1. Global Strategy Aparna Priyadarshini AIM, Manila ,Cohort 5 Date 23 rd Feb, 2010

3. Strategic Trade-off and Choices Homogeneity Competitive Advantage Strategic Choice Static Arbitrage : Use the differences as opportunities to create horizontal and vertical Multinationals To sell Standard or Customized product? Scale Of Operations Global efficiency : Large organizations can treat the world as a single economy and sell standardized products. E.g. Japanese firms Where to compete? Prioritize the allocation of resources in the existing and new markets. Volatility Innovation and Dynamic Arbitrage : Continuously re-optimizing firm’s activities as per the change in dynamic factors like currency value etc. Where to locate activities? The choice is about both the number of site and specific location of each site.

4. Three A’s of Global Strategy The Three A’s of Global Strategy Adaptation “ One size does not fit all” Modifying the existing business model to foster success in a foreign environment. Ex MTV, Pizza Hut, KFC Aggregation “ One for all, all for one” Finding similarities in national markets and producing a standardized product for them. Ex Hyundai Heavy industries Arbitrage “ Difference Counts” Taking advantages of the various differences in factor markets across countries. Ex Manufacturing in China

7. The Journey Model for International opportunity