International Business Strategy

LON301BUS

Strategy Selection

Unit: 7 Knowledgecast: 1

• Demonstrate a sound appreciation of current strategic management concepts

• Integrate and apply strategic approaches to practical situations in various types of organisations

• Resolve management problems in the area of strategic management by evaluating alternative outcomes

Module Learning Outcomes

Corporate Level Issues

Scope Decisions

Product Diversity

International Diversity

Corporate Parenting Roles

Managing the Portfolio

Value Creation

Adapted from Johnson and Scholes 2008

The Multi Business Organisation

Corporate Parent

Centres

Divisions

BusinessesAdapted from Johnson and Scholes 2008

Strategic Directions

• Diversification– Related– Unrelated

• Market Penetration• Consolidation• Product Development• Market Development

Value Creation and the Corporate Parent

• Value adding– Envisioning strategic intent– Intervening– Provision of central services and resources– Expertise

• Value destroying– Large cost– Diseconomies– Bureaucratic Fog– Financial Safety Net– Focus for managerial ambition

• Demonstrate a sound appreciation of current strategic management concepts

• There are a range of strategic directions open to MNEs• Integrate and apply strategic approaches to practical situations in

various types of organisations • How might strategy selection differ for MNEs?• Resolve management problems in the area of strategic

management by evaluating alternative outcomes • How might we analyse a business’ strategy with reference to its

structure?

Knowledgecast Summary

Carlos Ghosn and Renault Nissan: Leading for Global Success

Read the closing case in Cavusgil, Knight and Reisenberger (2008:336-338) of in preparation for the seminar. We will be exploring thenature of Renault Nissan’s international strategy during the seminar.

In the seminar be prepared to respond to the following questions:• 1. Why did Renault Nissan select this strategy?• 2. What challenges have Renault Nissan faced in

implementing this strategy?• 3. Evaluate the alternative strategies Renault Nissan could

have considered?

Seminar

End of Module Assessment – Evaluating Strategy (ManagementBrief) (Unit 10)

Preparation

In this session your consultancy group is encouraged to discuss thestrategic options open to the case study organisation.

• Market Penetration• Consolidation• Product Development• Market Development• Related Diversification• Unrelated Diversification

Group Activity

AND• Global Strategy• Home Replication Strategy• Transnational Strategy• Multidomestic Strategy