Internationalisation and Managing Internationally Lecture Outline: Introduction to the module Overview of International Strategy Drivers of globalisation-localisation This Module........... Examines the process of internationalisation Explores the main aspects of designing a sustainable international business strategy Considers how MNEs can enhance petitive advantage Examines the effective management of key business operations Let's go global! Here is a definition of International Business Strategy....... "...a set of fundamental choices which define an pany's long-term objectives, its value proposition to the market, how it intends to build and sustain petitive business system and how anises itself " (Lasserre 2003). International strategy involves making choices... Ambition – long-term objectives Positioning – which customer segments / value proposition to customers Investment – to deliver value to anisation – people, structure, process and systems (Lasserre 2003) International strategy requires...... Creating a global philosophy and vision Analysing and interpreting change petitive global strategies Effective management, coordination and control of operations Enhancing dynamic strategic capability Effective social and ethical philosophy global, local, or both? Going global means..... Global Industries – like aerospace, computers, munication. panies – operate in world's main markets . Coca Cola, Sony, Citibank Globalisation - "a more integrated world" Global Integration and Coordination – global web / interdependent operations ".....make and sell the same thing, the same way, everywhere! (Levitt, 1980) Global Push Factors include.............. Technological factors – transport, communication, economies of scale Social factors – convergence of needs and tastes (Californisation of Society, Ohmea 1989) Political factors – liberalisation of trade & petitive factors – rise of Japanese MNEs & NICs Benefits of Globalisation.. Cost benefits - scale
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