Analysis of external environment ....................................................................................... 5
1.Introduction ........................................................................................................... 5
What is international management ...................................................................... 5
Why to Internationalize? ...................................................................................... 6
1.Market expansion: access to new customers or growing markets ................. 6
2.Access to cheaper resources: labour, materials .......................................... 6
3.Access better resources: human capital, technologies ................................ 6
4.Gaining competitive advantage .................................................................. 6
5.Managing regulatory environment and 6. Risk diversification ........................ 6
Drivers and barriers to internationalization ........................................................... 7
Role of international managers ............................................................................ 7
2.Globalization .......................................................................................................... 8
Drivers of globalization ........................................................................................ 9
1.Falling barriers to trade and investment ...................................................... 9
2.Technological change ................................................................................ 9
3.Convergence of consumer taste and preferences ...................................... 10
How globalized the world really is ...................................................................... 10
Effects of globalization ...................................................................................... 11
1.Globalization and Growth ........................................................................ 11
2.Globalization, Jobs, and Income............................................................... 11
3.Globalization, Labour practices, Environment ........................................... 12
4.Globalization and National Soverenity ...................................................... 12
3.PESTEL Analysis ................................................................................................... 14
External environment: ................................................................................ 14
PESTEL Analysis ............................................................................................... 14
1.Political Factors ...................................................................................... 14
2. Economic factors ................................................................................... 16
3.Social Factors ......................................................................................... 16
4.Technological factors .............................................................................. 17
5.Environmental factos .............................................................................. 17
6.Legal factors ........................................................................................... 17
How to conduct PESTEL Analysis ....................................................................... 17
4.Culture ................................................................................................................ 19
1
, What is culture? ............................................................................................... 19
Structure of the culture .............................................................................. 19
Determinants of Culture.................................................................................... 20
1. Political Philosophy & 2. Economic Philosophy ......................................... 20
3. Social Structure ..................................................................................... 20
4. Religion ................................................................................................. 20
5. Language ............................................................................................... 21
6. Education .............................................................................................. 21
Types of culture ................................................................................................ 22
1.Hofstede’s Dimensions ........................................................................... 22
2.Edward Hall’s Cultural Dimensions .......................................................... 22
3.Michele Gelfand’s “tight” and “loose” cultures .......................................... 23
4.World Value Survey ................................................................................. 23
Which framework to choose?!! ................................................................... 24
Formulation of international business strategy ................................................................. 25
Introduction: .................................................................................................... 25
1.Strategy ............................................................................................................... 25
Value creation .................................................................................................. 26
Firm’s structure (Architecture)!* (zie ook verder) .................................................. 27
Firm’s operations ....................................................................................... 27
International expansion opportunities ................................................................ 28
The role of international competitive pressures in strategy choice and realization . 29
1.*Cost pressures ...................................................................................... 30
2.**Local responsiveness ........................................................................... 30
Choice of international business strategy!! ......................................................... 31
2.Organizational Architecture ................................................................................... 33
3.Organizational structure ........................................................................................ 33
Control systems and incentives ......................................................................... 36
Processes ........................................................................................................ 37
Organizational culture ....................................................................................... 38
Strategy and architecture !!!!!!!!!!!!!!!!!!! ................................................................. 39
4.Market entry ......................................................................................................... 40
Which markets, when, & on what scale .............................................................. 40
2
, Entry modes ..................................................................................................... 41
1.Exporting ................................................................................................ 41
2.Turnkey projects ...................................................................................... 42
3.Licensing................................................................................................ 42
4.Franchising............................................................................................. 43
5.Joint ventures (JV) ................................................................................... 43
6.Setting up a new subsidiary ..................................................................... 44
Choice of entry mode: ................................................................................ 44
Strategy and Entry modes !!!! ............................................................................. 45
Strategic alliances ............................................................................................ 45
Organization of international business functions .............................................................. 46
Global Production and Supply Chains (les 8) ............................................................. 46
Questions to answer: ............................................................................................... 47
1.Where in the world should production activities be located? ............................. 47
2.What should be the LT strategic role of foreign production? ............................... 49
3.Should the firm own foreign production activities or outsource them? ............... 49
4.How should the global supply chain be managed (logistics) .............................. 49
Selected focus areas in Global SCM ......................................................................... 50
1.Coordination and interorganizational relations ................................................. 50
