Chapter 12 Strategy In Intl Bus. (Fall 2007)

Last Phase of MGNT 4670Last Phase of MGNT 4670

►Focus is on the company itselfFocus is on the company itself What actions must a company What actions must a company

take to compete effectively in take to compete effectively in the international business the international business market?market?

What are the benefits, costs, What are the benefits, costs, and risks associated with these and risks associated with these actions?actions?

CHAPTER 12CHAPTER 12INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS

STRATEGYSTRATEGY

Opening CaseOpening Case►Wal-Mart moved into other countries for three reasonsWal-Mart moved into other countries for three reasons

Growth opportunities at home were becoming constrainedGrowth opportunities at home were becoming constrained It thought it could create value by transferring its business model It thought it could create value by transferring its business model

to foreign marketsto foreign markets It wished to preempt other retailers that were also starting to It wished to preempt other retailers that were also starting to

expand globallyexpand globally►Wal-Mart initially treated foreign markets much like the US; it Wal-Mart initially treated foreign markets much like the US; it

did discover that this was not the correct approach.did discover that this was not the correct approach.►To succeed abroad, Wal-Mart has had to customize its To succeed abroad, Wal-Mart has had to customize its

offering to local conditions while keeping its core strategies offering to local conditions while keeping its core strategies and operations the same in every marketand operations the same in every market

►Going global has yielded additional benefits as wellGoing global has yielded additional benefits as well Enhanced bargaining power with suppliersEnhanced bargaining power with suppliers The ability to transfer valuable ideas from one country to anotherThe ability to transfer valuable ideas from one country to another

STRATEGY & THE FIRM: STRATEGY & THE FIRM: VALUE CREATIONVALUE CREATION

► Strategy: actions that managers must take to Strategy: actions that managers must take to attain the goals of the firmattain the goals of the firm For most firms, the preeminent goal is to maximize the For most firms, the preeminent goal is to maximize the

value of the firm for its ownersvalue of the firm for its owners Main goal usually to maximize long-term profit Main goal usually to maximize long-term profit

(П) П = TR - TC(П) П = TR - TC► Profitability can be defined as the rate of return that Profitability can be defined as the rate of return that

the firm makes on its invested capital (ROIC), which the firm makes on its invested capital (ROIC), which is calculated by dividing the net profits of the firm is calculated by dividing the net profits of the firm by total invested capital .by total invested capital .

► Profit growth is measured by the percentage Profit growth is measured by the percentage increase in net profits over timeincrease in net profits over time

Strategy and the FirmStrategy and the Firm

Figure 12.1 p 409

VALUE CREATIONVALUE CREATION

► A firm’s profits are determined by two A firm’s profits are determined by two basic conditions:basic conditions: Value customers place on the goods or Value customers place on the goods or

services offered by the firm (perception) = Vservices offered by the firm (perception) = V Costs of production = CCosts of production = C

► Value CreationValue Creation Difference between Value and Costs or:Difference between Value and Costs or:

V-C = level of value creationV-C = level of value creation

STRATEGY in INTERNATIONAL STRATEGY in INTERNATIONAL BUSINESSBUSINESS

► Strategy is concerned Strategy is concerned with identifying and with identifying and taking actions that will:taking actions that will: lower costs of value lower costs of value

creation and/orcreation and/or differentiatedifferentiate the firm’s the firm’s

product offering through product offering through superior design, quality superior design, quality service, functionality, etc. service, functionality, etc. in order to increase in order to increase perception of value by the perception of value by the customercustomer

FIRM AS A VALUE CHAINFIRM AS A VALUE CHAIN► Any firm is composed of a series of distinct Any firm is composed of a series of distinct

value creating activitiesvalue creating activities► Primary activitiesPrimary activities

Research & developmentResearch & development ProductionProduction Marketing & salesMarketing & sales ServiceService

► Support Activities (provide inputs to enable Support Activities (provide inputs to enable the primary activities to occur) the primary activities to occur) Materials management or logisticsMaterials management or logistics Human resourceHuman resource Information systemsInformation systems Company infrastructureCompany infrastructure

The Value ChainThe Value Chain

Fig 12.4 p 412

STRATEGY in INTERNATIONAL STRATEGY in INTERNATIONAL BUSINESS Example: Clear VisionBUSINESS Example: Clear Vision

