Chapter global strategic management1 introduction


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Chapter global strategic management1 introduction

  1. 1. Chapter - 1 Global Strategic Management : An Introduction
  2. 2. Vision & Philosophy Since its foundation, Toyota has been using its Guiding Principles to produce reliable vehicles and sustainable development of society by employing innovative and high quality products and services. Vision 2015 aims to fuel growth and bolster Philips’ competitive position in key markets, benefitting all the company’s stakeholders in a sustainable way.
  3. 3. Definition : Strategic Management Field : Strategic Management is the process of strategic decision making that sets the long term direction for the organization . The central thrust of strategic management is achieving a sustainable competitive advantage . The strategy process consists of scanning, strategy formulation and implementation. environmental
  4. 4. Advantage : Refers to the superior benefit , or superior position or condition , resulting from a course of action taken by the firm Competitive : Refers to a position in relation to an actual or potential rival. Finally Sustain means : to keep up a position for a long term. .
  5. 5. Strategic Management : Benefits • Clear Sense of strategic vision for the firm • Sharper importance on what is strategically important • Improved understanding of a rapidly changing environment
  6. 6. 1. Long term survival in the market 2. Achieving vision of the company 3. Easy and effective control 4. Focus on environmental scanning 5. Proper allocation of resources
  7. 7. Phases of Global Strategy : Before understanding the meaning of global strategic management , let us look at the most likely phases firms go through before they adopt a global strategy : Phase 1 : Single-Country Strategy Phase 2 : Export Strategy Phase 3 : International Strategy Phase 4 : Global Strategy
  8. 8. Difference in International Strategy and Global Strategy : What is the difference ? First : Degree of involvement and coordination from the centre Second : Degree of product standardization and responsiveness to local business environment Third : Strategy integration and competitive moves
  9. 9. Global Strategic Management – Definition has to be built on basic definitions of strategic management , with an added explanation of the global dimensions : So, what are these global dimensions?
  10. 10. Standardization Dimensions Integration Dimension How much does a firm integrate its competitive moves across countries ? How much does a firm standardize its offerings across countries Global Strategy Configuration and coordination dimension How much are a firm’s activities concentrated in a few locations and coordinated across countries
  11. 11. Global Strategic Management : Global Strategic Management is the process of crafting a coherent, coordinated , integrated and unified strategy that sets the degree to which a firm globalizes its strategic behaviors in different countries through standardization of offerings, configuration and coordination of activities in different countries and integration of competitive
  12. 12. Drivers for a Global Strategic Perspective :  Globalization  Information and Communication Technology  COST  GOVERNMENT  Competitive
  13. 13. Environmental Scanning Strategy Formulation Strategy Implementatio n Evaluation and Control Basic Model of Strategic Management Process