International Business Strategy
International Business Strategy
Dr. Wu Zan
**What is International Business ?
- Business : Intergration of different functional areas (HR, Accounting, Finance, Strategy…)
- International Business : business activities conducted across cultural and national boundaries.
- Real life examples :
We are living the age of international business and globalization.
Ex : Australia = its government is negociating a free trade agreement with China, its biggest international partner in business.
In the past 50 years, Australia’s mining industry has been growing thanks to international business. This has been declining also because of international business in the past few years. But today, growth of international service industry : growth of travel, hotels, restaurants, finance, real estate, international students.
- Scenario 1 : Ford (US) establishes manufacturing facilities in China.
=> FDI = Foreign direct investment.
- Scenario 2 : Australian BHP exports iron ore to China. => international trade (= Import/Export).
-Scenario 3 : Motorola out-sources its after-sale services from India. India has a comparative advantage in IT,service-centers,… => international outsourcing. (=outsource service/resource from another country). Many companies are outsourcing R&D to other countries, ex : Apple has 5 R&D innovation and design buildings, only 1 is in the US.
- Scenario 4 : Toshiba and Phillips establish alliance in R&D : international partnership in strategic R&D design and innovation.
**Why study International business ? expertise in global strategy is highly sought after, and needed in every functional expertise in a business.
International assignments in multinational corporations => we need preparation to go internationnally
**HC Online : Do aussie managers think globally enough ?
Lack of innovation and incomplete global strategies.
**ATKearney : in top 10 of consulting companies
Their global Business policy Council has IB strategy expertise : to build
Dr. Wu Zan
**What is International Business ?
- Business : Intergration of different functional areas (HR, Accounting, Finance, Strategy…)
- International Business : business activities conducted across cultural and national boundaries.
- Real life examples :
We are living the age of international business and globalization.
Ex : Australia = its government is negociating a free trade agreement with China, its biggest international partner in business.
In the past 50 years, Australia’s mining industry has been growing thanks to international business. This has been declining also because of international business in the past few years. But today, growth of international service industry : growth of travel, hotels, restaurants, finance, real estate, international students.
- Scenario 1 : Ford (US) establishes manufacturing facilities in China.
=> FDI = Foreign direct investment.
- Scenario 2 : Australian BHP exports iron ore to China. => international trade (= Import/Export).
-Scenario 3 : Motorola out-sources its after-sale services from India. India has a comparative advantage in IT,service-centers,… => international outsourcing. (=outsource service/resource from another country). Many companies are outsourcing R&D to other countries, ex : Apple has 5 R&D innovation and design buildings, only 1 is in the US.
- Scenario 4 : Toshiba and Phillips establish alliance in R&D : international partnership in strategic R&D design and innovation.
**Why study International business ? expertise in global strategy is highly sought after, and needed in every functional expertise in a business.
International assignments in multinational corporations => we need preparation to go internationnally
**HC Online : Do aussie managers think globally enough ?
Lack of innovation and incomplete global strategies.
**ATKearney : in top 10 of consulting companies
Their global Business policy Council has IB strategy expertise : to build