BA 3301 Lecture Notes - Lecture 75: Arbitrage, Foreign Exchange Risk, Strategic Alliance
Document Summary
Examined how the strategic choice of internaional businesses are afected by pressures for cost reducaions and pressures for local resposiveness. Pros and cons of using strategic allainces to support global strategies. Firms strategy is deined as the acions that managers take to atain the goals of the girl. Maximise value of irm, managers must pursue strategies that increase the proitability of the enterprise and its rate of proit growth over ime. Proitability can be deined as the rate of return the irm makes on its invested capital. Proit growth is the percentage increase in net proits over ime. The more value customers place on the irms products, the higher the price the irm can charge for those products. The value created by a irm is measured by the diference between v (the price that the irm can charge for that product given compeiive pressures) and c (the costs of producing that product)
