1. International Strategy and Organization

2. Planning and Strategy Planning Strategy
Identifying and selecting objectives and deciding how to achieve those objectives
Set of planned actions that
managers take to help a company meet its objectives

3. Strategy-Formulation Process

4. Identify Mission and Goals
Mission statements must consider:
Company activities
Business objectives
Stakeholders
Stockholders
Customers
Residents
Environment
and much more…

5. Identify Core Competency
Special ability of a company that
competitors find extremely difficult
or impossible to equal
Coordination of multiple skills
Lengthy period to develop
Difficult to imitate

6. Value-Chain Analysis
Divide company activities into primary and support activities and identify those that create value for customers
Each activity is
a source of either
strength or weakness
Insights gained are
fed into the strategy
formulation process

7. Value Chain Components

8. Primary Activities. Inbound Logistics.
Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation.
Operations.
This is where goods are manufactured or assembled. Individual operations could include room service in an hotel, packing of books/videos/games by an online retailer, or the final tune for a new car's engine.
Outbound Logistics.
The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer.

9. Marketing and Sales.
In true customer orientated fashion, at this stage the organisation prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix.
Service.
This includes all areas of service such as installation, after-sales service, complaints handling, training and so on.

10. Support Activities. Procurement.
This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organisations), and ePurchasing (using IT and web-based technologies to achieve procurement aims).

11. Technology Development.
Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments.

12. Human Resource Management (HRM).
Employees are an expensive and vital resource. An organisation would manage recruitment and s election, training and development, and rewards and remuneration. The mission and objectives of the organisation would be driving force behind the HRM strategy.
Firm Infrastructure.
This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS), and other mechanisms for planning and control such as the accounting department.

13. Business Environment
National differences are inherent in analyzing a company’s unique abilities
Cultural differences
Political processes
Legal matters
Economic systems
Labor issues
Consumer forces
and much more…

14. Multinational/Multidomestic Strategy
Adapting products and
their marketing strategies
in each national market
to suit local preferences
Respond quickly to
buyer preferences
Difficult to exploit
economies of scale

15. Multi-Domestic Strategy
Strategy and operating decisions are decentralized to strategic business units (SBU) in each country
Products and services are tailored to local markets
Business units in each country are independent of each other
Assumes markets differ by country or regions
Focus on competition in each market
Prominent strategy among European firms due to broad variety of cultures and markets in Europe 41

16. products using the same
Global Strategy
Offering the same
products using the same
marketing strategy in
all national markets
Cost savings from
standardization
May overlook varying
buyer preferences

17. Global Strategy Products are standardized across national markets
Decisions regarding business-level strategies are centralized in the home office
Strategic business units (SBU) are assumed to be interdependent
Emphasizes economies of scale
Often lacks responsiveness to local markets
Requires resource sharing and coordination across borders (which also makes it difficult to manage) 48

18. Levels of Company Strategy

19. Growth Strategy Increase the scale (size of activities)
or scope (kinds of activities) of operations
Internally generated growth
Mergers and acquisitions
Joint ventures
Strategic alliances

20. Retrenchment Strategy
Reduce the scale or scope
of a corporation’s businesses
Conditions
Actions
Poor economic conditions
Increased competition
Lay off workers
Close inefficient factories
Sell unprofitable businesses

21. Guard against change and avoid growth or retrenchment
Stability Strategy
Guard against change and avoid
growth or retrenchment
No opportunities or threats
Strengths fully exploited
Weaknesses fully protected
Stated objectives are met

22. Combination Strategy
Mix of growth, retrenchment, and stability strategies across a corporation’s business units
Invest in
promising units
Retrench for
less exposure
Stabilize
other units

23. Business-Level Strategies

24. Low-Cost Strategy Exploit economies of scale to have the lowest
cost structure of any competitor in an industry
Mantra is cutting costs
Quality remains important
Scale is barrier for new entrants
Perhaps low customer loyalty

25. Differentiation Strategy
Design products to be perceived as unique
by buyers throughout an industry
Differentiators
Brand image
Product design
Quality
Effects
Price premium
Customer loyalty
Portion of market only
Higher production costs

26. Focus Strategy Focus on narrowly defined market segment by
being the low-cost leader, differentiating, or both
Many sub-segments today
Need distinctive product
Specific geography, ethnicity, etc.

27. Organizational Structure
Centralized
decision making
Decentralized
decision making
Coordination is paramount
Financial control and cost savings
Local responsiveness is key
Fast-changing environment

28. Arguments for Centralization
easier to coordinate
decisions consistent with organizational objectives
means to push through major changes
avoids duplication of activities

29. Arguments for Decentralization
top management overburdened
more motivation at lower levels
more flexibility
better decisions on the spot by people directly involved
more accountability

30. International Division Structure

31. International Area Structure

32. Global Product Structure

33. Global Matrix Structure

34. from similar levels but
Work Teams
Self-managed
team
Employees from one
department take on
responsibilities of
former supervisors
Cross-functional
team
Group of employees
from similar levels but
different functional
departments
Global
team
Top managers from
headquarters and
subsidiaries solve
company problems

35. Malaysia Airlines
It is the mission of Malaysia Airlines System Berhad, as a corporation, to provide a transport service that ranks among the best in terms of safety, comfort and punctuality, distinguished and loved for its personal touch and warmth. We aim to set new world standards continually with our enhanced in-flight services, reliable ground support and excellent infrastructure and to respond to consumer demand for worldwide coverage.

36. TM
Vision
"Our vision is to be the Communications Company of choice - focused on delivering Exceptional Value to our customers and other stakeholders“
Mission
To achieve our vision, we are determined to do the following:
Be the recognised leader in all markets we serve.
Be a customer-focused organisation that provides one-stop total solution.
Build enduring relationships based on trust with our customers and partners.
Generate shareholder value by seizing opportunities in Asia Pacific and other selected regional markets.
Be the employer of choice that inspire performance excellence.