Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | ashish-shukla |
View: | 227 times |
Download: | 0 times |
of 18
7/29/2019 Strategic Mgmt Process
1/18
STRATEGIC MGMT
PROCESS
7/29/2019 Strategic Mgmt Process
2/18
Strategic mgmt process involves
Strategic thinking MgmtLeadership
Strategic analysis Envt, intent,
missionCreating competitive
AdvantageBusiness levelstgy,(competitive rivarly),
Corporate level stgy ( acquistion &restructuring)Monitoringcreating entrepreneurial
opportunities, corporate governance.
7/29/2019 Strategic Mgmt Process
3/18
Opportunities & outcomes of
International strategy
Identifyinternationalopportunities
Increased Mktshare
Return oninvestment
Economies of scale& learning
Advantage inlocation
Exploreresources&capabilities
Int bus level stgy
Multi domesticstgy
Global stgy Transactional
stgy
7/29/2019 Strategic Mgmt Process
4/18
Modes of Entry
Exporting - high cost, low control Licensing low cost, low risk, little
control& low returns
Strategic alliances- sharedcost,resources,
risk & problems Acquistions quick access to new mkts,
high cost, complexnegotiations
problems of merging
7/29/2019 Strategic Mgmt Process
5/18
Contd
Establishments of newsubsidiaries- complex, costly, timeconsuming, high risk, maximum
control & potential
7/29/2019 Strategic Mgmt Process
6/18
Use of Core Competence
Modes of EntryBetter performance
Innovation
Problems
Risk
7/29/2019 Strategic Mgmt Process
7/18
International Business level Stgy
Factors of prodn
Firm strategy
structure
& rivalry
Demand conds
Related & supporting
Industries
7/29/2019 Strategic Mgmt Process
8/18
International corporate level
Global Trans
national
Multi
domestic
L H
L
H
Need for local Responsiveness
Needfo
rGlobalintegr
ation
7/29/2019 Strategic Mgmt Process
9/18
Multidomestic stgy
Strategy & operating decisions aredecentralized to strategic business units ineach country
Products and services are tailored to localmarkets
Business units in one country areindependent of each other
Assume mkts differ by country or regions
Focus is on competition in each mkt
7/29/2019 Strategic Mgmt Process
10/18
Global strategy
Pdts are standardized
Decisions regarding bus-level stgy arecentralized
SBUs are assumed to be interdependent Emphasizes on economies of scale
Often lacks responsiveness to local mkts
Requires resource sharing & co-ordinationacross borders
Outsource some primary or supportactivities to the worlds best providers
7/29/2019 Strategic Mgmt Process
11/18
Transnational strategy
Seeks to achieve both globalefficiency and local responsiveness
Strong central control andcordination to achieve efficiency
Decentralization to achieve local mktresponsiveness
Organisational learning a must
7/29/2019 Strategic Mgmt Process
12/18
PROBLEMS
ENVIRONMENTAL TRENDS
(liability of foreignness)
Security risksTighter immigration policies
7/29/2019 Strategic Mgmt Process
13/18
contd
REGIONALIZATION
Location can affect value creation
May wish to narrow focus to aparticular region of the world
Enter regional markets sequentially,
beginning with the most familiar mkt
7/29/2019 Strategic Mgmt Process
14/18
RISKS
POLITICAL RISK
Instability in Nation, govt, war
Nationalization of Firms resources
7/29/2019 Strategic Mgmt Process
15/18
contd
ECONOMIC RISKS
Differences and fluctuations in valueof different currencies
Prevailing wage rates may differ
Different property rights
unemployment
7/29/2019 Strategic Mgmt Process
16/18
LIMITATIONS
Cost of co-ordination across diversegeographical business units
Institutinal and cultural barriers
Understanding strategic intent ofcompetitors
Overall complexity of comprtition
7/29/2019 Strategic Mgmt Process
17/18
Value creation outcomes and
returns
Expands sales of its goods/servicesinto different geographic locations
Increase firms returns
Achieve positive stock returns
Achieve economies ofscale,experience and increase
market size Increase returns on innovation
Generate resources for innovation
7/29/2019 Strategic Mgmt Process
18/18