The determination to expand abroad especially in the form of foreign direct investment involves very important and complex decisions that have to be based on a detailed analysis and understanding of opportunities as well as threats. The main goal of this thesis is to provide a framework for this decision making in the context of the formulation of long-term competitive strategy.
Table of Contents
1 Introduction
1.1 Goals and limitations
1.2 Organisation and contents
2 Strategic management & professional service firms
2.1 Definitions
2.1.1 Basics of strategic management
2.1.2 Professional service firms
2.2 Strategic management – past and present
2.2.1 Corporate planning
2.2.2 Competitive advantage – key determinant of success
2.3 Resource-based management
2.4 Positioning strategies
3 International expansion
3.1 Motives to expand abroad
3.1.1 External and internal influences
3.1.2 Market and financial imperfections
3.2 Analysis of potential markets
3.2.1 International market screening
3.2.2 Assessment of a single country’s potential
4 Macro-level analysis of the Czech Republic
4.1 Transformation process
4.1.1 Liberalisation
4.1.2 Macroeconomic development
4.1.3 Structural and institutional reforms
4.2 Political and regulatory environment
4.2.1 Outline of political development
4.2.2 Regulations and incentives for foreign investors
4.3 Cultural characteristics
4.4 Foreign Direct Investment
5 Analysis of the Czech IT market
5.1 Five forces framework
5.2 Potential of IT market – proxy variables
5.2.1 E-business
5.3 SAP Implementations
5.3.1 SAP CR s.r.o.
5.3.2 Customers
5.3.3 Competitors
5.3.3.1 Intensity of competition
5.3.3.2 Success factors
5.3.4 Evaluation of the market potential - market nicher strategy
6 Conclusion
Objectives and Topics
This thesis provides a comprehensive framework for strategic decision-making in the context of international expansion, specifically for IT consulting firms considering an entry into the Czech Republic market for SAP implementations. The study focuses on evaluating whether the Czech Republic offers a strategic opportunity by analyzing macro-economic environments, industry-specific competitive forces, and the success factors identified through primary market research.
- Strategic management in professional service firms.
- Theoretical frameworks for international market screening and entry.
- Macro-level analysis of the Czech Republic’s economic and regulatory environment.
- Micro-level analysis of the Czech IT market and SAP implementation trends.
- Identification of critical success factors for IT consulting firms through market research.
Excerpt from the Book
2.1.1 Basics of strategic management
Strategy is not a detailed plan or programme of instructions, it is a unifying theme that gives direction and coherence to the actions and decisions of an individual or organisation. Though its primary purpose is to guide management decisions toward superior performance through establishing competitive advantage (for definition of competitive strategy see paragraph below), strategy also acts as a vehicle for communication and co-ordination within the firm.
Finally, strategy functions as a link between the firm and its business environment. A company’s actual strategy is usually partly planned and partly reactive to changing circumstances. In this thesis I will focus primarily on strategy as forming a link between the firm and its external environment. Figure bellow illustrates the interdependence between strategy and the business environment.
The interdependent parts of the figure above include a company, its business environment, strategy which is governing the interplay between the two, objectives strategy is aimed at, and the other side of the coin, performance actually achieved by successful strategy implementation. In order to be able focus more specifically on the part of strategic management concerned with international expansion, a difference between corporate and business strategy has to be emphasised.
Corporate strategy defines the scope of the firm in terms of the industries and markets in which it competes. Corporate strategy decisions include investment in diversification, vertical integration, acquisitions and new ventures, the allocation of resources between the different businesses of the firm etc.
Summary of Chapters
1 Introduction: Introduces the research scope, objectives, and limitations regarding the entry of IT consulting firms into the Czech market.
2 Strategic management & professional service firms: Defines the basics of strategic management and explains the unique characteristics of professional service and consulting firms.
3 International expansion: Outlines the theoretical motives for expanding abroad and the methods for screening and assessing potential international markets.
4 Macro-level analysis of the Czech Republic: Provides a detailed assessment of the Czech Republic's transformation process, political landscape, regulatory environment, and cultural factors.
5 Analysis of the Czech IT market: Applies industry structure analysis and proxy variables to evaluate the potential for SAP implementation and identifies critical success factors.
6 Conclusion: Summarizes findings on the attractiveness of the Czech Republic as a strategic opportunity for IT consulting firms.
Keywords
Strategic Management, IT Consulting, SAP Implementations, Czech Republic, International Expansion, Market Screening, Professional Service Firms, Macro-environment, FDI, Market Potential, Competitive Advantage, Resource-based View, Transformation Process, Industry Analysis, Success Factors.
Frequently Asked Questions
What is the primary focus of this research?
The work focuses on providing a framework for IT consulting firms to evaluate the strategic potential of the Czech Republic, particularly regarding SAP implementation services.
What are the central thematic fields covered in this thesis?
The core themes include strategic management, international expansion strategies, macro-economic and political analysis of the Czech Republic, and micro-level analysis of the IT consulting sector.
What is the main research question?
The primary research question is: Is the Czech Republic a strategic opportunity for an IT consulting firm?
Which scientific methodologies are utilized?
The author uses conceptual model-building, environmental analysis (macro-level), and primary market research via questionnaires sent to SAP partners and customers in the Czech Republic.
What topics are discussed in the main body?
The main body covers definitions of strategic management, motives for internationalization, the transformation and regulatory environment of the Czech Republic, and an analysis of the local IT market using Porter’s five forces framework.
Which keywords best characterize this work?
Key terms include Strategic Management, IT Consulting, SAP Implementations, Czech Republic, International Expansion, and Market Potential.
How does the author define the 'vulnerability' of a consulting firm?
The author refers to the dependency of consulting firms on individual professionals and key knowledge-based resources, which the firm must manage to remain competitive.
What is the significance of the "market nicher" strategy in this thesis?
The author discusses this strategy as a potential approach for smaller firms to serve specific market segments effectively, avoiding direct competition with large global players.
How is the "market potential" of the Czech Republic evaluated?
The evaluation is based on secondary data regarding economic indicators and primary data from market research on SAP implementation projects and customer expectations.
What conclusion does the author reach regarding the Czech market?
The author concludes that while the analysis of market potential and success factors has been fulfilled, a definitive judgment on whether an entry is a wise or profitable move remains challenging due to the specific conditions of the local market.
- Citar trabajo
- Katerina Fischerova (Autor), 2000, Market potential of the Czech Republic for IT Consulting firms - Focus SAP Implementations, Múnich, GRIN Verlag, https://www.grin.com/document/185398
