MN1178

Business Management in a Global Context

Revision – Part 3

Jaime Wong
2022 Teaching plan Important: Look out for UOL revision sessions announced by SIM

L43 L42 L40

03/01/2022 Chapter 15 04/01/2022 Chapter 15 05/01/2022 Chapter 15
10/01/2022 Chapter 16 11/01/2022 Chapter 16 12/01/2022 Chapter 16
17/01/2022 Review A2 + Revision 18/01/2022 Review A2 + Revision 19/01/2022 Review A2 + Revision
practice session practice session practice session
24/01/2022 Class test + Revision 25/01/2022 Class test + Revision 26/01/2022 Class test + Revision
practice session practice session practice session
07/02/2022 Revision practice 08/02/2022 Revision practice 09/02/2022 Revision practice
session session session
14/02/2022 Revision practice 15/02/2022 Revision practice 16/02/2022 Revision practice
session session session
Prelim 28/2/2022 – 12/03/2022
14/03/2022 Revision practice 15/03/2022 Revision practice 16/03/2022 Revision practice
session (prelim) session (prelim) session (prelim)
25/04/2022 Revision practice 26/04/2022 Revision practice 27/04/2022 Revision practice
session (prelim) session (prelim) session (prelim)
Final exam May-June 2022
 Part 3: International Business Strategy Part 4: International Business Management

Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11:

Strategy & the enterprise Competitive strategy for Entry strategies, alliances International marketing The Organisation of
in international contexts International business and evolution and R&D strategy International Business

• Concept of strategy, value
creation and value chain
(define and apply)
• Gaining economies from
location, experience effects
and scale (able to apply to
strategy development)
• Analyse international
environment: using PESTEL,
CAGE, SWOT, MinMax
(apply)
• Develop int’l biz strategy
using AAA model &
choosing from the 4 types
of int’l strategies (apply)
• Porter’s five forces +
criticism (able to describe,
assess and apply)
• Porter’s generic strategies
- cost leadership, diffn,
focus (apply)
• Assess resource-base
approach to competition –
use tangible & intangible
resources & capabilities to
achieve competitiveness
• VRIO + adv & disadv
(apply)
• Adapt strategy to
environment: Positioning,
Leverage, Opportunity
strategies
• Debates of IBV
• Entry strategies: Four
decisions when entering
foreign mkts - why, which
mkt, when, what scale &
ownership (explain)
• SME and MNE entry to
foreign mkts (advantages,
barriers)
• Different entry modes - adv
& disadv (identify)
• Adv of acquisitions vs.
greenfield (assess)
• Why strategic alliances –
what make it effective or
otherwise – partner
selection, structure, mgt
capability (assess)
• How companies evolve and
expand their int’l presence
• Marketing strategy –
Ansoff matrix
• Mkt segmentation
• Mktg mix - 4Ps (analyse,
assess)
• Mktg across 5 stages of
consumer life cycle
• Concepts in distribution
strategy & 3 AAA SCM
(apply)
• R&D important – why,
where, how to
commercialise (discuss)
• How to protect IP
• Challenges of R&D
• Relationship between
multinational strategy,
structure and evolution
• Define & assess when to
employ 4 org structures
• Evaluate strengths &
weaknesses of 4 org
structures
• Discuss the need to change
structure to match strategy
• Explain the role of
knowledge mgt
• Define & discus org
architecture, fit for
company performances,
real life egs
• Analyse real life org to fit
environment, strategy and
orgn architecture, taking a
contingency approach
What is Strategy? Value Creation
Value Chain Analysis
Economies – location, experience curve, scale
PESTEL Assessment Two
SWOT, MiniMax Assessment Two
CAGE Assessment Two
Ghemawat’s AAA Model Assessment Two

An illustration of how De Beers used AAA

Four basic international business strategies – pressures for cost
reduction and local responsiveness
Class Test
Four basic international business strategies & evolution Class Test
Practice Exam Question

a) How can we undertake a value chain analysis for a firm? What does it enable us to understand
(12 marks)
b) Explain the importance of location economies, experience curve effects and economies of scale
in enabling firms to achieve global cost advantage. Illustrate your answer with examples (9
marks)

