INTERNATIONAL STRATEGIC MANAGEMENT

5. PYRAMID OF BUSINESS POLICY PROCEDURE AND STANDARD OPERATING PLAN ( Handling incoming orders, servicing customer complaints, Shipping to foreign countries ) FUNCTIONAL POLICIES ( Marketing, Production, Research, Finance Material & Quality management etc. ) MAJOR POLICY Lines of business ( Code of ethics ) SECONDRY POLICIES ( Selection of geographical area, major customers, major products ) RULES ( Delivery of pay cheques ,loitering around plant, security Smoking, use of company car etc)

11. NATURE OF INTERNATIONAL STRATEGIC MANAGEMENT 3

12. SINGLE COUNTRY, EXPORT & INTERNATIONAL STRATEGY Y THE CENTRE SUBSIDIARY S3 SUBSIDIARY S1 SUBSIDIARY S2 SUBSIDIARY S4 FIRM A OPERATES IN COUNTRY X FIRM A OPERATES IN COUNTRY X EXPORT TO COUNTRY Y SINGLE COUNTRY STRATEGY INTERNATIONAL STRATEGY EXPORT STRATEGY

13. GLOBAL STRATEGY THE CENTRE SUBSIDIARY S6 SUBSIDIARY S5 SUBSIDIARY S1 SUBSIDIARY S2 SUBSIDIARY S3 SUBSIDIARY S4

15. HIERARCHY OF STRATEGY CORPORATE STRATEGY BUSINESS STRATEGY FUNCTIONALSTRATEGY

16. STRATEGY AT DIFFERENT LEVELS CORPORATE STRATEGY PURPOSE OR MISSION SHAREHOLDER VALUE ? STAKEHOLDER INTEREST? ASPIRATIONAL ? MEANS : . GOOD PARENTING . SELECT PORTFOLIO . GUARD REPUTATION COMPETITIVE STRATEGY ATTAIN SUSTAINABLE COMPETITIVE ADVANTAGE BY: . LEVERAGING RESOURSES . DEVELOPING CAPABILITIES AND . COMPETING ON COST,OR DIFFERENTIATING OR OCCUPYING A NICHE OPERATIONAL FUNCTIONAL LEVELSTRATEGY HR,FINANCE,PRODUCTN MARKETING,QUALITY Etc. Functional Level Managers are responsible for: developing annual objectives & short term implementation Plans.

19. STRATEGIC MANAGEMENT PROCESS I I II ORG. CURRENT PERFORM - ANCE. III V VI VII VIII IX REWORK AS NEEDED IV MONITORING INTERNAL’ ANALYSIS .STENGTHS .WEAKNESSES REVIEW BOARD OF DIRECTORS & TOP. MGMT IV EXT. ENV. ANALYSIS . OPP. . THREATS ORG. . MISSION . OBJECTIVES .STRATEGIES . POLICIES SELECTION OF STRATEGIC FACTORS REVIEW REDEFINE . MISSION .OBJECTIVES GENERATION & EVALUATION OF STRATEGIC ALTERNATIVES IMPLEMENT BEST ALTERNATIVE

21. TYPICAL VALUE CHAIN OF A MANUFACTURED PRODUCT RAW MATERIAL PRIMARY MANUF. FABRICATION PRODUCT PRODUCER DISTRIBUTOR RETAILER 6

22. A CORPORATE VALUE CHAIN SUPPORT ACTIVITIES PROFIT MARGIN INBOUND LOGISTICS (RAW MAT ) FIRM INFRASTRUCTURE ( Gen.Mgmt,Accounting,Finance, Plg) HUMAN RESOURCE DEVELOPMENT ( Recruitment, Training, development ) OPERATIONS ( Machining, ( Assembly, Testing ) OUTBOUND LOGISTICS ( Distribution ) MARKETING & SALES ( Advt. Prom - otion ) SERVICES ( Installation, Repair ) PRIMARY ACTIVITIES 7 TECHNOLOGY DEVELOPMENT ( R&D,Process & Product Development0 PROCUREMENT ( Purchasing of Raw Materials, Machines,Supplies)

