MAN30055
International Business Strategy
Revision
Dr Xiaoying Li
Today’s agenda
• Overview of the key topics
• The exam
Lecture 1: define strategy
• What is strategy?
• What is strategy?
• Strategy as plan
• Strategy as action
• Strategy as theory: strategy as integration
• The four fundamental questions in strategy
• Why do firms differ?
• How do firms behave?
• What determines the scope of the firm?
• What determines the international success or failure of firms?
Lecture 2: industry-based view
• What is industry-based view is?
• What is an industry?
• The five forces framework:
• what are they?
• Threats indicative of strong competitive forces that can depress industry profitability
• Critically assess the industry-based view (relevant debates and extensions) • Clear versus blurred boundaries of industry
• Threats versus opportunities
• Five forces versus a sixth force (“complementors”)
• Industry rivalry versus strategic groups
• Industry-specific versus firm-specific and institution-specific determinants of performance
• Its implications for firm strategy and performance
• Lessons from the five forces framework
• Does industry matter for firm performance?
Lecture 3: resource-based view
• What are resources and capabilities
• Tangible resources
• Intangible resources
• What is resource-based view?
• The VRIO framework
• Critically assess resource-based view
• Firm- vs. Industry-Specific Determinants of Performance
• Static Resources vs. Dynamic Capabilities
• Offshoring vs. Non-Offshoring
Lecture 4: institution-based view • What are institutions?
• What is institution-based view of strategy?
• Hofstede’s dimensions of culture
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The original four dimensions
Later extension of the fifth dimension
Limitations of Hofstede’s approach
Trompenaars’ seven dimensions
• The role of business ethics
• The relationship between CSR and firm performance
• Lessons from institution-based view
Lecture 5: foreign market entry
• Going abroad: the benefits and challenges
• Why go abroad: the benefits
• The main challenge: the liability of foreignness
• Location choice: where to enter?
• Location-specific advantages
• Matching strategic goals with locations
• Culture/institution distance and location choice
• How to enter?
• Entry mode choice
• Theories explaining entry mode choice
• Transaction cost theory
Lecture 6: entrepreneurial firms • What are entrepreneurship and entrepreneurs?
• Five entrepreneurial strategies
• A sixth strategy: internationalisation
• The way to internationalise
• The speed of internationalisation
• Process theory of internationalisation (PTI) vs. theory of international new venture (INV, born-global firms)
Lecture 7: strategic alliances
• What are strategic alliances?
• contractual (non-equity) and equity-based strategic alliances
• Vertical and horizontal strategic alliances
• Theoretical basis for strategic alliances
• Transaction Cost Theory (TCT)
• Resource Based View (RBV)
• The advantages and disadvantages of strategic alliances
Lecture 8: global competitive dynamics • What are competitive dynamics?
• Cooperation/competitive between local firms and MNEs
Lecture 9: diversification
• What is diversification?
• Product-related diversification
• Product-unrelated diversification
• Geographical diversification
• Motives for/advantages of diversification
• What are mergers and acquisitions (M&As)
Lecture 10: multinational strategies and structures
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