International business

GROUP presentation :

TOPICS

• External environment assessment

• Internal environment assessment

• Strategy implementation

• Goal setting

External environment assessment

Information gathering : Asking experts in industry

Using historical trends

Asking knowledgeable manager

Using computer to stimulate industry environment

Competitive intelligence :

gathering information about competitors and competitive environment

Information assessment :

“five forces model”

Information assessment:

Internal environment assessment

physical resources and personnel

competencies

The way in which value chain analysis can

be used to bring these resources together in

the most synergetic and profitable manner .

Physical resources :

• Cash , inventory , machinery and equipment accounts

• Location and disposition

• Degree of integration: SBU “business within business”

• Vertical integration :the ownership of assets involved in

producing a good or service and delivering it to final customer .

E.g. times magazine

• Virtual integration : the ownership of core technologies and

manufacturing capabilities needed to produce output .

Personnel competencies : “ ability and talents of people “

Value chain analysis :

Primary + support activities

profit margin

Corporate Value Chain Analysis

DistributionAnd

OutboundLogistics

Operations

PurchasedSupplies

andInboundLogistics

Sales and Marketing

ServiceProfit

Margin

Product R&D, Technology, Systems Development

Human Resources Management

General Administration

Primary Activities and Costs

Support Activities and Costs

Strategy types : Cost strategy :a strategy based on low price and is

achieved through approaches such as vigorous pursuit of

cost reduction and overhead control and minimize in

areas like sales and marketing .

Differentiated strategy :a strategy that directed towards

creating something that is perceived as being unique .

Focus strategy :a strategy that concentrates on a

particular buyer group and segments that niche based on

product line or geographic market .

Setting Strategic Goals

• Goals

– Are very broad statements of the results that an organization wishes to achieve in the long run.

– Relate to the mission and vision of the organization and specify the level of performance that the organization wants to achieve.

• SMART goals are:

– Specific…Measurable…Achievable…Results-oriented…Timeline

Strategy implementation :

Strategy implementation is the process of attaining

goals by using organizational structure to execute the

formulated strategy properly.

Three most important are :

Location

ownership decision

Functional area implementation

Location

ADVANTAGES :

• Local facilities provide a cost advantage to producer

• Residents may prefer locally produced products

• Low govt. restriction e.g. tariffs , quotas

DISADVANTAGES :

• Unstable political climate

• Revolution / armed conflicts

Ownership decision :

• International joint venture :an agreement between two

or more partners to own and control an overseas

business

• Strategic alliance : an agreement between two or more

competitive multinational enterprise

Functional area implementation Marketing:

• Identify customer needs

• Four P’s

• Focus strategies

• Apprises manufacturing department

Manufacturing :

• Make avail right product at right time

• Procurement + technology =ensure quality

Finance :

• Controlled out home office

• Careful constructed budget to control overall strategic plan

• Marketing

• Manufacturing