► Clear Vision, manufacturer and distributor of Clear Vision, manufacturer and distributor of eyeweareyewear

► Early 1980’s Clear Vision realized it had to Early 1980’s Clear Vision realized it had to lower its costs by importing;lower its costs by importing;

► Started by importing from manufacturers in Started by importing from manufacturers in Asia but was not satisfied with product Asia but was not satisfied with product quality and delivery;quality and delivery;

► Determined it had to have its own facilities, Determined it had to have its own facilities, so settled on Hong Kong as a location due to: so settled on Hong Kong as a location due to: low labor costs, skilled workforce, and tax low labor costs, skilled workforce, and tax breaks offered by Hong Kong government.breaks offered by Hong Kong government.


►After time, industrialization of Hong Kong After time, industrialization of Hong Kong caused labor shortage and increase in caused labor shortage and increase in wages, so manufacturing plant was moved wages, so manufacturing plant was moved to mainland China. to mainland China.

ObjectiveObjective: lower costs: lower costs►At same time, Clear Vision sought foreign At same time, Clear Vision sought foreign

eyewear companies specializing in eyewear companies specializing in fashionable, high quality design to fashionable, high quality design to broaden its product line. broaden its product line.

ObjectiveObjective: product differentiation: product differentiation►Clear Vision invested in factories in Japan, Clear Vision invested in factories in Japan,

France, and ItalyFrance, and Italy


► Clear Vision responded Clear Vision responded to threats and to threats and opportunities in the opportunities in the international international marketplace by marketplace by developing strategies to developing strategies to increase profitability increase profitability through value creation.through value creation.

► Today, Clear Vision is an Today, Clear Vision is an MNE with over $100 in MNE with over $100 in gross annual revenues.gross annual revenues.

► Threat: lower cost imports Threat: lower cost imports from foreign competitionfrom foreign competition

► Response: lower costs by Response: lower costs by shifting manufacturing to shifting manufacturing to a lower cost locationa lower cost location

► Threat: competition from Threat: competition from high-end market segment high-end market segment and need to increase and need to increase perceived value of eyewearperceived value of eyewear

► Response: achieve Response: achieve differentiation and differentiation and increase perceived valueincrease perceived value

Advantages of Global Advantages of Global ExpansionExpansion

Expanding globally allows firms to increase Expanding globally allows firms to increase profitability in ways that are not available to purely profitability in ways that are not available to purely domestic enterprises. The international environment domestic enterprises. The international environment can offer:can offer:

► Leveraging products and core competencies Leveraging products and core competencies ► Location economiesLocation economies► Cost economies from Cost economies from experienceexperience effectseffects► Leveraging subsidiary skillsLeveraging subsidiary skills

► Profitability is constrained by product customization Profitability is constrained by product customization and the “imperative of localization”. Localization: and the “imperative of localization”. Localization: adjustment of one or more elements of product adjustment of one or more elements of product marketing or distribution to fit the particular marketing or distribution to fit the particular idiosyncrasies of a national market.idiosyncrasies of a national market.

EXPANDING THE MARKET: LEVERAGING EXPANDING THE MARKET: LEVERAGING PRODUCT AND COMPETENCIESPRODUCT AND COMPETENCIES

►A company can increase its growth rate by taking goods A company can increase its growth rate by taking goods or services developed at home and selling them or services developed at home and selling them internationallyinternationally

Returns from such a strategy are likely to be greater if Returns from such a strategy are likely to be greater if indigenous/local competitors in the nations a company enters indigenous/local competitors in the nations a company enters lack comparable productslack comparable products

►Success of multinational companies also rest upon the Success of multinational companies also rest upon the core competencies that underlie the development, core competencies that underlie the development, production, and marketing of goods or servicesproduction, and marketing of goods or services

Core competencies are skills within the firm that competitors Core competencies are skills within the firm that competitors cannot easily match or imitatecannot easily match or imitate

Core competencies are the bedrock of a firm’s competitive Core competencies are the bedrock of a firm’s competitive advantage and enable them to reduce the costs of value advantage and enable them to reduce the costs of value creationcreation

EXPANDING THE MARKET: LEVERAGING EXPANDING THE MARKET: LEVERAGING PRODUCT AND COMPETENCIESPRODUCT AND COMPETENCIES

►Examples of core Examples of core competencies:competencies:

Toyota – production of carsToyota – production of cars McDonald’s – fast food McDonald’s – fast food

operationsoperations Proctor & Gamble – Proctor & Gamble –

development and marketing development and marketing of consumer productsof consumer products

Wal-Mart – information Wal-Mart – information systems and logistics for systems and logistics for large retail operationslarge retail operations

Can you think of any others?Can you think of any others?

