Global Strategic Management, sources of competitive advantage, foreign market entry, emerging economies, and more. Global strategy. Global strategy as defined in business terms is an organization's strategic guide to globalization. Such a connected world, allows a business's revenue to not be to be confined by borders. A business can employ a global business strategy to reap the rewards of trading in a worldwide market. Nations and industries have explored and defined their global strategies to ensure that they can create and sustain a competitive advantage that works for them. That is how the concept of global strategic management has actually emerged in a much stronger and more relevant manner in the recent times.
|Published:||16 March 2015|
|PDF File Size:||18.99 Mb|
|ePub File Size:||9.19 Mb|
Comparative advantage resides in the factor endowments and created endowments of particular regions. Factor endowments include land, natural resources, labor, and the size global strategic management the local population.
In the 's, Swedish economists Eli Hecksher and Bertil Ohlin developed the factor-proportions theory, according to which a country enjoys a comparative advantage in those goods that make intensive use of factors that the country has in relative abundance.
Porter argued that a nation can create its own endowments to gain a comparative advantage. Created endowments include skilled labor, the technology and knowledge base, global strategic management support, and culture.
Porter's Diamond of National Advantage is a framework that illustrates the determinants of national advantage. This diamond represents the national playing field that countries establish for their industries.
Types of International Strategy: Global Multi-domestic Global strategic management Product customized for each market Decentralized control - local decision making Effective when large differences exist between countries Advantages: Centralized control - little decision-making authority on the local level Effective when differences global strategic management countries are small Advantages: At the other extreme, a fully global value chain will source each activity in a different country.
Philips is a good example of a company that followed a multidomestic strategy. Global strategic management strategy resulted in: Decentralized control meant that national buy-in was required before introducing a product - time to market was slow.
Matsushita is a good example of a global strategic management that followed a global strategy. The global strategy presented Matsushita with the following challenges: Problem of strong yen Too much dependency on one product - the VCR Loss of non-Asian employees because of glass ceilings A third strategy, which was appropriate to Whirlpool is one of global strategic management customization, discussed below.
Nevertheless, these firms are able to take advantage of scale economies and experience curve effectsbecause it is able to mass-produce a standard product, which can be exported providing that demand is greater than the costs involved.
Global strategies require firms to tightly coordinate their product and pricing strategies across international markets and locations, and therefore firms that pursue a global strategy are typically highly centralized.
Global strategy - Wikipedia
It involves assessing every product or service from the perspective of both domestic and global strategic management market standards. It means embedding international perspectives in product formulations at the point of design, not as afterthoughts.
It is very much about your communication, also.
During the course, students are required to prepare and perform one group presentation in assigned groups, and are expected global strategic management actively participate during the presentations and discussions in class Feedback during the teaching period Students can get feedback and ask questions after each lecture.
Both on the for of the presentation as well as the content of the presentation.
Thirdly all groups are able to, but not required to, answer the exam from last year. It will not be a complete answer, but done in topics and explaining the methodology for how to answer the global strategic management.