KENYATTA UNIVERSITY

COURSE TITLE: DOCTOR OF PHILOSOPHY IN BUSINESS (STRATEGIC MANAGEMENT)

UNIT TITLE: GLOBAL BUSINESS STRATEGIES

UNIT CODE: BBA 925

SEMESTER: Three (3)

ASSIGNMENT TITLE: INTERNATIONAL BUSINESS DEVELOPMENT AND

STRATEGIES, GLOBALIZATION THEORIES AND MODELS

COURSE INSTRUCTOR: DR. MARY RAGUI , PhD

SUBMITTED BY: NANCY WAMBUI NJOROGE

REG. NO: D86/CTY/21426/2023

DATE OF SUBMISSION: 5TH MAY, 2024

• International business development and strategies involve expanding a
company's operations and market presence beyond its home country.
• This complex process requires a deep understanding of global markets, cultural
differences, legal and regulatory environments, and effective management of
resources across diverse regions.
STRATEGIES ESSENTIAL FOR SUCCESSFUL INTERNATIONAL BUSINESS DEVELOPMENT:
Market Research and Analysis:

Conducting thorough market research to identify potential markets, understand local

demand, and analyze competition.
Evaluating market size, growth potential, and market entry barriers.
Cultural Understanding and Adaptation:

Gaining insights into the cultural, social, and business norms of the target market.
Adapting products, services, and marketing strategies to meet local preferences and
expectations.
Regulatory and Legal Compliance:
Understanding and complying with local laws, regulations, and trade policies.
Ensuring adherence to international trade agreements and standards.
Entry Strategies:
Deciding on the most appropriate entry strategy, such as exporting, franchising, joint
ventures, strategic alliances, or wholly-owned subsidiaries.
Evaluating the risks and benefits associated with each entry mode.
Supply Chain and Logistics Management:
Establishing efficient and reliable supply chains to ensure timely delivery of products and
services.
Managing logistics, transportation, and distribution networks across borders.
Financial Management:
Securing funding and managing financial risks associated with international operations.
Navigating foreign exchange rates, international taxation, and repatriation of profits.
Human Resource Management:
Recruiting, training, and managing a diverse workforce in different regions.
Ensuring effective communication and coordination among international teams.
 Strategies for International Business Development
Global Standardization vs. Localization:
Global Standardization: Offering standardized products and services worldwide to
achieve economies of scale and maintain brand consistency.
Localization: Customizing products, services, and marketing efforts to suit local
markets and consumer preferences.
Innovation and Adaptation:
Innovation Adaptation is the process of taking ideas from a previous innovation
for use as core concepts that can be tailored to fit the challenges and context that
are now being addressed. Organizations scan the market on a regular basis to
identify what their competitors are working on to stay one step ahead of them.
Innovating new products and services tailored to the needs of international
markets.
Continuously adapting business strategies based on feedback and changing
market conditions.
 Strategic Alliances and Partnerships:
• A strategic alliance is an arrangement between two companies that have decided to
share resources to undertake a specific, mutually beneficial project. A strategic
alliance agreement could help a company develop a more effective process.
• There are three types of strategic alliances: Joint Venture, Equity Strategic Alliance,
and Non-equity Strategic Alliance.
• Forming alliances with local businesses to leverage their market knowledge,
networks, and resources.
• Engaging in joint ventures to share risks and benefits with local partners.
Digital Transformation and E-Commerce:
• Ecommerce (or electronic commerce) is the buying and selling of goods or services
on the Internet. It encompasses a wide variety of data, systems and tools for online
buyers and sellers, including mobile shopping and online payment encryption.
• Digital transformation is the process of using digital technologies to transform
existing traditional and non-digital business processes and services, or creating new
ones, to meet with the evolving market and customer expectations, thus completely
altering the way businesses are managed and operated, and how value is delivered
to customers.
• Leveraging digital technologies and e-commerce platforms to reach global
customers.
 Utilizing data analytics to understand consumer behavior and optimize
marketing strategies.
BENEFITS OF DIGITAL TRANSFORMATION
• Increases productivity while reducing labor costs — using technology to
work more efficiently is one of the most impactful ways to transform
your business. For example, for enterprises, the time and money they
spend training new employees and updating digital resources can
quickly get out of hand. With the proper tools, you can keep costs down
and productivity up.
• Improves the customer experience —Digital transformations are the
driving force behind improved customer experiences.
• Drives innovation, keeping you ahead of your competition – Your
competitors are looking into digital transformation regardless of
whether or not you are. Choosing not to embrace digital transformation
is essentially deciding that you don’t mind being left behind.
 Sustainable and Ethical Practices:
• Sustainable business practice is about ensuring we conduct our business in a complaint and
ethical way, taking into account our impact, economically, socially, environmentally and with
respect to individual human rights.
• Implementing sustainable business practices to minimize environmental impact and meet
regulatory requirements.
• Upholding ethical standards and corporate social responsibility to build a positive reputation
and gain consumer trust.

