Welcome to the presentation

of
International Strategies
 Group Members

MD. Ehsan Uddin – 1903910109838

MD. Tanvirul Islam - 1903910109866
Shihab Uddin Samir - 1904010110051
MD. Jubaidul Alam Emon - 1904010110061
Tuli Das – 1904010109917
Asma Siddika Tasfiya - 1904010109915
• Introduction
• Industry Structure
• Perspectives on Strategy
• Approaches to Value Creation
• The Firm as Value Chain
• Managing the Value Chain
• Advantage & Disadvantage
• Global Integration Vs. Local Responsiveness
• Types of Strategy
• Conclusion
 Introduction
International business refers to the commercial activities that
involve the exchange of goods, services, and resources between
different countries. It encompasses various aspects such as
international trade, foreign investment, global marketing, and
cross-cultural management. Companies engage in international
business to expand their market reach, access new customers,
and capitalize on global opportunities.
One example of international business is the global automotive
industry. Car manufacturers such as Toyota, Volkswagen, and
BMW have established production facilities in multiple
countries to cater to diverse markets. By adopting an
international business approach, these companies can take
advantage of lower production costs, access local resources,
and adapt their products to suit regional preferences. This
enables them to compete effectively in different markets and
gain a competitive edge.
 Industry Structure
MNEs face a diversity of forces that shape how they
devise strategy. For example, German carmaker BMW
monitors how technology developments, interest rate
trends, and political leadership changes affect its quest
for profits. However, forces in its immediate industry
set- ting exert the greatest influence. BMW is far more
sensitive to the actions of fellow industry members like
Mercedes-Benz, Toyota, Michelin, Goodyear, and
Bosch because they directly affect its performance.
Understanding strategy, therefore, begins by
understanding Industry structure. Interpretation often
relies on the concepts and tools represented in the five-
forces model. It holds that firm performance is, a
function of its strategy, which is determined by factors
that shape the nature of competition within its industry.
 Perspectives on Strategy
The perspective of strategy refers to the lens through which an organization views its
competitive landscape, market dynamics, internal capabilities, and future opportunities.
It involves a holistic and forward-looking approach to planning and decision-making
that guides the organization towards achieving its long-term goals and objectives. Here
are some key aspects that define the perspective of strategy:

Long-Term External Internal

Orientation Focus Assessment

Performance Continuous Stakeholder

Measurement Improvement Engagement
 Approaches to value creation
There are several approaches to value creation that organizations
can adopt to enhance their competitive advantage and create value
for customers. Some common approaches to value creation
include:

 Cost Leadership: This approach focuses on becoming the

lowest-cost producer in the industry, allowing the organization
to offer products or services at competitive prices
 Differentiation: Differentiation involves creating unique
products or services that are perceived as valuable by
customers.
 Focus Strategy: The focus strategy involves targeting a
specific market segment or niche and tailoring products or
services to meet the needs of that particular group of customers.
 Innovation: Innovation is a key driver of value creation,
enabling organizations to develop new products, services,
processes, or business models that meet evolving customer
needs and preferences.
 The Firm as Value Chain
Value chain analysis is a strategic management tool that helps organizations
identify and analyze the activities and processes that create value for customers
and contribute to the organization's competitive advantage. The value chain
consists of two main types of activities: primary activities and support activities.
• Inbound Logistics
Pri • Operations
mar • Outbound Logistics
y • Marketing and Sales
Acti • Service
vitie Su • Procurement
s: pp • Technology Development
ort • Human Resource Management
Ac • Infrastructure
tiv
iti
es:
 Managing the value chain
Managing the value chain involves overseeing and optimizing the activities and
processes that contribute to creating value for customers. This includes all the steps
involved in producing, delivering, and supporting a product or service from raw
materials to the end customer. Key aspects of managing the value chain include:

1. Value Chain Analysis: This involves breaking down the value chain into
individual activities and analyzing each one to identify areas for improvement.