26. COMPANY AND ENVIRONMENT MEN MACHINE MATERIAL METHODS MONEY INPUTS PROCESSES OUTPUTS ENVIRONMENT ENVIRONMENT ACTIVITIES OPERATIONS PLANNING MANUFACTURING INSPECTION PACKING GOODS SERVICES SALES PROFITS OBJECTIVES GOALS TARGETS FEEDBACK CORRECTIVE ACTION

27. PEST FACTORS POLITICAL TECHNOLOGICAL ECONOMIC SOCIAL

28. PESTLE MATRIX ECONOMIC REGULATORY BODIES GOVT. POLICIES GOVT. TERM & CHANGE ECONOMY SITUATION & TRENDS TAXATION INTEREST & EXCHANGE RATES MARKET & TRADE CYCLE POLITICAL CURRENT/FUTURE LEGISLATION SOCIAL LIFESTYLE TRENDS DEMOGAPHICS COMPANY ATTITUDES & OPINIONS BRAND,COMPANY ,TECHNOLOGYIMAGE CONSUMER BUYING PATTERNS ETHNIC/RELIGIOUS FACTORS TECHNOLOGICAL TECHNOLOGY ACCESS,LICENSING,PATENTS MATURITY OF TECHNOLOGY REPLACEMENT TECHNOLOGY / SOLUTIONS INNOVATION POTENTIAL MANUFACTURING MATURITY & CAPACITY LEGAL INTERNATIONAL LAW EMPLOYMENT LAW COMPETITIOM LAW HEALTH & SAFETY LAW REGIONAL LEGISLATION ENVIRONMENTAL ENVIRONMENTAL IMPACT ENVIRONMENTAL LEGISLATION ENERGY CONSUMPTION WASTE DISPOSAL

29. CONSTITUENTS OF MICRO ENVIRONMENT MICROENVIRONMENT FINANCIAL INSTITUTIONS SUPPLIERS MARKETING INTERMEDIARIES COMPETITION REGULATORY PROVISIONS IR CLIMATE E- COMMERCE SKILL LEVEL OF WORKFORCE MARKETS TYPES & DEMANDS

33. A SWOT CHECKLIST INTERNAL STRENGTHS : MANY PRODUCT LINES? BROAD MARKET COVERAGE? MANUFACTURING COMPETENCE? GOOD MARKETING SKILLS? GOOD INVENTORY MANAGEMENT? R&D? INFORMATION SYSTEM? GOOD HUMAN RESOURCES? BRAND EQUITY? COST ADVANTAGE? APPROPRIATE ORG. STRUCTURE? APPROPRIATE CONTROL SYSTEMS? ABILITY TO MANAGE STRAT. CHANGE Etc INTERNAL WEAKNESSES : NARROW PRODUCT LINES? RISING MANUFACTURING COST? POOR MARKETING PLAN? POOR MATERIAL MANAGEMENT? INADEQUATE HUMAN RESOURCES LOSS OF BRAND NAME?LACK OF CORPORATE DIRECTION? LACK OF CORPORATE CONTROL POOR FINANCIAL MANAGEMENT INAPPROPRIATE ORG. STRUCTURE & CONTROL SYSTEMS HIGH CONFLICTS, POLITICS? Etc

34. SWOT CHECKLIST POTENTIAL ENV. OPPORTUNITIES . . NEW MARKETA/BUSINESSES? . COST OF DIFFERENTIATION ADV? . PROFITABLE NEW ACQUISITIONS? . BRAND NAME CAPITAL IN NEW AREAS . R&D SKILLS IN NEW AREAS . VERTICAL INTEGRATION- ( FORWARD/BACKWARD) . DIVERSIFICATION . OTHERS? POTENTIAL ENV. THREATS . ATTACK ON CORE BUSINESSES? . INCREASE IN DOMESTIC/ FOREIGN COMPETITION? . CHANGE IN CUSTOMER TASTE . BARRIERS TO ENTRY . NEW OR SUBSTITUTE PRODUCTS . INDUSTRY COMPETITION . SLOWDOWN IN ECONOMY . TAKEOVERS . LOWER MARKET GROWTH RATE . OTHERS?

