7BSP0355-0901-2022 International Business Strategy Assignment Sample

The assignment is going to be focused on answering specific questions on the basis of personal ideology on the basis of the information that has been discussed in the lectures before. Thereby, it is going to be focused on showcasing effective strategies that can be beneficial for multinational firms. Apart from that, it will also focus on answering relevant information regarding the strategy implementation process at headquarters and subsidiaries for appropriate results. In reference to the lectures, the section of the main body will also focus on answering the question of international expansion and strategic alliance.

International business environments are extremely competitive and dynamic, where multinational firms (MNEs) operate. According to what I understand, MNEs must regularly assess and modify their strategy if they want to maintain their growth and profitability. The TOWS matrix is a useful tool in this situation for helping MNEs come up with strategic choices (Dandage et al. 2019).

The TOWS matrix is a framework that assists MNEs in determining their internal strengths and weaknesses as well as external opportunities and threats. As a result, MNEs may make multiple kinds of strategic options by combining these variables

●        SO (Strengths-Opportunities)

●        WO (Weaknesses-Opportunities)

●        ST (Strengths-Threats)

●        WT (Weaknesses-Threats)

According to my understanding, SO strategies use MNEs’ internal strengths to capture available external opportunities. I can imply, for instance, that an MNE with excellent R&D skills can create novel items to reach new markets. By utilising opportunities from outside sources, WO tactics solve internal deficiencies. As an example, in this regard, an MNE with limited resources may be able to enter new markets by forming strategic alliances (Đalić et al. 2021).

Similarly, we also have ST strategies, and this one emphasises leveraging internal resources to lessen external threats. An MNE with significant brand awareness, for instance, can survive the strain of competition from new entrants. WT tactics, on the other hand, aim to reduce internal weaknesses and counter external threats. For instance, an MNE can decrease financial risk by divesting non-core assets (Escalona et al. 2022).

Implementing a plan of action entails transforming strategic plans into actions and outcomes, and as I understand it is a crucial element in the strategic management process. Implementing a strategy in the context of multinational corporations may be complicated and difficult as it requires coordination and alignment between headquarters and subsidiaries that operate in various national and cultural settings.

Based on my understanding Ansoff’s Matrix is a framework that may be used to direct strategy execution in multinational corporations (Clarissia, 2020). Based on two dimensions which are product/market scope and diversification, the matrix presents four categories of strategic alternatives for businesses which they can make use of to develop their strategies

Organizational Configurations for Internationalization are another crucial factor that can direct the application of strategy in multinational corporations. Based on a company’s goals and internationalisation initiatives, this framework categorises multinational enterprises into four different types of organisational arrangements. Here I can learn about 4 probable configurations that have been widely used in a different context.

In the week 7 lecture, I learned about different organizational configurations for multinational firms. These configurations include the Decentralized Federation (Europe, 1930s) where each subsidiary operates independently (Masini, 2022). The Coordinated Federation (USA, 1950s) where the headquarters coordinate and control the subsidiaries.

I also learned about the Centralized Hub (Japan, 1970s) where the headquarters control and coordinate all aspects of the business, and the Integrated Network (worldwide, 1990s onwards) where the headquarters and subsidiaries collaborate and share resources and capabilities. These configurations are suitable for firms with different motives and strategies for internationalization, such as resource-seeking, market-seeking, competitive positioning, and global market evaluation (Kano and Verbeke, 2019).

Another crucial component of implementing a plan in international corporations is corporate management (Michalkova, 2021). To handle the coordination and control of the corporate headquarters and subsidiaries, it is necessary to set up the proper structures, procedures, and management systems. To integrate the objectives and actions of the corporate headquarters and its subsidiaries into alignment, corporate management may involve creating shared values, means of communication, performance metrics, and compensation structures (Meyer et al. 2020).

During this week, I learned about psychic distance, strategic alliances, and collaborative enterprises. I was able to concentrate on McDonald’s plan for developing their business processes with a singular worldwide market culture and business environment. Based on my personal knowledge, I was able to deduce that there is a hyperglobalist viewpoint that is the driving force behind globalisation in alliance with licensing and franchising (Canh et al. 2021).

I also learned from the week 8 lectures that there are pertinent issues with the hyperglobalist theory. One of the primary issues raised by the hyperglobalist thesis in week 8 was the persistence of obstacles that impede the free movement of people, commodities, and investment. In week 8 of the lesson, I was exposed to a sceptical viewpoint that boundaries are as essential as ever and that globalisation is a myth (Talani, 2019).

As of week 8, it has also been noted that the majority of nations have seen a substantial decrease in their proportion part of the geographical spread of global foreign exchange market turnover. According to the talks in week 8 of the lesson, the United Kingdom can only be confident as a nation that has seen a 28% increase in worldwide foreign exchange market turnover.

In terms of my personal liberation from the general knowledge and information observed in week 8, I can easily state that transnational companies primarily concentrate on adjusting to globalisation based on market trends such as sectoral, regional, and size in reference to the Uppsala model. IKEA has also been cited as a prime illustration of a multinational company implementing globalisation to grow its activities in various areas around the world.

As per the above answers, it can be concluded that the three key takeaways from the three final weeks were strategic options for international expansion, the process for implementing the strategies and the alignment of the strategies to international expansion. In reference to the appendix, it is important to develop an action plan that will help me to understand the different key factors of the entire season on the basis of my understanding. The development of the action plan will also help me to use my learning resources from these three topics in future to enhance my personal skills and qualities within my professional life.

On the basis of the action plan, I will try to focus on resolving the issues that were being faced by me during the lectures to eliminate any type of issues that could hamper my understanding regarding the international expansion process. The action plan will also help me to develop a personal understanding of the entire process of strategies mentioned for international expansion or globalisation of international brands. The primary motive of the action plan is to focus on developing my capabilities on what I was able to learn from the entire situation.