Ch. 8: International Strategies and Strategies for Entrepreneurial Ventures and Not-For-Profits

1. Team 1 – Patrick Morales, Will Turner, Chris Mathis, Becky Alvarado, Jared Stowe Ch. 8: International Strategies and Strategies for Entrepreneurial Ventures and Not-For-Profits

2. Issues arise from different areas as companies/managers decide to do business internationally • Legal-Political Environment • Economic Environment • Cultural Environment The International Environment

3. Economic environment: Launched first South American store in Brazil –opened up website to Brazil in 2010 in Reais currency Cultural environment: AA tailors online store in China to include region-specific promotions synchronized with seasons and holidays American Apparel: International Practices and Challenges

4. Legal-Political environment: AA’s controversial advertising and marketing may conflict in Middle-Eastern Countries and markets. American Apparel: International Practices and Challenges

5. Multicountry Approach versus Global Approach International Strategy Alternatives Examples: MTV Networks and Domino’s Pizza International Strategic Decisions

6. Entrepreneurial Ventures: Organizations that pursue opportunities through innovative processes with growth and profitability goals. Small Business: Independent business with fewer than 500 employees that does not necessarily use innovative practices and has little impact on the industry.

7. Why are these types of organizations important? Small businesses represent 99% of all employers and account for 50% of private sector output

8. Small firms generate 60-80% of new jobs annually Entrepreneurship is important to every industry sector in the U.S. The “creative destruction” process of innovating leads to technological changes and employment growth

9. Studies show positive links between planning and business performance Strategic planning should be less formal than large organizations Strategic decision makers need to know whats happening externally and internally Value of Planning

10. Small firms can use the same strategies of large firms, with a few exceptions Small firms need to pay more attention to extent or range of possibilities Even small businesses need a “corporate “strategy Strategy Choices

11. Measure by goal attainment at various levels Decision makers need to know if strategies are working The only difference in evaluation is extent of evaluation Strategy Evaluation

12. 1. Mission Statement 2. Situation analysis 3. Strategy Formulation 4. Strategy Implementation 5. Strategy Evaluation Strategic Management Process

13. Human Resource Management • Employees are most valuable competitive advantage • Innovation and Flexibility • Large firms cannot always be as flexible • Small companies have the potential for creative design Specific Issues

14. Provide a good or service with no intention of earning a profit Sources of revenue include taxes, dues, grants, permits, and donations If revenue > expenses, goods and services will be improved or be priced lower Provide services that shouldn’t be provided by for-profit organizations Not-For-Profits Overview

15. Not-For-Profit Revenue Streams

16. Types of Not-For-Profits

17. NFPs compete for resources and customers (volunteers, donations, etc.) External Environmental Analysis (economic trends, societal attitudes, etc.) Internal Environmental Analysis (distinctive capabilities, core competencies, etc.) External constraints and limited resources can affect strategic options Focus is greater on incoming resources than resources being used Strategic Management: NFPs

18. How useful is strategic management when no profit is being made? • Multiple Stakeholders: • Politics • Public Sector Organizations • Differing Agendas Strategic Issues facing NFP’s

19. Cause-related marketing • Avon products inc. example • Not-for-profit marketing alliance • Transaction-based promotions • Joint issue promotions • Licensing • Strategic Piggybacking • Special Olympics selling t-shirts, etc. Strategies Used by Not-for-Profit Organizations

20. Thank You