35. MACKENZIE’S 7S MODEL STRATEGY SKILLS STRUCTURE SHARED VISION STAFF SYSTEMS STYLE

50. MODULE 4

52. INTERNATIONAL STRATEGIES PRESSURES FOR COST REDUCTION PRESSURES FOR LOCAL RESPONSIVENESS GLOBAL STRATEGY ( OFFERING STANDARDISED PRODUCTS / SERVICES) TRANSNATIONAL STRATEGY (LOCATED IN A DEVELOPED COUNTRY) MULTIDOMESTIC STRATEGY ( SUITING TO NATIONAL CONDITIONS ) INTERNATIONAL STRATEGY (UNDER DEVELOPED COUNTRIES WHERE PRODUCT/SERVICES NOT AVAILABLE )

53. INDUSTRY GLOBALISATION POTENTIAL INDUSTRY GLOBALISATION POTENTIAL MARKET DRIVERS COMPETITIVE DRIVERS COST DRIVERS GOVERNMENT DRIVERS

54. THE GLOBALISATION TRIANGLE BENEFITS & COSTS OF GLOBALISATION GLOBAL STRATEGY LEVERS INDUSTRY GLOBALISATION DRIVERS GLOBAL ORGANISATION DRIVERS

55. A FRAMEWORK OF GLOBAL STRATEGY GLOBAL STRATEGY LEVERS GLOBAL MARKET PARTICIPATION GLOBAL PRODUCTS GLOBAL LOCATION GLOBAL MARKETING GLOBAL COMPETITIVE MOVES I BENEFITS / COSTS OF GLOBAL STRATEGY INDUSTRY GLOBALISATION DRIVERS MARKET COST GOVT COMPETITIVE GLOBAL ORGANISATION DRIVERS PARENT ORG’S ABILITY ( POSITION & RESOURCES) TO IMPLEMENT A GLOBAL STRATEGY )

56. MANAGEMENT AND ORGANISATION FACTORS AFFECTING GLOBAL STRATEGY (GLOBAL ORGANISATION DRIVERS ) PEOPLE MANAGEMENT PROCESSES CULTURE ORGANISATION STRUCTURE ABILITY TO DEVELOP AND IMPLEMENT GLOBAL STRATEGY . CENTRALISED GLOBAL AUTHORITY . INTERNATIONAL DIVISION . STRONG BUSINESS DIVISION . GLOBAL IDENTITY . COMMITMENT TO WORLDWIDE ( VS DOMESTIC ) EMPLOYMENT . INTERDEPENDENCE VS AUTONOMY OF BUSINESSES .USE OF FOREIGN NATIONALS .MULTICOUNTRY CAREERS .FREQUENT TRVEL .STATEMENTS & ACTIONS OF LEADERS . GLOBAL MIS . GLOBAL STRATEGIC PLANNING . GLOBAL BUDGETING . CROSS COUNTRY COORDINATION ( PLG,BUDGETING & INFORMATION SYSTEMS ) ( REPORTING RELATIONSHIPS ) ( VALUES & RULES THAT GUIDE BEHAVIOUR ) ( HUMAN RESOURCES OF WORLDWIDE BUSINESS )

63. TYPE OF CUSTOMERS GLOBAL CUSTOMER FOREIGN CUSTOMER INTERNATIONAL CUSTOMER FREE LOCAL CUSTOMER CONTROLLED LOCAL CUSTOMER BUY IN FOREIGN MARKRTS FROM FOREIGN SUPPLIER BUY IN DOMESTIC MARKET FROM FOREIGN SUPPLIER BUY IN DOMESTIC MARKETS FROM DOMESTIC SUPPLIER NO HQ INVOLVEMENT HQ RECOMMENDS STANDARDS? PRODUCTS HQ MANDATES STANDARDS/ PRODUCTS HQ DOES THE PURCHASING INCREASIBG GLOBALISATION OF PURCHASING I N C R E A S I N G I N T E R N A T I O N A L I S A T I O N

