当代全球商务第七版配套课件Chap.ppt

1、Global Business Today 7eby Charles W.L.HillChapter 11The Strategy of International BusinessIntroduction Question:What actions can managers take to compete more effectively in a global economy?Answer:Managers must consider the benefits of expanding into foreign marketswhich strategies to pursue in fo

2、reign markets the value of collaboration with global competitorsthe advantages of strategic alliancesStrategy and the FirmQuestion:What is strategy?Answer:A firms strategy can be defined as the actions that managers take to attain the goals of the firmTypically,strategies focus on profitability and

3、profit growthProfitability refers to the rate of return the firm makes on its invested capitalProfit growth is the percentage increase in net profits over timeValue Creation Question:How do you increase the profitability of a firm?Answer:To increase profitability,value must be created for the consum

4、er Value creation is measured by the difference between V(the price that the firm can charge for that product given competitive pressures)and C(the costs of producing that product)The two basic strategies for creating value are differentiation low cost Strategy and the FirmFigure 11.1:Determinants o

5、f Enterprise ValueStrategic PositioningTo maximize profitability,a firm must pick a position on the efficiency frontier that is viable in the sense that there is enough demand to support that choiceconfigure its internal operations so that they support that positionmake sure that the firm has the ri

6、ght organization structure in place to execute its strategySo,a firms strategy,operations,and organization must all be consistent with each other in order to achieve a competitive advantage and superior profitability The Firm as a Value Chain Firms are essentially value chains composed of a series o

7、f distinct value creation activities,including production,marketing,materials management,R&D,human resources,information systems,and the firm infrastructure Value creation activities can be categorized as primary activities support activities The Firm as a Value Chain1.Primary Activities involves cr

8、eating the product,marketing and delivering the product to buyers,and providing support and after-sale service to the buyers of the product2.Support Activities provides the inputs that allow the primary activities of production and marketing to occurThe Firm as a Value ChainFigure 11.4:The Value Cha

9、inThe Implementation of StrategyOrganization architecture-the totality of a firms organization-formal organizational structure,control systems and incentives,organizational culture,processes,and people Organizational structure-the formal division of the organization into subunitsthe location of deci

10、sion-making responsibilities within that structurethe establishment of integrating mechanisms to coordinate the activities of subunits including cross functional teams and or pan-regional committeesThe Implementation of StrategyFigure 11.5:Organization ArchitectureThe Implementation of StrategyContr

11、ols-the metrics used to measure the performance of subunits and make judgments about how well the subunits are runIncentives-the devices used to reward appropriate managerial behavior Processes-the manner in which decisions are made and work is performedOrganizational culture-the norms and value sys

12、tems that are shared among the employeesPeople-employees and the strategy used to recruit,compensate,and retain those individualsIn Sum:Strategic FitSo,to attain superior performance and earn a high return on capital,a firms strategy must make sense given market conditionsThe operations of the firm

13、must support the firms strategyThe organizational architecture of the firm must match the firms operations and strategyif market conditions shift,so must the firms strategy,operations,and organizationIn Sum:Strategic FitFigure 11.6:Strategic FitGlobal Expansion and Profits Firms that operate interna

14、tionally can Expand the market for their domestic product offerings by selling those products in international markets Realize location economies by dispersing individual value creation activities to locations around the globe where they can be performed most efficiently and effectively Realize grea

15、ter cost economies from experience effects by serving an expanded global market from a central location,thereby reducing the costs of value creation1.Earn a greater return by leveraging any valuable skills developed in foreign operations and transferring them to other entities within the firms globa

16、l network of operations Leveraging Products and Competencies To increase growth,a firm can sell products or services developed at home in foreign marketsSuccess depends on the type of goods and services,and the firms core competencies(skills within the firm that competitors cannot easily match or im

17、itate)Core competencies enable the firm to reduce the costs of value creationcreate perceived value so that premium pricing is possibleLocation EconomiesFirms should locate value creation activities where economic,political,and cultural conditions are most conducive to the performance of that activi

18、tyFirms that successfully do this can realize location economies-the economies that arise from performing a value creation activity in the optimal location for that activity,wherever in the world that might beLocating value creation activities in optimal locationscan lower the costs of value creatio

19、n can enable a firm to differentiate its product offering from those of competitorsLocation EconomiesMultinationals that take advantage of location economies create a global web of value creation activitiesUnder this strategy,different stages of the value chain are dispersed to those locations aroun

20、d the globe where perceived value is maximized or where the costs of value creation are minimizedintroducing transportation costs and trade barriers complicates this picturepolitical risks must be assessed when making location decisionsExperience EffectsThe experience curve-the systematic reductions

21、 in production costs that have been observed to occur over the life of a producta products production costs decline by some quantity about each time cumulative output doublesLearning effects-cost savings that come from learning by doinglabor productivity increases when individuals learn the most eff

22、icient ways to perform particular tasks and management learns how to manage the new operation more efficientlyExperience EffectsEconomies of scale-the reductions in unit cost achieved by producing a large volume of a productSources include the ability to spread fixed costs over a large volumethe abi

23、lity of large firms to employ increasingly specialized equipment or personnelServing a global market from a single location is consistent with moving down the experience curve and establishing a low-cost positionLeveraging Subsidiary SkillsTo help increase firm value,managers shouldrecognize that va

24、luable skills can be developed anywhere within the firms global network(not just at the corporate center)use incentive systems to encourage local employees to acquire new skillsdevelop a process to identify when new skills have been created act as facilitators to transfer valuable skills within the

