Strategy and International Business Essay Example | Topics and Well Written Essays - 3000 words

Strategy and International Business - shew ExampleHanson and Ever establish BTR Tarmac.Strategic PlanningThis carriage is best suited to businesses that have burning(prenominal) potential synergies between businesses, often requiring large, risky decisions and face tough international competition. This means concentrating on wiz or two core businesses and divesting peripheral businesses - the blend in between the businesses is critical e.g. Cadbury Schweppes BOC Lex STC.Strategic ControlThis direction seems to require some homogeneity between the businesses in terms of their strategic characteristics so that the centre stick out have a good feel and understanding for each. However, there does non seem to be a need to concentrate upon just one business or industry, or even a closely related set of core businesses, provided that the diversity is not too gigantic e.g. the demerger of ICI into ICI and Zeneca Courtaulds.Source Primary prorogue 3 - Advantages and Dis favours of each styleStyleAdvantagesDisadvantagesFinancial Control / Portfolio glide pathQuantifiableResponsiveness lose DirectionCentre does not add valueStrategic Planning / Core competence ApproachEmpowermentGrowth on corporate as a wholeCoordinationCompetitive advantage effectualSBU structure tends to hinder development as competences cross organisational boundaries.Centre out of touchDivisions tactical - by preventing other SBUs exploiting the particular competence of one SBU (e.g. transferring staff). Acquisitions criticalStrategic Control / Linkages ApproachCentre/divisions complementaryCost control by monitoring each activity EfficientCoordinationMotivationCompetitive advantageProblems in sharing...Each style is different in its approach, can offer different advantages to the corporation, but has different strengths and weaknesses.This style works when the businesses in the group are largely autonomous and the centre can act to cleanse performance in each business, often by turnarou nd of under-performing businesses, and ultimate disposal e.g. Hanson and Ever Ready BTR Tarmac.This style is best suited to businesses that have important potential synergies between businesses, often requiring large, risky decisions and facing tough international competition. This means concentrating on one or two core businesses and divesting peripheral businesses - the fit between the businesses is critical e.g. Cadbury Schweppes BOC Lex STC.This style seems to require some homogeneity between the businesses in terms of their strategic characteristics so that the centre can have a good feel and understanding for each. However, there does not seem to be a need to concentrate upon just one business or industry, or even a closely related set of core businesses, provided that the diversity is not too great e.g. the demerger of ICI into ICI and Zeneca Courtaulds.Portfolio/Financial Control companies are plausibly to develop into unrelated products/markets/processes, usually by acquis ition, with the decision likely to rest on wheth