Strategy Formation & International
Environment
Assessing Country Attractiveness
International Strategy Management Phases
in MGX 5181
Strategy
Formation
Here now
Country
Assessment
Mgt Tools
Environment
Scanning
Scenario Planning
Game Theory
application
Concepts
Mapping
etc
Strategy Planning
Corporate
Strategy
Planning
Business Level
Planning
Strategy Implementation
Planning & Execution
Internationalisation
Process
Corporate Level
Configuration &
Coordination
Foreign Market
Strategies evaluation &
selection
Leadership, innovation
& governance
Organisational Design &
Control
Composition Elements of a Global Strategy
Global Vision – foresight about an organisation’s competitive
positioning in a globally configured & coordinated market
Global Mission – directs the strategic priorities & competitive
positioning that meets the needs of all stakeholders
Strategy styles– evolution, revolution, engaging change
management, democratic, new & innovative, effectively
communicating; outcomes focused
Strategic Objectives & Values Centred
Strategic Approach Orientation
Ethno (HQ) centric ; poly (HQ & Local) centric, regio (regional) centric
and geo (global) centric
Assessing Country Attractiveness
Environmental Scanning
Which Countries?
When to enter Countries?
What form of operation to setup or grow Countries?
Environment Scanning
1. Assess the Economic Value of a Country
• Customer value
• Completive forces
Via country’s price/cost structures & tolerances
2. Country Risk & Market Opportunities
• Evaluation of PEST risks & enablers
• Competition forces
3. Business demand, profitability & risk factors
• Countries’ demand & lifecycle correlation analysis
• Countries contributions to global competitiveness
• Country’s risk analysis
Environmental Scanning Method
Detailed
research of
each
Country’s
assessment
criteria
COUNTRY A
COUNTRY A
COUNTRY A
COUNTRY A
Social political Factors
Social political Factors
•
Social political
Factors
•
Social political
Factors
•
•
•
•
•
Domestic
economic factors
•Domestic
economic factors
Domestic •economic factors
Domestic •economic factors
•
•
•
•
•
External
economic factors
•External
economic factors
•
External economic
factors
•
External economic
factors
•
•
•
•
•
TOTAL
Country Evaluation
•TOTAL
Country Evaluation
TOTAL Country Evaluation
TOTAL Country Min – Max Scores
Grade Weight
Total
Grade Weight
Total
(1-10)Weight
(1-5) TotalScore
Grade
(1-10)Weight
(1-5) TotalScore
Grade
(1-10)
(1-5)
Score(1-10)
(1-10)
(1-5)
Score(1-10)
(1-10)
(1-10)
Review all countries’ assessment scores  select one or a mix of countries
whose risk/profitability suits company’s risk culture & tolerance
Tutorial Tasks
1. Class agreed an industry an organisation is in
2. Break into teams – choose 3-5 countries and assess which country is
best, second best, etc.
Students form into small groups. Tutor will choose an industry they feel comfortable with and
request the students rank 3-5 countries of the tutor’s choice in order of their ranked preference of
entry. Student’s ranking should be based on an environmental scanning of the economic, political,
legal, cultural, and technical environments.
Students should identify key elements under each environment that they want to rank and then
develop an overall ranking for that environment. Note: Students can look at their lecture notes to
get an idea of the elements they might include.
The ranking system should consist of a 1-5 ranking where 1 is most favourable and 5 is least
favourable (or the other way around). The tutor will put each group’s results up on the board and
see how they compare. Students will be asked why differences might occur. Add all group totals
and see what the overall priority of ranking is for each country. What can we learn from this
exercise in terms of priority of entry and risk management (see attached ranking system
example as a guide).
Industries could be such things as: telecommunications, pharmaceuticals, sports medicine
or really anything the tutor and students will relate to.
Countries –select from at least 3 continents to provide diversity and interesting discussion.