components of ism

8/7/2019 Components of ISM

1/17

Components of ISM

Dr Archana Sharma


2/17

ISM

Has the same consideration as where

we intent to go, what approach and

manage process PLANNING- defines purpose,

Achievements,deploying resources,exploiting

present and future opportunities and

threats.

IMPLEMENTING- designing and developing

functions,action plans to achieve results


3/17

ISM

It requires effective imagination,foresight,

Drive,persistence,motivate and inspire

MONITORING ISM guides building of business

portfolios

In changed environment and deployment

of resources

Invovles creative thinking,tools toachieve sustainable advantage


4/17

ISM

Is distinct process of managing problems

and opportunities .

Includes

import and export of commodities andmanufactured goods

Investment of capitalservices like banking,advertising, retailing. etc

Supervision of employees in differentcountries.

Transactions involving copyrights, patents,trademarks and process technology.


5/17

Four Degrees of internationlsation

Istactivities limited to export-import--no

special division is required

IInd takes activities in own hand contacts

suppliers,customers,expand trade-subsidy

leverages companys products &

competencies

IIIrd gets involved directlyin sale,purchase ofgoods & services and utilises own personnel

(becomes multinational if it has direct

investment in foreign country)


6/17

ISM

IV when orientation shifts from home countryto foreign country

ISM is based on global environment which ismultiple, discontinous and highly uncertain andunpredictable.

Has to deal with diverse political & economic

conditions,cultures & social differences inmarket which undergoes change at differentrates and periods.


7/17

ISM Fundamental

Concerned with futurity of presentdecisions

Impact of present decisions on futureproduct-market

Top managers are active players

Plans are drawn for overall corporate as

well as business units Requires comprehensive understanding

of competitors strategies


8/17

ISM

Requires understanding different issues

relating to-

Legal,monetary and politicalsystems,cultures,economic conditions

and value system and different

competitive behaviour


9/17


10/17

ISM

Value Competency Vision

Mission

Goals and objectives

Planning and Admn Competency Customer focus

Competitor focus


11/17

ISM

Stakeholders Competency Shareholders

Customers

Employees Communities

Senior managers

T


12/17

Global ENVT

Requires Direct (specific) action

Indirect (remote) action

An enterprise handling business outsidehas to handle external forces within and

outside home country.

These forces can be controllable anduncontrollable


13/17

Has to reckon with

Value sys of society

Rules and regulations laid down by govt Monetary policy

Institutional set up

Ideological beliefs of leaders.


14/17

Environmental appraisal

Can be done

ECONOMIC ENVT

Factors of prodn

Implication of these factorsdiverse rate of economic growth

Improving/deteriorating balance of payment conds

Sworld policies of host country

Monetary policy stability and fluctuations

Different price levels-inflation/deflation, relaxation of price and

wage controls Stages in bus cycle


15/17

Competitive ENVT

Market share of participants

Growth rate of industry

Levels of profits Cost of entry and exit

Degree of differentiation

Economies of scale Nature of product


16/17

Technological Envt

Capital/ labour intensive

Prodn process

Material supply Distribution

Quality control and cost

R&D

Adaptations

innovations


17/17

Strategic Mgmt Process

Strategic thinking

Strategic analysis

Creating competitive Advantage-makingBus level strategy, competitive rivarly,

corporate level strategy,acquistion &

restructuringMonitoringentreprenurial oppt,corporate

Governance

components of ism

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