International Strategy Readings

Toward a Theory of Stakeholder Identification
Stakeholder Attributes and Salience
Click the card to flip 👆
1 / 16
Terms in this set (16)
Toward a Theory of Stakeholder Identification
Stakeholder Attributes and Salience
Power, Legitimacy, Urgency
1 attribute = latent stakeholder
2 attributes = expectant stakeholder
All 3 is highly salient
Toward a Theory of Stakeholder Identification
Stakeholder Venn Diagram for Stakeholder Type
Dormant = Power
Discretionary = Legitimacy
Demanding = Urgency
Dominant = Power + Legitimacy
Dependency = Legitimacy + Urgency
Dangerous = Power + Urgency
Definitive = Power + Urgency + Legitimacy
Age of Temporary Advantage
Summarize
Advantages are increasingly temporary
Change is due to focus on short-term goals, hypercompetition, and globalization
May be able to use temporary and sustainable advantages together by having a multiplicity of strategies
Strategies for Assessing and Managing Organizational Stakeholders
What determines a stakeholder's capacity for threat?
Relative power and relevance to a particular issue
Strategies for Assessing and Managing Organizational Stakeholders
Stakeholder attitudes and ideal responses
Potential cooperation vs Potential threat
High/High: Mixed Blessing - collaborate
High/Low: Supportive - involve
Low/High: Nonsupportive - defend
Low/Low: Marginal - monitor
Strategies for Assessing and Managing Organizational Stakeholders
Summarize the Eastern Airlines case
Lorenzo begins retrenchment strategy
IAM baggage handlers/mechanics strike
ALPA pilots join strike instead of helping EA
Missed opportunity to collaborate (mix blessing)
Missed flights - lose support of travel agents
Pilot training schools save the day (marginal to supportive)
Profit Pools
Summarize
U-Haul: selling other services
Tap profit pools competitors overlook
Pool is deeper in some parts of value chain
Profit pools are not stagnant (change)
Dell targets shallow pool (retail)
An-Busch creates canned beer profit pool
Firm Resources and Sustained Competitive Advantage
Competitive advantage vs Sustained comp. adv.
Competitive advantage occurs when a company is utilizing a value creating strategy that no competitors are simultaneously using. A sustainable advantage is the same, but a strategy which cannot be copied by any other firm. This doesn't mean it will last forever, but only that it cannot be competed away. Resources must follow VRIO
Beating the Odds in Market Entry
Summarize
4/5 entrants fail due to cognitive biases
Use reference class and learn from others
Remove biases from internal analysis and do not be too optimistic in anchoring estimates
Strategies that Fit Emerging Markets
Summarize
Need different strategy than one from home
Must work around institutional voids
Tend to choose countries based on bandwagon, personal feelings, anecdotal evidence, etc
Composite Indices don't tell whole story
Need to study 5 contexts: political/social, openness, product, labor, and capital markets
3 Options: adapt business models, change context, or avoid non-congruent countries
Managing Differences Explain AAA TriangeAdaptation: increase local relevance (advertising) Aggregation: economies of scale, standardize (R&D) Arbitrage: exploit differences in markets (labor) Must prioritize between, can do 2Assessing Porter's Competitive Advantage of Nations SummarizeDiscussion of Porter's Diamond (factor influences, demand, related industries, and firm strategy, structure and rivalry) Offers more detail than Hecksher-Ohlin type models and focuses on dynamism and tech Upgrading = achieving higher competitive advantage, but more complex and less precise Assumes a link between firm advantage and national prosperity and productivity Diamond provides detail, lacks predictive qualityStrategy from the Outside In SummarizeInside-out focuses on assets already in play and gaining efficiency Outside in focuses on creating value for customers, requires customer insights Market insight = durable competitive advantage 4 imperatives: be a customer value leader, innovate new value for customers, view customers as an asset, view brand as an assetExplain the Bel CaseStarted as small family operation in France Expanded abroad through acquisition Expanded product lines Fear hostile takeover via stock shares Conflicts among generations Switch from M&A to product innovation Created foothold in Vietnam GOODI Project - combat malnutritionMyth of Globalization SummarizeGlobalization implies that customers are getting more homogenous, people want low prices more than specific features, global = economies of scale --- not necessarily true Globalization only works if there's a global market, synergies from standardization, and global distribution infrastructure...therefore not suitable for all companies and productsGlobalization of Markets SummarizeMust learn to operate as if world is one market Technology has led to convergence of preferences Assume customers will buy products for high quality, low cost Hedgehog vs Fox, be a hedgehog Hoover example - Italians would like a cheaper washing machine with less modification The world is getting flatter (also fatter. Oh wait...that's just me)