COURSE CODE: INB 404 COURSE TITLE: International Business Strategy MODULE DEVELOPER: OGUNDEINDE, Adedamola MODULE REVIEWER: NOT REVIEWED Course Outline: Thiscourse is divided intothree major sections: Module 1: Foundations of Global Strategy Unit 1: Strategizing around the Globe Unit 2: Managing industry competition Unit 3: Leveraging Resources and Capabilities Unit 4: Emphasizing institution, cultures and Ethics Module 2: Business-Level Strategies Unit 1: Growing and internationalizing the entrepreneurial firm Unit 2: Entering Foreign Markets Unit 3: Making strategic alliances and networks work Unit 4: Managing global competitive Dynamics Module 3: Corporate-Level Strategies Unit 1: Diversifying Acquiring and restructuring Unit 2: Strategizing, structuring, and learning around the world Unit 3: Governing the corporation around the world Unit 4: Straitening with corporate social responsibility Course Aim/Goals The aim of this unit is to focus on the implementation of corporate international business strategy and policy for global success in large multinational companies and in small and medium sized enterprise. As one of the capstone units in the International Business major, it is designed to build upon the knowledge base of previous units, introducing students to the strategic international business and management strategies taken by firms, and to expose students to the strategic choices with which international business manager’s face in the international environment. Topics are referred to as MODULEs Main Module: Part A: Foundations of Global Strategy • Strategizing around the Globe • Managing industry competition • Leveraging Resources and Capabilities • Emphasizing institution, cultures and Ethics Part B: Business-Level Strategies • Growing and internationalizing the entrepreneurial firm • Entering Foreign Markets • Making strategic alliances and networks work • Managing global competitive Dynamics Part C: Corporate-Level Strategies • Diversifying Acquiring and restructuring • Strategizing, structuring, and learning around the world • Governing the corporation around the world • Straitening with corporate social responsibility Redefined topics with subtopic Module 1: Strategizing around the Globe ● Why study Global strategy ● What is strategy ○ Origin ○ Plan versus action ○ Strategy in action ○ Strategy as Theory ○ Strategy in Action ● Fundamental Questions in Strategy ● What is Global strategy ● Global Strategy and Globalization at a Crossroads Module 2: Stay Ahead of the Game: Effective Strategies for Managing Industry Competition ● ● ● ● Defining Industry Competition The Five Forces Framework Three Generic Strategies Debates and Extensions Module 3: Leveraging Resources and Capabilities ● Understanding resources and capabilities ● Resources, Capabilities and the value Chain ● VRIO Framework Module 4: Emphasizing institution, cultures and Ethics ● Understanding Institutions ● An Institution-Based view of Business strategy ● The Strategic Role of Cultures ● The strategic Role of Ethics Module 5: Growing and internationalizing the entrepreneurial firm ● A comprehensive Model of Entrepreneurship ● Five entrepreneurial strategies ● Internationalizing the entrepreneurial firm Module 6: Entering Foreign Markets ● Understanding the propensity to internationalize ● A comprehensive model of foreign market entries. ● Where to Enter? ● When to Enter? ● How to Enter? Module 7: Making strategic alliances and networks work ● Defining strategic alliances and networks ● A comprehensive model of strategic alliances and network Module 8: Managing global competitive Dynamics ● Industry-based considerations ● Resources-based considerations ● Institution-based considerations ● Attack and Counterattack ● Cooperation and Signalling ● Local firms versus multinational enterprises Module 9: Diversifying Acquiring and restructuring ● Product Diversification ● Geographic Diversification ● Combining product and Geographic diversification ● A comprehensive model of diversification ● Acquisitions ● Restructuring Module 10: Strategizing, structuring, and learning around the world ● Multinational strategies and structures ● A comprehensive model of multinational strategy, structure, and learning ● Worldwide learning, innovation, and knowledge management Module 1: Foundations of Global Strategy Unit 1: Strategizing around the Globe CONTENT 1.0 Introduction 2.0 Objectives 3.0 Main Content 3.1 Why study Global strategy 3.2 What is strategy ○ Origin ○ Plan versus action ○ Strategy in action ○ Strategy as Theory ○ Strategy in Action 3.3 Fundamental Questions in Strategy 3.4 What is Global strategy 3.5 Global Strategy and Globalization at a Crossroads 4.0 Conclusion 5.0 Summary 6.0 Tutor-Marked Assignment 7.0 References/ Further Reading 1.0 Introduction In what ways do companies throughout the world compete with one another? To what extent do these factors influence their prospects for success or failure? This lesson will assist existing and aspiring strategists address these and other critical concerns since strategy is about competing and winning. In this course, the term "global strategy" refers to the overall approach to business that is taken by companies of all sizes throughout the world. That is to say, the module does not zero down on a certain kind of international (cross-border) strategy that emphasizes mass-market distribution of commodities. As a result of a lack of a better name, this tactic has been referred to as "global strategy" for more than three decades and has been often recommended by classic works on the subject. A deglobalizing world may make it even more difficult to implement a "global plan" with such a restricted focus. 