CHAPTER 11
International Strategic Management
After studying this chapter, students should be able to:
> Characterize the challenges of international strategic management. > Assess the basic strategic alternatives available to firms. > Distinguish and analyze the components of international strategy. > Describe the international strategic management process. > Identify and characterize the levels of international strategies.
LECTURE OUTLINE
OPENING CASE: Global Mickey
The opening case explores the Walt Disney Company’s international strategy. In particular, the case examines the difficulties Disney has faced in establishing a theme park in France.
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Top-level executives and senior managers are normally responsible for strategic planning.
Teaching Note: Instructors may want to point out that students who are taking or who have taken a course in business policy and strategy will find that a fair amount of overlap will probably exist between the discussion of this material and the concepts that were presented in the business policy and strategy course. In other words, it should be stressed that many of the same techniques are used in strategic planning, regardless of whether one is considering a domestic market or a foreign market. • Strategic planners responsible for both domestic and international strategies must answer the same fundamental questions: what products and/or services does the firm intend to sell? Where and how will it make those products or deliver the services? Where and how will it sell them? Where and how will it acquire the necessary resources? How does it expect to outperform its competitors? Discuss Table 11.1 here. [pic] • International strategic planners must also contend with cultural, political, and geographical differences among countries. • International companies are in a position to exploit three sources of competitive advantage --– global efficiencies, multinational flexibility, and worldwide learning --– that are unavailable to domestic firms. The text provides examples
The case “Euro Disney: First 100 days” talks about the issues faced by the Walt Disney Company when expanding to international borders. The case begins with the history of Disneyland and then describes the reasons behind its success and expansion to various states across the country. It then describes the success of Tokyo Disneyland, first Disney theme park outside America and the factors affecting it.
Pearce, J. A. & Robinson, R. B. (2013). Strategic Management: Planning for Domestic and Global Competition (13th ed). New York, NY: McGraw Hill.
Pearce, & Robinson. (2014). Strategic Management: Planning for Domestic & Global Competition (13th ed.). McGraw-Hill.
The cultural problems faced by Walt Disney Company when opening theme parks outside the United States were events, cuisine, and trends, as well as country identity and local labor markets. An article by Spencer, 1995, identified several problems incurred by Walt Disney World in opening Euro Disney including spending habits, miscalculations of quality and design standards, and failure to capitalize on key opportunities that could have been had had they researched more deeply the vacationing habits of Europeans, the seasonal differences to their other locations, political issues such as environmental impacts and foreign national pride, market integration by adapting products to the needs and customs of the foreign nation. ?Disney alienated most of France by imposing intact its American standards of dress, behavior, and morality on the operations of its French-based park (Laitamaki 1994)?(Spencer, 1995).
This report demonstrates the evaluation of current performance of JD Sports Company. Method of Analysis includes Ansoff’s matrix and Porter’s generic growth strategies to discuss the nature of the market which JD Sports invest in. The financial methods are including the flexibility and stability of JD sports which judged by the liquidity, current ratio, operation capital, gearing and profit margin of this company. These figures could be collected from the annual report or balance sheet. This report analyzed the JD sport’s position in the market, and used generic and external growth method to expand market size. Such as acquired a lot stores to improve business profitability. Obviously, JD has expanded to the European
Two basic conditions determine a firm's profits: the amount of value customers place on the firm's goods or services and the firm's costs of production. In general, the more value customers place on a firm's products, the higher the price the firm can charge for those products. Note, however, that the price a firm charges for a good and service is typically less then the value placed on that good or service by the customer. This is so because the customer captures some of that value in the form of what economists call a consumer surplus.
1. Brief description of the context and of the decision which has to be made.
“Global strategy involves thinking in an integrated way about all aspects of a business- its suppliers, production sites, markets and competition. This approach
Founded in 1975, Microsoft is a “global competitor”, that is, a global corporation following a unified strategy to coordinate many national operations (Porter, 2011); is the oldest major producer of software for personal computers (PCs) and the world 's largest software company with a strong, leading market share for its core products that make up over 80% of its revenue (Moody 's, 2013).
As Disney decided to go global, their first expansion was launched in Japan in 1983 and eventually turned out to be a success but it’ proved to be a false sense of security for its overseas expansion’. When Disney launched its name on the European market in 1992, there were a lot of cultural issues that arose during its planning stages. They were particularly accused of ignoring the French culture and exporting American Imperialism in its European Venture. The main issues were alcohol consumption, language, pricing of tickets and merchandise tarnished the name of the Disney brand. Farmers also protested for the fact that Disney would be using their precious land in constructing their theme parks. These issues made Disney aware that venturing into non-American markets would be very complex due to cultural differences. (Cohen, N/A)
Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace
INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited
This case study is conducted on opening of a new theme park in Paris named as Euro Disney. Opening of this theme park resulted in a failure which was due to many reasons which at first includes the cross cultural differences in their operation in America and France. There were problems related to operations and staffing as well.
Trade has been a thing for a long time but countries that were devastated by war had to rebuild from scratch. As there were doing that America was continuing establishing as the major industrial power. The fact that the countries had to rebuild from scratch worked to their advantage. They were more up to date when the 1980’s came around they were on top of things. The factories in the in America were outdated and had to be rebuilt to match or exceed the factories in rival countries. This gave the other countries an advantage, they were able to get ahead of the game. About ten years later America had some major competitors to compete with. As time went on there were more and more people to compete with.
Future- oriented: Strategic management encompasses forecasts, what is anticipated by the managers. In such decisions, emphasis is placed on the development of projections that will enable the firm to select the most promising strategic options. In the turbulent environment, a firm will succeed only if it takes a proactive stance towards change.