International business class
CONCEPTS 1 – 25 ON STRATEGY .................................................................................................... 3
CONCEPT 1: 5 STEPS IN STRATEGY ................................................................................................................. 3
CONCEPT 2: STAKEHOLDER ANALYSIS ............................................................................................................ 3
CONCEPT 3: BUSINESS PURPOSE VS SOCIAL PURPOSE ....................................................................................... 3
CONCEPT 4: SOCIAL PURPOSE ...................................................................................................................... 4
CONCEPT 5: UN SDG (SUSTAINABLE DEVELOPMENT GOALS) ............................................................................... 5
CONCEPT 6: IMPACT INVESTMENT.................................................................................................................. 6
CONCEPT 7: PURPOSE OF GREENWASH .......................................................................................................... 6
CONCEPT 8: EXTERNAL FACTORS – PORTER 5 FORCES ........................................................................................ 6
CONCEPT 9: EXTERNAL FACTORS – STEEPLE ANALYSIS (MARKET ATTRACTIVENESS)................................................. 7
CONCEPT 10: EXTERNAL FACTORS – KPMG INNOVATION LAB METHODOLY ............................................................ 7
CONCEPT 11: COMPANY VS. ECOSYSTEM ........................................................................................................ 7
CONCEPT 12: EXTERNAL FACTORS – CAPABILITY MATURITY MODEL ........................................................................ 8
CONCEPT 13: EXTERNAL FACTORS – BUSINESS CYCLES ...................................................................................... 9
CONCEPT 14: INTERNAL FACTORS – CORE COMPETENCES (HAMEL PRAHALAD)....................................................... 9
CONCEPT 15: INTERNAL FACTORS – GE MCKINSEY ........................................................................................ 10
CONCEPT 16: INTERNAL FACTORS – REPUTATION ............................................................................................ 10
CONCEPT 17: EXTERNAL & INTERNAL FACTORS COMBINED ............................................................................... 10
CONCEPT 18: VALUE DRIVERS TREE & UNDERLYING VALUE DRIVERS .................................................................... 11
CONCEPT 19: 9 LEVERS OF VALUE ............................................................................................................... 11
CONCEPT 20: DEFINITION OF STRATEGY – PORTER GENERIC STRATEGIES ............................................................. 12
CONCEPT 21: DEFINITION OF STRATEGY – 3C MODEL ...................................................................................... 12
CONCEPT 22: DEFINITION OF STRATEGY – VALUE DISCIPLINE (TRACEY & WIERSEMA) .............................................. 13
CONCEPT 23: DEFINITION OF STRATEGY – ANSOFF .......................................................................................... 13
CONCEPT 24: DEFINITION OF STRATEGY – MOTIVATIONS FOR FOREIGN EXPANSION ................................................. 13
CONCEPT 25: 8 THEMES OF NEW REALITY ..................................................................................................... 14
CONCEPTS 26 – 47 BY A VERBEKE .................................................................................................14
CONCEPT 26: THE ESSENCE OF INTERNATIONAL BUSINESS ............................................................................... 14
CONCEPT 27: RESOURCE BASE................................................................................................................... 15
CONCEPT 28: ROUTINES ........................................................................................................................... 16
CONCEPT 29: RECOMBINATION .................................................................................................................. 16
CONCEPT 30: INTERNATIONAL TRANSFERABILITY OF FSAS (VOORBEELD: ZIE SLIDES).............................................. 16
CONCEPT 31: LOCATION ADVANTAGES ......................................................................................................... 17
CONCEPT 32: 4 ARCHETYPES OF MNE (MULTINATIONAL ENTERPRISE) ................................................................ 17
CONCEPT 33: 4 TYPES OF DISTANCE ............................................................................................................ 18
CONCEPT 34: BOUNDED RATIONALITY .......................................................................................................... 18
CONCEPT 35: BOUNDED RELIABILITY ........................................................................................................... 19
CONCEPT 36: 7 QUESTIONS IN IBS (INTERNATIONAL BUSINESS STRATEGY) YOU SHOULD ASK YOURSELF BEFORE YOU GO
ABROAD? ............................................................................................................................................... 20
CONCEPT 37: GUIDE VS COMMAND (HOW TO COMMUNICATE WITH LOCAL MANAGERS)........................................... 20
CONCEPT 38: HIERARCHY ......................................................................................................................... 20
