10: Strategy and International Business
- Page ID
- 16714
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 10.0: Chapter Introduction
- This page discusses international business strategy, particularly the strategy diamond and the P-O-L-C framework for adapting to global markets. It features the success of Splash Corporation, founded by Rolando and Rosalinda Hortaleza in the Philippines, which grew from a small hair spray business to a leading skincare manufacturer exporting to nearly twenty countries.
- 10.1: Business and Corporate Strategy
- This page explains the critical distinction between strategy formulation and implementation, noting their interdependence and the roles of top management and all organizational members. It covers business, corporate, and international strategies and emphasizes understanding competitive advantage and the external environment. SWOT analysis is presented as a key tool for identifying strengths, weaknesses, opportunities, and threats.
- 10.2: Generic Strategies
- This page explores three business strategies: vertical, horizontal, and geographic scope. Vertical scope encompasses all stages from raw materials to sales, while horizontal scope focuses on increasing similar business activities through diversification. Geographic scope involves expansion into new locations to maximize economies of scale and scope.
- 10.3: International Strategy
- This page outlines three international strategies: multidomestic, global, and transnational, which balance local responsiveness and global efficiency. The multidomestic strategy allows local customization at higher costs; the global strategy leverages centralization for efficiency but may lose local market relevance. The transnational strategy integrates both approaches but faces challenges.
- 10.4: The Five Elements of Strategy
- This page outlines the strategy diamond, comprising arenas, differentiators, vehicles, staging and pacing, and economic logic. Effective strategy formulation integrates these elements for strategic objectives, guiding decision-making in market choice and competitive understanding. The text emphasizes the importance of timing and profit generation.
- 10.5: Managing the International Business with the P-O-L-C Framework
- This page discusses the P-O-L-C framework (Planning, Organizing, Leading, Controlling) used in management, emphasizing its interconnected functions for achieving organizational objectives. It highlights challenges in cross-border communication, exemplified by Toyota's issues between its UK and US operations. Despite criticisms, the framework is deemed essential for effective management in various contexts.
- 10.6: End-of-Chapter Questions and Exercises
- This page focuses on exercises that align international business learning with AACSB standards, promoting skills in communication, ethics, and analysis. Activities include creating a global expansion strategy, analyzing corporate strategies of major companies, and examining ethical dilemmas related to outsourcing, including offshoring implications and product evaluations for emerging markets. Additionally, it addresses safety concerns from the perspective of a quality-control manager.