To answer, go to:

Groups 1 – 5
Groups 5 – 10
Groups 11- 15
 Part 3: International Business Strategy Part 4: International Business Management

Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11:

Strategy & the enterprise Competitive strategy for Entry strategies, alliances International marketing The Organisation of
in international contexts International business and evolution and R&D strategy International Business

• Concept of strategy, value
creation and value chain
(define and apply)
• Gaining economies from
location, experience effects
and scale (able to apply to
strategy development)
• Analyse international
environment: using PESTEL,
CAGE, SWOT, MinMax
(apply)
• Develop int’l biz strategy
using AAA model &
choosing from the 4 types
of int’l strategies (apply)
• Porter’s five forces +
criticism (able to describe,
assess and apply)
• Porter’s generic strategies
- cost leadership, diffn,
focus (apply)
• Assess resource-base
approach to competition –
use tangible & intangible
resources & capabilities to
achieve competitiveness
• VRIO + adv & disadv
(apply)
• Adapt strategy to
environment: Positioning,
Leverage, Opportunity
strategies
• Debates of IBV
• Entry strategies: Four
decisions when entering
foreign mkts - why, which
mkt, when, what scale &
ownership (explain)
• SME and MNE entry to
foreign mkts (advantages,
barriers)
• Different entry modes - adv
& disadv (identify)
• Adv of acquisitions vs.
greenfield (assess)
• Why strategic alliances –
what make it effective or
otherwise – partner
selection, structure, mgt
capability (assess)
• How companies evolve and
expand their int’l presence
• Marketing strategy –
Ansoff matrix
• Mkt segmentation
• Mktg mix - 4Ps (analyse,
assess)
• Mktg across 5 stages of
consumer life cycle
• Concepts in distribution
strategy & 3 AAA SCM
(apply)
• R&D important – why,
where, how to
commercialise (discuss)
• How to protect IP
• Challenges of R&D
• Relationship between
multinational strategy,
structure and evolution
• Define & assess when to
employ 4 org structures
• Evaluate strengths &
weaknesses of 4 org
structures
• Discuss the need to change
structure to match strategy
• Explain the role of
knowledge mgt
• Define & discus org
architecture, fit for
company performances,
real life egs
• Analyse real life org to fit
environment, strategy and
orgn architecture, taking a
contingency approach
 Assessment Two
Porter’s five forces (Competitive positioning framework/industry-based view)
Assess Porter’s five forces Assessment Two
Generic Strategies Assessment Two
Resource-based view (RBV)
Include VRIO Analysis in RBV Assessment Two
Bringing environment and strategy together Assessment Two
Major debates (controversies) on competitive strategies
Assessment Two
 Part 3: International Business Strategy Part 4: International Business Management

Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11:

Strategy & the enterprise Competitive strategy for Entry strategies, alliances International marketing The Organisation of
in international contexts International business and evolution and R&D strategy International Business

• Concept of strategy, value
creation and value chain
(define and apply)
• Gaining economies from
location, experience effects
and scale (able to apply to
strategy development)
• Analyse international
environment: using PESTEL,
CAGE, SWOT, MinMax
(apply)
• Develop int’l biz strategy
using AAA model &
choosing from the 4 types
of int’l strategies (apply)
• Porter’s five forces +
criticism (able to describe,
assess and apply)
• Porter’s generic strategies
- cost leadership, diffn,
focus (apply)
• Assess resource-base
approach to competition –
use tangible & intangible
resources & capabilities to
achieve competitiveness
• VRIO + adv & disadv
(apply)
• Adapt strategy to
environment: Positioning,
Leverage, Opportunity
strategies
• Debates of IBV
• Entry strategies: Four
decisions when entering
foreign mkts - why, which
mkt, when, what scale &
ownership (explain)
• SME and MNE entry to
foreign mkts (advantages,
barriers)
• Different entry modes - adv
& disadv (identify)
• Adv of acquisitions vs.
greenfield (assess)
• Why strategic alliances –
what make it effective or
otherwise – partner
selection, structure, mgt
capability (assess)
• How companies evolve and
expand their int’l presence
• Marketing strategy –
Ansoff matrix
• Mkt segmentation
• Mktg mix - 4Ps (analyse,
assess)
• Mktg across 5 stages of
consumer life cycle
• Concepts in distribution
strategy & 3 AAA SCM
(apply)
• R&D important – why,
where, how to
commercialise (discuss)
• How to protect IP
• Challenges of R&D
• Relationship between
multinational strategy,
structure and evolution
• Define & assess when to
employ 4 org structures
• Evaluate strengths &
weaknesses of 4 org
structures
• Discuss the need to change
structure to match strategy
• Explain the role of
knowledge mgt
• Define & discus org
architecture, fit for
company performances,
real life egs
• Analyse real life org to fit
environment, strategy and
orgn architecture, taking a
contingency approach
Market entry decisions (why, where, when, which, how)
Born Global: different decisions?
Entry Modes

