International Business Strategy
LON301BUS
Implementing and Evaluating Strategy
Unit: 8 Knowledgecast: 2
• Integrate and apply strategic approaches to practical situations in various types of organisations
• Assess current developments in the organisational environment and alternative responses related to strategy
• Resolve management problems in the area of strategic management by evaluating alternative outcomes
Module Learning Outcomes
Worldwide Innovation
• Competitors achieving parity in scale and responsiveness
• Competitive battles shifting to innovation area• Three key capabilities: Sensing Responding Implementing
Central, Local and Transnational Innovation
Two classic processes;• Center-for-global: new opportunity sensed in
home country, centralized resources brought to bear, implemented globally
• Local-for-local: subsidiary-based knowledge development, used primarily in local market
Central, Local and Transnational Innovation
Two emerging processes• Locally leveraged: Local opportunity sensed by
subsidiary then leveraged on a worldwide basis Sara Lee: Sanex and Ambi-Pur came from Spain• Globally linked: Resources and capabilities of many
operations pooled to jointly create and manage new activity
Volkswagen’s New Beetle involved US, Germany and Mexico operations
Problems Associated with Each Model
• Center-for-global innovation Risk of market insensitivity, imperialism• Local-for-local innovation Risk of duplication, reinventing wheel• Locally leveraged innovation Threatened by not-invented-here• Globally linked innovation High coordination costs
Linking and Leveraging Resources
Decentralized Federation
The Integrated Network
Coordinated Federation
Centralized Hub
• Locally Leveraged
Innovation
• Globally LinkedInnovation
- Building up collaborativeinterdependence
• Integrate and apply strategic approaches to practical situations in various types of organisations
• How does worldwide innovation contribute to sustainable strategy?• Assess current developments in the organisational environment
and alternative responses related to strategy • Increased collaborative interdependence is driven by the new
competitive battleground..• Resolve management problems in the area of strategic
management by evaluating alternative outcomes • How can managers evaluate the value of worldwide innovation and
its suitability for strategic implementation.
Knowledgecast Summary
Developing an International Strategy – Spulber’s Star
Developing an international strategy requires a thorough evaluation ofpotential markets. There are a number of tools and frameworks thatcan assist in such an evaluation and in today’s seminar we are goingto critically consider a number of these: Spulber’s Star, Global AddedValue, G5 Competitive Strategies.
Your module tutor will work with you to use Spulber’s Star to analysean organisation’s international opportunities.
Seminar
End of Module Assessment – Evaluating Strategy (ManagementBrief) (Unit 10)
PreparationHow would you rate the strategy of the case study organisation againstthe criteria discussed in the Knowledgecast?
In your teams consider each of the criteria:• Suitability• Acceptability• Feasibility• Sustainability
Group Activity