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Module 5. Lesson Proper

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11 views

Module 5. Lesson Proper

Uploaded by

Pauline Chua
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Strategic Management Page 1 of 12

Global Strategy

III. LESSON PROPER

International Market Entry Strategies


These strategies refer to the various methods companies use to enter and establish
themselves in foreign markets. Here are some common entry strategies:

1. Exporting: Selling products made in one country to residents of another. This is


often the simplest way to enter a new market.
2. Licensing and Franchising: Licensing involves granting a foreign company the
right to produce and sell products under your brand. Franchising is similar but
often involves a broader business model and support.
3. Joint Ventures and Partnerships: Collaborating with a local business in the
foreign market to leverage their local knowledge and resources. This can help
mitigate risks and share costs.
4. Wholly Owned Subsidiaries: Establishing a new operation from scratch or
acquiring an existing business in the foreign market. This approach offers full
control but requires substantial investment.
5. Strategic Alliances: Forming partnerships with other firms to leverage
complementary strengths without creating a new entity.
6. Mergers and Acquisitions (M&A): Purchasing or merging with an existing firm in
the target market to quickly gain market share and local expertise.

Global Competitive Advantage


Global competitive advantage refers to a firm's ability to achieve superior performance
relative to competitors on a global scale. Key aspects include:

1. Cost Leadership: Achieving the lowest operational costs in the industry to offer
lower prices or achieve higher margins.
2. Differentiation: Providing unique products or services that stand out from
competitors, allowing the firm to command a premium price.
Strategic Management Page 2 of 12
Global Strategy

3. Innovation: Continually developing new products or processes that lead to a


competitive edge.
4. Global Integration vs. Local Responsiveness: Balancing the need to standardize
operations across countries (integration) with the need to adapt to local market
conditions (responsiveness).
5. Resource and Capability Leveraging: Utilizing unique resources or capabilities
(such as technology or brand reputation) effectively across different markets.

Cross-Cultural Management
This area focuses on managing teams and operations across different cultural contexts.
Key components include:

1. Cultural Awareness and Sensitivity: Understanding and respecting cultural


differences in values, practices, and communication styles.
2. Communication: Adapting communication styles to be effective across different
cultures, including language considerations and non-verbal communication.
3. Leadership Styles: Adjusting leadership approaches to fit cultural expectations
and preferences. For example, some cultures may prefer a more hierarchical
structure, while others may value egalitarian approaches.
4. Conflict Resolution: Navigating and resolving conflicts that may arise from
cultural misunderstandings or differences in work practices.
5. Training and Development: Providing cultural training for employees to enhance
their ability to work effectively in diverse environments.
Each of these areas is crucial for businesses operating globally to succeed and sustain
their competitive edge.

References:
Barney, Jay et. al (2019). Strategic Management and Competitive Advantage: Concepts
6th Edition. Publisher: Pearson
Forest, David et.al (2020). Strategic Management: A Competitive Advantage Approach,
Concepts and Cases 17th edition. Publisher: Pearson
Grant, Robert (2021). Contemporary Strategy Analysis 11th Edition. Publisher: Wiley
Strategic Management Page 3 of 12
Global Strategy

Martin, Frank et. al (2021). Strategic Management: Awareness & Change 9th Edition.
Publisher: Cengage Learning
Rothaermel, Frank (2020). Strategic Management: Concepts and Cases 5th Edition.
Publisher: McGraw-Hill Education

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