TUNGHAI UNIVERSITYDepartment of International Business - Taichung

Seminar in International Business

Global Strategy (A)

Today’s Agenda

Preview of Global Strategy & Course Remainder

Media\What is Strategy Intro M E Porter London 2008 [HBS Strategy].flv

Strategy Primer (A)

Group Listing

Wal-Mart Introduction

Preview of Final Third of Course

1. Today General Strategy Lecture I Wal-Mart Preview

• What is Strategy?• Assignment: What is Wal-Mart’s Strategy?

2. Due Next weekStudent Analysis of Wal-Mart Strategy

• Wal-Mart Stores, Inc Case• Mini-Presentations on Wal-Mart Discussion Q’s• Global Strategy Lecture II

3. Two weeks: – Wal-Mart China, 2006 Case Analysis– Normal Case Discussion & Student Write-Up’s

Strategy

TUNGHAI UNIVERSITYDepartment of International Business - Taichung

StrategyCritical Concepts in Global Strategy I

Seminar in Intl Business

Group Finalization

• Leave your name/number on the list at Desk

• Choose one of X groups– Group 1– Group 2– Group 3…

Wal-Mart Stores, Inc

• Worlds Biggest Company– Prior to Oil Ramp-up– >1M employees

• Became most profitable– Selling at lower margins

• Originally Lead by Highly Charismatic Leader– Sam Walton

• Looking for it’s next Growth Markets– To maintain its 8% YOY Earnings Growth

Wal-Mart Stores, Inc

• Original Case– Covers Firm’s Strategy and Competitive

Advantage– Prelude to our international transferability

analysis of Wal-Mart China.

Wal-Mart Stores, Inc [HBS 9-794-024]

• Group Mini Presentations :– 10 Minutes Maximum– Group 1:

• What are the sources of Wal-Mart’s Competitive Advantage?

– Group 2: • How Sustainable are those sources of Wal-Mart’s

Competitive Advantage

– Group 3:• What is Wal-Mart’s unique Fit? Describe it in detail.

Next Week

• Global Strategy & Organization (B):– Required Readings: What is Strategy? M. E. Porter,

Harvard Business Review, November – December, 1996.

– Supplemental Readings: The Five Competitive Forces That Shape Strategy, M. E. Porter, Harvard Business Review January, 2008.

• Mini Group Presentations

TUNGHAI UNIVERSITYDepartment of International Business - Taichung

Seminar in International Business

Global Strategy (B)

Today’s Agenda

I Analysis of Wal-Mart Strategy– Group 1:

• What are the sources of Wal-Mart’s Competitive Advantage?

– Group 2: • How Sustainable are those sources of Wal-Mart’s

Competitive Advantage– Group 3:

• What is Wal-Mart’s unique Fit? Describe it in detail.– Group 4:

• What is Wal-Mart’s International Presence

II Global Strategy Concepts II

Global Strategy Concepts II

TUNGHAI UNIVERSITYDepartment of International Business - Taichung

StrategyCritical Concepts in Global Strategy I

Seminar in Intl Business

Wal-Mart Stores, Inc [HBS 9-794-024]

• Group Mini Presentations – 15 Minutes + 5 Minutes Q & A– Group 1:

• What are the sources of Wal-Mart’s Competitive Advantage?

– Group 2: • How sustainable are those sources of Wal-Mart’s

Competitive Advantage

– Group 3:• What is Wal-Mart’s unique Fit? Describe it in detail.

– Group 4:• What is Wal-Mart’s International Presence?

Next Week

• Wal-Mart, China

• CEO Interview 2007

• Final Project Planning

TUNGHAI UNIVERSITYDepartment of International Business - Taichung

Seminar in International Business

Wal-Mart 2005/2007Growth & International Transferability

Today’s Agenda

I Analysis of Wal-Mart China Growth Strategy– Group 4:

• Can Wal-Mart build the same competitive advantage in China using its US domestic model?

– Group 5: • How Transferable are Wal-Mart’s resources internationally,

how would you analyze/evaluate them?– Group 6:

• Should Wal-Mart Copy it’s US strategy in China? Why or Why Not?

II Wal-Mart Stores: “Everyday Low Prices in China”– Case Discussion– Video Interview (25 min.)– Written Write-Up Due (you may add hand written comments from discussion to

your margin)

III In-Class Planning for Final Project

“Break Out” Group Analysis

I Analysis of Wal-Mart Global Strategy– Group 1:

• How can Wal-Mart Continue it’s 10% Y/Y Growth– Group 2:

• How Transferable are Wal-Mart’s resources internationally, how would you analyze/evaluate them?

– Group 3: • Should Wal-Mart Copy it’s US strategy in China? Why or Why Not?

– Group 4: • Can Wal-Mart build the same competitive advantage in China using

its US domestic model?

Lee Scott, CEO

• Wal-Mart CEO Charlie Rose David Glass Interview 56min [2007].flv

Advantage

Growth

International

Trends01:30 – 26:00

Wal-Mart, 2005 [HBS 9-705-460]

• WalMart Stores & 2005[HBS SAV NOTES].ppt

Change, Transformation…for Growth

1. Broaden the Reach…(into customers wallets)

– Shoppers purchase a few things, would like to sell more things (clothes and toys and groceries and cosmetics)

2. Maintain a good Corporate Image– Stores that the community would like

3. Operate in a more complex world– Indication that the strategy is being tested

Back to Theory: Tradeoff’s (1) Global versus Local and (2) New Market Analysis

Next : Final Project Presentations

– Specific Country / Specific Product or Service

– SWOT Framework– How this Country &

Product Fit’s into it’s present strategy

– 30 Minutes– Written Summary Due the

Following Week

• Country Overview• Culture Briefing• Marketing Practices• Management Scene• Financial and

Currency• Business Feasibility

Study• PowerPoint's due at presentation

This is only a suggestion, your outline/flow may be different.

Evaluation Criteria

Professor 50%Class 50% Total =100%

Basis:International Strategy Evaluation Form

(available at eLearning)

Questions????

• Visit my office anytime….

• M615B

• Have a good weekend;.