International Strategic to expand the Business of Banglades

8/12/2019 International Strategic to expand the Business of Banglades

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ASA University Bangladesh (ASAUB)

AN ASSIGNMENTOn

International Strategic to expand theBusiness of BangladeshCOURSE CODE : MGT 506COURSE NAME : ST!T"GI# M!$!G"M"$TPROGRAM NAME : MB! %&SEMESTER : S'I$G ( )0*+

SUBMITTED TO

Md M!tahar"l Isla#!ssociate 'rofessor,acult- of Business

!S! .$I/"SIT B!$G1!2"S3 %!S!.B&

SUBMITTED B$

PAN%A& %UMER SA'AID : *4()(*+(006)BATC' NUMBER : *thSECTION : "

Date ! S"#issi!n* )4th !pril )0*+


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+ETTER O, TRANSMITTA+

)4th !pril )0*+To

Md7 Motaharul Isla8!ssociate 'rofessor,acult- of Business!S! .ni9ersit- Bangladesh %!S!.B&

Su;ect: Su8ission of !ssign8ent7

2ear SirI a8 9er- glad to infor8 -ou that under -our ould e gladl- appreciatedand >e >ould e gratified if this paper ser9es its purpose7

?e are pleased to pro9ide -ou this ter8 paper >ith necessar- notes reference and>e shall e a9ailale for an- clarification if re@uired7

Sincerel-ours

AAAAAAAAA77

'an


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-De.larati!n/

I do here- sole8nl- declare that the >or< presented in this !ssign8ent paper#arried Out - 8e and has not een pre9iousl- to an- others.ni9ersit-C#ollageCOrganiDation7

The >or< I ha9e presented dose not reach an- exciting cop-right no portion

of this !ssign8ent paper is copied fro8 an- >or< done 7I further underta


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Tale ! C!ntents

Intr!d".ti!n*

International Strategic Manage8ent is a planning process of de9elopinginternational strateg- in the direction of achie9ing strategic(fit et>een theorganiDationEs co8petence = resources and the gloal en9iron8ent under >hich it

S+ N! Parti."lars

0 !cledge8ents

1 Introduction

2 O;ecti9e

3 I8portance of International strateg-

4Methodolog-

5 Identif-ing Business Opportunities in Bangladesh

6 International Strategies

7 Benefits of International Strateg- !ppl-ing in Bangladesh

8 2eter8inants of $ational !d9antage

09 Business 'olic- in Bangladesh

00 S?OT !nal-sis

01 3O? 2O ,IMS GO I$T"$!TIO$!1F "$T ST!T"GI"S

02 is


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tends to operate7 It is an ongoing process that adhere an organiDation to co8pete inan international scenario7 International Strategic Manage8ent %ISM& is an ongoing8anage8ent planning process ai8ed at de9eloping strategies to allo> anorganiDation to expand aroad and co8pete internationall-7

Business li9es in a d-na8ic en9iron8ent >hich is changing 9er- fast7 So to ith the pace of change and to update = upgrade of 9alue in the 8ar


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#o8panies adopt an international strateg- >hen the- ai8 to le9erage their coreco8petencies - expanding opportunisticall- into foreign 8ar


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countries an understanding of cultural and linguistic arriers political and legals-ste8s and the 8an- co8plexities of international trade is essential toco88ercial success7

2o8estic strategic planningonl- includes the product and strateg- that has to do>ith that product and target 8ar ries and expect it in order to allo> the product intotheir countr-7 !ll these factors ha9e to account for >hen introducing the product>hile do8esticall- these issues do not exist7 #ertain legal issues also need to eloo


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-INTERNATIONA+ STRATEG$ TO E opportunities

J Inno9ation occurs in ho8e(countr- 8ar


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J'ressure for gloal integration and gloall- randed products

JGloal econo8ies of scale

J3igh potential de8and for products and ser9ices

J#urrenc- fluctuations and tariffs

Internati!nal Strategies*

,ir8s can choose one or oth of t>o asic t-pes of international Strategies:

=Business>level strategy*,ollo>s generic strategies of lo> cost differentiation focused lo> cost focuseddifferentiation or integrated lo> cost and differentiation

There are four generic strategies that are used to help organiDations estalish aco8petiti9e ad9antage o9er industr- ri9als7 ,ir8s 8a- also choose to co8peteacross a road 8ar


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"arlier >e discussed 'orterEs Model7 ! cost leadership strateg- 8a- help to re8ainprofitale e9en >ith: ri9alr- ne> entrants suppliersE po>er sustitute productsand u-ersE po>er7

i9alr- #o8petitors are liar since the lo> cost fir8>ill continue to earn profits after co8petitors co8pete a>a- their profits%!irlines&7