CONCEPT 39: R&D HOME BASED EXPLOITING VS AUGMENTING ......................................................................... 21
CONCEPT 40: 6 TYPES OF FACTORIES ........................................................................................................... 22
CONCEPT 41: ECONOMIC EXPOSURE – FOREIGN CURRENCY ............................................................................. 22
CONCEPT 42: FOREIGN CURRENCY MANAGEMENT .......................................................................................... 23
CONCEPT 43: INTERNATIONAL MARKETING .................................................................................................... 23
CONCEPT 44: MANAGING EXPAT MANAGERS .................................................................................................. 24
CONCEPT 45: MANAGING DISTRIBUTORS ...................................................................................................... 24
CONCEPT 46: MANAGING ALLIANCES ........................................................................................................... 25
CONCEPT 47: 2 INNOVATIONS FROM ENVIRONMENTAL TRIGGERS ....................................................................... 25
CONCEPTS 47 – 62 ON M&A ..........................................................................................................25
CONCEPT 47: 10 STEPS IN BUYING A COMPANY.............................................................................................. 25
CONCEPT 48: BUSINESS CYCLES TRIGGER M&A............................................................................................. 26
CONCEPT 49: TYPES OF TRANSACTIONS ....................................................................................................... 27
1
, CONCEPT 50: SELL SIDE STEPS ................................................................................................................... 27
CONCEPT 51: DUE DILIGENCE .................................................................................................................... 28
CONCEPT 52: QUALITY OF EARNINGS ........................................................................................................... 28
CONCEPT 53: QUALITY OF DEBT .................................................................................................................. 29
CONCEPT 54: WORKING CAPITAL ................................................................................................................ 29
CONCEPT 55: DATA ROOM ......................................................................................................................... 30
CONCEPT 56: SHARE PURCHASE AGREEMENT (SPA) ....................................................................................... 30
CONCEPT 58: RISK/VALUE MODEL FOR M&A ................................................................................................. 31
CONCEPT 59: INTEGRATION PITFALLS ........................................................................................................... 32
CONCEPT 60: FINANCING OPTIONS ARE DIFFERENT OVER THE LIFECYCLE ............................................................. 32
CONCEPT 61: PRIVATE EQUITY .................................................................................................................... 32
CONCEPT 62: CROWD FUNDING ................................................................................................................. 33
MEGATRENDS ..............................................................................................................................33
TYPE OF TRENDS ...................................................................................................................................... 33
DEMOGRAPHICS & SOCIAL CHANGE ............................................................................................................ 33
URBANIZATION & MEGACITIES ..................................................................................................................... 34
CLIMATE CHANGE & RESOURCE SCARCITY..................................................................................................... 34
TECHNOLOGY ......................................................................................................................................... 35
WHAT NOW? .......................................................................................................................................... 37
GASTCOLLEGE 1: AGFA ................................................................................................................37
GASTCOLLEGE 2: PRIVATE EQUITY ................................................................................................39
GASTCOLLEGE 3: MARS................................................................................................................44
GASTCOLLEGE 4: CHINA’S NEW NORMAL .....................................................................................46
GASTCOLLEGE 5: KINEPOLIS ........................................................................................................49
GASTCOLLEGE 6: JÜRGEN INGELS ................................................................................................50
2
,CONCEPTS 1 – 25 ON STRATEGY
Concept 1: 5 steps in strategy
5 steps • Define purpose with stakeholders
➢ Why are you doing business?
• External analysis
➢ Economic environment
• Internal analysis
➢ Own strengths
• Define strategy
• Implementation
Stages in strategic
analysis (overview)
•
Example • Imagine your on sailing boat with friends
• 1 friend asks: where should we go to?
