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Welcome to the Welcome to the International International

BusinessBusinessStrategy Strategy

Program at Program at MMUBSMMUBS

International BusinessInternational Business StrategyStrategy

Henry PalowskiHenry PalowskiSenior Lecturer Senior Lecturer Subject Group: Subject Group: Strategy, Enterprise & Strategy, Enterprise & International BusinessInternational BusinessTel: 0161 247 3755Tel: 0161 247 3755E-mail: E-mail: h.palowski@mmu.ac.uk

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International Business Strategy International Business Strategy

The programme is primarily concerned with The programme is primarily concerned with Business Business Strategy.Strategy.

i.e. the Business Models developed by Business i.e. the Business Models developed by Business Units to create competitive advantage in specific Units to create competitive advantage in specific product market contexts.product market contexts.

Some elements of Corporate Strategy will be Some elements of Corporate Strategy will be considered in as far as they impinge on considered in as far as they impinge on International/Global StrategyInternational/Global Strategy

A central aim of the course is combining theory with A central aim of the course is combining theory with practice, and this is achieved by the use of case practice, and this is achieved by the use of case studies for class work, assessment and in the studies for class work, assessment and in the examination.examination.

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The Objectives of the ModuleThe Objectives of the Module

To present economic analysis that will be To present economic analysis that will be useful for understanding strategic useful for understanding strategic management as an area of study;management as an area of study;

To present a systematic approach to the To present a systematic approach to the subject that will permit structured thinking to subject that will permit structured thinking to some difficult questions.some difficult questions.

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International Business Strategy: SessionsInternational Business Strategy: Sessions

Rise of StrategyRise of Strategy

FrameworksFrameworks

Strategy process Strategy process

Paradoxes, debates Paradoxes, debates

Positioning and Positioning and

Choice Choice

Threats to PositioningThreats to Positioning

Globalisation versusGlobalisation versus

LocalisationLocalisation

New Economy ModelsNew Economy Models

Influence of Influence of

Economics Economics

Program 1

Program 2

Program 3

Program 4

Program 5

Program 6

Program 7 International International

Co-operative StrategyCo-operative Strategy

Program 8

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Session One Session One Introduction & Overview: Introduction & Overview: The Development of Strategy - The The Development of Strategy - The

Influence of EconomicsInfluence of Economics In this session the subject of strategic In this session the subject of strategic

management is defined and we explore its management is defined and we explore its origins, foundation and scope as an origins, foundation and scope as an academic discipline. academic discipline.

The opening session provides an historical The opening session provides an historical account of strategic management and in account of strategic management and in particular a case is made for why the field is particular a case is made for why the field is now influenced by competitive thinking. now influenced by competitive thinking.

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Session Two Session Two The Development of The Development of Strategy – The Rise of Strategy Strategy – The Rise of Strategy

FrameworksFrameworks Competitive markets imply that economic profit, or excess Competitive markets imply that economic profit, or excess

risk-adjusted profit is competed away wherever possible. risk-adjusted profit is competed away wherever possible. This sits uncomfortably with the notion of competitive This sits uncomfortably with the notion of competitive advantage, a term frequently used in the business strategy advantage, a term frequently used in the business strategy literature to describe a situation where a firm has gained a literature to describe a situation where a firm has gained a superior product market position, such that it can earn superior product market position, such that it can earn above-average returns in an industry. above-average returns in an industry.

The session identifies a number of obstacles to competition The session identifies a number of obstacles to competition and discusses why these obstacles have the potential in and discusses why these obstacles have the potential in some markets to earn positive economic rents, at least for some markets to earn positive economic rents, at least for some firms. The session also provides some tools for some firms. The session also provides some tools for conducting an industry analysis.conducting an industry analysis.

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Sessions Three and Four Sessions Three and Four

Three: The Strategic Management Three: The Strategic Management Process. Strategy Paradoxes. Current Process. Strategy Paradoxes. Current debates.debates.