LOCATION ECONOMIESLOCATION ECONOMIES

► Realized by performing a value creation activity Realized by performing a value creation activity in an optimal location anywhere around the globein an optimal location anywhere around the globe

► Often arise due to differences in factor costsOften arise due to differences in factor costs► Due to differences in factor costs, some countries Due to differences in factor costs, some countries

have have comparative advantagecomparative advantage in production of in production of certain productscertain products

► It can lower costs of value to enable low cost It can lower costs of value to enable low cost strategy and/or help in differentiation of products strategy and/or help in differentiation of products from competitorsfrom competitors

► Global web: different stages of value chain are Global web: different stages of value chain are dispersed to those locations where perceived dispersed to those locations where perceived value is maximized or costs of value creation are value is maximized or costs of value creation are minimizedminimized

Location Economies

Pontiac LeMans

Parts

PartsParts

Assembly

AdvertisingDesign

Creating a Global Web

Sales

Finding the “right” location

COST ECONOMIES from COST ECONOMIES from EXPERIENCE EFFECTS: Recall EXPERIENCE EFFECTS: Recall

New Trade TheoryNew Trade Theory► Experience Effects: The systematic reduction in Experience Effects: The systematic reduction in

production costs that occurs over the life of a production costs that occurs over the life of a product.product. First observed in aircraft industry where unit First observed in aircraft industry where unit

costs reduced by 80% each time output was costs reduced by 80% each time output was doubleddoubled

► How is the reduction brought about?How is the reduction brought about? Learning effectsLearning effects: : cost savings that come from cost savings that come from

learning by doinglearning by doing Economies of scaleEconomies of scale: : the reductions in unit cost the reductions in unit cost

achieved by producing a large volume of a productachieved by producing a large volume of a product

Strategic Significance of the Strategic Significance of the Experience CurveExperience Curve

► The firm that moves down the The firm that moves down the experience curve most rapidly experience curve most rapidly has a cost advantage over its has a cost advantage over its competitorscompetitors

► Serving the global market Serving the global market from a single location helps to from a single location helps to

establish low cost strategyestablish low cost strategy► Aim to rapidly build up sales, Aim to rapidly build up sales,

aggressive marketing aggressive marketing strategies and get strategies and get first-mover first-mover advantages.advantages.

► The strategic significance of the The strategic significance of the experience curve is clear; moving experience curve is clear; moving down the experience curve allows down the experience curve allows a firm to reduce its cost of a firm to reduce its cost of creating value and increase its creating value and increase its profitabilityprofitability

Fig. 12.4, 5th edition

LEVERAGING SUBSIDIARY SKILLSLEVERAGING SUBSIDIARY SKILLSSubsidiary Skills:Subsidiary Skills:•Value created by identifying skills and applying it to a firm’s global network of operations. Some Challenges:

•Managers must create an environment where incentives are given to take necessary risks and reward them•Managers must accept that good ideas can come from anywhere in the firm•Need a process to identify new skill development•Need to facilitate transfer of new skills within the firm

Unique skills and ideas often developed in foreign subsidiaries.

EXAMPLE: Unilever is divided into geographical basis with subsidiaries in each country for a particular business. These subsidiaries share product information and market ideas with other subsidiaries.

Other examples: idea-sharing at Hewlett-Packard; McDonald’s

Cost Pressures and Pressures for Cost Pressures and Pressures for

Local ResponsivenessLocal Responsiveness►Firms that compete in Firms that compete in the global marketplace the global marketplace typically face two types typically face two types of competitive pressureof competitive pressure Pressures for cost Pressures for cost

reductionsreductions Pressures to be locally Pressures to be locally

responsiveresponsive

PRESSURES TO BUILDING AN PRESSURES TO BUILDING AN INTERNATIONAL STRATEGYINTERNATIONAL STRATEGY

► PRESSURES FOR COST REDUCTIONSPRESSURES FOR COST REDUCTIONS Intense in industries of standardized, commodity type Intense in industries of standardized, commodity type

product that serve universal needsproduct that serve universal needs Meaningful differentiation on non-price factors is difficultMeaningful differentiation on non-price factors is difficult Major competitors are based in low-cost locationsMajor competitors are based in low-cost locations Consumers are powerful and face low switching costsConsumers are powerful and face low switching costs Liberalization of world trade and investment environmentLiberalization of world trade and investment environment