2.0 Objectives 1. Provide a short, simple analysis of the problems with the conventional, restricted "global strategy." 2. Provide an explanation for why you think it's important to study global strategy. 3. Explain what you mean by "strategy" and "global strategy." 4. Briefly provide the answers to the four most important questions in strategic planning. 5. Realize that globalization and semi-globalization are what they are 3.0 Main Content Multinational corporations, or MNCs, are businesses that operate beyond national borders and participate in FDI by owning and operating facilities that create value in a foreign market. Multinational corporations, in fact, often need to modify their approaches, goods, and services to fit local markets. Simply said, there is no such thing as a "global vehicle" in the automotive business. Autos that sell well in one area may not do as well in another, even though they are mechanically identical. (Include (regional and global) variations in the automotive market size here.). Coke Classic, the purported "global drink," has regional variations in flavor (with varying sugar content). Several people have reacted negatively to the "global advertisements" that Coca-Cola has been trying to promote, which include a cartoon polar bear and are meant to appeal to people all over the globe by highlighting common values and interests. The fuzzy bear was difficult for audiences in warmer climates to empathize with. Coca-Cola responded by investing more money in commercials that were tailored to individual countries. By way of illustration, the Indian branch of the company ran an ad campaign linking Coke with the Hindi term for "cold," thanda. As part of its advertising campaign, the German branch came up with a series of spots that included "covert" sexuality. Very simply, there is no such thing as a universal solution. Although the "one-size-fits-all strategy" may work for certain multinational enterprises (MNEs), it is clear that this concept of "global strategy" is frequently inadequate and imbalanced. It seems that "think global, act local" is a reasonable strategy for even most MNEs. Why Study Global Strategy? Strategy courses, and international strategy courses in particular, are among the most sought after by business students. The study of global strategy is important, but why? Strategy consultants that specialize in global strategy are among the most in-demand and well-compensated graduates of MBA and undergraduate management programs. One of them can be you. Expertise in global strategy is generally a precondition for ascent to the top echelons of multinational organizations, even outside of the consulting sector. Remember to highlight the fact that you have taken this strategically significant course on your resume. Even if you're a recent college grad working at a large company and have no plans to enter the consulting industry or vie for executive positions, you might still find yourself using foreign products and services (like Zoom meetings), competing with foreign entrants in your home market, or selling or investing overseas. On the other hand, you may end yourself working for a company that is wholly controlled by a foreign entity, have your current employer purchased by an international competitor, or have your division shut down as part of a company-wide effort to streamline operations worldwide. Over 80 million individuals worldwide are directly employed by companies that are majority or wholly controlled by a foreign entity. This includes about 7 million Americans, 1 million Brits, and 18 million Chinese. Coca-Cola, for instance, employs more people than any other private company in Africa, with a total of 65,000. With 50,000 people, Tata Group is the biggest private sector employer in Britain. Knowing how strategic choices are made may aid your own career in such companies. If there is a strategic reason to reduce the size of your department, you'd rather know about it in advance so you can be among the first to put your resume up for hire elsewhere than among the first to get the boot. In other words, you need to adopt a more calculated approach. After all, your professional reputation is at risk. Get up to date with the situation. What is Strategy? Origin The term "strategy," which originates from the Greek word strategos, originally meant "the skill of the general" or "generalship." The origins of strategy are deeply rooted in the military. The Art of War, written about 500 B.C.E., is the first known work on military strategy. Sun Tzu, a Chinese military strategist, wrote it. Sun Tzu is well known for his advice, "Know yourself, know your opponents; face a hundred fights, win a hundred triumphs." Strategic management, or "strategy" for short, is a relatively new concept that has emerged since the 1960s. It applies military strategy ideas to corporate competitiveness. Strategy vs. Practice The definition of strategy has been the topic of heated dispute, in part because corporate strategy is a relatively new profession (despite its historical origins in military strategy). There are now three competing theoretical frameworks. The earliest strategy-as-plan school was the first. This school of thought, based on the writings of 19th-century Prussian (German) military strategist Carl von Clausewitz, holds that strategy is represented in the same explicit rigorous formal planning as in the military. On the other hand, 20th-century British military strategists like Liddell Hart have argued that a more adaptable set of goal-oriented