International Strategy

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International strategy Explain the role and effect of any two international business strategies. As the globalization of the world economy and the speed up integration process the international competition is increased, the requirement for international business strategy is rising ever higher. International business strategy plays a vital role in the global economy, it not only to guide a company's development, but also link the global economy. What is strategy? A strategy is the pattern or plan that integrates an organisation's major goals, policies and action sequences into a cohesive whole. (Mintzburg, 1984) Those strategies established long-term objectives and provided the overall guidance for the operational decisions which are…show more content…
In addition to that managers need to try to avoid waste company resources. Take Microsoft as an example, it outsourcing the manufacture of Xbox to Flextronics. Microsoft is not good at manufacture the Xbox, then it outsourcing the production to Xbox. Thus Microsoft can focus on the development of their advantages. Finally, Michael and Ricky (2007) states that synergy is the degree to which different part of operation can benefit each other. (Michael and Ricky, 2007) Synergy is help to create an effect of greater than the sum of one plus one. For instance, Disney has theme park, when you enjoy the experience you will get some information about its movies at the same time. After you watched Disney movies you want to go to the Disney Park again. Movies and parks help each other. The firm, using international strategy, will develop products or services in their home country and subsequently introduce them to the international market. The company establishes manufacturing and marketing functions in local country, but the head office tight control over it. International strategy transfer distinctive competences to foreign market. However, it lack of local responsiveness. Global strategy In general, there are three views on ‘global strategy'. First, global strategy is one particular form of multinational enterprise (MNE) strategy that treats countries around the world as a common, global marketplace (Levitt, 1983; Yip
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