25、firmSummary Firms that expand internationally can increase their profitability and profit growth byv Entering markets where competitors lack similar competenciesv Realizing location economiesv Exploiting experience curve effects1.Transferring valuable skills within the organizationCompetitive Pressu

26、resFirms that compete in the global marketplace typically face two types of competitive pressurespressures for cost reductionspressures to be locally responsiveThese pressures place conflicting demands on the firm Competitive PressuresFigure 11.8:Pressures for Cost Reductions and Local Responsivenes

27、sPressures for Cost ReductionsPressures for cost reductions are greatestin industries producing commodity type products that fill universal needs-needs that exist when the tastes and preferences of consumers in different nations are similar if not identical when major competitors are based in low co

28、st locationswhere there is persistent excess capacitywhere consumers are powerful and face low switching costsTo respond to these pressures,firms need to lower the costs of value creation Pressures for Local ResponsivenessPressures for local responsiveness arise fromdifferences in consumer tastes an

29、d preferencesdifferences in traditional practices and infrastructuredifferences in distribution channelshost government demandsFirms facing these pressures need to differentiate their products and marketing strategy in each country Pressures for Local Responsiveness1.Differences in Consumer Tastes a

30、nd Preferences When consumer tastes and preferences differ significantly between countries,firms face strong pressures for local responsiveness 2.Differences in Infrastructure and Traditional Practices When there are differences in infrastructure and/or traditional practices between countries,pressu

31、res for local responsiveness emerge Pressures for Local Responsiveness3.Differences in Distribution Channels A firms marketing strategies may be influenced by differences in distribution channels between countries4.Host Government Demands Economic and political demands imposed by host country govern

32、ments may necessitate a degree of local responsivenessChoosing a Strategy Question:How do the pressures for cost reductions and local responsiveness influence a firms choice of strategy?Answer:There are four basic strategies to compete in the international environment global standardization localiza

33、tion transnational internationalGlobal Standardization StrategyQuestion:When does a global standardization strategy make sense?Answer:A global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale,learning effe

34、cts,and location economies the goal is to pursue a low-cost strategy on a global scale makes sense when there are strong pressures for cost reductions and demands for local responsiveness are minimalLocalization StrategyQuestion:When does a localization strategy make sense?Answer:A localization stra

35、tegy focuses on increasing profitability by customizing the firms goods or services so that they provide a good match to tastes and preferences in different national markets makes sense when there are substantial differences across nations with regard to consumer tastes and preferences,and where cos

36、t pressures are not too intenseTransnational StrategyQuestion:When does a transnational strategy make sense?Answer:A transnational strategy tries to simultaneously achieve low costs through location economies,economies of scale,and learning effects differentiate the product offering across geographi

37、c markets to account for local differences foster a multidirectional flow of skills between different subsidiariesmakes sense when there are both high cost pressures and high pressures for local responsivenessInternational StrategyQuestion:When does an international strategy make sense?Answer:An int

38、ernational strategy involves taking products first produced for the domestic market and then selling them internationally with only minimal local customization makes sense when there are low cost pressures and low pressures for local responsivenessThe Evolution of StrategyQuestion:Is the choice of s

39、trategy static?Answer:As competition increases,international and localization strategies become less viable To survive,firms may need to shift to a global standardization strategy or a transnational strategy in advance of competitors Strategic AlliancesQuestion:What are strategic alliances?Answer:St

40、rategic alliances-cooperative agreements between potential or actual competitorsExamples formal joint ventures short term contractual arrangementsThe number of international strategic alliances has risen significantly in recent decades Advantages of Strategic AlliancesQuestion:Why form a strategic a

41、lliance?Answer:Strategic alliances are attractive because they facilitate entry into a foreign market allow firms to share the fixed costs(and associated risks)of developing new products or processes bring together complementary skills and assets that neither partner could easily develop on its own

42、can help establish technological standards for the industry that will benefit the firm Disadvantages of Strategic AlliancesQuestion:What are the drawbacks of strategic alliances?Answer:Strategic alliances can give competitors low-cost routes to new technology and marketsUnless a firm is careful,it c

43、an give away more in a strategic alliance than it receivesMaking Alliances Work Question:How can firms increase the success of their alliances?Answer:Many international strategic alliances run into problems The success of an alliance seems to be a function of three main factors partner selection all

44、iance structure the manner in which the alliance is managedMaking Alliances Work1.Partner Selection A good partner helps the firm achieve its strategic goals and has the capabilities the firm lacks and that it values shares the firms vision for the purpose of the alliance does not expropriate the fi

45、rms technological know-how while giving away little in return Making Alliances Work2.Alliance StructureA good alliance should be designed to make it difficult to transfer technology not meant to be transferred have contractual safeguards to guard against the risk of opportunism by a partner involve

46、an agreement in advance to swap skills and technologies to ensure a chance for equitable gain extract a significant credible commitment from the partner in advanceMaking Alliances Work3.Managing the Alliance A good alliance requires managers from both companies to build interpersonal relationships s

47、hould promote learning from alliance partners should promote the diffusion of learned knowledge throughout the organization Classroom Performance SystemAll of the following are examples of primary activities except Logistics Marketing and sales Customer servicea)Production Classroom Performance Syst

48、emWhen different stages of a value chain are dispersed to those locations around the world where value added is maximized or where the costs of value creation are minimized,_ is(are)created.Experience effects Learning effects Economies of scale A global web Classroom Performance SystemPressures for

49、local responsiveness come from all of the following except Excess capacity Host government demands Differences in consumer tastes and preferences Differences in distribution channels Classroom Performance SystemWhen pressures are high for local responsiveness,but low for cost reductions,a _ makes sense.Global standardization strategy International strategy Transnational strategy Localization strategy