Technologically advanced firms follow focused low cost strategy Focused differentiation firms compete on the basis of image & design Third group competes on low price by imitating International Integrated Low Cost/Differentiation Can be most effective in dealing with diverse markets Often relies upon flexible manufacturing, total quality management or rapid communication networks Corporate-Level International Strategies Type of Corporate Strategy selected will have an impact on the selection and implementation of the business-level strategies Some Corporate strategies provide individual country units with flexibility to choose their own strategies Others dictate business-level strategies from the home office and coordinate resource sharing across units Three Corporate Strategies Multi-Domestic Strategy Global Strategy Transnational Strategy Corporate-Level International Strategies Multi-Domestic Strategy Strategy and operating decisions are decentralized to strategic business units (SBU) in each country Products and services are tailored to local markets Business units in each country are independent of each other Assumes markets differ by country or regions Focus on competition in each market Prominent strategy among European firms due to broad variety of cultures and markets in Europe Corporate-Level International Strategies Global Strategy Products are standardized across national markets Decisions regarding business-level strategies are centralized in the home office Strategic business units (SBU) are assumed to be interdependent Emphasizes economies of scale Often lacks responsiveness to local markets Requires resource sharing and coordination across borders (which also makes it difficult to manage) Corporate-Level International Strategies Transnational Strategy Seeks to achieve both global efficiency and local responsiveness Difficult to achieve because of simultaneous requirements for strong central control and coordination to achieve efficiency and local flexibility and decentralization to achieve local market responsiveness Must pursue organizational learning to achieve competitive advantage International Corporate Strategy When is each strategy appropriate? High Need for Global Integration MultiDomestic Low Low Need for Local Market Responsiveness High International Corporate Strategy When is each strategy appropriate? High Global Strategy Need for Global Integration MultiDomestic Low Low Need for Local Market Responsiveness High International Corporate Strategy When is each strategy appropriate? High Global Strategy Transnational Need for Global Integration MultiDomestic Low Low Need for Local Market Responsiveness High International Strategy Opportunities and Outcomes Identify International Opportunitie s Explore Resources and Capabilities International Strategies Increased Market Size Return on Investment Economies of Scale and Learning Location Advantage International BusinessLevel Strategy Multidomesti c Strategy Global Strategy Transnation al Strategy Use Core Competenc e Modes of Entry Strategic Competitivenes Management s Problems Outcomes and Risk Exporting Higher Performance Returns Exporting Strategic Alliances Acquisition Innovatio n Establishment of New Subsidiary Management Problems and Risk Choice of International Entry Mode Exporting Common way to enter new international markets No need to establish operations in other countries Establish distribution channels through contractual relationships May have high transportation costs May encounter high import tariffs May have less control on marketing and distribution Difficult to customize products Choice of International Entry Mode Licensing Firm authorizes another firm to manufacture and sell its products Licensing firm is paid a royalty on each unit produced and sold Licensee takes risks in manufacturing investments Least risky way to enter a foreign market Licensing firm loses control over product quality and distribution Relatively low profit potential A significant risk is that licensor learns technology and competes when license expires Choice of International Entry Mode Strategic Alliances Enable firms to shares risks and resources to expand into international ventures Most joint ventures (JVs) involve a foreign company with a new product or technology and a host company with access to distribution or knowledge of local customs, norms or politics May experience difficulties in merging disparate cultures May not understand the strategic intent of partners or experience divergent goals Choice of International Entry Mode Acquisitions Enable firms to make most rapid international expansion Can be very costly Legal and regulatory requirements may present barriers to foreign ownership Usually require complex and costly negotiations Potentially disparate corporate cultures Choice of International Entry Mode New Wholly-Owned Subsidiary Most costly and complex of entry alternatives Achieves greatest degree of control Potentially most profitable, if successful Maintain control over technology, marketing and distribution May need to acquire expertise and knowledge that is relevant to host country Could require hiring host country nationals or consultants at high cost International Strategy Opportunities and Outcomes Identify International Opportunitie s Explore Resources and Capabilities International Strategies Increased Market Size Return on Investment Economies of Scale and Learning Location Advantage International BusinessLevel Strategy Multidomesti c Strategy Global Strategy Transnation al Strategy Use Core Competenc e Modes of Entry Strategic Competitivenes Management s Problems Outcomes and Risk Exporting Higher Performance Returns Exporting Strategic Alliances Acquisition Innovatio n Establishment of New Subsidiary Management Problems and Risk Strategic Competitiveness Outcomes International diversification facilitates innovation in the firm Provides larger market to gain more and faster returns form investments in innovation May generate resources necessary to sustain a large-scale R&D program Generally related to above-average returns, assuming effective implementation and management of international operations International diversification provides greater economies of scope and learning International Strategy Opportunities and Outcomes Identify International Opportunitie s Explore Resources and Capabilities International Strategies Increased Market Size Return on Investment Economies of Scale and Learning Location Advantage International BusinessLevel Strategy Multidomesti c Strategy Global Strategy Transnation al Strategy Use Core Competenc e Modes of Entry Strategic Competitivenes Management s Problems Outcomes and Risk Exporting Higher Performance Returns Exporting Strategic Alliances Acquisition Innovatio n Establishment of New Subsidiary Management Problems and Risk Major Risks of International Diversification Political Risk Rebel fighting in Chechnya (Russia) and Liberia (Africa) Continual warfare among Middle Eastern nations Potential renationalization of privatized enterprises in Russia Failure of European Community in quest for economic superpower status because of intercountry disagreements Major Risks of International Diversification Economic Risk Mexico’s effect on world trade with low wages and high quality but strong currency risks China’s difficulty in enforcing intellectual property rights on CDs, software, etc. Germany’s struggle with high unemployment, high interest rates, sagging competitiveness, and cuts in social programs China’s trade policies. $44 billion trade surplus with United States in 1977. China’s overall trade surplus increased twentyfold in first half of 1997. Limits To International Expansion Management Problems Cost of Coordination across diverse geographical business units Institutional and cultural barriers Understanding strategic intent of competitors The overall complexity of competition