3. GLOBAL BUSINESS STRATEGY IN PERSPECTIVE
INTERNATIONAL BUSINESS-Developing A Global Strategy
FORMULATION OF OVERALL
CORPORATE OBJECTIVES
MEASUREMENT OND
EVALUATIONOF
PERFORMANCES
CREATION OF
OPERATING
STRATEGY USING
COMPETITIVE
ADVANTAGE
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4. International
Strategy
T h e o r g a n i z a t i o n ' s
o b j e c t i v e s r e l a t e
p r i m a r i l y t o t h e
h o m e m a r k e t .
H o w e v e r, w e h a v e
s o m e o b j e c t i v e s
w i t h r e g a r d t o
o v e r s e a s a c t i v i t y
a n d t h e r e f o r e n e e d
a n i n t e r n a t i o n a l
s t r a t e g y.
I m p o r t a n t l y, t h e
c o m p e t i t i v e
a d v a n t a g e -
i m p o r t a n t i n
s t r a t e g y
d e v e l o p m e n t - i s
d e v e l o p e d m a i n l y
f o r
t h e h o m e m a r k e t .
Multinational
Strategy
T h e o r g a n i z a t i o n
i s i n v o l v e d i n a
n u m b e r o f
m a r k e t s b e y o n d
i t s h o m e c o u n t r y.
B u t i t n e e d s
d i s t i n c t i v e
s t r a t e g i e s f o r
e a c h o f t h e s e
m a r k e t s b e c a u s e
c u s t o m e r
d e m a n d a n d ,
p e r h a p s
c o m p e t i t i o n , a r e
d i ff e r e n t i n e a c h
c o u n t r y.
I m p o r t a n t l y,
c o m p e t i t i v e
a d v a n t a g e i s
d e t e r m i n e d s e p a
r a t e l y f o r e a c h
c o u n t r y.
Global
Strategy
The organization treats
the world as largely one
market and one source
of supply with little local
variation. Importantly,
competitive advantage
is developed largely on
a global basis.
INTERNATIONAL BUSINESS-Developing A Global Strategy
In developing 'global strategy', it is useful to distinguish between three forms of international expansion that arise from a company's resources, capabilities and current international position. If the company is still mainly focused on its home markets, then its strategies outside its home markets can be seen as international. For example, a dairy company might sell some of its excess milk and cheese supplies outside its home country. But its main strategic focus is still directed to the home market.In South Korea, international and global soft drinks strategy will involve mixing both the global brands like Coke and Sprite with the local brands like Pocara Sweat (and, no, I don't know what the brand tastes like!)
BUS. TO BE IN MEASUREOF ACCEPTABLEPERFORMANCE COMPANY PHILOSOPHYTHE 4 GENERIC STRATEGIES, FUNCTIONAL AREA TARGETSMARKET SHARE, COST AND PROFIT TARGETS FOR DIVISIONS, PERSONNEL EVALUATIONS.
Are there any other forms of global strategy?In various books and research papers, you may see reference to other forms of 'global strategy.' For example, you will see 'multi-domestic strategies'. These are useful and can be explored in their context. However, the three strategies outlined above cover the main possibilities.