2.The role of IT and automation .......................................................................... 50
3.Resilience ..................................................................................................... 52
4.Sustainability ................................................................................................ 52
Marketing and Business Analytics (les 9) ................................................................... 53
Marketing ......................................................................................................... 54
Product (- attributes) .................................................................................. 55
Price ......................................................................................................... 55
Place (distribution)..................................................................................... 56
Promotion (communication) ....................................................................... 57
Business analytics ............................................................................................ 58
R&D ................................................................................................................. 59
Dealing with country differences........................................................................ 59
Finance and HR in international companies (les 10) ................................................... 59
International accounting and control ................................................................. 60
3
, Control systems ........................................................................................ 60
Financial management ..................................................................................... 61
Investment decisions ................................................................................. 61
Money Management .................................................................................. 62
Global HR management .................................................................................... 63
Strategic role of global HRM........................................................................ 63
Managing global workforce trends...................................................................... 64
Demographic changes (aging) ..................................................................... 64
Remote work ............................................................................................. 65
Automation ............................................................................................... 66
4
, International management
Analysis of external environment
1.Introduction
What is international management
“International mnmgt is the process of planning, organizing, directing, and controlling the organization,
which individuals (managers) use to achieve an organization’s goals when the organization is involved
in cross-border activities or functions outside its nation state”
→ Navigating the complexities of operating across multiple countries
→ Integrating global perspectives into business strategies
→ Effectively managing a diverse and geographically dispersed organization
Cross-border activities:
- International suppliers or customers, export and import, outsourcing
- Employees located in other countries, franshising/licencing abroud
- Foreign Direct Investement (subsidairies, stores, factories located abroad)
- International allies, joint ventures
→ heel veel bedrijven hebben minstens één van deze zaken. Heel veel hebben een buitenlands
aanvoerketen.
Multinational Company: is a company that operates in its home country as well as in other countries
around the world. It maintains a central office located in one country, which coordinates the
management of all its other offices, usch as administrative branches or factories
Often used to indicate large international organizations: Multinational corporations (MNC), but
small companies can also have such a structure
Bv: mercedes, fedex, canon, dell, kfc, levis …
Born Global: a business organization that, from inception, seeks to derive significant competitive
advantage from the use of resources and the sale of outpurs in multiple countries. They
internationalize rapidly, often within a few years of their founding.
↔ traditonal firms that start domestically and gradually expand
Bv: spotify, airbnb, uber
Unicorns: private companies that have a valuation of $1billion or above
Emerging unicorns: almost at 1bln, companies with excellent growth potential. Often they have
international impact.
5
1.Introduction ........................................................................................................... 5
What is international management ...................................................................... 5
Why to Internationalize? ...................................................................................... 6
1.Market expansion: access to new customers or growing markets ................. 6
2.Access to cheaper resources: labour, materials .......................................... 6
3.Access better resources: human capital, technologies ................................ 6
4.Gaining competitive advantage .................................................................. 6
5.Managing regulatory environment and 6. Risk diversification ........................ 6
Drivers and barriers to internationalization ........................................................... 7
Role of international managers ............................................................................ 7
2.Globalization .......................................................................................................... 8
Drivers of globalization ........................................................................................ 9
1.Falling barriers to trade and investment ...................................................... 9
2.Technological change ................................................................................ 9
3.Convergence of consumer taste and preferences ...................................... 10
How globalized the world really is ...................................................................... 10
Effects of globalization ...................................................................................... 11
1.Globalization and Growth ........................................................................ 11
2.Globalization, Jobs, and Income............................................................... 11
3.Globalization, Labour practices, Environment ........................................... 12
4.Globalization and National Soverenity ...................................................... 12
3.PESTEL Analysis ................................................................................................... 14
External environment: ................................................................................ 14
PESTEL Analysis ............................................................................................... 14
1.Political Factors ...................................................................................... 14
2. Economic factors ................................................................................... 16
3.Social Factors ......................................................................................... 16
4.Technological factors .............................................................................. 17
5.Environmental factos .............................................................................. 17
6.Legal factors ........................................................................................... 17
How to conduct PESTEL Analysis ....................................................................... 17
4.Culture ................................................................................................................ 19
1
, What is culture? ............................................................................................... 19
Structure of the culture .............................................................................. 19
Determinants of Culture.................................................................................... 20
1. Political Philosophy & 2. Economic Philosophy ......................................... 20
3. Social Structure ..................................................................................... 20
4. Religion ................................................................................................. 20
5. Language ............................................................................................... 21
6. Education .............................................................................................. 21
Types of culture ................................................................................................ 22
1.Hofstede’s Dimensions ........................................................................... 22
