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LN11-Corporate Strategy: Geographical Expansion, LN1b‐The Basics of…

- - - - industry-based consideration on the degree of competitiveness
        
        rivalry among firm
        
        entry barriers/scale economics
        
        bargaining power of supplier & buyers
        
        substitute products/services
    - - value
      - rarity
      - imitabilitiy
      - organizaiton
    - - regulation risk
      - trade barriers
      - currency risks
      - cultural distances
      - insuitutional norms
- - - - ✅use your unique strengths (skills, tech, know-how) in foreign markets.
    - - ✅choose countries with cost or production advantages.
    - - ✅ achieve economies of scale by expanding production
        ✅ sell more = lower cost = competitive price = global demand boom
  - - - ✅ adapt to local tastes, practices, and regulations
        ⚠️ but it raises costs
    - - ✅ standardize for global efficiency and compete on price
        ⚠️ works best for mass-market products with low switching cost
- - - - Intra firm-level
        
        Systems & Management Process, Routines
      - Firm-level
        
        Goals, Resources & Capabilities
    - - Industry-level
        
        Consumers, Suppliers, Competitors, Complementors
      - Macro-level
        
        Political, Economic, Social, Technological
- - - - Single/ Multiple goals?
      - Consolidated vs. conflicting interests (P-A problem)
      - Profit vs. Social impact (Strategic Intent)
      - Time Horizon
        
        Short
        
        Long
    - - Maximize Profit
        
        StocksHolders
        
        WHO?
        
        Legal Ownder
        
        Provider
        
        WHY?
        
        Maximizing shareholder (return)
        
        Devident Payment
        
        1 more item...
        
        WHAT?
        
        Role
        
        source of capital
      - People
        
        Creditors
        
        Employee
        
        Customer/ Supplier
        
        1 more item...
        
        Stakeholders
        
        WHO?
        
        Individuals or groups with an interest, claim, or stake in the company
        
        WHAT?
        
        Types
        
        Internal
        
        e.g employee, stockholders
        
        External
        
        e.g Customers, Creditors, Governments
        
        Role
        
        developing & implementing strategy
        
        Models
        
        Zero-Sum
        
        Symbiosis
  - - - Issue
        
        Goal Misalignment
        
        Self-Interest
        
        Info Asymmetry
        
        Performance Measurement
  - - - Align agents & principals via monitoring and incentives
    - - Board of Directors
      - Executive Pay
      - Financial Statements & Auditors
      - Takeover Threat
    - - Strategic Control:
        
        Employee Incentives:
        
        Stock options + pay linked to efficiency, quality, innovation, customer focus
        
        Set, measure, compare performance; corrective actions
  - - - Sustainable energy
  - - - Sustainable
        
        Multifaceted
        
        Balanced Scorecard
        
        Triple Bottom Line
        
        performance in economic, social, and ecological areas
        
        combines financial & strategic performance measures
        
        measured by economic value, accounting profit, or shareholder value
        
        when maintained over time
      - superior firm performance vs. competitors or industry average