Strategy Selection International Business Strategy LON301BUS Unit: 7 Knowledgecast: 2 Module Learning Outcomes • 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 Management Roles in the Transnational Company • The Global Business Manager • The Worldwide Functional Manager • The Country Subsidiary Manager (But other roles also starting to emerge e.g. the Global Account Manager) Pressures and Constraints on a Country Manager MNC Organization Internal Corporate Structure Internal Norms Motivations Strategy & Systems & Values Host Governments Objectives, Policies National Constituent Interests (Employees, Consumers, Unions) Host Country Interests Local Norms & Values Country Manager Personal Values National Competitor’s Actions Global Competitive Global Competitive Environment Activity Local Market & Industry Structure A Country Manager’s Multiple Hats Pioneer Role: Define the territory: market structure, customer needs Establish the base camp: make contacts, develop relationships Trader Role: Intelligence Role: Analyze the environment: intelligence on competitors, technology, market trends Develop innovative ideas and capabilities as input to strategy Quarterback Role: Build profitable operations: base camp, trading post; control expenses, manage pricing Confer with HQ Coaches to defend, and advocate the field view Motivate team to achieve results Develop local resources: contribute to overall strategy Maintain entrepreneurship, creativity, and drive Skills and Qualifications of the Country Manager Entrepreneurial Skills Innovator & Opportunist Strategic Skills Country Manager Creative Analyst Executive Skills Administrative Skills Controller & Manager IHRM Implications: Need CMs with different strengths at various stages of development; But in a mature subsidiary, the CM must have all of these characteristics. Organizational Leader Knowledgecast Summary • Integrate and apply strategic approaches to practical situations in various types of organisations • How will the structure of international organisations affect the roles and responsibilities of its management team? • Resolve management problems in the area of strategic management by evaluating alternative outcomes • As an organisation grows how can managers clarify their individual roles so that they work effectively as a team? Seminar 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 the nature 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? Group Activity End of Module Assessment – Evaluating Strategy (Management Brief) (Unit 10) Preparation In this session your consultancy group is encouraged to discuss the strategic options open to the case study organisation. • • • • • • Market Penetration Consolidation Product Development Market Development Related Diversification Unrelated Diversification AND • Global Strategy • Home Replication Strategy • Transnational Strategy • Multidomestic Strategy
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