This document provides an overview of strategic management and global strategic management. It discusses Toyota and Philips' visions and definitions of strategic management, competitive advantage, and the strategic management process of environmental scanning, strategy formulation, implementation, and evaluation. It also outlines the phases firms go through in developing a global strategy and differences between international and global strategies. Finally, it defines global strategic management and discusses dimensions and drivers for a global strategic perspective.

1. Chapter - 1
Global Strategic Management :
An Introduction

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Drivers for a Global Strategic Perspective :

Globalization

Information and Communication Technology

COST

GOVERNMENT

Competitive

13. Environmental
Scanning
Strategy
Formulation
Strategy
Implementatio
n
Evaluation and
Control
Basic Model of Strategic Management Process