International Business Strategy

LON301BUS

Implementing and Evaluating Strategy

Unit: 8 Knowledgecast: 2

• 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

Module Learning 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

The Integrated Network

Coordinated Federation

Centralized Hub

• Locally Leveraged

Innovation

• Globally LinkedInnovation

- Building up collaborativeinterdependence

• 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.

Knowledgecast Summary

Developing an International Strategy – Spulber’s Star

Developing an international strategy requires a thorough evaluation ofpotential markets. There are a number of tools and frameworks thatcan assist in such an evaluation and in today’s seminar we are goingto critically consider a number of these: Spulber’s Star, Global AddedValue, G5 Competitive Strategies.

Your module tutor will work with you to use Spulber’s Star to analysean organisation’s international opportunities.

Seminar

End of Module Assessment – Evaluating Strategy (ManagementBrief) (Unit 10)

PreparationHow would you rate the strategy of the case study organisation againstthe criteria discussed in the Knowledgecast?

In your teams consider each of the criteria:• Suitability• Acceptability• Feasibility• Sustainability

Group Activity