The Strategy of International Business

The chapter reviews basic principles of the strategies available for globally expanding businesses, it also reviews the different ways in which a business can maximize their profit while maintaining a well planed and followed expansions/global strategy. One important fact is to focus on the main objective of any firm; “Maximizing shareholder value” any strategy is mostly designed and built around this objective.
To evaluate and review the strategies presented in this chapter two current events are visited at the end of the paper; Nokia’s cost reduction strategy and Hollywood’s Global Expansion strategy.
Hollywood for one is focused on the global market and the ability to successfully expand through these markets, since 1980s as mentioned by Jeff Kleeman the executive producer of “The Change-Up” (Lang, 2011) Hollywood were targeting the global market but now they are more focused on the how rather than just the revenues from these global markets.
Nokia’s global strategy on the other hand is aligning workforce with site operations. Nokia is one of the successful telecommunication companies worldwide with more than a billion users worldwide. (Nokia Corporation, 2011)

Chapter Summary
The Strategy of International Business chapter reviews some basic principles of international business strategies and how these strategies can be used to profit from international expansions. The chapter defines strategy as “the actions managers take to attain the goals of the firm” (Hill, 2011, p. 402).
The chapter is divided in few sections as follows:
Strategy and the Firm, in which the author discusses how a firm’s profitability can be maximized by following one or more of the business strategies globally and locally. The strategies discussed in this section are Value Creation, Strategic Positioning, and value chain operations.