#usto8ers 'o>erful custo8ers that force fir8s to produce goodsCser9iceat lo>er profits 8a- exit the 8ar a9erage profitslea9ing the lo> cost organiDation in a 8onopol- positions7 Bu-ers then loose8uch of their u-ing po>er7

Suppliers #ost leaders are ale to asor greater price increases efore it8ust raise price to custo8ers7

"ntrants 1o> cost leaders create arriers to 8ar cost leaders are 8ore lier costs to enticecusto8ers to sta- >ith their product in9est to de9elop sustitutes purchase

patents7

1 Dierentiati!n( /alue is pro9ided to custo8ers through uni@ue features andcharacteristics of an organiDationEs products rather than - the lo>est price7 This is

done through high @ualit- features high custo8er ser9ice rapid productinno9ation ad9anced technological features i8age 8anage8ent etc7 %So8eco8panies that follo> this strateg-: olex Intel alph 1auren&

#reate /alue -:

1o>ering Bu-ersE #osts 3igher @ualit- 8eans less reans @uic


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3 ,!."sed Dierentiati!n( OrganiDations not onl- co8pete ased ondifferentiation ut also select a s8all seg8ent of the 8arho ha9e a >ider ase of custo8ers7This is especiall- true >hen special needs 8aideco8petitors to ser9e the needs of this group of custo8ers7 B- ser9ing a seg8entthat >as pre9iousl- poorl- seg8ented an organiDation has uni@ue capailit- toser9e niche7

Ris@s ! Using ,!."sed Strategies*

Ma-e out focused - co8petitors %e9en s8aller seg8ent& Seg8ent 8a- eco8e of interest to road 8arC!stDierentiati!n Strategy

This ne> strateg- 8a- eco8e 8ore popular as gloal co8petition increases7

,ir8s that use this strateg- 8a- see i8pro9e8ent in their ailit- to:

!daptailit- to en9iron8ental changes7 1earn ne> shich should enale the fir8 to produce produces >ithdifferentiated features at lo>er costs7

Thus the custo8er realiDes 9alue ased oth on product features and a lo> price7

South>est airlines is one exa8ple of a co8pan- that does uses this strateg-7

3o>e9er organiDations that choose this strateg- 8ust e careful not to: eco8ingstuc< in the 8iddle i7e7 not eing ale to 8anage successfull- the fi9e co8petiti9eforces and not achie9e strategic co8petiti9eness7 Must e capale of consistentl-reducing costs >hile adding differentiated features7


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=Internati!nal .!r;!rate >level strategy*

K The ty;e ! .!r;!rate strategy sele.ted ill have an i#;a.t !n thesele.ti!n and i#;le#entati!n ! the "siness>level strategies

So8e strategies pro9ide indi9idual countr- units >ith the flexiilit- tochoose their o>n strategies7

Other strategies dictate usiness(le9el strategies fro8 the ho8e officeand coordinate resource sharing across units7

K ,!."ses !n the s.!;e ! !;erati!ns*

'roduct di9ersification Geographic di9ersification

K Re"ired hen the ir# !;erates in*

Multiple industries and

Multiple countries or regions

K 'ead"arters "nit g"ides the strategy

But usiness or countr-(le9el 8anagers can ha9e sustantial strategicinput7


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M"ltid!#esti. Strategy*

K Strateg- and operating decisions are decentraliDed to strategic usiness units%SB.& in each countr-7

K 'roducts and ser9ices are tailored to local 8ar


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Gl!al Strategy*

K 'roducts are standardiDed across national 8ar


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L"xpanding siDe or scope of 8arell as 8ar cost 8ar 8aterials

K Transportation

K 1o>er costs for laor

K e- custo8ers

K "nerg-

Deter#inants ! Nati!nal Advantage*

K ,a.t!rs ! ;r!d".ti!n


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LThe inputs necessar- to co8pete in an- industr-

K 1aor 1and $atural resources

K #apital Infrastructure

K Basi. a.t!rs

L $atural and laor resources

K Advan.ed a.t!rs

L 2igital co88unication s-ste8s and an educated >or


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B"siness P!li.y in Bangladesh*

L To act on co88ercial consideration >ith due regard to the interest of industr-co88erce depositors in9estors and to the pulic in general7

LTo pro9ide financial assistance to pro;ects su;ect to their econo8ic andco88ercial 9iailit-7

LTo arrange e@uit- support and loans for pro;ects singl- or through consortiu8 of

financial institutions including an


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LTo create e8plo-8ent opportunities

LTo encourage and roaden the ase of In9est8ent in agro and infor8ation =co88unication technolog- %I#T& sectors7

SFOT Analysis*

! SFOT anal-sis %alternati9el- SFOT #atri& is a structuredplanning8ethodused to e9aluate the strengths eaho led a con9ention at the Stanford esearch Institute %no>SI International& in the *60s and *N0s using data fro8 ,ortune 500co8panies7*P)PThe degree to >hich the internal en9iron8ent of the fir8 8atches >ith theexternal en9iron8ent is expressed - the concept of strategic fit7

