Strategy Implementation: International Entry &
Coordination
1. Introduction
Strategy Implementation is the process of putting formulated strategies into action
to achieve organizational goals, especially complex and critical in international
contexts where cross-border dynamics add operational [Link]+1
2. International Entry
A. Definition & Importance
Refers to the methods and processes by which a company enters new geographic
markets outside its home country.
Selection of an appropriate entry mode determines the risk, resource commitment, and
scale of operations in the new [Link]+1
B. Modes of International Entry
Mode Description Example Risk/Commitment
Selling home-market
Exporting German cars in India Low
products abroad
Permitting local firms to use Disney characters on
Licensing Low/Medium
intellectual property Asian products
Franchisee uses parent brand
Franchising McDonald’s worldwide Medium
and system
Partnership with local firm Sony Ericsson
Joint Ventures Medium/High
for shared ownership (Japan/Sweden)
Strategic Cooperation for strategic Starbucks and Tata in
Medium
Alliances objectives India
Wholly-Owned Full ownership and control, Toyota’s plants in the
High
Subsidiary greenfield or acquisition USA
C. Factors Influencing Entry Mode Choice
Market Size & Growth: Large markets warrant higher commitment (e.g., China,
USA).
Political/Legal Environment: Restricted FDI regimes may require JVs.
Cultural Distance: Closer cultures make alliance or acquisition easier.
Resource Availability: Capital resources favor subsidiaries; resource constraints may
mean [Link]
Risk Appetite: Higher risk tolerance may support direct investment.
D. International Entry Example
Starbucks in China: Entered via licensing and later shifted to joint ventures and eventually
bought out partners to gain full control as it scaled up operations. This phased approach
minimized [Link]+1
3. International Coordination
A. Definition
Refers to processes and mechanisms for harmonizing operations, resources, and
strategies across multiple international subsidiaries and [Link]+1
B. Key Challenges
Cultural Differences: Diverse work cultures, management styles, languages.
Regulatory Compliance: Varying rules across countries.
Time Zones: Hinder synchronous communication.
Knowledge Transfer: Sharing best practices and maintaining standards.
C. Mechanisms of International Coordination
o Centralized vs. Decentralized Control
o Centralized: Headquarters directs major decisions (e.g., Apple, Rolex).phrase
o Decentralized: Autonomy for local units to adapt (e.g., Unilever adapts
products for local tastes).phrase
o Standardization vs. Adaptation
o Companies may standardize processes for efficiencies (e.g., Hermès, Harley-
Davidson), but adapt products/services where necessary (e.g., Domino’s pizza
flavors).phrase
o Global Teams & Matrix Structures
o Cross-border teams, functional reporting lines, and coordination committees
for integrating diverse perspectives and [Link]
o IT Systems and Digital Platforms
o Use of ERP, CRM, and collaborative digital tools for real-time coordination
and information flow.
o Performance Measurement & Control
o Balanced scorecards, KPIs, and regular reviews ensure alignment with global
objectives while letting localities execute based on [Link]+1
D. International Coordination Example
L'Oréal: Operates on a transnational strategy—global R&D and branding, local adaptation
for marketing and product features, and coordination through digital systems and global
talent [Link]
4. Success Factors in International Strategy
Implementation
Leadership & Communication: Clear vision and continuous communication from
top management.
Resource Allocation: Providing necessary capital, personnel, and technology to
foreign [Link]
Organizational Culture: Building a culture that balances global integration with
local responsiveness.
Continuous Monitoring: Regular evaluation and adaptive changes based on market
feedback and global [Link]+1
Learning Organization: Facilitating the transfer of knowledge and innovation across
borders.
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