2. Implementing and Evaluating Strategy
International Business Strategy
LON301BUS
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Unit: 8 Knowledgecast: 2

3. Module Learning Outcomes
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
This Knowledgecast focuses on worldwide innovation; considered by many to be the new competitive battleground in international business. We will look at how innovation can be incorporated into strategy to ensure its sustainability in the international environment.

4. Worldwide Innovation
Competitors achieving parity in scale and responsiveness
Competitive battles shifting to innovation area
Three key capabilities:
Sensing
Responding
Implementing

5. 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

6. 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

7. 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

8. Linking and Leveraging Resources
Decentralized Federation
Centralized Hub
Locally Leveraged
Innovation
Globally Linked
Innovation
- Building up collaborative
interdependence
The Integrated Network
Coordinated Federation

9. Knowledgecast Summary
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.
MAXIMUM THREE LEARNING OUTCOMES TO REVIEW: ONE REVIEW SUB BULLET PER LEARNING OUTCOME

11. Seminar Developing an International Strategy – Spulber’s Star
Developing an international strategy requires a thorough evaluation of
potential markets. There are a number of tools and frameworks that
can assist in such an evaluation and in today’s seminar we are going
to critically consider a number of these: Spulber’s Star, Global Added
Value, G5 Competitive Strategies.
Your module tutor will work with you to use Spulber’s Star to analyse
an organisation’s international opportunities.

12. Group Activity
End of Module Assessment – Evaluating Strategy (Management
Brief) (Unit 10)
Preparation
How would you rate the strategy of the case study organisation against
the criteria discussed in the Knowledgecast?
In your teams consider each of the criteria:
• Suitability
• Acceptability
• Feasibility
• Sustainability