► Examples of industries with cost pressuresExamples of industries with cost pressures Commodity-type products which usually serve universal Commodity-type products which usually serve universal

needs e.g.. Bulk chemicals, petroleum, steel, semi-needs e.g.. Bulk chemicals, petroleum, steel, semi-conductor chipsconductor chips

Industries which locate in low-cost locations e.g. tire Industries which locate in low-cost locations e.g. tire industryindustry

PRESSURES TO BUILDING AN PRESSURES TO BUILDING AN INTERNATIONAL STRATEGYINTERNATIONAL STRATEGY

►PRESSURES FOR LOCAL RESPONSIVENESSPRESSURES FOR LOCAL RESPONSIVENESS Differences in consumer tastes & preferencesDifferences in consumer tastes & preferences

► North American families like pickup trucks while in Europe they North American families like pickup trucks while in Europe they are viewed as a utility vehicle for firmsare viewed as a utility vehicle for firms

Differences in infrastructure & traditional practicesDifferences in infrastructure & traditional practices► Consumer electrical system in North America is based on 110 Consumer electrical system in North America is based on 110

volts; in Europe on 240 voltsvolts; in Europe on 240 volts Differences in distribution channelsDifferences in distribution channels

► Germany has few retailers dominating the food market, while in Germany has few retailers dominating the food market, while in Italy it is fragmentedItaly it is fragmented

Host-Government demandsHost-Government demands► Health care system differences between countries require Health care system differences between countries require

pharmaceutical firms to change operating procedurespharmaceutical firms to change operating procedures

LOCAL RESPONSIVENESS vs. LOCAL RESPONSIVENESS vs. STANDARDIZED PRODUCTSSTANDARDIZED PRODUCTS

Theodore Levitt: (“The Globalization of Markets,” HBR May/June 1983)

► Globalization and technology have brought convergence of tastes and preferences of consumers.

► Modern global corporations must “seek sensibly to force suitably standardized products and practices in the entire globe.”

► Companies which do not pursue standardized products will fall behind those that do.

Christopher Bartlett and Sumantra Ghoshal (Managing Across Borders, HBR Press, 1989)

► Complete standardization of products is not appropriate.

► Global preferences still exist and companies must recognize these differences.

► In certain industries, some companies have gained advantage by emphasizing local preferences and moving away from standardized products.

STRATEGIC CHOICESSTRATEGIC CHOICES

► Four basic strategies to enter and compete in the Four basic strategies to enter and compete in the international environment:international environment: International strategy- “Here it is”International strategy- “Here it is” Localization strategy-”Act local” *Localization strategy-”Act local” * Global standardization strategy- “Be cost-effective” **Global standardization strategy- “Be cost-effective” ** Transnational strategy – “Be cost-effective and Act local”Transnational strategy – “Be cost-effective and Act local”

► Companies may evolve from one strategy to Companies may evolve from one strategy to another or they may use one strategy for one another or they may use one strategy for one business unit or product line and a different business unit or product line and a different strategy for another.strategy for another.

► Example: Proctor & Gamble might purse global Example: Proctor & Gamble might purse global strategy for disposable diapers, but multidomestic strategy for disposable diapers, but multidomestic one for detergents in Asian markets.one for detergents in Asian markets.

*In 5*In 5thth edition, this is called “Multidomestic” edition, this is called “Multidomestic”** In 5** In 5thth edition, this is called “Global” edition, this is called “Global”

Choosing a StrategyChoosing a Strategy

The appropriateness of each strategy depends on the amount of pressures

for cost reductions and local responsiveness.

Fig. 12.7 p 427

!“Low” does not mean “NO”!

