Implementing and
Evaluating Strategy
International Business
Strategy
LON301BUS
Unit: 8 Knowledgecast: 2
Module Learning Outcomes
• Integrate and apply strategic approaches to practical
situations in various types of organisations
• Assess current developments in the organisational
environment and alternative responses related to
strategy
• Resolve management problems in the area of strategic
management by evaluating alternative outcomes
Worldwide Innovation
• Competitors achieving parity in scale and
responsiveness
• Competitive battles shifting to innovation area
• Three key capabilities:
 Sensing
 Responding
 Implementing
Central, Local and Transnational
Innovation
Two classic processes;
• Center-for-global: new opportunity sensed in
home country, centralized resources brought
to bear, implemented globally
• Local-for-local: subsidiary-based knowledge
development, used primarily in local market
Central, Local and Transnational
Innovation
Two emerging processes
• Locally leveraged: Local opportunity sensed by
subsidiary then leveraged on a worldwide basis
 Sara Lee: Sanex and Ambi-Pur came from Spain
• Globally linked: Resources and capabilities of many
operations pooled to jointly create and manage new
activity
 Volkswagen’s New Beetle involved US, Germany and Mexico
operations
Problems Associated with Each
Model
• Center-for-global innovation
 Risk of market insensitivity, imperialism
• Local-for-local innovation
 Risk of duplication, reinventing wheel
• Locally leveraged innovation
 Threatened by not-invented-here
• Globally linked innovation
 High coordination costs
Linking and Leveraging Resources
Decentralized
Federation
Centralized
Hub
• Locally
Leveraged
Innovation
The Integrated Network
• Globally Linked
Innovation
- Building up
collaborative
interdependence
Coordinated Federation
Knowledgecast Summary
• Integrate and apply strategic approaches to practical situations in
various types of organisations
• How does worldwide innovation contribute to sustainable strategy?
• Assess current developments in the organisational environment
and alternative responses related to strategy
• Increased collaborative interdependence is driven by the new
competitive battleground..
• Resolve management problems in the area of strategic
management by evaluating alternative outcomes
• How can managers evaluate the value of worldwide innovation and
its suitability for strategic implementation.
Seminar
Developing an International Strategy – Spulber’s Star
Developing an international strategy requires a thorough evaluation of
potential markets. There are a number of tools and frameworks that
can assist in such an evaluation and in today’s seminar we are going
to critically consider a number of these: Spulber’s Star, Global Added
Value, G5 Competitive Strategies.
Your module tutor will work with you to use Spulber’s Star to analyse
an organisation’s international opportunities.
Group Activity
End of Module Assessment – Evaluating Strategy (Management
Brief) (Unit 10)
Preparation
How would you rate the strategy of the case study organisation against
the criteria discussed in the Knowledgecast?
In your teams consider each of the criteria:
• Suitability
• Acceptability
• Feasibility
• Sustainability