Senior Seminar in Business Administration BUS 499 International Strategy Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009). BUS499: Strategic management: Competitiveness and globalization, concepts and cases: 2009 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning. Welcome to Senior Seminar in Business Administration. In this lesson we will discuss International Strategy. Please go to the next slide. Objectives Upon completion of this lesson, you will be able to: Identify various levels and types of strategy in a firm Upon completion of this lesson, you will be able to: Identify various levels and types of strategy in a firm. Please go to the next slide. Supporting Topics Identifying international opportunities: incentives to use an international strategy International strategies Environmental trends Choice of international entry mode Strategic competitive outcomes Risks in an international environment In order to achieve this objective, the following supporting topics will be covered: Identifying international opportunities: incentives to use an international strategy; International strategies; Environmental trends; Choice of international entry mode; Strategic competitive outcomes; and Risks in an international environment. Please go to the next slide. Overview International strategy Demand develops in other countries Secure needed resources An international strategy is a strategy through which the firm sells its goods or services outside its domestic market. One of the primary reasons for implementing an international strategy is that international markets yield potential new opportunities. Typically, a firm discovers an innovation in its home-country market, especially in an advanced economy such as that of the United States. Often demand for the product then develops in other countries, and exports are provided by domestic operations. Increased demand in foreign countries justifies making investments in foreign operations, especially to fend off foreign competitors. Another traditional motive for firms to become multinational is to secure needed resources. Key supplies of raw material, especially minerals and energy, are important in some industries. Other industries, such as clothing, electronics, watch making, and many others, have moved portions of their operations to foreign locations in pursuit of lower production costs. Please go to the next slide. Overview, continued Increased market size Return on investment Economies of scale and learning Location advantages When international strategies are successful, firms can derive four basic benefits: Increased market size; Greater returns on major capital investments or on investments in new products and processes; Greater economies of scale, scope, or learning; and A competitive advantage through location. Firms can expand the size of their potential market by moving into international markets. The primary reason for investing in inter.