International Strategic Management

International Strategic Management

1. International Structure

   • Initial Division Structures
     • Subsidiaries
       • that follow this kind of organization structure include firms where the main export is expertise, for example, consultants and financial firms.
     • Export firms
       • include those having technologically advanced products and manufacturing units.
   • International Division Structure
     • To handle all international operations by a division created for control.
       • Advantages
         • International attitude gets the attention of top management.
       • Disadvantages
         • Separates domestic managers from their international counterparts.
   • Global Area Division
     • Used for operations that are controlled on a geographic rather than a product basis. Used by firms in mature businesses with select product lines.
       • Advantages
         • International operations and domestic operations remain at the same level
   • Global Functional Division
     • To primarily organize global operations based on function. Product orientation is secondary
       • Advantages
         • Functional leadership, centralized-control, and leaner managerial staff.
       • Disadvantages
         • Not suitable for all types of businesses. Applicable to only oil and mining firms

2. Ethical Considerations

   • Economic development
     • Neo liberal View: Economic Growth GDP, missing other aspects Institutional View: capacity building: basic needs, life expectancy, respect ( Self -others).
       • Client
         • Quality Prices Misleading advertising Health requierement
       • Employees
         • Labour principles Wages
   • Business strategy
     • Cost-minimization strategies: Increase profit: incirease FDI, competitiveness, Knowledege transfer, efficiency. Asset-development strategies: Investment : long-term value, protect investments, conditions skills for labour, GVC
       • Suppliers
         • conditions Payment
       • Competitors
         • Dumping Intellectual Property
   • Ethics of firms
     • Ethics viewed as a means of policing: Ethics viewed as a call for social contribution:
       • Government
         • Transparency Informality
       • Communit
         • Environment Social Impact

3. International Strategy

   • International management
     • Process of planning, organizing, directing, and controlling the organization, which individuals (managers) use to achieve an organization’s goals when the organization is involved in cross-border activities or functions outside its nation-state
   • International Business
     • Business: a commercial or industrial enterprise that sells goods or services to customers. The domain of business studies is therefore the study of business as an enterprise (an organizational form).
   • International strategy
     • Is the comprehensive set of commitments, decisions, and actions by firms to gain competitiveness internationally.

4. Orientation

   • Regiocentrism
     • Main decisions made in regional headquarters
       • Regional standards in regions
     • High positions taken by regional managers
   • Geocentrism
     • Focus on global objectives
     • Global view
     • Focus on global objectives
   • ethnocentrism
     • Main decisions made in the main headquarter
     • Home standards applied on all markets
     • Focus on domestic objectives
   • Polycentrism
     • Lower role of the main headquarter
     • Local standards applied on local markets
     • Identification with the nationality of host country

5. Mangement Decision

   • Multidomestic
     • strategies and operating decision
       • organizational structure natural
   • Trasnational
     • firm seek to achive both global efficiency
   • Global
     • standarization of the products
       • worldwide product divisional organizational structure