ryruutu

1. Strategic Management
Course Teacher: Dr. A.N.M Jahangir Kabir
Professor,
Management studies department, RU
Presented by
Name: Mafizur Rahman
ID: 21100 34 128
Batch: 26th
Program: EMBA
Department of Management Studies,
University of Rajshahi
STRATEGY IN GLOBAL ENVIRONMENT

2. Arrangement
• Introduction
• Definition
• Factors of Global Market
• Strategic Choice

3. Introduction
• The purpose of developing a global strategy is to
increase sales across the world.
• The term "global strategy" includes
standardization, and international and
multinational strategies.
• Developing a global strategy can benefit a
company in many ways:
 including making sales in new markets,
 increasing global brand awareness and more.

4. Definition
A global strategy is a strategy that a company develops to
expand into the global market.

5. Factors of Global Market
When an organization decide to go global it has to make its choice
on two important factors:
a) Local Responsiveness: Circumstances in which a company may feel
pressure for cost reduction
 Affordability
 Need
 Popularity
 Competition
b) Cost Pressure: Circumstances in which a company may feel pressure
for local responsiveness
Differences in Consumer Tastes and Preferences
Differences in Infrastructure and Traditional Practices
Differences in Distribution Channels
Host Government Demands

6. There are four basic strategies that companies use to enter and compete in the
international environment:
• an international strategy,
• a multi-domestic strategy,
• a global strategy, and
• a transnational strategy
STRATEGIC CHOICE (1/3)

7. Global Standardization Strategy
• Companies market a standardized product worldwide to reap maximum
benefit from economies of scale
• Most appropriate when: Pressures for cost reductions are strong
Demand for local responsiveness is minimal
• E.g. : Intel.
localization strategy:
• Focuses on increasing profitability by customizing a company’s goods
• Most appropriate when:
Consumer tastes and preferences differ across nations
Cost pressures are not very strong
• Benefit : Product value raises in the local market
• Limitation : Cost reduction by mass-producing a standardized product is
STRATEGIC CHOICE(2/3)

8. STRATEGIC CHOICE(3/3)
Transnational Strategy
• Simultaneously:
> Achieves low costs
> Differentiates the product offering across geographic markets
Fosters a flow of skills between global subsidiaries
• Difficult to pursue as it places conflicting demands on a company
• E.g: Coca-cola, Nestle
International Strategy
• Occurs when:
> Companies establish manufacturing and marketing functions in each major country
they do business in
> Local customization of product offering and marketing strategy is limited in
scope
• Most appropriate when:
> Product serves universal needs
> Companies are not confronted with cost pressures
• E.g: Harley Davidson

9. Thankyou