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Ch8-,1,Chapter 8,International Strategy,Chapter 8International Strateg,Competitiveness,Chapter 3,Internal,Environment,Chapter 2,External,Environment,The Strategic,Management,Process,Strategic Intent,Strategic Mission,Strategic,Competitiveness,Above Average,Returns,Feedback,Strategy Formulation,Chapter 4,Business-Level,Strategy,Chapter 5,Competitive,Dynamics,Chapter 6,Corporate-Level,Strategy,Chapter 8,International,Strategy,Chapter 9,Cooperative,Strategies,Chapter 7,Acquisitions&,Restructuring,Strategy Implementation,Chapter 10,Corporate,Governance,Chapter 11,Structure,&Control,Chapter 12,Strategic,Leadership,Chapter 13,Entrepreneurship,&Innovation,Strategic,Inputs,Strategic,Actions,Strategic,Outcomes,CompetitivenessChapter 3Intern,International Strategy Opportunities and Outcomes,Identify International Opportunities,Explore,Resources and Capabilities,Use Core Competence,Strategic,Competitiveness,Outcomes,International,Strategies,Modes of Entry,Increased,Market Size,Return on Investment,Economies of Scale and Learning,Location Advantage,International,Business-Level,Strategy,Multidomestic Strategy,Global,Strategy,Transnational Strategy,Exporting,Establishment of New Subsidiary,Exporting,Strategic,Alliances,Acquisition,Management Problems,and Risk,Management Problems,and Risk,Higher Performance Returns,Innovation,Increased,Market Size,Return on Investment,Economies of Scale and Learning,Location Advantage,International Strategy Opportu,Selling Products or Services Outside a Firms Domestic Market,International Strategy Lifecycle,Firm Introduces Innovation in Domestic Market,1,Product Demand Develops and Firm Exports Products,2,Foreign Competition,Begins Production,3,Firm Begins Production Abroad,4,Production Becomes Standardized and is Relocated to Low Cost Countries,5,Selling Products or Services O,Example:,Aircraft manufacturers Boeing or Airbus,Example:,Japanese electronics or automobile manufacturers,Motivations for International Expansion,Increase Market Share,Domestic market may lack the size to support efficient scale manufacturing facilities,Large investment projects may require global markets to justify the capital outlays,Weak patent protection in some countries implies that firms should expand overseas rapidly in order to preempt imitators,Return on Investment,Example:Aircraft manufacturer,Motivations for International Expansion,Economies of Scale or Learning,Expanding size or scope of markets helps to achieve economies of scale in manufacturing as well as marketing,R&D or distribution,-Can spread costs over a larger sales base,-Increase profit per unit,May achieve better access to:,-Raw materials,-Lower cost labor,-Key suppliers,-Key customers,-Energy,-Natural resources,Location Advantages,Low cost markets may aid in developing competitive advantage,Motivations for International,Factor Conditions,Basic Factors,-Land,labor,Advanced Factors,-Highly educated workers,-Digital communications,Generalized Factors,-Capital,infrastructure,Specialized Factors,-Skilled personnel,Demand,Conditions,Home country may support scale efficient operations by itself,Related&Supporting,Industries,-Japanese cameras&copiers,-Italian shoes&leather,Firm Strategy,Structure&Rivalry,Intense rivalry fosters industry competition,Porters Determinants of National Advantage,Home Country,of Origin Is Crucial to International Success,Factor ConditionsBasic Factors,International Strategy Opportunities and Outcomes,Identify International Opportunities,Explore,Resources and Capabilities,Use Core Competence,Strategic,Competitiveness,Outcomes,International,Strategies,Modes of Entry,Increased,Market Size,Return on Investment,Economies of Scale and Learning,Location Advantage,International,Business-Level,Strategy,Multidomestic Strategy,Global,Strategy,Transnational Strategy,Exporting,Establishment of New Subsidiary,Exporting,Strategic,Alliances,Acquisition,Management Problems,and Risk,Management Problems,and Risk,Higher Performance Returns,Innovation,International Strategy Opportu,International Differentiation,Countries with advanced or specialized factor conditions most likely to use this strategy,Example:,Japan,Germany,U.S.,International Low Cost,Usually located in home country,Export to international markets,Low value added operations in foreign countries,High value added operations in home country,Business-Level International Strategies,International DifferentiationC,International Focus Strategies,International Integrated Low Cost/Differentiation,Can be most effective in dealing with diverse markets,Often relies upon flexible manufacturing,total quality management or rapid communication networks,Technologically advanced firms follow focused low cost strategy,Focused differentiation firms compete on the basis of image&design,Third group competes on low price by imitating,Business-Level International Strategies,International Focus Strategies,Three Corporate Strategies,Global Strategy,Transnational Strategy,Multi-Domestic Strategy,Corpora
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