2. International Business Strategy 301REN
Foreign Market Entry Strategy IV
International Business Strategy
301REN
DO NOT ADD FURTHER SLIDES TO THIS PACK
SAVE FILE USING THE FOLLOWING FORMAT: MODULE CODE UNIT NUMBER.PPT (E.G. LCM001U1.PPT)
PLEASE DO NOT CHANGE TEMPLATE OR FORMATTING
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 the criteria put forward by Johnson and Scholes to evaluate strategy and then provides an example of ‘strategy at work’ for evaluation. It begins with a consideration of the three forms of strategic growth.

4. International Strategic Alliance
Types of International Strategic
Alliance between Non Competing Firms.
International Expansion Alliance
For expansion into new geographical location
Vertical Integration Alliance
Between supplier and buyer
Diversification Alliance
Between companies in different line of business.
Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Intellectual property describes ideas or works created by individuals or firms. Intellectual property is safeguarded through intellectual property rights, the legal claim through which proprietary assets are protected from unauthorized use by other parties.

5. International Strategic Alliance
Types of International Strategic
Alliance between Competitors.
Complementary Alliance
Contributing various assets and capabilities for joint endeavour
Shared Supply Alliance
Collaboration to achieve economies of scale
Quasi-concentration Alliance
Contributing similar assets and capabilities to develop product
Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Intellectual property describes ideas or works created by individuals or firms. Intellectual property is safeguarded through intellectual property rights, the legal claim through which proprietary assets are protected from unauthorized use by other parties.

6. Strategies’ Success Criteria (SAFS)
Suitability : does the strategy address the organisation’s strategic position ?
Acceptability: do the expected performance outcomes meet expectations (re ROI or risk)?
Feasibility: will the strategy work in practice?
Sustainability: is the strategy ecologically and socially sustainable ?

7. Suitability of strategic options

8. Acceptability
Acceptability focuses on the expected performance outcomes of a strategy.
Performance outcomes can be assessed on the basis of THREE CRITERIA:
- Return
Risk
Stakeholder reactions

9. Criteria for assessing Acceptability

10. Feasibility
Feasibility is concerned with whether an organisation has the resources and competences to deliver a strategy.
Financial Resource
Human Resource
Physical Resource
Intangible Resource
Competences

11. Sustainable development
Sustainable development is development that “meets the needs of the present without compromising the ability of future generations to meet their own needs”
( Bruntland Commission, UN 1987)

12. Sustainable Development
Sustainable Development can be broken down in 3 separate frameworks:
Environmental sustainability
Economic sustainability
Socio-political sustainability

13. Sustainability Sustainability of competitive advantage:
Sustaining low price advantage
Sustaining differentiation advantage
Sustaining hybrid advantage

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

16. Seminar Mini case: Autolatina: International Partnership
(closing case Chapter 15 of required text)
What were Ford’s motive and objectives Evaluate the extent to which Ford accomplished these objectives.
What type of the collaborative venture did Ford enter with Volkswagen? What were the advantages and disadvantages from Ford’s perspective?
What strength did Ford and Volkswagen bring to the Autolatina venture? Did these firms have any weaknesses? Elaborate
Did Ford commit any blunders in its Latin America operation? Specify
What can other managers learn from Ford’s experience
regarding international collaborative venture?

17. Group Activity Challenges of Licensing and Franchising
Read opening case - Harry Potter: The Magic of
Licensing on page 463 (required text)
Read Global Trend discussion- Internationalization of Franchising: Emerging Markets on page 473
(required text)
Read closing case – Subway and the challenges of Franchising in China on page 482 (required text)

18. Group Activity Requirement 1. Answer the questions the follow
2. Compare and contrast the challenges and risk of Franchising and Licensing
3. Recommend either alternatives (franchising and Licensing) as entry mode for any Telecommunication organisation or your choice to any emerging market with clear justification.