Unit 5: Overview – Executing and Monitoring Strategies
Introduction
The global marketplace provides many opportunities for firms to increase their revenue base and profitability. Also, in today’s knowledge-based economy there are opportunities to create advantages by leveraging firm knowledge across national boundaries. However, along with the potential benefits there are pitfalls that all firms must avoid in order to be successful.
There are many alternative strategies for entering another country or area of the world. For instance, an organization can partner with another organization already in the area – and that relationship may be a joint venture, a distributorship, a merger/acquisition or a licensing arrangement. Additionally, an organization may decide to export or to manufacture in the new location while also doing a combination of joint venture, distributorship, etc.
Unit Learning Outcomes
At the conclusion of the unit, the learner will be able to:
1. Analyze the importance of international expansion as a viable diversification strategy. (CLO 4)
2. Compare alternative strategies for global entry and the relative benefits and risks associated with each of them. (CLO 4)
3. Integrate the elements of Porter’s Diamond of National Advantage Model to an industry/ or product (CLO 3, 4)
Readings and Materials
Textbooks:
Dyer, Godfrey, Jensen & Bryce: Chapter 9 International Strategies
Horwath: Conclusion
Rimm: Step 3 and Step 4 (continue reading for the Unit 8 Personal Strategic Plan assignment).
Documents (Can be located in the Park Library http://www.park.edu/library/index.htmlLinks to an external site.):
Porter, M.E. (1990, March/April). The competitive advantage of nations. Harvard Business Review,68 (2), 73-93
Note: also see Dyer et al, (2017), Chapt 9, p.163, Figure 9.5 [eBook]). If you desire additional information on this strategic tool, try web searches using “Porter’s Diamond of National Advantage.”
Moboya, J. & Kazungu, K. (2015). Determinants of competitive advantage in the textile and apparel industry in Tanzania: The application of Porter’s Diamond Model. British Journal of Economics, Management & Trade, 7(2), 128-147 (this source is provided as an example of applying Porter’s Diamond Model to an industry; pages 129-131 and page 142 may be helpful to understand this tool).
PowerPoint:
See as attached file.
Directions
After reading the text, search for an organization that does not currently do business globally (outside of their home country).
What opportunities would international expansion give this organization?
List 2 – 3 strategies the organization might use and analyze the benefits and risks associated with each strategy. Justify why, in your opinion, international expansion is or is not a viable strategy for them.
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