Four: Positioning and ChoiceFour: Positioning and Choice The session examines the strategic choices The session examines the strategic choices

available to business using positioning analysis. available to business using positioning analysis. Positioning facilitates competitive cost-benefit Positioning facilitates competitive cost-benefit

comparisons of the factor/product-market comparisons of the factor/product-market positions implied by different strategic options.positions implied by different strategic options.

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Session FiveSession Five

Threats to PositioningThreats to Positioning

A central debate in strategic management is whether A central debate in strategic management is whether superior product market positions can be sustainable. superior product market positions can be sustainable. Evidence from studying the performance of Evidence from studying the performance of companies over time suggests that in most cases any companies over time suggests that in most cases any advantage is quickly competed away. advantage is quickly competed away.

There are exceptions to this rule as there are There are exceptions to this rule as there are examples of companies that continue to enjoy examples of companies that continue to enjoy monopoly profits without any significant threat for monopoly profits without any significant threat for many decades. This session examines the issues.many decades. This session examines the issues.

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Session SixSession Six New Economy Models and “winner takes New Economy Models and “winner takes

most” Industry Dynamics. most” Industry Dynamics.

This session explores, what is sometimes This session explores, what is sometimes referred to as, the New Economics of referred to as, the New Economics of increasing returns, which is a phenomenon increasing returns, which is a phenomenon often found in the information technology often found in the information technology industry. Case studies which are relevant to industry. Case studies which are relevant to this area include firms such as Microsoft, Intel this area include firms such as Microsoft, Intel and Google.and Google.

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Session SevenSession Seven

The Paradox of Globalisation andThe Paradox of Globalisation and LocalisationLocalisation

To what extent can firms operating To what extent can firms operating internationally treat the world as one market?internationally treat the world as one market?

And, conversely, to what extent do they need And, conversely, to what extent do they need to acknowledge national differences?to acknowledge national differences?

This session will examine the tensions This session will examine the tensions involved with reference to relevant case involved with reference to relevant case studies. studies.

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This session study explores some of the reasons This session study explores some of the reasons why organisations choose to expand, or why organisations choose to expand, or reconfigure, their activities internationally through reconfigure, their activities internationally through acquiring or merging with other businesses, rather acquiring or merging with other businesses, rather than internal growth. than internal growth.

Session Eight Session Eight International Co-operation and Partner International Co-operation and Partner

Selection Selection

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AssessmentAssessment

An individually assessed assignment contributes An individually assessed assignment contributes 40% of the total module marks.40% of the total module marks. (There is no (There is no assessed group work in this module)assessed group work in this module)

This will normally be based on the analysis of a case This will normally be based on the analysis of a case study.study.

The summer examination contributes the The summer examination contributes the remaining 60%.remaining 60%. The final examination requires you to answer four essay The final examination requires you to answer four essay

questions out of seven or eight. Most questions are questions out of seven or eight. Most questions are based around case studies analysed in class.based around case studies analysed in class.

All questions carries equal marks. All questions carries equal marks.

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Teaching and Learning ApproachTeaching and Learning Approach There will be a strong emphasis on case study There will be a strong emphasis on case study

analysis, given that Strategy requires the application analysis, given that Strategy requires the application of relevant theory to practice. of relevant theory to practice.

Case studies will normally be analysed in groups Case studies will normally be analysed in groups with group presentations in plenary session.with group presentations in plenary session.

Feedback will be provided on group performance, Feedback will be provided on group performance, but this will not form part of the formal assessment but this will not form part of the formal assessment of the course.of the course.

All sumative (formal) assessment will be based on All sumative (formal) assessment will be based on individual performance in the assignment and the individual performance in the assignment and the exam- i.e. no group assessed work is used in this exam- i.e. no group assessed work is used in this module.module.

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Thank You…Thank You…

and looking forward to and looking forward to seeing you all on the seeing you all on the

course!course!