Global Business Strategy & Mgt
WHERE
GREAT
MINDS
Lecture 1
DO
What is Global Business &
BUSINESS
Mgt Strategy?
Dr. Jiping Niu
School of Management & Governance
Jiping.niu@unsw.edu.au
Today’s Agenda
1. Get to know each other
2. What is Global Business?
3. What is Strategy (Management)?
4. What is Global business strategy
5. Course Overview
ABOUT ME
 Jiping (Amy) Niu
 Email: jiping.niu@unsw.edu.au
 Zoom Consultation: By email appointment
M.Eng:
Manufacturing Engineering
Data Mining, supply chain,
manufacturing
B.Eng:
Mechanical & Electrical
Engineering
PhD:
Strategy management
Corporate Governance
Organizational change
Innovation (Enterprise Information
Systems)
Platform Business Model
Social network
EIS Consultant
Strategy manager
Lecturer & tutor
Researcher
Before we start …
Strategy is an art and science
➢ No perfect or optimal solution
➢ Handful of solutions that are ‘good enough’
➢ Frameworks and analytical techniques will help identify, classify, and understand the
principal factors in strategy decisions
➢ Enormous number of bad solutions
➢ No one framework is generalizable to all situations
➢ Need to develop the skill of selecting the appropriate model for a given context
Success in this course depends your ability to match principles
with firm-specific conditions
Today’s Agenda
1. Get to know each other
2. What is Strategy?
3. What is Global Business?
4. What is Global business strategy
5. Course Overview
Strategy is…
A set of formal plans for action to reach a goal?
A set of flexible, goal-oriented actions?
A theory (our definition)
•
a mixture of plans and actions
•
a theory of how the firm can be successful
•
requires experimentation and replication
•
provides coherence to decisions and actions
Strategy in business context focuses on:
 Why are some firms more successful than others?

a). How do we define “success”?

b). What explains success? An overview.
a). How do we define “success”?
– Various Financial Indicators
Company
Profit Margin
Revenue ($B) Net Profit ($B) Market Cap ($T)
(%)
Amazon
574.79
30.43
2.47
5.29%
Nvidia
60.92
29.76
2.94
48.85%
Tesla
97.69
7.13
1.20
7.30%
Apple
400
100
3.00
25%
ExxonMobil 420
56
0.50
13%
Most reliable measure of financial success (?)
• Long-run return on invested capital (ROIC)
• Best guide of success for capital-heavy
industries
• But, often distorted by short-term objectives
and distractions
How do we define “success”?
Again.
Non-financial measures…
AND
Shareholders vs.
X Stakeholders
Source: https://www.refinitiv.com/content/dam/marketing/en_us/documents/methodology/refinitiv-esg-scores-methodology.pdf
Strategy focuses on:
 Why are some firms more successful than others?

a). How do we define “success”?

b). What explains success? An overview.
b). What Explains Success? An Overview
Michael Porter
Jay Barney
What explains firm success (within an industry)?
 How an organization uses its
competencies to satisfy customers
more effectively than competitors
– in the context of its environment
– to achieve its strategic intent
Strategy is the Core Driver of Success
Political
Economic
Social-cultural
Technological
Environmental
Legal
The essence of strategy
Peng, Global Strategy, 4th Edition. © 2017 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Today’s Agenda
1. Get to know each other
2. What is Strategy?
3. What is Global Business?
4. What is Global business strategy
5. Course Overview
Global Business
Broad definition
Narrowed definition
Global business and international
business are often used interchangeably
to describe commercial activities, such
as the trade of goods, services, and
knowledge, that cross national borders.
The core of IB as an academic discipline
– International trade
– International finance
– International accounting
– International marketing
– International HRM
– MNE (multinational enterprise): Firms
that engage in FDI through owning and
controlling value-adding activities in more
than one country
– FDI (foreign direct investment): an
investment made by a firm outside its
home country in activities owned and
controlled by the investing firm
Today’s Agenda
1. Get to know each other
2. What is Strategy?
3. What is Global Business?
4. What is Global business strategy
5. Course Overview
In this course, we care about:
• Strategies of global business
• Dynamics between international and domestic firms
• In both developed and developing countries
(consider this for the scope of your “3 minutes news report”)
Implications
1. Globalization of market
- Historically distinct and separate national
markets  one huge global marketplace
- Tastes and preferences of consumers in
different nations are converging…
Implications
1. Globalization of market
2. Global production & value chain
- Source and produce from locations around the
globe to take advantage of national
differences in:
- The cost AND quality of factors of production
(e.g. labor, energy, land, and capital)
Global Supply Network of iPhone
Batteries: Samsung (Korea), Huizhou Desay
Battery (China)
Camera: Sony (Japan)
Display: Japan Display (Japan), Sharp (Japan), LG
(Korea)
Flash memory: Toshiba (Japan) and Samsung
(Korea)
Semiconductors: Texas Instruments (US),
Fairchild (US), Maxim Integrated (US)
Touch ID sensor: TSMC and Xintec (Taiwan).
Implications
1. Globalization of market
2. Global production and value chain
3. Implications of various trends (e.g. globalization / deglobalization, technological) to our future careers?
https://www.nytimes.com/2022/09/01/business/tech-companies-china.html
https://www.economist.com/business/2022/10/24/the-end-of-apples-affair-with-china
Today’s Agenda
1. Get to know each other
2. What is Strategy?
3. What is Global Business?
4. What is Global business strategy
5. Course Overview
Our Agenda
Week
Lecture (Large class)
Tutorial (Small class)
Topic
Hands-on activities to help you
apply knowledge from the lectures
1.
What is Global Strategy
2.
Macro environment analysis
3.
Industry analysis
4.
Organization analysis
5.
Generic strategy
7.
Growth and Diversification
8.
9.
10.
Laying foundations
Strategizing around
Vertical Integration and Internationalization the globe
Int’l Market entry strategy (1)
Int’l Market entry strategy (2)
No class in Week 6 – flexibility week!
Strategy Implementation
Leadership
Organizing
Strategy
Success
Leadership
Organization Environment
Strategy
Success
Alignment occurs
through the
organization
environment
What are you expected to achieve?
1. Understand and explain the greater complexity that accompanies international
operations for organizations in different international contexts
2. Understand and explain concepts and theories from literature concerning
global business strategy
3. Apply concepts and theories of international business to analyse business
situations and make sound strategic decisions in the international business
context
4. Communicate a business analysis and strategy proposal clearly and
professionally
5. Work collaboratively to complete a task.
6. Identify and assess ethical considerations in international business.
https://www3.weforum.org/docs/WEF_Future_of_Jobs_2023.pdf
Some important points to note:
Check Moodle for
course info & updates
Go through pre-class
materials (if any)
before attending
lecture
Look out for course
announcements
Join tutorial on time
and PREPARED
(readings are on
Moodle)
Stay committed and
connected! 
Coming Up next Week….
Lecture:
- Foundations of Global Strategy:
• Macro-Environment Analysis
Reading:
- Peng Chapter 4
Tutorial:
- 3 minutes news report (week 2)