Chapter 11

International Strategy
and Organization
 Chapter Preview

Define core competency and value-chain analysis

Explain multinational and global strategies
Describe the four corporate-level strategies
Discuss the three business-level strategies
Identify what influences organizational structure
Describe each type of international organizational
structure

Prentice Hall, 2008 International Business 4e Chapter 11 - 2

 Planning and Strategy

Planning Strategy

Identifying and selecting Set of planned actions that

objectives and deciding how managers take to help a
to achieve those objectives company meet its objectives
Prentice Hall, 2008 International Business 4e Chapter 11 - 3
 Strategy-Formulation Process

Prentice Hall, 2008 International Business 4e Chapter 11 - 4

 Identify Mission and Goals
Mission statements
must consider:

Company activities
Business objectives
Stakeholders
Stockholders
Customers
Residents
Environment
and much more
Prentice Hall, 2008 International Business 4e Chapter 11 - 5
 Identify Core Competency

Special ability of a company that

competitors find extremely difficult
or impossible to equal

Coordination of multiple skills

Lengthy period to develop

Difficult to teach

Prentice Hall, 2008 International Business 4e Chapter 11 - 6

 Value-Chain Analysis

Divide company activities into primary

and support activities and identify those
that create value for customers

Each activity is Insights gained are

a source of either fed into the strategy
strength or weakness formulation process

Prentice Hall, 2008 International Business 4e Chapter 11 - 7

 Value Chain Components

Prentice Hall, 2008 Chapter 11 - 8

 Business Environment

National differences are

inherent in analyzing a
companys unique abilities

Cultural differences
Political processes
Legal matters
Economic systems
Labor issues
Consumer forces
and much more

Prentice Hall, 2008 International Business 4e Chapter 11 - 9

 Small Firm Strategy

Be sure company is ready to go

international
Thoroughly understand your product

Examine your companys internal

activities
Ask important questions of strategy

Finally, create the strategic plan

Prentice Hall, 2008 International Business 4e Chapter 11 - 10

 Multinational Strategy

Adapting products and

their marketing strategies
in each national market
to suit local preferences

+ Respond quickly to
buyer preferences

Difficult to exploit
economies of scale
Prentice Hall, 2008 International Business 4e Chapter 11 - 11
 Global Strategy

Offering the same

products using the same
marketing strategy in
all national markets

+ Cost savings from

standardization

May overlook varying

buyer preferences
Prentice Hall, 2008 International Business 4e Chapter 11 - 12
 Levels of Company Strategy

Prentice Hall, 2008 International Business 4e Chapter 11 - 13

 Growth Strategy

Increase the scale (size of activities)

or scope (kinds of activities) of operations
Internally generated growth

Mergers and acquisitions

Joint ventures

Strategic alliances

Prentice Hall, 2008 International Business 4e Chapter 11 - 14

 Retrenchment Strategy

Reduce the scale or scope

of a corporations businesses

Conditions Actions

Lay off workers

Poor economic conditions
Close inefficient factories
Increased competition
Sell unprofitable businesses

Prentice Hall, 2008 International Business 4e Chapter 11 - 15

 Stability Strategy

Guard against change and avoid

growth or retrenchment

No opportunities or threats

Strengths fully exploited

Weaknesses fully protected

Stated objectives are met

Prentice Hall, 2008 International Business 4e Chapter 11 - 16

 Combination Strategy
Mix of growth, retrenchment, and stability
strategies across a corporations business units

Invest in Retrench for

promising units less exposure

Stabilize
other units

Prentice Hall, 2008 International Business 4e Chapter 11 - 17

 Business-Level Strategies

Prentice Hall, 2008 International Business 4e Chapter 11 - 18

 Low-Cost Strategy

Exploit economies of scale to have the lowest

cost structure of any competitor in an industry

Mantra is cutting costs

Quality remains important

Scale is barrier for new entrants

Perhaps low customer loyalty

Prentice Hall, 2008 International Business 4e Chapter 11 - 19

 Perbedaan strategi

Desain dianggap sebagai sesuatu yang unik

oleh pembeli di seluruh industri.
Pembeda Akibat
kualitas Harga menjadi premium

Konsumen menjadi loyal

Citra merek
Bagian dari pasar saja

Disain produk Biaya produksi lebih tinggi

Prentice Hall, 2008 International Business 4e Chapter 11 - 20

 Fokus strategi

Fokus pada bidang yang terperinci dapat diartikan segmen pasar dengan
menjadi pemimpin hemat, berbeda, atau keduanya

Banyak sub-segmen setiap hari

Butuh produk yang khas

Wilayah yang spesifik, suku, dll

Prentice Hall, 2008 International Business 4e Chapter 11 - 21

 Struktur organisasi

Kebijakan sentralisasi Kebijakan desentralisasi

+Koordinasi sangat penting +Tanggap pada lingkungan

+Kontrol keuangan dan lokal adalah kunci
penghematan biaya + perubahan cepat lingkungan
Prentice Hall, 2008 International Business 4e Chapter 11 - 22
 Struktur divisi internasional

Kantor
Pusat

Divisi Divisi
Divisi Divisi
automo internasi
pesawat kereta
bil onal

Divisi Divisi
Divisi pesawat
pesawat kereta
prancis
brazil cina
Prentice Hall, 2008 International Business 4e Chapter 11 - 23
 International Area Structure

Prentice Hall, 2008 International Business 4e Chapter 11 - 24

 Global Product Structure

Prentice Hall, 2008 International Business 4e Chapter 11 - 25

 Global Matrix Structure

Prentice Hall, 2008 International Business 4e Chapter 11 - 26

 Work Teams

Self-managed Cross-functional Global

team team team

Employees from one Group of employees Top managers from

department take on from similar levels but headquarters and
responsibilities of different functional subsidiaries solve
former supervisors departments company problems

Prentice Hall, 2008 International Business 4e Chapter 11 - 27

 Chapter Review

Define core competency and value-chain analysis

Explain multinational and global strategies
Describe the four corporate-level strategies
Discuss the three business-level strategies
Identify what influences organizational structure
Describe each type of international organizational
structure

Prentice Hall, 2008 International Business 4e Chapter 11 - 28