Setting the o;ecti9e should e done after the S?OT anal-sis has een perfor8ed7This >ould allo> achie9ale goals or o;ecti9es to e set for the organiDation7

Strengths: characteristics of the usiness or pro;ect that gi9e it anad9antage o9er others7

Fea@nesses*characteristics that place the usiness or pro;ect at adisad9antage relati9e to others

Opportunities: ele8ents that the pro;ect could exploit to its ad9antage Threats: ele8ents in the en9iron8ent that could cause troule for the

usiness or pro;ect
http://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Albert_S._Humphreyhttp://en.wikipedia.org/wiki/SRI_Internationalhttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/SWOT_analysis#cite_note-1http://en.wikipedia.org/wiki/SWOT_analysis#cite_note-2http://en.wikipedia.org/wiki/Strategic_fithttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Albert_S._Humphreyhttp://en.wikipedia.org/wiki/SRI_Internationalhttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/SWOT_analysis#cite_note-1http://en.wikipedia.org/wiki/SWOT_analysis#cite_note-2http://en.wikipedia.org/wiki/Strategic_fit


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Identification of S?OTs is i8portant ecause the- can infor8 later steps inplanning to achie9e the o;ecti9e7

,irst the decision 8ahether the o;ecti9e is attainalegi9en the S?OTs7 If the o;ecti9e is notattainale a different o;ecti9e 8ust e

selected and the process repeated7

.sers of S?OT anal-sis need to as< and ans>er @uestions that generate8eaningful infor8ation for each categor- %strengths >ea


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*& non(e@uit- 8ode >hich includes export and contractual agree8ents)& e@uit- 8ode >hich includes ;oint 9enture and >holl- o>ned susidiaries7

The 8arest le9el of ris< and the least 8ar


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,ranchising is si8ilar to licensing except that the franchising organiDation tends toe 8ore directl- in9ol9ed in the de9elop8ent and control of the 8arhich se8i(independent usiness o>ners %franchisees& pa- fees and ro-alties to a parent

co8pan- %franchiser& in return for the right to eco8e identified >ith itstrade8ara-it is done - the franchisor7 In addition to that >hile a licensing agree8entin9ol9es things such as intellectual propert- trade secrets and others in franchising

it is li8ited to trade8ar of the usiness7

&!int Jent"res

,oreign ;oint 9entures ha9e 8uch in co88on >ith licensing7 The 8a;or differenceis that in ;oint 9entures the international fir8 has an e@uit- position and a8anage8ent 9oice in the foreign fir87 ! partnership et>een host( and ho8e(countr- fir8s is for8ed usuall- resulting in the creation of a third fir8 7This t-pe of agree8ent gi9es the international fir8 etter control o9er operations

and also access to local 8aror< of relationships of the franchisee and is less exposed to the ris


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Instailit- in national go9ern8ents

?ar oth ci9il and international

'otential nationaliDation of a fir8Es resources

K E.!n!#i. Ris@s 2ifferences and fluctuations in the 9alue of different currencies

2ifferences in pre9ailing >age rates

2ifficulties in enforcing propert- rights

.ne8plo-8ent

K Te.hn!l!gi.al Ris@*

1ac< of securit- in electronic transactions

The cost of de9eloping ne> technolog- and technolog- 8a- fail

?hen all of these are coupled >ith the outdated existing technolog-the result 8a- create a dangerous effect in doing usiness in theinternational arena7

K O;erati!nal Ris@K Strategi. Ris@K Envir!n#ental Ris@K ,inan.ial Ris@K Terr!ris# Ris@

SUMMAR$*

In the international co8petiti9e en9iron8ent the ailit- to de9elop a transnationalorganiDational capailit- is the a-s of doing usiness irrele9ant it is 9ital for 8anagers to ha9e agloal 8indset to e effecti9e7 GloaliDation of usiness has led to the e8ergenceof gloal strategic 8anage8ent7 ! co8ination of strategic 8anage8ent andinternational usiness >ill result in strategies for gloal cooperation7 3o>e9erthere are ostacles to progress along the >a-7


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The prole8s caused - these ostacles can e sol9ed - cooperati9e 9enturesased on 8utual ad9antages of the parties in9ol9ed7 'roper effecti9eco88unication >ill e a hat is properand effecti9e in one culture 8a- e ineffecti9e and i8proper in

another7 Marith a road 8arith adifferentiation strateg-7 The stud- also found that percei9ed co8petition is

positi9el- associated >ith a road 8ar co8petition

influences a narro> productC8ar

Documents

International Strategic to expand the Business of Banglades