Global Standardization Strategy: Global Standardization Strategy:

“Be cost-effective”“Be cost-effective”► Focus is on increasing profitability through a Focus is on increasing profitability through a low cost strategy: maximize cost reductions low cost strategy: maximize cost reductions that come from experience curve effects and that come from experience curve effects and location economieslocation economies

► Production, marketing, and R&D Production, marketing, and R&D concentrated in few favorable functionsconcentrated in few favorable functions

► Market standardized product to keep costs Market standardized product to keep costs lowlow

► Effective where strong pressures for cost Effective where strong pressures for cost reductions and low demand for local reductions and low demand for local responsivenessresponsiveness (emphasis on efficient (emphasis on efficient operations)operations)

► Example: Semiconductor industry, Intel, Example: Semiconductor industry, Intel, Texas Instruments, Motorola.Texas Instruments, Motorola.

Localization Strategy: “Act Localization Strategy: “Act local”local”

► Main aim is maximum local responsivenessMain aim is maximum local responsiveness► Customize product offering, market strategy Customize product offering, market strategy

(including production and R&D) according to (including production and R&D) according to national conditions; compete through localization of national conditions; compete through localization of products, no standardizationproducts, no standardization

► Generally unable to realize value from experience Generally unable to realize value from experience curve effects and location economiescurve effects and location economies

► Possess high cost structure due to decentralizationPossess high cost structure due to decentralization► Strategy effective if firm faces strong pressures for Strategy effective if firm faces strong pressures for

local responsive and weak pressures for cost local responsive and weak pressures for cost reductionsreductions

► Examples: many branded processed food and Examples: many branded processed food and personal care products, small appliances, any personal care products, small appliances, any product or service that is culturally bound e.g. product or service that is culturally bound e.g. Johnson and Johnson, Proctor & Gamble (at one Johnson and Johnson, Proctor & Gamble (at one point in their evolution), Black & Decker point in their evolution), Black & Decker

Transnational Strategy: “Be Transnational Strategy: “Be cost-effective cost-effective andand act local” act local”

► To meet competition firms aim to reduce costs, To meet competition firms aim to reduce costs, transfer core competencies while paying attention transfer core competencies while paying attention to pressures for local responsiveness. (Bartlett and to pressures for local responsiveness. (Bartlett and Ghoshal) Strategy effective if firm faces strong Ghoshal) Strategy effective if firm faces strong pressures for local responsiveness and strong pressures for local responsiveness and strong pressures for cost reductionspressures for cost reductions

► Global learning is critical to meet competitive Global learning is critical to meet competitive demandsdemands Valuable skills can develop in any of the firm’s world Valuable skills can develop in any of the firm’s world

wide operationswide operations Transfer of knowledge from foreign subsidiary to home Transfer of knowledge from foreign subsidiary to home

country, to other foreign subsidiariescountry, to other foreign subsidiaries► Transnational strategy difficult task due to Transnational strategy difficult task due to

contradictory demands placed on the organizationcontradictory demands placed on the organization Example : Caterpillar, Mal-Mart (evolving into)Example : Caterpillar, Mal-Mart (evolving into)

International Strategy: “Here it International Strategy: “Here it is”is”

► Create value by transferring valuable core Create value by transferring valuable core competencies to foreign markets that competencies to foreign markets that indigenous competitors lackindigenous competitors lack

► Centralize product development functions at Centralize product development functions at homehome

► Establish manufacturing and marketing Establish manufacturing and marketing functions in local country but head office functions in local country but head office exercises tight control over itexercises tight control over it

► Limit customization of product offering and Limit customization of product offering and market strategymarket strategy Strategy effective if firm faces weak pressures for Strategy effective if firm faces weak pressures for

local responsive and cost reductionslocal responsive and cost reductions► Examples: Toys R Us, Microsoft, Yahoo, Examples: Toys R Us, Microsoft, Yahoo,

McDonald’s (in early stages)McDonald’s (in early stages)

The Evolution of StrategyThe Evolution of Strategy►The problem with the international strategy is that over time The problem with the international strategy is that over time

competitors inevitably emergecompetitors inevitably emerge An international strategy may not be viable in the long-term so firms need An international strategy may not be viable in the long-term so firms need

to shift toward a global standardization strategy or a transnational strategy to shift toward a global standardization strategy or a transnational strategy in advance of competitorsin advance of competitors

► The problem with localization strategy is that it is costly and a company can The problem with localization strategy is that it is costly and a company can not take full advantage of efficiencies that can be obtained in using a not take full advantage of efficiencies that can be obtained in using a standardized productstandardized product

