Global Strategy : An Organizing Framework

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

(2012). Chapter 7: International Strategy. In G. G. Dess, G. T. Lumpkin, A. B. Eisner, & G. McNamara, Strategic Management (pp. 257, 259-260). New York: McGraw-Hill/Irwin.

Peng M.W., Pleggenkuhle-Miles E-G. “Current Debates in Global Strategy” International Journal of Management Reviews, 51-69

J., & Ghauri, P. N. (2015). International business strategy: theory and practice. London: Routledge, Taylor & Francis Group.

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (1999). Strategic management: competitiveness and globalization (3rd ed.). Cincinnati: South-Western College Pub..

Recently many myths and misunderstandings surround what is really meant by “global strategy”, which caused many companies to fail.

1. Brief description of the context and of the decision which has to be made.

Over several decades, there are several forces and rapid change in worldwide businesses which have been driven companies around the world attempting to survive in this uncontrollable changing.

This paper offers a global business analysis of ABC Corporation that is a proposed multinational corporation (MNC) in the auto and IT (information technology) sector based in the United States. It looks at issues of business structure approach to be used by the firm for purposes of global expansion and the strategic advantages and disadvantages of the Global Business approach of the company. Also, the paper will review the structure and strategies of other leading MNCs, the Ford Motor Company (FMC), in comparison. It is important to note that the Global Business strategy of MNC is similar to those of other leading MNCs in the global market like McDonald 's, Target, CISCO, and General Electric among others.

Over the last few decades there has been a substantial amount of attention being diverted towards born global firms who unlike ordinary firms, have defied the traditional stage wise process of internationalization. These firms have long puzzled researchers and challenged the basic perception of internationalization. As a result it has given way to a new field of research and aroused global interest in the emergence and success of these firms. Before going into any further detail its important to understand what born global firms really are. They are defined as “a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries”. A more detailed definition defines born global firms as “companies who have reached a share of foreign sales of at least 25 per cent within a time frame of two to three years after their establishment”. The term “born global” was first coined together by Michael Rennie (1993) who undertook a study on firms who were capable of managing and co-ordinating resources beyond national borders and competing globally. This essay will go on explain why born global firms emerge, the factors that influence them and examples of born global firms in the real world. The Uppsala theory and Buckley and Casson’s theory of internationalization of MNE’S are used to further analyze this essay.

In order to develop a global strategy, the deep understanding of the term ‘globalization’ is very important for every company.

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

The opening case explores the Walt Disney Company’s international strategy. In particular, the case examines the difficulties Disney has faced in establishing a theme park in France.

A multinational corporation is an organization headquartered in one nation that that has operations in one or several foreign nations to leverage additional market penetration (Luthans & Doh, 2012). By entering into the global market organizations essentially enter into the threshold of a multinational corporation (MNC). This paper will provide an explanation of globalization, the primary challenges of multinational management, and discuss two separate case studies and their challenges and successes.