STRATEGIC

MANAGEMENT

Seminar 8. Expansion /
Internationalization
Titov Sergei Anatolyevich, MBA, PhD,
satitov@fa.ru
PLAN FOR TODAY

 Team project
 Individual testing
 Typical strategies (theory)
 You have no choice but to operate in a
world shaped by globalization and the
information revolution. There are two
options: Adapt or die.
— Andrew S. Grove,
retired Chairman and CEO,
Intel Corporation

Prepare arguments for and against this citation (5 minutes)

Two random students have a debate (exchange of at least
5 arguments)
All vote for or against the participants
 You do not choose to become global.
The market chooses for you; it forces
your hand.
— Alain Gomez,
Former CEO, Thomson, S.A.

Prepare arguments for and against this citation (5 minutes)

Two random students have a debate (exchange of at least
5 arguments)
All vote for or against the participants
INTERNATIONAL
EXPANSION
QUESTIONS TO ANSWER

 Where (countries)
 What (functions\ operations: R&D, manufacturing, sales, …)
 Why (reasons)
 How (mode of penetration)
30 mins to prepare
5 mins to answer
BENEFITS
To gain access to
new customers

To obtain access to To achieve lower

valuable natural costs and enhance
resources competitiveness

To further capitalize
To spread business
on resource
risk across a wider
strengths and
market base
capabilities
MODES
 STRATEGIES

♦ Think Local, Act Local: Castrol (over 3000

different formulas to meet requirements
of different climates, vehicles, uses,
equipment)
♦ Think Global, Act Global: Ford (Fiesta and
Focus were marketed in many countries)
♦ Think Global, Act Local: Disneyland, Yum!
Brands, Electronic Arts
STRATEGIES: GLOBALIZATION VS
LOCALIZATION
STRATEGIES: GLOBALIZATION VS
LOCALIZATION