International Strategic Management
CHAPTER 11
International Strategic Management
After studying this chapter, students should be able to:
> Characterize the challenges of international strategic management. > Assess the basic strategic alternatives available to firms. > Distinguish and analyze the components of international strategy. > Describe the international strategic management process. > Identify and characterize the levels of international strategies.
LECTURE OUTLINE
OPENING CASE: Global Mickey
The opening case explores the Walt Disney Company’s international strategy. In particular, the case examines the difficulties Disney has faced in establishing a theme park in France.
Key Points
1. The Walt Disney Company is a $23 billion MNC that currently earns over $150 million a year in royalties and licensing fees.
2. Disney expanded its popular theme park concept in 1984 from its original two sites in the United .States. to Japan. To limit its risk, Disney signed an agreement with the Oriental Land Company, which financed and owns Tokyo Disneyland and pays Disney royalties. Tokyo Disneyland proved to be an enormous success, and prompted Disney to seek other foreign opportunities.
3. Disney chose Paris, France as the site for its next theme park in 1988. Paris was selected because some 350 million people live within a two-hour plane ride of the city, and because the French government offered numerous incentives, including bargain-priced land and an extension of the Parisian rail system to the park. Disney was permitted to retain up to 49 percent of the stock in the new theme park.
4. Euro Disneyland however, proved not to have the fairy tale success of its Japanese counterpart. Critics feared that it would threaten the French culture, and likened it to “a cultural Chernobyl,” farmers condemned the decision of the government to sell their land to
International Strategic Management
After studying this chapter, students should be able to:
> Characterize the challenges of international strategic management. > Assess the basic strategic alternatives available to firms. > Distinguish and analyze the components of international strategy. > Describe the international strategic management process. > Identify and characterize the levels of international strategies.
LECTURE OUTLINE
OPENING CASE: Global Mickey
The opening case explores the Walt Disney Company’s international strategy. In particular, the case examines the difficulties Disney has faced in establishing a theme park in France.
Key Points
1. The Walt Disney Company is a $23 billion MNC that currently earns over $150 million a year in royalties and licensing fees.
2. Disney expanded its popular theme park concept in 1984 from its original two sites in the United .States. to Japan. To limit its risk, Disney signed an agreement with the Oriental Land Company, which financed and owns Tokyo Disneyland and pays Disney royalties. Tokyo Disneyland proved to be an enormous success, and prompted Disney to seek other foreign opportunities.
3. Disney chose Paris, France as the site for its next theme park in 1988. Paris was selected because some 350 million people live within a two-hour plane ride of the city, and because the French government offered numerous incentives, including bargain-priced land and an extension of the Parisian rail system to the park. Disney was permitted to retain up to 49 percent of the stock in the new theme park.
4. Euro Disneyland however, proved not to have the fairy tale success of its Japanese counterpart. Critics feared that it would threaten the French culture, and likened it to “a cultural Chernobyl,” farmers condemned the decision of the government to sell their land to