Introduction to the Concepts of International Strategy and Organizational Design

"Lunch & Learn" Introduction to the Concepts of International Strategy and Organizational Design By: Your Name Here

International Business Strategy • Focused on specific businesses, subsidiaries, or operating units within the firm. • Differentiation Strategy • Overall Cost Leadership Strategy • Focus Strategy

Developing International Strategy • S • W • O • T

Basic Components of Strategy Development • Scope of operations • Resource deployment Distinctive competence • Synergy

Relevance of International Strategy to Businesspeople • Business growth opportunity. • More profitable opportunities. • Competitive advantages • Cheaper production cost. • Lesser risk to market threats. • Access to new technologies.

Global Strategic Planning Process • Relies on hard data. • Key managers’ participation. • Analysis of the business's environment. • Evaluation of the organization's competitive advantage. • Basis for making significant decision.

Global Strategic Planning Process • Decisions essential to overall organizational effectiveness. • Ensure its continuing validity and responsiveness to environmental contingencies. • Include strategy and plan implementation, evaluation, and review of results.

Global Strategic Plan • Current situation • Values • Vision • Mission Statement • Goals • Strategies

Global Strategic Plan (cont.) • Objectives • Action plans by function • Budgets/resource allocations • Controls

Prediction of Changes in the Business Environment • Expect rapid and wrenching changes. • The world is changing. • Faster pace of change. • Plans become less responsive to the changing demands.

Prediction of Changes in the Business Environment • Customer Environment • Competitor Environment • Economic Environment • Technological Environment • Social Environment • Political Environment • Legal Environment • Geophysical Environment

Organization Design • Defined as a process for improving the probability that an organization will be successful. • Hierarchical Systems • Organizing on Purpose • The Design Process • Exercising Choice

Span of control Authority Responsibility Delegation Chain of command Accountability Line Authority Staff Departments Key Concepts in the Design of an Organization

Strategic Planning and Organizational Design Relationship • Strategic planning: • Defines organizational activities. • Defines resource allocation • Create and clarify an organization’s vision. • Guide organizational decisions. • Strengthen competitive positions. • Identifies organization position.

Strategic Planning & Organizational Design Relationship • Organizational design is crucial to effective strategic planning system. • Organization design begins with the creation of a strategy. • The strategy is derived from organization’s basic philosophy. • Strategy unifies the intent of the organization.

Capital Control Strategic Control Governmental Control Organizational Control Internal Control Accuracy Valuation Completeness Presentation and disclosure Types of Controls in an International Company

References • Albrecht K. (January 2008). Eight “super-trends” you must master to succeed in business. Retrieved July 05, 2008 from http://www.karlalbrecht.com/downloads/Trends-WhitePaper- Albrecht.pdf • Autrey R.(1996). What is organizational design?. Retrieved July 04, 2008 from http://www.inovus.com/organiza.htm • Harris H. Business plan or strategic plan: what's thedifference?. Retrieved July 05, 2008 from American Planning Association Website:http://www.planning.org/consultant/businessplan.html • McNamarra C. Key concepts in the design of an organization. Retrieved July 05, 2008 from Free Management Library Website: http://www.managementhelp.org/org_thry/concepts.htm • Strategy development. Retrieved July o5, 2008 from http://www.strategyforbusiness.co.uk/html/strategy_development. html

Introduction to the Concepts of International Strategy and Organizational Design