5.
1. 6.

3. & 4.

2.
Class Test
Question 1
‘It is not enough to decide on a mode of market entry. To succeed, an international
business also needs an international marketing strategy.’ Using illustrative examples,
answer the following questions:
a) Describe six major methods for entering new international markets and assess
the circumstances for which each method is best suited. (10 marks)
b) Describe the main components of an international marketing strategy. (8 marks)
c) Assess how these marketing components can best support the six methods of
market entry you described in (a) above. (7 marks)
Entry modes – non-equity Assessment Three
Entry modes – equity Assessment Three
Full Acquisition – another form of WOS
Strategic Alliances
Going international: growth through evolution
Exam Practice Question
Strategic alliances have a high failure rate. Explain why they are
embarked on, and what makes them successful. (7 marks)

To answer go to:

Groups 1 – 5
Groups 6 – 10
Groups 11 – 15
 Part 3: International Business Strategy Part 4: International Business Management

Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11:

Strategy & the enterprise Competitive strategy for Entry strategies, alliances International marketing The Organisation of
in international contexts International business and evolution and R&D strategy International Business

• Concept of strategy, value
creation and value chain
(define and apply)
• Gaining economies from
location, experience effects
and scale (able to apply to
strategy development)
• Analyse international
environment: using PESTEL,
CAGE, SWOT, MinMax
(apply)
• Develop int’l biz strategy
using AAA model &
choosing from the 4 types
of int’l strategies (apply)
• Porter’s five forces +
criticism (able to describe,
assess and apply)
• Porter’s generic strategies
- cost leadership, diffn,
focus (apply)
• Assess resource-base
approach to competition –
use tangible & intangible
resources & capabilities to
achieve competitiveness
• VRIO + adv & disadv
(apply)
• Adapt strategy to
environment: Positioning,
Leverage, Opportunity
strategies
• Debates of IBV
• Entry strategies: Four
decisions when entering
foreign mkts - why, which
mkt, when, what scale &
ownership (explain)
• SME and MNE entry to
foreign mkts (advantages,
barriers)
• Different entry modes - adv
& disadv (identify)
• Adv of acquisitions vs.
greenfield (assess)
• Why strategic alliances –
what make it effective or
otherwise – partner
selection, structure, mgt
capability (assess)
• How companies evolve and
expand their int’l presence
• Marketing strategy –
Ansoff matrix
• Mkt segmentation
• Mktg mix - 4Ps (analyse,
assess)
• Mktg across 5 stages of
consumer life cycle
• Concepts in distribution
strategy & 3 AAA SCM
(apply)
• R&D important – why,
where, how to
commercialise (discuss)
• How to protect IP
• Challenges of R&D
• Relationship between
multinational strategy,
structure and evolution
• Define & assess when to
employ 4 org structures
• Evaluate strengths &
weaknesses of 4 org
structures
• Discuss the need to change
structure to match strategy
• Explain the role of
knowledge mgt
• Define & discus org
architecture, fit for
company performances,
real life egs
• Analyse real life org to fit
environment, strategy and
orgn architecture, taking a
contingency approach
Class Test
Question 1
‘It is not enough to decide on a mode of market entry. To succeed, an international
business also needs an international marketing strategy.’ Using illustrative examples,
answer the following questions:
a) Describe six major methods for entering new international markets and assess
the circumstances for which each method is best suited. (10 marks)
b) Describe the main components of an international marketing strategy and
marketing mix. (8 marks)
c) Assess how these marketing components can best support the six methods of
market entry you described in (a) above. (7 marks)
Marketing Strategies – Ansoff matrix
Marketing strategy focuses on choices over products/services and markets. The Ansoff matrix
suggests four strategic choices.
Market Penetration Strategy
• Aim is to increase market share
• Least risky strategy – because it leverages on firm’s existing resources & capabilities
• In a growing market – maintaining market share = growth
• How – use promotional methods, discounts, or more extensive distribution channels or create ways to
increase usage.