• On radio → gail warning → ‘watch out, big storm coming’ → what to do?
• Go to harbour or get away from coast (waves become higher)
➢ External circumstances will change our strategy
• You have to get to UK → only option is going with boat → this will change
strategy
Concept 2: Stakeholder analysis
Typical family companies → have their
operations in industrial zones
Only doing good for shaleholders who
want money → doesn’t work anymore
→ categories of stakeholders
Concept 3: business purpose vs social purpose
Clear purpose • ⟹ more efficiency
• Can be business or social related
• No purpose is bad, having purpose is good
• Social purpose → even better
Business related • Purpose of making profit
3
, • Eg. you want to make best lemonade in the world (eg. Ritchie)
Story behind Ritchie • Father/grandfather had brewery → brewed beer & lemonades
• Ritchie still liked the taste of grandfathers lemonade → recreate this & make
best lemonade in the world
• Will not do something good for society
Social related • Help to solve problem in the world, make the world a better place
• Eg Tesla → avoid emitting CO2
Story of Tesla • Couple of years ago → crisis due to war in Ukraine
➢ Ukrainians → good at making wiring cables (important for cars that have
electric windows…)
• Shortage of chips
• Car manufactures could not manufacture as much cars as they wanted
➢ Mercedes → stopped producing cheapest cars
• Tesla → wanted to make electric driving sexy & start making profit and getting
experience in building electrical cars
➢ End goal: electrify the world
➢ Shortage of chips → put them in smaller, less profitable cars → more in line
with end goal
Concept 4: social purpose
Business purpose
•
• Normal way of doing business
➢ Profit but destruction of community
➢ When you gained enough money → start donating money (philanthropy) ⟹
naar linksboven
• Try to do good while making profit (rechtsboven)
• War (linksonder)
Old school investment • Typical business people win
(incl. philanthropy) money → giving something
back to community
• Eg. Bill Gates
• Eg. rockefellers → oil →
Rockefeller foundation
• Typical American phenomenon
• Europe: system of taxes
• No longer sustainable
4
CONCEPTS 1 – 25 ON STRATEGY .................................................................................................... 3
CONCEPT 1: 5 STEPS IN STRATEGY ................................................................................................................. 3
CONCEPT 2: STAKEHOLDER ANALYSIS ............................................................................................................ 3
CONCEPT 3: BUSINESS PURPOSE VS SOCIAL PURPOSE ....................................................................................... 3
CONCEPT 4: SOCIAL PURPOSE ...................................................................................................................... 4
CONCEPT 5: UN SDG (SUSTAINABLE DEVELOPMENT GOALS) ............................................................................... 5
CONCEPT 6: IMPACT INVESTMENT.................................................................................................................. 6
CONCEPT 7: PURPOSE OF GREENWASH .......................................................................................................... 6
CONCEPT 8: EXTERNAL FACTORS – PORTER 5 FORCES ........................................................................................ 6
CONCEPT 9: EXTERNAL FACTORS – STEEPLE ANALYSIS (MARKET ATTRACTIVENESS)................................................. 7
CONCEPT 10: EXTERNAL FACTORS – KPMG INNOVATION LAB METHODOLY ............................................................ 7
CONCEPT 11: COMPANY VS. ECOSYSTEM ........................................................................................................ 7
CONCEPT 12: EXTERNAL FACTORS – CAPABILITY MATURITY MODEL ........................................................................ 8
CONCEPT 13: EXTERNAL FACTORS – BUSINESS CYCLES ...................................................................................... 9
CONCEPT 14: INTERNAL FACTORS – CORE COMPETENCES (HAMEL PRAHALAD)....................................................... 9
CONCEPT 15: INTERNAL FACTORS – GE MCKINSEY ........................................................................................ 10
CONCEPT 16: INTERNAL FACTORS – REPUTATION ............................................................................................ 10
CONCEPT 17: EXTERNAL & INTERNAL FACTORS COMBINED ............................................................................... 10
CONCEPT 18: VALUE DRIVERS TREE & UNDERLYING VALUE DRIVERS .................................................................... 11
CONCEPT 19: 9 LEVERS OF VALUE ............................................................................................................... 11
CONCEPT 20: DEFINITION OF STRATEGY – PORTER GENERIC STRATEGIES ............................................................. 12
CONCEPT 21: DEFINITION OF STRATEGY – 3C MODEL ...................................................................................... 12
