GMS 724 Chapter Notes - Chapter 10: Perfect Competition, Cost Leadership, Design Strategy
15 May 2015
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Document Summary
Global integration standardizes worldwide activities to maximize efficiency whereas national responsiveness adapts local activities to optimize opportunities. Figure 2: the role of strategy in international business: shows how a firm"s strategy is influence by outside forces, in particular. Cultural, political, legal, economic, trade, monetary, governmental, and institutional forces: the goal for managers is to design a strategy that allows the company to compete successfully in international markets and sustain growth. Industry structure involves the relationships among the five-forces model, these forces are: suppliers of inputs, buyers of outputs, substitute products, potential new entrants, rivalry among competing firms. Industry structure changes because of: competitive disruptions. Mergers between large corporations, acquisitions, or strategic alliances: product disruptions. Innovations is management processes (how things are made, delivered, and serviced: political disruptions. The industry organization (io) paradigm: presumes that markets demonstrate perfect completion where no firm or industry consistently outperforms others.
