Define and Explain International Business Strategy

DEFINE AND EXPLAIN INTERNATIONAL BUSINESS STRATEGY International business strategy refers to plans and actions that guide commercial activities between companies in different countries. The goal is to leverage core strengths by expanding into new foreign markets to increase profits. Companies like McDonald's, Microsoft, and Walmart pursue international strategies. Key elements often remain controlled from company headquarters, like R&D, branding and manufacturing. But local subsidiaries may adapt products and do light assembly to suit that country's consumers. Expertise in areas like hotel management allows international chains to grow successfully. However, centralized control can hinder responding to varying local preferences. Firms emphasizing customization can gain advantage. For example, Carrefour struggled in the U.S. market compared to more localized retailers. Developing a Training Strategy for International Business IT, telecom and other markets are now highly global. Many hardware and software firms operate internationally, as do merged telecom providers. Free trade policies, open markets and advancing transportation/communication technologies enable this globalization. Firms and employees must adapt to stay competitive. But training departments often remain provincial. Transforming perspective can significantly benefit the organization. Where to Begin First, a small diverse team should map company-wide goals to internal/external training objectives. This impacts areas like marketing, HR, product training and support. Scope assessment identifies globalization opportunities and localization requirements for effective deployment. Securing "buy-in" across the organization is key. Executive advocates support budget and organizational changes. Local advocates provide insights on culture and language. Benefits Globalization, though difficult to quantify initially, reduces time-to-market. Faster deployment increases learning effectiveness and supports goals sooner. Decreased latency also improves product and customer support teams. Costs should be shared across the organization. For learners, despite English skills, native language improves concept retention, reducing confusion and ambiguity. Adaptation also occurs faster when family members are linguistically/culturally prepared. Components of Effective Pre-Departure Training There are many possible components, like culture awareness, preliminary visits, language preparation, spouse/family inclusion and repatriation issues. Comprehensive programs use techniques such as films, role plays, case studies and complete family training. Cultural Awareness helps deal with workplace challenges. Preliminary visits assess suitability and aid adjustment. Language skills, though ranked lower by Anglo firms, enable better negotiation, access and effectiveness. Family inclusion is vital - spouse dissatisfaction causes most failures. Repatriation preparation eases transition and retention back home. Aspects of Expatriate Training With growing expatriation, cross cultural training is increasingly vital. It covers areas like business etiquette, communication norms, conflict resolution, and management. Though "learned on the job", basic familiarity aids early effectiveness. Training reduces relocation risks and negative impacts of "culture shock". It emphasizes coping strategies when feeling vulnerable. Over 80% of multinationals provide some cross cultural preparation, though often not mandatory. Comprehensive programs use films, books, role plays, case studies and host country visits to build understanding. Language skills enable better task performance and cultural adjustment. Preliminary trips also help selection and adjustment. Cultural Differences Globalization means more cross-cultural contact. Differing perspectives on appearance, expression, etc. can cause problems interpreting actions, predicting behavior, and managing conflicts. This impacts profitability. Culture Assimilators and Cross-Cultural Understanding Culture assimilators effectively provide information to facilitate relations with a target culture. Studies across various trainee populations and cultures show improved adjustment and interaction. However, culture assimilators haven't been tested for longer-term immersion without prior target culture exposure. This research aims to address that gap. Theoretical Background Attribution theory considers how people explain others' motivations and actions, like scientists analyzing causes and effects. Attributions depend on norms, roles and consequences seen in a situation. Discrepancies can cause conflicts. Isomorphic attributions occur when someone attributes another's behavior to the same causes the other does. This appreciation facilitates understanding.