Potential Advantages and Challenges in International Business Strategy: A Case Study

Information and Communications Technology (ICT) applications can help a company boost the management and performance of each value chain activity, from inbound logistics to operations, outbound logistics, marketing and sales, and service. Besides, the applications also improve the supporting activities in the value chain such as procurement, human resource management, and technology development that are not focused in this paper. However, the ICT implementation also poses a threat to the company, especially with regard to temporary worsening of profitability and productivity. The main rationale behind it is the unbalanced changes that the company is putting in place. In managing new innovations, the firm should also pay attention to organizational context and external linkages besides strategic design and effective implementation. Using McKinsey's 7S model, it can be seen that excellent strategies have to be complemented by suitable and excellent structure, systems, skills, staff, style, and shared values. Setting strategic plans and changes without considering other S will unwittingly create confusion and make the implementation less successful. [PUBLICATION ABSTRACT]