BUSI2025 Lecture Notes - Lecture 11: Factors Of Production, European Cooperation In Science And Technology, Market Segmentation
Document Summary
Strategy and org anisation of interna tional firms. Traditional motivations: resource-seeking motive: key supplies and low-cost production factors, market-seeking behaviour. Emerging motivations: more integration: scale economies, ballooning r&d investments and shortening product life cycles (plcs, global scanning and learning capability, competitive positioning: cross-subsidisation of markets. Firms need to pursue a strategy when internationalising: a strategy is defi(cid:374)ed (cid:862)as a(cid:272)tio(cid:374)s that (cid:373)a(cid:374)agers take to attai(cid:374) the goals of the fir(cid:373) for its o(cid:449)(cid:374)ers a(cid:374)d shareholders(cid:863) (cid:894)hill, (cid:1006)(cid:1004)(cid:1005)5(cid:895) Strategy as a link between the firm and its immediate enviro nment. Strategy = set of deliberate and emergent actions of a firm to use its resources to achieve goals. Value creation: the firm as a value chai n. Company is a chain of primary and support activities which transform inputs into outputs valued by customers. Primary activities: r&d, production, marketing and sales, after-sales service and support. Support activities: procurement/logistics, hr, it, company infrastructure (organizational structure, controls, culture)