2. Supplier Management: Managing relationships with suppliers is crucial to

ensuring a smooth flow of materials and components through the value chain.

3. Production and Operations Management: This involves overseeing the

manufacturing processes, production planning, inventory management, and
quality control to ensure efficient and cost-effective production of goods or
services.

4. Logistics and Distribution: Managing the logistics and distribution activities in

the value chain is essential for timely delivery of products to customers.
 Managing the value chain

5. Marketing and Sales: Effective marketing and sales strategies are

key to creating demand for products or services and ensuring
customer satisfaction.

6. Customer Service: Providing excellent customer service is

essential for maintaining customer loyalty and satisfaction.

7. Technology and Innovation: Leveraging technology and

innovation can help streamline processes, improve product quality,
and enhance overall efficiency in the value chain.

8. Continuous Improvement: Implementing a culture of continuous

improvement is essential for managing the value chain effectively.
 Advantage & Disadvantage
Advantage
 Access to New Markets
 Increased Economies of Scale
 Enhanced Profitability
 Increased Competition
 Diversification
 Improved Access to Resources
 Greater Job Opportunities

Disadvantage
 Political Risks
 Exchange Rate Risk
 Cultural Barriers
 Language Barriers
 Difficulty in Protecting Intellectual Property
 High Transportation Costs
 Tariffs and Quotas
 Global Integration Vs. Local Responsiveness
Pressures for global integration

Multinational customers - Pressures for global integration are due to the importance of
multinational customers.
Competitors - There is also the presence of global competitors, which means that
companies need to improve their global co-ordination in order to compete.
Investment intensity - In addition, there is a need to recoup large investment costs, for
example R&D, which increases the need for global co-ordination.
Technology intensity - The development of high technology products and processes are
best centralized in a few locations, requiring concentrated configuration of activities.
Cost reduction - The pressure for cost reduction means that global integration is more
necessary for a firm to benefit from various economies of scale.
Universal consumer needs - The increasing availability of technologies and products in
the world means that consumer needs are converging, leading to the standardization of
products that facilitates globally-integrated operations.
Access to raw materials - Finally, pressures for global integration stems from increased
accessed to raw materials and cheap energy, which can be achieved if manufacturing is
concentrated in a single area, remote from other activities, thus requiring integration and
co-ordination.
 Global Integration Vs. Local Responsiveness
Pressures for local responsiveness

Differences in consumer needs - responsiveness is required when needs differ

between countries
Differences in distribution channels - When distribution channels differ between
countries, local responsiveness is needed to deal with differences in pricing,
promotion, and product positioning.
Availability of local substitutes - related to Porter's Five Forces, local responsiveness
is sometimes required if adaptations of the product is needed to compete with local
substitutes.
Host government demands - Countries have differing rules and regulations imposed
by each government, which require a local response.
Market structure - in concentrated local markets (such as oligopolies), firms must
react to the actions of local rivals.
 Types Of Strategy
1.International Strategy: The development
of local competitors leads to an intensively
competitive market at home country.
2.Multinational Strategy: When managers
consider and pay more attention to foreign
markets, they realize differences, degrees
could vary, between home and host
countries.
3.Global Strategy: Expensiveness in doing
international business with multinational
strategy hinders MNEs expanding their
markets to over the world.
4.Transnational Strategy: Nowadays, with
the development of society, consumers’
perceive is continuously enhancing.
 Conclusion
IR grid, that maps suitable international
strategies for different types of market,
contributes significantly to IB management.
Its value, however, is bounded by its static
feature. To improve this framework, we,
hence, bring a new concept, dynamic IR grid,
to IB field. It considers four strategies and
their surroundings not only at a specific point
of time, but also for a long period that is
possible for changes regarding both
environments and strategies. Dynamic IR
framework, therefore, is a key of being
successful in uncertain environments. By
introducing the dynamic framework, the
research provides an important managerial
implication that conducting pertinent
strategic movement in order to positively
respond to the environment changes.