CONCEPT 22: DEFINITION OF STRATEGY – VALUE DISCIPLINE (TRACEY & WIERSEMA) .............................................. 13
CONCEPT 23: DEFINITION OF STRATEGY – ANSOFF .......................................................................................... 13
CONCEPT 24: DEFINITION OF STRATEGY – MOTIVATIONS FOR FOREIGN EXPANSION ................................................. 13
CONCEPT 25: 8 THEMES OF NEW REALITY ..................................................................................................... 14
CONCEPTS 26 – 47 BY A VERBEKE .................................................................................................14
CONCEPT 26: THE ESSENCE OF INTERNATIONAL BUSINESS ............................................................................... 14
CONCEPT 27: RESOURCE BASE................................................................................................................... 15
CONCEPT 28: ROUTINES ........................................................................................................................... 16
CONCEPT 29: RECOMBINATION .................................................................................................................. 16
CONCEPT 30: INTERNATIONAL TRANSFERABILITY OF FSAS (VOORBEELD: ZIE SLIDES).............................................. 16
CONCEPT 31: LOCATION ADVANTAGES ......................................................................................................... 17
CONCEPT 32: 4 ARCHETYPES OF MNE (MULTINATIONAL ENTERPRISE) ................................................................ 17
CONCEPT 33: 4 TYPES OF DISTANCE ............................................................................................................ 18
CONCEPT 34: BOUNDED RATIONALITY .......................................................................................................... 18
CONCEPT 35: BOUNDED RELIABILITY ........................................................................................................... 19
CONCEPT 36: 7 QUESTIONS IN IBS (INTERNATIONAL BUSINESS STRATEGY) YOU SHOULD ASK YOURSELF BEFORE YOU GO
ABROAD? ............................................................................................................................................... 20
CONCEPT 37: GUIDE VS COMMAND (HOW TO COMMUNICATE WITH LOCAL MANAGERS)........................................... 20
CONCEPT 38: HIERARCHY ......................................................................................................................... 20
CONCEPT 39: R&D HOME BASED EXPLOITING VS AUGMENTING ......................................................................... 21
CONCEPT 40: 6 TYPES OF FACTORIES ........................................................................................................... 22
CONCEPT 41: ECONOMIC EXPOSURE – FOREIGN CURRENCY ............................................................................. 22
CONCEPT 42: FOREIGN CURRENCY MANAGEMENT .......................................................................................... 23
CONCEPT 43: INTERNATIONAL MARKETING .................................................................................................... 23
CONCEPT 44: MANAGING EXPAT MANAGERS .................................................................................................. 24
CONCEPT 45: MANAGING DISTRIBUTORS ...................................................................................................... 24
CONCEPT 46: MANAGING ALLIANCES ........................................................................................................... 25
CONCEPT 47: 2 INNOVATIONS FROM ENVIRONMENTAL TRIGGERS ....................................................................... 25
CONCEPTS 47 – 62 ON M&A ..........................................................................................................25
CONCEPT 47: 10 STEPS IN BUYING A COMPANY.............................................................................................. 25
CONCEPT 48: BUSINESS CYCLES TRIGGER M&A............................................................................................. 26
CONCEPT 49: TYPES OF TRANSACTIONS ....................................................................................................... 27
1
, CONCEPT 50: SELL SIDE STEPS ................................................................................................................... 27
CONCEPT 51: DUE DILIGENCE .................................................................................................................... 28
CONCEPT 52: QUALITY OF EARNINGS ........................................................................................................... 28
CONCEPT 53: QUALITY OF DEBT .................................................................................................................. 29
CONCEPT 54: WORKING CAPITAL ................................................................................................................ 29
CONCEPT 55: DATA ROOM ......................................................................................................................... 30