64. BUSINESS GROWTH / COMPETITIVE SRENGTH MATRIX WILDCAT COUNTRIES DOG COUNTRIES CASH COW COUNTRIES HI LO LO HI COMPETITIVE STRENGTH OF BUSINESS IN COUNTRY GROWTH POTENTIAL OF BUSINESS IN COUNTRY STAR COUNTRIES

65. MODES OF ENTRY EXPORTING ( Firm produces in home country & markets in overseas markets ) LICENSING ( International co. transfers knowledge, technology Patent for a limited period of time to an overseas co, in return for some form of payment) FRANCHISING (Right to use a business format, usually Brand Name- exchange programme ) INTERNATIONAL JOINT VENTURE WHOLLY OWNED LOW HIGH HIGH CONTROL PERCEIVED RISK LOW

72. ETOP ( ENVIRONMENTAL THREAT & OPPORTUNITY PROFILE 0 ENVIRONMENTAL SECTOR MARKET TECHNOLOGICAL SUPPLIER ECONOMIC REGULATORY POLITICO – LEGA SOCIO – CULTURAL INTERNATIONAL NATURE OF IMPACT IMPACT OF EACH SECTOR

73. SAP ( STRATEGIC ADVANTAGE PROFILE ) CAPABILITY FACTOR NATURE OF IMPACT IMPACT OF EACH FACTOR 1 2 3 4 5 6 FINANCE MARKETING 0PERATIONSP PERSONNEL INFORMATION GENERAL MANAGEMENT

74. CONSOLIDATED SWOT PROFILE ENVIRONMENTAL FACTOR MARKET TECHNOLOGICAL SUPPLIAR ECONOMIC REGULATORY POLITICAL SOCIO – CULTURAL INTERNATIONAL NATURE OF IMPACT STRATEGIC ADVANTAGE FACTOR FINANCE MARKETING OPERATIONS PERSONNEL INFORMATION MANAGEMENT GENERAL MANAGEMENT NATURE OF IMPACT

75. SWOT MATRIX and STRATEGIES OPPRTUNITIES THREATS WEAKNESSES STREGTHS QUADRANT 2 TURNAROUND STRATEGY QUADERANT 1 AGGRESSIVE STRATEGY QUADERANT 4 DEFENSIVE STRATEGY QUADERANT 3 DIVERSIFICATION STRATEGY

76. OPPORTUNITY MATRIX HIGH ATTRACTIONS MODERATE ATTRACTIONS HIGH LOW HIGH LOW Impact of Opportunities Occurrence MODERATE ATTRACTIONS LOW ATTRACTIONS

77. THREAT MATRIX HIGH LOW HIGH LOW OCCURENCE IMPACT OF THREATS MAJOR THREATS MODERATE THREATS MODERATE THREATS MINOR THREATS

78. TOW’s MATRIX ETOP SAP OW TS Take advantage of (Opportunities by overcoming Weaknesses) (Use strengths to take advantage Of opportunities) (Consider corporations strengths To avoid threats) Aggressive Strategies Turnaround Strategies Diversification strategies 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 W S O OS T TW Defensive Strategies ( To minimize weaknesses & avoid Threats )

79. BCG GROWTH SHARE MATRIX 0 10 20 12 14 16 18 2 4 6 8 10 8 6 4 2 1.5 1 0.8 0.5 0.1 STARS CASH COWS QUESTION MARKS DOGS Market Growth rate Relative market share LOW HIGH HIGH

80. GE 9 CELL MATRIX PROFIT PRODUCER QUESTION MARKS AVERAGE BUSINESS BUSINESS STREGTH / COMPETITIVE POSITION INDUSTRY ATTRACTIVENESS STRONG AVERAGE WEAK HIGH MEDIUM LOW ZONE GREEN YELLOW RED INVEST/EXPAND SELECT/EARN HARVEST/DIVEST G Y R G G G Y R R R

81. HOFER’S MODEL

82. STRICKLAND’S GRAND STRATEGY SELECTION MATRIX