.D.Y.

Patil Vidyapeeth
Dr
Deemed to be University

BBA- SEM III

INSTITUTE OF DISTANCE
LEARNING, PUNE.

Name of the Student: Kumar Kartikey

PRN No: 200504056

Course/Subject Title: International Strategic Management

Assignment No: BB-606I (Semester 6)

Date of Submission: 28/05/2024

Question 1: What is international strategic management?

Answer:

International strategic management involves the formulation and

implementation of strategies by multinational corporations (MNCs) to
compete effectively in global markets. It encompasses analyzing
international environments, understanding competitive dynamics, and
aligning organizational resources to achieve long-term goals across different
countries.

Key aspects of international strategic management include:

Global Market Analysis: Understanding global market trends, customer

preferences, and competitive landscapes.

Strategic Planning: Developing strategies that leverage global opportunities

and mitigate risks.

Resource Allocation: Efficiently distributing resources across international

operations to maximize returns.

Cultural Adaptation: Adapting business practices to align with cultural, legal,

and economic conditions in different countries.

Performance Measurement: Evaluating the success of international

strategies and making necessary adjustments.

Question 2: What are the main types of international strategies that firms
can adopt?

Answer:

Firms can adopt various international strategies based on their objectives,

resources, and market conditions. The main types include:
Global Strategy: Standardizing products and marketing strategies across all
countries to achieve economies of scale. Example: Coca-Cola's uniform
branding and product offering.

Multidomestic Strategy: Customizing products and marketing strategies to

fit the unique needs of each local market. Example: McDonald's adapting its
menu to local tastes.

Transnational Strategy: Combining elements of global and multidomestic

strategies by standardizing some aspects while customizing others to
balance efficiency and local responsiveness. Example: Unilever's mix of
global brands and local adaptations.

International Strategy: Exporting products and leveraging home-based

competencies with minimal local adaptation. Example: A luxury fashion
brand selling the same high-end products worldwide.

Question 3: What are the key factors influencing the choice of entry mode
in international markets?

Answer:

The choice of entry mode depends on several factors, including:

Market Potential: Size and growth potential of the target market.

Risk and Control: Desired level of control over operations versus the risk the
company is willing to take.

Resource Commitment: Availability of resources (financial, managerial, etc.)

for the chosen entry mode.

Cultural and Legal Environment: Differences in cultural norms and legal

regulations between home and host countries.
Competitive Landscape: Presence and strength of competitors in the target
market.

Cost Considerations: Costs associated with entry modes, such as setup

costs, tariffs, and transportation.

Common entry modes include exporting, licensing, franchising, joint

ventures, wholly-owned subsidiaries, and strategic alliances.

Question 4: How do cultural differences impact international strategic

management?

Answer:

Cultural differences significantly impact international strategic management

in several ways:

Communication: Variations in language and communication styles can affect

negotiations, marketing, and management practices.

Leadership and Management: Different cultural norms influence leadership

styles, decision-making processes, and employee expectations.

Marketing Strategies: Cultural preferences and values shape consumer

behaviour, requiring tailored marketing approaches.

Human Resource Management: Recruitment, training, and motivation

strategies need to be adapted to local cultural contexts.

Business Practices: Cultural differences can affect business etiquette,

negotiations, and relationship-building.

Understanding and respecting cultural differences is crucial for the

successful implementation of international strategies and for building
strong, collaborative relationships with local stakeholders.
Question 5: What are the challenges of implementing a transnational
strategy?

Answer:

Implementing a transnational strategy involves balancing global efficiency

and local responsiveness, which presents several challenges:

Complexity: Managing and coordinating activities across multiple countries

with different market conditions, regulations, and cultural contexts.

Resource Allocation: Efficiently distributing resources and capabilities to

achieve both global integration and local adaptation.

Organizational Structure: Designing an organizational structure that

supports both central control and local autonomy.

Knowledge Transfer: Facilitating the flow of information and best practices

across different units while respecting local differences.

Cost Management: Balancing the costs associated with customization and

standardization to maintain profitability.

Cultural Integration: Aligning diverse cultural perspectives and practices

within the organization to foster a cohesive corporate culture.

Overcoming these challenges requires strong leadership, effective

communication, and robust management systems to ensure that both
global and local objectives are met.