operations is more important than rigid plans. Hart preferred a more roundabout method that aimed to avoid direct confrontation with the opposition by means of swift, adaptable response. Henry Mintzberg, a Canadian academic, is a proponent of the "strategy as action" school of thought in the study of company strategy. Together with the concept the planning school had in mind, Mintzberg proposed How are you going to make learners more active? What videos will you make interactive? What downloadable exercises are you going to give? How are you going to encourage self assessment? Assessment Activities Last but not least, you need to create some assessment checkpoints, where you will be testing your students’ knowledge. Try to have a variety of tests of knowledge. Ungraded quizzes help a student practise their knowledge, while self-assessments are better for reflection and goal-setting. For example, if you are teaching others how to start their own business, a practical assessment might be writing a business plan and getting feedback from friends and family on social media. Module One: Unit 2 Stay Ahead of the Game: Effective Strategies for Managing Industry Competition Image Source: FreeImages In today's ever-evolving business landscape, competition is a given. No matter what industry you're in, there will always be other companies vying for your customers and market share. But instead of feeling overwhelmed by the competition, savvy business owners and managers know that staying ahead of the game is key to success. With the right strategies in place, you can not only keep up with your competitors but also outshine them. From analyzing your strengths and weaknesses to identifying opportunities for growth, there are numerous effective tactics you can use to manage industry competition. In this article, we'll explore some of the most successful strategies used by top companies to maintain a competitive edge and keep their businesses thriving. Whether you're a small start-up or a large corporation, these tips will help you stay ahead of the game and continue to grow in your industry. Understanding your competition One of the most important steps in managing industry competition is understanding who your competitors are and what they're doing. By analyzing your competition, you can identify their strengths and weaknesses, as well as opportunities for growth in your own business. Start by researching your competitors online, including their websites, social media accounts, and any other online presence they have. Look at their products or services, pricing, marketing strategies, and customer reviews. This will help you get a better sense of what they offer and how they're positioning themselves in the market. Next, consider conducting a competitive analysis to compare your business to your competitors. This can include a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. In a SWOT analysis, you'll identify your own business's strengths and weaknesses, as well as the opportunities and threats in the market. This will help you identify areas where you can improve and opportunities for growth. By understanding your competition and conducting a competitive analysis, you'll be better equipped to develop effective strategies for managing industry competition. Conducting a SWOT analysis Conducting a SWOT analysis is a crucial part of managing industry competition. This analysis helps businesses identify their strengths, weaknesses, opportunities, and threats. A SWOT analysis can be conducted by a business owner, manager, or a team of employees. To conduct a SWOT analysis, start by identifying your strengths. This could include your business's unique selling proposition, quality of products or services, customer service, or brand reputation. Next, identify your weaknesses. This could include a lack of resources, limited marketing budget, or outdated technology. Once you've identified your strengths and weaknesses, consider the opportunities and threats in your market. Opportunities could include emerging trends or untapped customer segments. Threats could include new competitors entering the market, changes in regulations, or economic downturns. By conducting a SWOT analysis, you'll have a better understanding of your business's position in the market and where you can improve. The Five Forces Framework Another effective strategy for managing industry competition is using the Five Forces Framework. This framework was developed by Michael Porter and helps businesses understand the competitive forces in their market. The Five Forces include the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and intensity of competitive rivalry. By understanding these competitive forces, businesses can develop effective strategies for managing industry competition. For example, a business could address the threat of new entrants by creating barriers to entry such as patents, economies of scale, or brand recognition. Businesses could also negotiate with suppliers to reduce costs and increase profitability. Additionally, businesses could focus on customer service to increase buyer loyalty and reduce the threat of substitute products or services. By using the Five Forces Framework, businesses can better understand the competitive forces in their market and develop effective strategies to manage industry competition. Developing a competitive advantage One of the most effective ways to manage industry competition is by developing a competitive advantage. A competitive advantage is a unique attribute or characteristic that sets a business apart from its competitors. This could