1. International Competitive Strategy Chapter 13

2. International Strategy Why is it important? Why is it important? International Strategy International Strategy Competitive Advantage Competitive Advantage Develop skills and competencies Develop skills and competencies Global Strategic Planning Global Strategic Planning Definition Definition Considerations Considerations Historical v. present day Historical v. present day

3. Process Analyze Company’s External Environments Analyze Company’s External Environments Analyze Corporate Controllable Variables Analyze Corporate Controllable Variables Define the Corporate Business, Vision, and Mission Statements Define the Corporate Business, Vision, and Mission Statements Set Corporate Objectives Set Corporate Objectives Quantify Goals Quantify Goals Formulate the Competitive Strategy Formulate the Competitive Strategy Prepare Tactical Plans Prepare Tactical Plans

4. Analyze Company’s External Environments Little control Little control Five trends Five trends Interdependent economy Interdependent economy Global competitiveness and growth Global competitiveness and growth Consolidate distribution channels Consolidate distribution channels Growth patterns Growth patterns Volatile and uncertain world Volatile and uncertain world

5. Analyze Corporate Controllable Variables The Big Picture The Big Picture Linkages Linkages What does it do? What does it do? Knowledge as a Resource Knowledge as a Resource How important is it? How important is it? How to use it? How to use it?

6. Define the Corporate Business, Vision, and Mission Statements What are they? What are they? What do they do? What do they do?

7. Set Corporate Objectives Objectives Objectives McDonald’s McDonald’s Vision Vision Objectives Objectives

8. Quantify Goals What does this mean? What does this mean? Why is it effective? Why is it effective? Nonquantifiable Nonquantifiable

9. Formulate the Competitive Strategy Competitive Strategies Competitive Strategies Considerations Considerations Trade-off Trade-off Forms Forms Global Global When to use it? When to use it? Problems Problems Multidomestic Multidomestic When to use it? When to use it? Problems Problems

10. Formulate the Competitive Strategy Forms Forms Transnational Transnational Both Both Upstream Upstream Downstream Downstream General General Scenarios Scenarios Contingency plans Contingency plans

11. Prepare Tactical Plans Short-term Short-term Strategy v. Tactical Strategy v. Tactical

12. Planning Sales Forecast Sales Forecast Sales Budget Sales Budget Implementation Facilitators Implementation Facilitators Policies Policies Procedures Procedures Kinds of Plans Kinds of Plans Time Horizon Time Horizon Level in organization Level in organization

13. Planning Methods of Planning Methods of Planning Top-Down planning Top-Down planning Advantages Advantages Disadvantages Disadvantages Bottom-up planning Bottom-up planning Advantages Advantages Disadvantages Disadvantages Iterative planning Iterative planning

14. New Direction in Planning History History Who Does It Who Does It How It Is Done How It Is Done Contents of the Plan Contents of the Plan Summary Summary Top management Top management Exercise in forecasting  Exercise in creativity Exercise in forecasting  Exercise in creativity Focus on quick recognition of change Focus on quick recognition of change Try to persuade action Try to persuade action Restore corm line management Restore corm line management

15. Competitive Forces Where to Get Information? Where to Get Information? Within the firm Within the firm Published material Published material Suppliers/ customers Suppliers/ customers Competitors’ employees Competitors’ employees Direct observation or physical evidence Direct observation or physical evidence Benchmarking Benchmarking Steps Steps Types Types Internal Internal Competitive Competitive Functional Functional Generic Generic