Risk Management:
• Risk management is the identification, assessment, prioritization, and control of
an organization’s risk. These risks can be strategic, legal, security, economic, or
financial in nature and can stem from myriad sources, including management
errors, liabilities, accidents, and more.
• Once risks are identified, efforts should be made to monitor, minimize, and control
the risks so that the probability of them occurring is significantly reduced as are
their impacts.
• Developing contingency plans to address potential disruptions in international
operations.
 Conclusion
Successful international business development requires a strategic
approach that encompasses market research, cultural understanding,
regulatory compliance, and effective management of resources. By
leveraging innovation, forming strategic alliances, and embracing digital
transformation, companies can navigate the complexities of global
markets and achieve sustainable growth.
 GLOBALIZATION THEORIES AND MODELS
Globalization theories and models provide frameworks for understanding the
complex processes and effects of globalization.
key theories and models:
1. World-Systems Theory
Developed by sociologist Immanuel Wallerstein, the World-Systems Theory views
the global economy as a complex system divided into core, semi-periphery, and
periphery nations. Core countries are dominant, technologically advanced, and
economically developed, often exploiting peripheral countries, which are less
developed and provide raw materials and labor. Semi-peripheral countries fall in
between, showing characteristics of both core and periphery.
2. Dependency Theory
Rooted in Marxist economics, Dependency Theory argues that economic
development in peripheral nations is constrained by their dependence on core
nations. This model suggests that the global economic system is structured to
benefit wealthy nations at the expense of poorer ones, maintaining a cycle of
dependence and underdevelopment.
 3. Neoliberalism
Neoliberalism promotes free-market capitalism as the pathway to
economic development and global integration. It emphasizes
deregulation, privatization, and reducing government intervention in the
economy. Proponents argue that open markets and trade liberalization
lead to greater efficiency and growth, while critics highlight the social
inequalities and environmental degradation that can result.
4. Globalization Theory
This broad theoretical approach examines the various dimensions of
globalization, including economic, political, cultural, and technological
changes. It focuses on how global interconnectedness impacts social
structures, institutions, and individual experiences. Key thinkers like
Anthony Giddens and Roland Robertson emphasize the reciprocal
relationship between global and local processes (globalization).
 5. Modernization Theory
Modernization Theory posits that countries progress through similar stages
of development, moving from traditional to modern societies. It suggests
that developing countries should emulate the economic practices of
Western nations to achieve development. Critics argue that this theory
oversimplifies development processes and ignores historical and cultural
contexts.
6. Cultural Imperialism
Cultural Imperialism Theory suggests that globalization leads to the
dominance of Western (especially American) culture, eroding local cultures
and homogenizing global cultural landscapes. It examines the impact of
global media, consumer culture, and Western values on traditional societies.
7. Network Society
Developed by Manuel Castells, the Network Society theory explores how
information technology and digital networks transform social, economic,
and political structures. It emphasizes the role of information flows and
communication networks in shaping the global economy and society.
 10. Hyperglobalization Thesis
This theory argues that the world is experiencing an unprecedented level of
globalization that diminishes the significance of national borders and state
sovereignty. It suggests that global economic integration and technological
advancements are leading to a more homogeneous global culture and economy.
Globalization models are theoretical frameworks used to understand and analyze the
complex process of globalization, which involves the increasing interconnectedness
and integration of economies, societies, and cultures worldwide. These models vary in
their emphasis on different aspects of globalization and offer unique perspectives on
its drivers, impacts, and implications. Here are some prominent globalization models:
Hyperglobalist Model:
The hyperglobalist model portrays globalization as a powerful force that is
transforming the world into a single, integrated global society.
According to this model, nation-states are losing their significance as borders become
increasingly porous, and economic, political, and cultural activities transcend national
boundaries.
Proponents argue that globalization leads to greater economic efficiency,
technological innovation, cultural exchange, and the spread of democratic values.
 Skeptical Model:
The skeptical model challenges the notion of globalization as an all-encompassing and
inevitable process.
It acknowledges the increased interconnectedness facilitated by globalization but
argues that nation-states and national identities remain resilient.
Skeptics highlight the continued importance of state sovereignty, regionalism, and
cultural diversity, suggesting that globalization may not lead to uniformity or the
decline of the nation-state.
Transformationalist Model:
The transformationalist model takes a nuanced approach, recognizing the
transformative impacts of globalization while emphasizing the importance of context
and agency.
According to this model, globalization produces diverse and unpredictable outcomes,
depending on factors such as state policies, societal responses, and historical legacies.
Transformationalists argue that globalization both enables and constrains state and
societal actions, leading to complex patterns of change across different domains.
Transnationalism focuses on the activities and identities that transcend national
boundaries. It examines how migrants, businesses, and civil society organizations create
networks that span multiple countries, influencing social, economic, and political
dynamics across borders.
 Network Society Model:
The network society model, proposed by sociologist Manuel Castells, emphasizes
the role of information and communication technologies (ICTs) in shaping
globalization.
It highlights the emergence of a networked global society, characterized by
interconnected flows of information, finance, and culture facilitated by digital
technologies.
The model emphasizes the decentralization of power, the rise of non-state actors,
and the formation of new social identities and communities in cyberspace.
 Conclusion
These theories and models provide diverse perspectives on the
multifaceted process of globalization. They highlight the economic,
political, social, and cultural dimensions of global interconnectedness
and offer frameworks for analyzing its impacts on societies worldwide.
Understanding these theories helps in comprehending the complexity of
globalization and its implications for the modern world.