Strategic Analysis: International Strategy Report and Frameworks

This report delves into the realm of international strategy, examining key concepts and frameworks essential for businesses operating across borders. It begins by defining the 'local-global dilemma' and its implications for firms, illustrating how companies must balance global reach with local market adaptation. The report then explains the CAGE (Cultural, Administrative, Geographic, and Economic) framework, providing an example of how Centria University would navigate these distances when establishing a campus in China. Furthermore, it details various market entry modes, such as exporting, licensing, franchising, partnerships, strategic alliances, and acquisitions, offering real-world examples of companies employing each strategy. The report concludes by synthesizing the challenges and opportunities inherent in international expansion, highlighting the importance of strategic planning and adaptability for success in the global marketplace. The report provides a comprehensive understanding of the international strategy with practical examples.

International Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Meaning of global local dilemma with relation to four international strategies :...................3
2. Meaning of CAGE framework with example :.......................................................................4
3. Their are four main entry mode in an market :-......................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
International strategies are those plan which helps a business for selling their goods or
services outside domestic market (Chen and Liu, 2019). The importance of international
strategies are when a company is already operating in country and want to expand business
across the borders then strategies are used. Strategy can't be same for all country, companies
always have to come up with new plan.
1. Meaning of global local dilemma with relation to four international strategies :
The local-global dilemma mean from a very long period of time companies are aim to go
at global scale for better reach of business. In process of doing it very effectively, they also have
to reduce the difference of local market on another hand. Main dilemma companies is selecting a
product for selling across all the boundary and implementing the local strategies for responding
the regional difference.
Their are four international strategies which are
Export strategy:- This strategies is used when company focused in its domestic market
want to take advantage of international opportunities. Coca-cola is American company initially
produced only for domestic purpose but later on produced for other international market also to
take advantage.
Standardization strategy :- It is used when a whole world market is treated as one and
assumed that a product can meet the need for every people. In case of Apple Inc. is an American
company which uses standardization technique because its product are not modified according to
local user (Ma, Delios and Yu, 2019).
Multidimensional Strategy :- This strategy modified products in consideration with
their country where product is planning to launch. KFC is fast food American restaurant, which
is good in fried chicken. In 2014 KFC launched “So Veg, So good” are to promote vegetarian
range.
Transnational Strategy :- It is a combinations of standardization and multidimensional
strategy, it is used when a cost pressure is their form other internation market and also want
meet the local customer needs. Ford motors is an American company it has used both the
strategies while manufacturing car because their was a cost factor which was affecting its
business.

2. Meaning of CAGE framework with example :
CAGE distance framework stands for culture, administrative, geographical and
economic.
Culture:- It is the first and most complex point for management. It in hidden in nature
but have have big impact on the people's behaviour and values they have.
Administrative:- This shows the behaviour of the political power in country means
while making an investment or international expansion the government act as an supporting
power or an obstacle in their way.
Geographical:- This shows the distance between two countries, size ,transportation
connectivity and some more. However the online connectivity have decreased the physical
distances among people.
Economic:- This points talks about the economic condition of the place, purchasing
power of people, how income is distributed. It is one of the important obstacle for the company.
For instance centria university is recognised higher education institution in Finland and
its planning to open a local campus in china so it will have determine on cultural aspect like
language barrier is one of the most crucial aspect of university (Mariano, 2020). Second aspect is
administrative which say weather the government supports new university from foreign countries
or make obstacles like academic freedom, internet censorship and other challenges. Geographical
standards talks about connectivity of places and relation with other countries. The climatic
pressure is one of the important if case there is heavy snowfall the connectivity will get blocked
student can't reach to university. Economic standards talks about the how are student able to
meet the fee criteria, at income is distributed among people.
3. Their are four main entry mode in an market :-
Exporting:- Exporting is the way to enter a market and exporting is the sale of product
and services another country. Tesla is American electric vehicle and clean energy company.
Initially it has exported to countries which because it helps in reducing the cost of establishment
and pre provide all the labelling prices and details according to the market.
Licensing and franchising:- It is process in which company give a license of selling its
product at their own premise. It is a special mode of entry in market which is at low cost low risk
and fast entry. The Walt Disney is an American company which use to sell its product like

Hannah Montana and high school musical product franchising to other by working on some legal
formalities.
Partnerships and Strategic Alliances:- It is a process of making a contract between two
or more people with some condition in it. It is mainly with local partner. Uber had alliance with
Spotify to provide the control of stereo to Uber customer to get them better experience to
customer (Walsh and Lannon, 2020).
Acquisition:- It is a process of purchasing or acquiring a business completely and gain
control of his decision and assets. Intel has acquired Mobileye, Intel has acquired this for getting
advantage on sensor and cameras for ADAS(advanced driver assisted system).
CONCLUSION
The above report concludes different aspect of international strategies which focuses on
how a organisation operates in intentional markets. Above statements shows what are the
difficulties and opportunities arrive on the way of businesses.

REFERENCES
Books and Journals
Chen, J. and Liu, W., 2019. The Belt and Road Strategy in International Business and
Administration: Corporate Social Responsibility. In The Belt and Road Strategy in
International Business and Administration (pp. 28-51). IGI Global.
Ma, X., Delios, A. and Yu, S., 2019. Innovation in MNC’S strategy and structure: the (re)
emergence of host country headquarters in large emerging markets. Asia Pacific Journal
of Management, pp.1-24.
Mariano, B., 2020. Towards a global strategy on digital health. Bulletin of the World Health
Organization, 98(4), p.231.
Walsh, J. N. and Lannon, J., 2020. Dynamic knowledge management strategy development in
international non-governmental organisations. Knowledge Management Research &
Practice, pp.1-12.