International Business Strategy Summary

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International Business Strategy – Summary

Week 1: JWS 1, 3 & 4 + Porter 1996 article

Lecture Keywords strategy: change – competition – management – analysis – contingency plan – future – policy – goals – institutions – planning – finance – profit – innovations Strategy is… Long-term direction

Scope of activities: what business are we in?

Positioning: who do(‘nt) we serve?

Resources and competences: what do we use? And how?

Fulfilling expectations: how good?

Advantage: what do we do better?

These questions can be answered using the mission statement of a company.Strategy implements… VRIO-framework – sustainable competitive advantage.

Valuable: market potential?

Rare: not same value perceived with other product?

Inimitable: costly to imitate.

Organizationally embedded: exploited non-substitutes.

To see whether the firm is competitive and to determine its current market position – only focusing on resources and capabilities.SWOT-analysis: Strengths, Weaknesses, Opportunities and Threats. Internal (SW) and external (OT). SWOT is an extension of VRIO.

JWS Chapter 1 – Introducing Strategy Strategy – long-term direction of an organization. There

are different definitions of strategy:

Chandler: long-run goals and objectives and allocation of resources.

Porter: being different, different set of activities, unique mix of value.

Mintzberg: pattern in a stream of decisions.

Exploring Strategy: long-term direction of an organization. Long

term

Three horizons framework – comprising three types of business or activity:

1)Core activities 2)Emerging activities  new source of profit

3)Possibilities: unsure (R&D) 2 / 3

Essential: managers need to avoid focusing on the short-term issues. Strategic

direction Trajectory, long-term objectives are set. Depends on the type of organization. I.e.: private sector; maximizing profits for shareholders. However, profit not always strategy drive.Organization Not only organization, but also stakeholders: people working inside or outside the

organization: involved with different interests and views.

Strategic management – managing people, relationships and resources.Levels of Strategy Corporate-level strategy – overall scope of an organization and how value is added.Business-level strategy – how individual business should compete in their particular markets.Operational strategies – how the components deliver effectively to both corporate- level and business-level strategies in terms of resources, processes and people – integration.Strategy Statements Strategy statements – three main themes: fundamental goals: mission, vision and objectives; scope or domain activities and advantages/capabilities.

Mission: what business are we in? – Mission statement.

Vision: what do we want to achieve? – Vision statement.

Objectives: what do we have to achieve in the coming period?

Scope: three dimensions: customers/clients, geographical location, extent of internal activities.

Advantage: being better than others to achieve same goal.

Exploring strategy model – understanding strategic position assessing strategic choices for the future and managing strategy in action – equally prior.Strategic position – impact on strategy of external environment, strategic

capability, goals and culture:

×Environment – opportunities and threats (swOT). Regarding: political,

social, technological and economic.

×Strategic choices – resources and competences: strengths and

weaknesses (SWot). Competitive (dis)advantage? Adequate tools?×Strategic purpose – vision, mission and objectives, influenced by governance structure and culture. What does it seek to achieve?Strategic choices – options for strategy: directions and methods.

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