Over time, the pressures to reduce costs may require a change in strategyOver time, the pressures to reduce costs may require a change in strategy►As competition intensifiesAs competition intensifies

International and localization strategies tend to become less viableInternational and localization strategies tend to become less viable Managers need to orient their companies toward either a global Managers need to orient their companies toward either a global

standardization strategy or a transnational strategystandardization strategy or a transnational strategy

The Evolution of StrategyThe Evolution of Strategy

NAME THAT STRATEGYNAME THAT STRATEGY

GENERAL ELECTRICGENERAL ELECTRIC

► Global technology, service, and finance Global technology, service, and finance companycompany

► HQ fosters change but operational and HQ fosters change but operational and strategic decisions are decentralized to strategic decisions are decentralized to achieve cost effectiveness achieve cost effectiveness

► Company maximizes internal resources Company maximizes internal resources through intense sharingthrough intense sharing

► G.E. is global brand; most products G.E. is global brand; most products

have minimal adaptationhave minimal adaptation

HARLEY-DAVIDSONHARLEY-DAVIDSON

►Active in over 75 countriesActive in over 75 countries►Products easy to sell as they represent Products easy to sell as they represent

symbol of American spirit of symbol of American spirit of independence; minimal modificationindependence; minimal modification

►Produced in U.S.A.Produced in U.S.A.►Little need for changing pricesLittle need for changing prices

SARA LEE SARA LEE (before latest (before latest

restructuring)restructuring) ► Core focus: leading/repeat-purchase branded Core focus: leading/repeat-purchase branded

consumer goods consumer goods ► 26 different brands with minimal 26 different brands with minimal

adaptation/localization adaptation/localization ► Global practicesGlobal practices► Intense control on costs to insureIntense control on costs to insure competitive pricingcompetitive pricing► Sara Lee announced in 2005 that it would be Sara Lee announced in 2005 that it would be

making strategic decisions emphasizing making strategic decisions emphasizing greater product focus and increasing greater product focus and increasing operational efficiencyoperational efficiency

NESTLENESTLE

► Major brand: Nestle with several other well known Major brand: Nestle with several other well known brandsbrands

► Product line includes: milk products, ice cream, Product line includes: milk products, ice cream, chocolate, candy, cookies, bottled water, pet food, chocolate, candy, cookies, bottled water, pet food, pet care products, prepared foods, pastapet care products, prepared foods, pasta

► Products adapted on regional or individual market Products adapted on regional or individual market basis basis

► Advertising, pricing, and distribution is market by Advertising, pricing, and distribution is market by market basismarket basis

► Efforts are being made to coordinate more closely Efforts are being made to coordinate more closely in regional areas and to rotate managers around in regional areas and to rotate managers around the world in various assignmentsthe world in various assignments

UNILEVERUNILEVER

► A Global food, cleaning products, toiletries groupA Global food, cleaning products, toiletries group► Relationship between parent company and Relationship between parent company and

subsidiaries is changing.subsidiaries is changing.► Strong network of personal manager networks used Strong network of personal manager networks used

as vehicle for global learning and exchangeas vehicle for global learning and exchange► Organized by regional business groupsOrganized by regional business groups► Production of certain key products regionalized for Production of certain key products regionalized for

cost effectivenesscost effectiveness► Flexibility is core value to achieve balance between Flexibility is core value to achieve balance between

centralized requirements and local adaptability e.g. centralized requirements and local adaptability e.g. Food products grouped into global fast foods, Food products grouped into global fast foods, international foods, local foodsinternational foods, local foods

BY INDUSTRYBY INDUSTRY

►Bulk chemicalsBulk chemicals

►Fast food Fast food franchisesfranchises

►Feature filmsFeature films


►AutomobilesAutomobiles

►Packaged food Packaged food items (branded)items (branded)

►Gasoline/Oil Gasoline/Oil companiescompanies


►PharmaceuticalsPharmaceuticals►ConsultingConsulting►Luxury itemsLuxury items

e.g. (caviar, e.g. (caviar, diamonds, fine diamonds, fine wines)wines)

Chapter 12 Strategy In Intl Bus. (Fall 2007)

Business

Transcript of Chapter 12 Strategy In Intl Bus. (Fall 2007)