include offering a superior product or service, having a lower price point, or providing exceptional customer service. By developing a competitive advantage, businesses can differentiate themselves in the market and attract more customers. To develop a competitive advantage, start by understanding your customers' needs and preferences. This could include conducting market research or analyzing customer feedback. Next, identify areas where your business can excel, such as product quality or customer service. Finally, focus on communicating your competitive advantage to your customers through marketing and branding efforts. By developing a competitive advantage, businesses can stand out in a crowded market and attract more customers. Innovating and adapting to stay ahead Innovation and adaptation are key to staying ahead of the game in today's fast-paced business world. By constantly innovating and adapting to changes in the market, businesses can stay ahead of their competitors and continue to grow. This could include developing new products or services, adopting new technologies, or exploring new markets. For example, a business could invest in research and development to create new products that meet changing customer needs. Alternatively, a business could adopt new technologies such as artificial intelligence or machine learning to improve efficiency and productivity. Additionally, businesses could explore new markets by expanding into new geographic regions or targeting new customer segments. By innovating and adapting, businesses can stay ahead of the game and maintain a competitive edge. Three Generic Strategies Michael Porter identified three generic strategies that businesses can use to manage industry competition: cost leadership, differentiation, and focus. Cost leadership involves offering products or services at a lower cost than competitors. Differentiation involves offering unique products or services that set a business apart from its competitors. Focus involves targeting a specific customer segment or geographic region. Businesses can choose to implement one or more of these strategies depending on their goals and resources. For example, a small start-up might focus on differentiation by offering a unique product or service, while a large corporation might focus on cost leadership by offering products at a lower cost than competitors. By choosing the right strategy, businesses can manage industry competition and maintain a competitive edge. Leveraging technology and data for competitive insights In today's digital age, businesses have access to more data than ever before. By leveraging technology and data, businesses can gain valuable insights into their competitors and the market. This could include using social media monitoring tools to track competitors' online activity or analyzing customer data to identify trends and preferences. For example, a business could use online analytics tools to track competitors' website traffic and social media engagement. Additionally, businesses could analyze customer data to identify trends in purchasing behavior and preferences. By leveraging technology and data, businesses can gain a competitive edge and stay ahead of the game. Collaborating and networking with industry peers Collaborating and networking with industry peers can also be an effective strategy for managing industry competition. By building relationships with other businesses in your industry, you can share knowledge and insights, develop partnerships, and stay up-to-date on trends and developments. Attending industry conferences and events can be a great way to meet other business owners and managers and learn from their experiences. For example, a business owner could join a local business association or networking group to connect with other business owners in their industry. Additionally, attending industry conferences and events can provide valuable opportunities to learn from experts and share knowledge with peers. By collaborating and networking with industry peers, businesses can stay ahead of the game and continue to grow. Measuring success and adjusting strategies Finally, it's important to measure the success of your strategies and adjust as needed. By regularly evaluating your business's performance and adjusting your strategies accordingly, you can stay ahead of the game and continue to grow. This could include setting goals and tracking progress, analyzing customer feedback, and conducting regular competitive analyses. For example, a business owner could set quarterly goals for revenue growth and track progress using financial metrics. Additionally, businesses could analyze customer feedback to identify areas for improvement and adjust strategies accordingly. By measuring success and adjusting strategies, businesses can stay ahead of the competition and continue to thrive. Conclusion: Staying ahead of the competition Managing industry competition is a challenge for businesses of all sizes, but with the right strategies in place, it's possible to stay ahead of the game. By understanding your competition, conducting a SWOT analysis, and using frameworks like the Five Forces Framework, businesses can develop effective strategies for managing industry competition. Additionally, by developing a competitive advantage, innovating and adapting, and leveraging technology and data, businesses can stay ahead of their competitors and continue to grow. Finally, by collaborating and networking with industry peers and measuring success and adjusting strategies, businesses can stay ahead of the game and maintain a competitive edge.
