MGCR 382 Lecture Notes - Strategic Management, Business Cycle, Cost Leadership

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Nicholas Matziorinis

Document Summary

International strategic management: comprehensive and ongoing management planning process aimed at formulating and implementing strategies that enable a firm to compete effectively internationally. Strategic planning: process of developing a particular international strategy. It is the responsibility of top-level executives at corporate headquarters and senior managers in domestic and foreign operating subsidiaries. International strategic management results in the development of various international strategies: comprehensive framework for achieving a firm"s fundamental goals. Fundamental questions strategic planners have to answer when they want to develop a strategy for competing in a single country or multiple countries: International businesses have the ability to exploit three sources of competitive advantage unavailable to domestic firms. Building factories to serve more than one country lowers production costs by capturing economies of scale. Broadening their product lines in each of the countries they enter allows international firms to enjoy economies of scope which means lowering their production and marketing costs and enhancing their bottom lines.