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Lecture Strategic management: Competitiveness and globalization, concepts and cases (4/e): Chapter 8 - Michael A. Hitt, R. Duane Ireland, Robert E. Hoskisson

Chapter 8 - International strategy. The learning objectives for this chapter include: Explain traditional and emerging motives for firms to pursue international diversification; explore the four factors that lead to a basis for international business-level strategies; define the three international corporate-level strategies: multidomestic, global, and transnational;. | Chapter 8 International Strategy Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing 1 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 2 International Strategy Opportunities and Outcomes Identify International Opportunities Explore Resources and Capabilities Use Core Competence Strategic Competitiveness Outcomes International Strategies Modes of Entry Increased | Chapter 8 International Strategy Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing 1 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 2 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 3 Selling Products or Services Outside a Firm’s 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 10 Example: Aircraft manufacturers Boeing or Airbus Example: Japanese electronics or automobile manufacturers Motivations for International Expansion Increase Market Share Domestic market may lack the