International Business

Environments and Operations,

13/e
Global Edition
Part Five
Global Strategy, Structure, and
Implementation

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 Chapter 11
The Strategy
of
International
Business

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 Chapter Objectives

To identify how managers develop strategy

To examine industry structure, firm strategy, and
value creation
To profile the features and functions of the value
chain framework
To assess how managers configure and coordinate a
value chain
To explain global integration and local
responsiveness
To profile the types of strategies firms use in
international business
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The Role of Strategy in
International Business

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 Industry, Strategy ,and Firm
Performance
Industry organization paradigm leading
strategy perspectives
The exceptions of imperfect competition
The idea of industry structure: The Five
Forces Model

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Five Forces Model

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 Industry Change
Industry structure changes because of events like
Competitors moves
Government policies
Changes in economics
Shifting buyer preferences
Technological developments
Rate of market growth

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 Strategy and Value

Strategy helps managers assess the

companys present situation, identify the
direction the company should go, and
determine how the company will get there.
Creating Value
Cost Leadership
Differentiation

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 The Firm as Value Chain

What is the value chain?

Using the value chain
Configuration
Macro Cost Factors
Cluster Effects
Logistics
Digitization
Economies of Scale
Business Environment
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 Coordination

Coordination Concerns
National Cultures
Learning Curve
Operational Obstacles
Subsidiary Networks

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 Change and the Value Chain

The configuration and coordination of value

chains respond to changes in customers,
competitors, industries, and environments.

Caveat: The Risk of Strategy

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 Global Integration versus Local
Responsiveness
Pressures for Global Integration
Globalization of Markets
Efficiency Gains of Standardization
Pressures for Local Responsiveness
Consumer Divergence
Host Government Policies

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 When Pressures Interact

The Integration-Responsiveness grid helps

managers measure the global and local
pressures that influence the configuration and
coordination of their value chains.

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Integration Responsiveness Grid

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Types of Strategy

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 Future: Whats New in the World
of Strategy Types
Evolution of the Multinational Corporation
Visions of the Future
The Metanational Company
Micro-Nationals
The Cybercorp

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 All rights reserved. No part of this
publication may be reproduced, stored in
a retrieval system, or transmitted, in any
form or by any means, electronic,
mechanical, photocopying, recording, or
otherwise, without the prior written
permission of the publisher. Printed in the
United States of America.

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