SUMMARY INTERNATIONAL BUSSINESS CLASS
CONCEPTS 1 TO 24 ON STRATEGY
CONCEPT 1: 5 STEPS IN STRATEGY
5 stages in strategic analysis:
I. Define purpose with stakeholders
II. External analysis
III. Internal analysis
IV. Define strategy
V. Implement strategy
Note: after the implementation things will change
again, so you will have to restart the analysis
CONCEPT 2: STAKEHOLDER ANALYSIS
Categories of stakeholders:
Note: stakeholders don’t need to have the same goals
CONCEPT 3 AND 4: BUSINESS PURPOSE VS SOCIAL PURPOSE
BUSINESS PURPOSE e.g. urge to be the best
2 extremes: Healthcare
o Loss VS profit
o Add value to community VS destruction of community
Tradtitional economy
1
,Old school investment (incl. philanthropy): giving something in return e.g. companies that make a lot of profit give money to
universities
SOCIAL PURPOSE e.g. urge to solve a problem
FIRST STEP: CSR = Corporate Social Responsibility (“let’s do less bad”)
è What is the role of CSR?
I. Determine meaning of ‘corporate citizenship’ in each country where you operate and across all of the firm’s
international operations
II. Assess each CSR initiative in terms of its joint contribution to ‘doing well’ and ‘doing good’, and evaluate the longer-
term business opportunities that CSR activities can create for the firm in host countries
III. Improve working conditions and labor standards at your factories and your suppliers’ by effectively implementing CSR
activities
IV. Rethink your pricing decisions by trading off profit maximization against fulfilling obligations to society
V. Align your CSR activities to your host country business objectives and the host country socio-economic and institutional
context
SECOND STEP: impact investment
2
1
CONCEPT 5: UN SDG = UNITED NATIONS’ SUSTAINABLE DEVELOPMENT GOALS (17)
2
,CONCEPT 6: IMPACT INVESTMENT
Impact investment = Investments made into companies, organizations, and funds with the intention to generate a measurable,
beneficial social or environmental impact alongside a financial return. At its core, impact investing is about an alignment of an
investor’s beliefs and values with the allocation of capital to address social and/or environmental issues. (giving vs investing)
è Trying to invest your money in companies that do good for profits AND society
CONCEPT 7: PURPOSE OR GREENWASH
Greenwashing = The misleading act of companies, industries, governments, organizations, and individuals trying to promote
unjustified environmentally friendly practices, products, and services through branding, mislabeling, packaging or public
relations. It is an unsubstantiated claim to deceive consumers into believing that a company's products are environmentally
friendly. è Some companies act greener than they are!
CONCEPT 8: EXTERNAL FACTORS – PORTER 5 FORCES
è Regulation is missing here (“the old way”)
CONCEPT 9: EXTERNAL FACTORS – STEEPLE
Market attractiveness: STEEPLE analysis = strategic planning tool (to look at the market you will work with)
o Social
o Technological
o Economical
o Ecological
o Political
o Legal
o Ethical
Example: India
o Social: ageing population
o Technological: strong IT sector
o Economical: important economic growth
o Ecological: quality of the air has been affected by industrialization
o Political: India knows a certain political stability
o Ethical: a lot of discrimination issues
o Legal: important number of recent legal changes
3
, CONCEPT 10: EXTERNAL FACTORS – KPMG INNOVATION LAB METHODOLOGY
CONCEPT 11
COMPANY VS ECOSYSTEM
Companies will more and more be (part of) ecosystems è you can no longer
do everything (good) on your own
EXTERNAL FACTORS – GE MCKINSEY
Market attractiveness (GE = General Electric): 10 external factors of market attractiveness that affect a business
o Market size
o Market growth rate
o Market profitability
o Pricing trends
o Rivalry
o Overall risk of returns in the industry
o Opportunity to differentiate products and services
o Demand variability
o Segmentation
o Distribution structure
4
CONCEPTS 1 TO 24 ON STRATEGY
CONCEPT 1: 5 STEPS IN STRATEGY
5 stages in strategic analysis:
I. Define purpose with stakeholders
II. External analysis
III. Internal analysis
IV. Define strategy
V. Implement strategy
Note: after the implementation things will change
again, so you will have to restart the analysis
CONCEPT 2: STAKEHOLDER ANALYSIS
Categories of stakeholders:
Note: stakeholders don’t need to have the same goals
CONCEPT 3 AND 4: BUSINESS PURPOSE VS SOCIAL PURPOSE
BUSINESS PURPOSE e.g. urge to be the best
2 extremes: Healthcare
o Loss VS profit
o Add value to community VS destruction of community
Tradtitional economy
1
,Old school investment (incl. philanthropy): giving something in return e.g. companies that make a lot of profit give money to
universities
SOCIAL PURPOSE e.g. urge to solve a problem
FIRST STEP: CSR = Corporate Social Responsibility (“let’s do less bad”)
è What is the role of CSR?
I. Determine meaning of ‘corporate citizenship’ in each country where you operate and across all of the firm’s
international operations
II. Assess each CSR initiative in terms of its joint contribution to ‘doing well’ and ‘doing good’, and evaluate the longer-
term business opportunities that CSR activities can create for the firm in host countries
III. Improve working conditions and labor standards at your factories and your suppliers’ by effectively implementing CSR
activities
IV. Rethink your pricing decisions by trading off profit maximization against fulfilling obligations to society
V. Align your CSR activities to your host country business objectives and the host country socio-economic and institutional
context
SECOND STEP: impact investment
2
1
CONCEPT 5: UN SDG = UNITED NATIONS’ SUSTAINABLE DEVELOPMENT GOALS (17)
2
,CONCEPT 6: IMPACT INVESTMENT
Impact investment = Investments made into companies, organizations, and funds with the intention to generate a measurable,
beneficial social or environmental impact alongside a financial return. At its core, impact investing is about an alignment of an
investor’s beliefs and values with the allocation of capital to address social and/or environmental issues. (giving vs investing)
è Trying to invest your money in companies that do good for profits AND society
CONCEPT 7: PURPOSE OR GREENWASH
Greenwashing = The misleading act of companies, industries, governments, organizations, and individuals trying to promote
unjustified environmentally friendly practices, products, and services through branding, mislabeling, packaging or public
relations. It is an unsubstantiated claim to deceive consumers into believing that a company's products are environmentally
friendly. è Some companies act greener than they are!
CONCEPT 8: EXTERNAL FACTORS – PORTER 5 FORCES
è Regulation is missing here (“the old way”)
CONCEPT 9: EXTERNAL FACTORS – STEEPLE
Market attractiveness: STEEPLE analysis = strategic planning tool (to look at the market you will work with)
o Social
o Technological
o Economical
o Ecological
o Political
o Legal
o Ethical
Example: India
o Social: ageing population
o Technological: strong IT sector
o Economical: important economic growth
o Ecological: quality of the air has been affected by industrialization
o Political: India knows a certain political stability
o Ethical: a lot of discrimination issues
o Legal: important number of recent legal changes
3
, CONCEPT 10: EXTERNAL FACTORS – KPMG INNOVATION LAB METHODOLOGY
CONCEPT 11
COMPANY VS ECOSYSTEM
Companies will more and more be (part of) ecosystems è you can no longer
do everything (good) on your own
EXTERNAL FACTORS – GE MCKINSEY
Market attractiveness (GE = General Electric): 10 external factors of market attractiveness that affect a business
o Market size
o Market growth rate
o Market profitability
o Pricing trends
o Rivalry
o Overall risk of returns in the industry
o Opportunity to differentiate products and services
o Demand variability
o Segmentation
o Distribution structure
4
