International Business Strategies
TBS 984
Dr Alan Pomering
T2, 2015
Week 1
Global Strategy: Preface
Not a particular multinational enterprise (MNE) strategy, but “strategy around the globe”
Most fundamentally about “strategy” before being
“global”
About entering foreign markets, but also how domestic firms strategise by competing against each other and dealing with foreign entrants
1
27/05/2015
Outline
• A global global-strategy book
• Why study global strategy?
• What is strategy?
• Fundamental questions in strategy
• What is global strategy?
• What is globalization?
• Global strategy and globalization at a crossroads 3
Why Study Global Strategy?
• Job and career aspiration opportunities
• Awareness of what is going on in the world
• Avoid downside risks of globalization
2
27/05/2015
Porters Critique
Too Many Firms Pursue Best Practice and Seek Operational
Effectiveness Through Benchmarking, TQM, JIT Etc.
But This Is Not Strategy.
Strategy Is About Being Different,
Not Being ‘As Good As’.
What is Strategy?
• Origin-Greek word (strategos)-art of the general
Sun Tzu, Chinese military strategist in 500 B.C.
Modern-day application to business and competition dates to the
1960s
• Plan versus Action - strategy is “explicit, rigorous formal planning” versus “a set of flexible, goal-oriented actions”
• Strategy as Theory-how to compete successfully
Firms have both intended and emergent strategies
One firm’s strategies may not work in all situations
Past success does not guarantee future success
It is often difficult to change strategy
3
27/05/2015
What is Strategy?
(Cont’d…)
Strategy should give coherence to decisions and actions Managers must exert effective strategic leadership