2.Edward Hall’s Cultural Dimensions .......................................................... 22
3.Michele Gelfand’s “tight” and “loose” cultures .......................................... 23
4.World Value Survey ................................................................................. 23
Which framework to choose?!! ................................................................... 24
Formulation of international business strategy ................................................................. 25
Introduction: .................................................................................................... 25
1.Strategy ............................................................................................................... 25
Value creation .................................................................................................. 26
Firm’s structure (Architecture)!* (zie ook verder) .................................................. 27
Firm’s operations ....................................................................................... 27
International expansion opportunities ................................................................ 28
The role of international competitive pressures in strategy choice and realization . 29
1.*Cost pressures ...................................................................................... 30
2.**Local responsiveness ........................................................................... 30
Choice of international business strategy!! ......................................................... 31
2.Organizational Architecture ................................................................................... 33
3.Organizational structure ........................................................................................ 33
Control systems and incentives ......................................................................... 36
Processes ........................................................................................................ 37
Organizational culture ....................................................................................... 38
Strategy and architecture !!!!!!!!!!!!!!!!!!! ................................................................. 39
4.Market entry ......................................................................................................... 40
Which markets, when, & on what scale .............................................................. 40
2
, Entry modes ..................................................................................................... 41
1.Exporting ................................................................................................ 41
2.Turnkey projects ...................................................................................... 42
3.Licensing................................................................................................ 42
4.Franchising............................................................................................. 43
5.Joint ventures (JV) ................................................................................... 43
6.Setting up a new subsidiary ..................................................................... 44
Choice of entry mode: ................................................................................ 44
Strategy and Entry modes !!!! ............................................................................. 45
Strategic alliances ............................................................................................ 45
Organization of international business functions .............................................................. 46
Global Production and Supply Chains (les 8) ............................................................. 46
Questions to answer: ............................................................................................... 47
1.Where in the world should production activities be located? ............................. 47
2.What should be the LT strategic role of foreign production? ............................... 49
3.Should the firm own foreign production activities or outsource them? ............... 49
4.How should the global supply chain be managed (logistics) .............................. 49
Selected focus areas in Global SCM ......................................................................... 50
1.Coordination and interorganizational relations ................................................. 50
2.The role of IT and automation .......................................................................... 50
3.Resilience ..................................................................................................... 52
4.Sustainability ................................................................................................ 52
Marketing and Business Analytics (les 9) ................................................................... 53
Marketing ......................................................................................................... 54
Product (- attributes) .................................................................................. 55
Price ......................................................................................................... 55
Place (distribution)..................................................................................... 56
Promotion (communication) ....................................................................... 57
Business analytics ............................................................................................ 58
R&D ................................................................................................................. 59
Dealing with country differences........................................................................ 59
Finance and HR in international companies (les 10) ................................................... 59
International accounting and control ................................................................. 60
3
, Control systems ........................................................................................ 60
Financial management ..................................................................................... 61
Investment decisions ................................................................................. 61
Money Management .................................................................................. 62
Global HR management .................................................................................... 63
Strategic role of global HRM........................................................................ 63
Managing global workforce trends...................................................................... 64
Demographic changes (aging) ..................................................................... 64
Remote work ............................................................................................. 65
Automation ............................................................................................... 66
4
, International management
Analysis of external environment
1.Introduction
What is international management
“International mnmgt is the process of planning, organizing, directing, and controlling the organization,
which individuals (managers) use to achieve an organization’s goals when the organization is involved
in cross-border activities or functions outside its nation state”
→ Navigating the complexities of operating across multiple countries
→ Integrating global perspectives into business strategies
→ Effectively managing a diverse and geographically dispersed organization
Cross-border activities:
- International suppliers or customers, export and import, outsourcing
- Employees located in other countries, franshising/licencing abroud
- Foreign Direct Investement (subsidairies, stores, factories located abroad)
- International allies, joint ventures
→ heel veel bedrijven hebben minstens één van deze zaken. Heel veel hebben een buitenlands
aanvoerketen.
Multinational Company: is a company that operates in its home country as well as in other countries
around the world. It maintains a central office located in one country, which coordinates the
management of all its other offices, usch as administrative branches or factories
Often used to indicate large international organizations: Multinational corporations (MNC), but
small companies can also have such a structure
Bv: mercedes, fedex, canon, dell, kfc, levis …
Born Global: a business organization that, from inception, seeks to derive significant competitive
advantage from the use of resources and the sale of outpurs in multiple countries. They
internationalize rapidly, often within a few years of their founding.
↔ traditonal firms that start domestically and gradually expand
Bv: spotify, airbnb, uber
Unicorns: private companies that have a valuation of $1billion or above
Emerging unicorns: almost at 1bln, companies with excellent growth potential. Often they have
international impact.
5