Market Development Strategy

• Selling existing products in new market segments or geographical regions.
• Market abroad to extend product life (product life cycle theory)
• Appropriate if the firm’s core competencies are related more to the specific product than to its
experience with a specific market segment.
• May entail, some product development, attracting new users or new geographies.
• May require new strategic capabilities, especially in marketing
• Has more risk than a market penetration strategy.
• How - further market segmentation or new distribution channels (eg online sales) or new branches –
to identify new customers
Marketing Strategies – Ansoff matrix
Marketing strategy focuses on choices over products/services and markets. The Ansoff matrix
suggests four strategic choices.
Product Development Strategy or Product diversification strategy
• New products in existing markets.
• Appropriate if the firm’s strengths are related to its specific customers rather than to the specific
product itself.
• Expensive in terms of R&D and marketing and high risk. May require new strategic capabilities and
involve project management risks.
• Can be relevant internationally when the firm is already in a foreign market and is developing new
products/services for that market.
• How - Modify existing product to change its presentation, or increase performance and quality eg cars
manufacturing with facelift on existing model that may include improving engine specification
Diversification Strategy
• New products in new markets.
• The riskiest approach to internationalisation.
• May require both product and market development and may be outside the firm’s core
competencies.
• Firms often try to mitigate risks eg by JV or R&D collaboration (SA)
• Main drivers for diversification (Johnson et al (2011)) are exploit economies of scope, stretch
corporate management competencies, exploit superior internal processes, increasing market power –
competitive positioning and to Gain foothold in an attractive industry
Market Segmentation, market across consumer life cycle
Marketing Mix – 4P
Pricing
Product • List Price & competitors’ prices, discount, financing &
• Bundle of attributes: pdt functions, appearance, Total cost of ownership.
packaging, service, warranty, etc • Consider Demand elasticity (determine by income
• Core effort, $, limited PLC. level, nr of competitors)
• Key decision: Standardization vs localization. Consider • Pricing discrimination & institution
its market segment. • Pricing strategies (Skimming, penetration)
• Pdt Diffn influence by cultural, level of econ dvpt, pdt • Strategic pricing:Predatory, multipoint, experience
& tech stds curve
• Reality – firms limited by regulations in target
Place – Distribution strategy markets
• Physical location or virtual
• Factors to consider in choosing distribution strategy: Promotion – Communication strategy
Retail Concentration, Channel length, Channel • Types of media, culturally embedded
exclusivity, Channel quality) • Standardised or localise? When std advertising makes
• In response to more outsourcing – “AAA” of supply sense.
chain • Cultural barriers, source and country-of-origin effects,
• Agility – able to react quickly to unexpected shifts in noise levels
DD & SS; Adaptability – change SC config, Alignment • Push and Pull Strategies (pdt type, consumer
of players in SC. sophistication, channel lengths, media availability
Class Test
Question 1
‘It is not enough to decide on a mode of market entry. To succeed, an international
business also needs an international marketing strategy.’ Using illustrative examples,
answer the following questions:
a) Describe six major methods for entering new international markets and assess
the circumstances for which each method is best suited. (10 marks)
b) Describe the main components of an international marketing strategy and
marketing mix. (8 marks)
c) Assess how these marketing components can best support the six methods of
market entry you described in (a) above. (7 marks)

A somewhat similar question asked in past exam:

Discuss the challenges and ways of developing the marketing mix for each type of marketing
strategy you have identified. (14 marks)
Research and Development (R & D) strategy
Commercialisation of new technologies
Challenges and future of R&D
Exam Practice Question
Explain what the marketing mix is and how R&D can underpin the ‘4Ps’
decisions of an international business. Using examples to illustrate
which topics ned to be researched. (12 marks)

To answer go to:
Groups 1 – 5
Groups 6 – 10
Groups 11 – 15
 Part 3: International Business Strategy Part 4: International Business Management

Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11:

Strategy & the enterprise Competitive strategy for Entry strategies, alliances International marketing The Organisation of
in international contexts International business and evolution and R&D strategy International Business

• Concept of strategy, value
creation and value chain
(define and apply)
• Gaining economies from
location, experience effects
and scale (able to apply to
strategy development)
• Analyse international
environment: using PESTEL,
CAGE, SWOT, MinMax
(apply)
• Develop int’l biz strategy
using AAA model &
choosing from the 4 types
of int’l strategies (apply)
• Porter’s five forces +
criticism (able to describe,
assess and apply)
• Porter’s generic strategies
- cost leadership, diffn,
focus (apply)
• Assess resource-base
approach to competition –
use tangible & intangible
resources & capabilities to
achieve competitiveness
• VRIO + adv & disadv
(apply)
• Adapt strategy to
environment: Positioning,
Leverage, Opportunity
strategies
• Debates of IBV
• Entry strategies: Four
decisions when entering
foreign mkts - why, which
mkt, when, what scale &
ownership (explain)
• SME and MNE entry to
foreign mkts (advantages,
barriers)
• Different entry modes - adv
& disadv (identify)
• Adv of acquisitions vs.
greenfield (assess)
• Why strategic alliances –
what make it effective or
otherwise – partner
selection, structure, mgt
capability (assess)
• How companies evolve and
expand their int’l presence
• Marketing strategy –
Ansoff matrix
• Mkt segmentation
• Mktg mix - 4Ps (analyse,
assess)
• Mktg across 5 stages of
consumer life cycle
• Concepts in distribution
strategy & 3 AAA SCM
(apply)
• R&D important – why,
where, how to
commercialise (discuss)
• How to protect IP
• Challenges of R&D
• Relationship between
multinational strategy,
structure and evolution
• Define & assess when to
employ 4 org structures
• Evaluate strengths &
weaknesses of 4 org
structures
• Discuss the need to change
structure to match strategy
• Explain the role of
knowledge mgt
• Define & discus org
architecture, fit for
company performances,
real life egs
• Analyse real life org to fit
environment, strategy and
orgn architecture, taking a
contingency approach
Centralisation or decentralisation
Exam Practice Question
Class Test: Question 2
“International business strategy only gets executed effectively when it is aligned with
organisational structure and with organisation and IT enterprise architecture.” Discuss this
statement as follows:
a) Outline the main international business strategies, and explain the organisation structure
that best supports each strategy, and the limitations of each structure. Give illustrative
examples.(10 marks)
b) Assess the main components of organisation architecture, and illustrate, with examples,
how these components need to be aligned with strategy and structure.(7 marks)
c) Explain what is meant by ‘IT enterprise architecture’, and illustrate, with examples, how
different types of IT enterprise architecture fit different international business strategies. (8
marks)
Strategy and Organisation Structure
Evolution of organisation structure and Contingency approach
Knowledge Management
Exam Practice Question
Class Test: Question 2
“International business strategy only gets executed effectively when it is aligned with
organisational structure and with organisation and IT enterprise architecture.” Discuss this
statement as follows:
a) Outline the main international business strategies, and explain the organisation structure
that best supports each strategy, and the limitations of each structure. Give illustrative
examples.(10 marks)
b) Assess the main components of organisation architecture, and illustrate, with examples,
how these components need to be aligned with strategy and structure.(7 marks)
c) Explain what is meant by ‘IT enterprise architecture’, and illustrate, with examples, how
different types of IT enterprise architecture fit different international business strategies. (8
marks)
Organisational Architecture
Synthesis
End of Revision Part 3 + Chapter 11