Product focus

profitability and
market share
Resource-seeking
depend on the Market focus
order and mode of strategic directions
market-seeking
market entry and Acquisitions
Strategic Thrust how they allocate
efficiency-seeking
resources geographic focus Exporting
asset-seeking
Joint Ventures
Late = more mobile?
Green-Field
Investments Early = less mobile?
Stage/degree of proximity to daughter(s)
Market internationalization close co-operation between
Global startups?
Penetration parent & daughter in
cost leadership modes of entry Licensing planning & decisionmaking
Decisions

quality leadership
global business culture
forces
Affected by social Strategic planning decentralised planning, proximity to
customer service Regional/country patterns focus on financial results financial community
leadership pressures Integrate Financial control
economic Power
worldwide Organizational conditions Relations
integration of value focus on strategic & Proximity to both
chains functions Structures Costs strategic control financial goals
business stakeholders and
practices Depends on daughter(s)
Management style
Strategic Follows Geographic
concentration of activities
integration of geographic Alignment
locations
related to capabilties/
Center of Gravity Follows international competences
Business Company- fusions/take-overs
Strategy specific
existing social networks
innovation leadership determinants History/legacy with stakeholders More sticky?
Path dependancies
operations Related
mass marketing
Ownership Internal re-organisation,
Advantages outsourcing certain
image leadership
marketing Internalisation activities
Advantages
sales
integration of Factors New Org. forms, more
marketplaces Management affecting IHQ High Dependance autonomous affiliates
Processes after-sales services
metropole-
specific mobility
Primary Activities outbound/inbound determinants industry- Clusters
integration of strategic logistics specific Low Dependance Internalisation benefits
business units. determinants
Good Quality
of Life
Strenghtening value technology development Type of
chain (Porter) Support Activities and procurement availability of trained industries
personel Services More mobile?

Alignment of strategy firm infrastructure Locational

with resources Infrasturcture
Advantages
human resource Manufacturing More sticky?
management High quality services country/
More Mobile?
trans-cultural region-
applicability Office & building facilities specific
OR cultural Knowledge intensive
uniqueness determinants
Proximity to other HQs
Rational legal-
cultural regulatory framework
contingency
Attractive, substainable
local economy
High = less mobile
Stable political
Cultural distance power distance High = Mobile environment

Low Strategic Geographic

Location
uncertainty avoidance Low = mobile
Hofstede Highly Developed
individualism- Infrastucture
collectivism
Culture
Direct Benefits Technology-related masculinity-femininity Porter’s Diamond
Indirect Benefits efficiencies
Shared Managerial Production-related Factor Conditions
Cognitions efficiencies
Rumelt’s Cultural Resource dependance
Relatedness Market-related
Efficient Strategy efficiencies Taxation
Implemetation High
Corporate
Efficient Strategy Control Governance Low
Efficient Strategy
Formulation Firm Efficiencies
Lack of European Patent Accommodating to
European Union Laws foreign companies
cross-border merger
regulations Boundaries of the
Inhibitors Worker Law firm
lack of International Barriers to entering/
Accounting Standards Company Law leaving country
Differing regulation (Spatial)
between member states Transaction Costs
Enablers
Local Content
Requirements
infrastructure Protection of
Foreign Investors
tax burden Strategic Renewal
market access
Compliance with
gains in productivity global standards
stability

labour costs
skills