Lecture International business (9e): Chapter 13 - Charles W.L. Hill - Trường Đại học Công nghiệp Thực phẩm Tp. Hồ Chí Minh

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International Business

9e 

By Charles W.L. Hill

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Chapter 13

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13­3

What Is Strategy?



_{A firm’s}

_strategy

_{refers to the actions that}

managers take to attain the goals of the firm



_{Firms need to pursue strategies that increase}

profitability

and

profit growth



_{Firms can}

_{add value}
_{lower costs}

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What Is Strategy?

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13­5

How Is Value Created?

 _{The firm’s}_{value creation}_{is the difference between V and}

C

_{a firm has high profits when it creates more value for}

its customers and does so at a lower cost

 _{Profits can be increased by}

1.Using a differentiation strategy

2.Using a low cost strategy

 _{To maximize long run return on invested capital firms}

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How Is Value Created?

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13­7

Operations Configured?



_{A firm’s}

_operations

_{are like a value chain}

composed of distinct value creation activities



_{Primary activities}

 _R&D

 _production

 _{marketing and sales}
 _{customer service}



_{Support activities}

 _{information systems}
 _logistics

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