CONCEPT 56: SHARE PURCHASE AGREEMENT (SPA) ....................................................................................... 30
CONCEPT 58: RISK/VALUE MODEL FOR M&A ................................................................................................. 31
CONCEPT 59: INTEGRATION PITFALLS ........................................................................................................... 32
CONCEPT 60: FINANCING OPTIONS ARE DIFFERENT OVER THE LIFECYCLE ............................................................. 32
CONCEPT 61: PRIVATE EQUITY .................................................................................................................... 32
CONCEPT 62: CROWD FUNDING ................................................................................................................. 33
MEGATRENDS ..............................................................................................................................33
TYPE OF TRENDS ...................................................................................................................................... 33
DEMOGRAPHICS & SOCIAL CHANGE ............................................................................................................ 33
URBANIZATION & MEGACITIES ..................................................................................................................... 34
CLIMATE CHANGE & RESOURCE SCARCITY..................................................................................................... 34
TECHNOLOGY ......................................................................................................................................... 35
WHAT NOW? .......................................................................................................................................... 37
GASTCOLLEGE 1: AGFA ................................................................................................................37
GASTCOLLEGE 2: PRIVATE EQUITY ................................................................................................39
GASTCOLLEGE 3: MARS................................................................................................................44
GASTCOLLEGE 4: CHINA’S NEW NORMAL .....................................................................................46
GASTCOLLEGE 5: KINEPOLIS ........................................................................................................49
GASTCOLLEGE 6: JÜRGEN INGELS ................................................................................................50
2
,CONCEPTS 1 – 25 ON STRATEGY
Concept 1: 5 steps in strategy
5 steps • Define purpose with stakeholders
➢ Why are you doing business?
• External analysis
➢ Economic environment
• Internal analysis
➢ Own strengths
• Define strategy
• Implementation
Stages in strategic
analysis (overview)
•
Example • Imagine your on sailing boat with friends
• 1 friend asks: where should we go to?
• On radio → gail warning → ‘watch out, big storm coming’ → what to do?
• Go to harbour or get away from coast (waves become higher)
➢ External circumstances will change our strategy
• You have to get to UK → only option is going with boat → this will change
strategy
Concept 2: Stakeholder analysis
Typical family companies → have their
operations in industrial zones
Only doing good for shaleholders who
want money → doesn’t work anymore
→ categories of stakeholders
Concept 3: business purpose vs social purpose
Clear purpose • ⟹ more efficiency
• Can be business or social related
• No purpose is bad, having purpose is good
• Social purpose → even better
Business related • Purpose of making profit
3
, • Eg. you want to make best lemonade in the world (eg. Ritchie)
Story behind Ritchie • Father/grandfather had brewery → brewed beer & lemonades
• Ritchie still liked the taste of grandfathers lemonade → recreate this & make
best lemonade in the world
• Will not do something good for society
Social related • Help to solve problem in the world, make the world a better place
• Eg Tesla → avoid emitting CO2
Story of Tesla • Couple of years ago → crisis due to war in Ukraine
➢ Ukrainians → good at making wiring cables (important for cars that have
electric windows…)
• Shortage of chips
• Car manufactures could not manufacture as much cars as they wanted
➢ Mercedes → stopped producing cheapest cars
• Tesla → wanted to make electric driving sexy & start making profit and getting
experience in building electrical cars
➢ End goal: electrify the world
➢ Shortage of chips → put them in smaller, less profitable cars → more in line
with end goal
Concept 4: social purpose
Business purpose
•
• Normal way of doing business
➢ Profit but destruction of community
➢ When you gained enough money → start donating money (philanthropy) ⟹
naar linksboven
• Try to do good while making profit (rechtsboven)
• War (linksonder)
Old school investment • Typical business people win
(incl. philanthropy) money → giving something
back to community
• Eg. Bill Gates
• Eg. rockefellers → oil →
Rockefeller foundation
• Typical American phenomenon
• Europe: system of taxes
• No longer sustainable
4
