Professional Documents
Culture Documents
Strategizing
Around the
Globe
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Outline
• A global global-strategy book
• Why study global strategy?
• What is strategy?
• Fundamental questions in strategy
• What is global strategy?
• What is globalization?
• Global strategy and globalization debate
• Organization of the book
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Global Global-Strategy Book
• Text departs from traditional view of global
strategy
• Important to respond to local needs
• Traditional view of global strategy is incomplete
and unbalanced
Sacrifices local responsiveness and global learning
Ignores how domestic firms compete with each other
and with foreign entrants
Traditional global strategy is only appropriate for
large MNEs in developed countries
It is dangerous to ignore less developed economies
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Study Global Strategy?
• A prerequisite in top ranks of large firms
• Dealing with foreign-owned suppliers is common
in all businesses
• Domestic corporations can buy foreign-owned
corporations
• Domestic corporations can be bought by foreign-
owned corporations
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Is Strategy?
• Origin – Greek word (strategos) “art of the general”
Sun Tzu, Chinese military strategist in 500 BC
Modern-day application to business and competition dates
to the 1960s
• Plan versus Action – strategy is “explicit, rigorous
formal planning” versus “a set of flexible, goal-
oriented actions”
• Strategy as Theory – how to compete successfully
Integrate both planning and action schools
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Is Strategy? (continued)
Leverage the concept of “theory,” which serves both
explanation and prediction
Require replications and experimentations
Understand the difficulty of strategic change
Strategy is a firm’s theory about how to compete
successfully
Strategy should be communicated in a powerful but
easy-to-remember way
Strategy should give coherence to decisions and
actions
Managers must exercise strategic leadership
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Our Definition: Strategy as Theory
• Integrating both planning and action schools
• Leveraging the concept of “theory”
A theory serves two purposes: Explanation and
prediction
• Requiring replications and experimentations
To establish the applicable boundaries and limits
of an existing theory
• Understanding the difficulty of strategic change
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Fundamental Questions in Strategy
• Why do firms differ?
Cultural differences between Western and Japanese firms
Networks of relationships have powerful effect
– keiretsu, guanxi, chaebol, blat
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Is Global Strategy?
• Provide standardized products and/or services
on a worldwide basis (i.e., traditional view)
• Any strategy outside one’s home country
• Our definition of global strategy
Strategies of firms around the globe
MNEs and smaller firms
Both developed and emerging economies
Both international and domestic
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Is Globalization?
• Globalization: The close integration of countries and
peoples of the world
New force sweeping through the world in recent times?
Long-run historical evolution since the dawn of history?
Closer integration of the countries and people of the world?
Pendulum view: Globalization swings between embracing
and restricting due to success, world events, crises, etc.
A process similar to the swing of a pendulum: Postwar history,
emerging economies, outsourcing, MNEs, terrorist attacks, BRIC,
recession…
Semiglobalization: Market barriers are high but not high enough to
completely insulate countries
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Strategy and Globalization Debate
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Strategy and Globalization Debate
(continued)
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organization of the Book
• Part I: Foundations of Global Strategy
Chapter 1: Strategizing Around the Globe
Chapter 2: Managing Industry Competition
Chapter 3: Leveraging Resources and Capabilities
Chapter 4: Emphasizing Institutions, Cultures, and Ethics
• Part II: Business-Level Strategies
Chapter 5: Growing and Internationalizing the Entrepreneurial Firm
Chapter 6: Entering Foreign Markets
Chapter 7: Making Strategic Alliances and Networks Work
Chapter 8: Managing Global Competitive Dynamics
• Part III: Corporate-Level Strategies
Chapter 9: Diversifying and Managing Acquisitions Globally
Chapter 10: Strategizing, Structuring, and Learning Around the World
Chapter 11: Governing the Corporation Around the World
Chapter 12: Strategizing with Corporate Social Responsibility
Copyright © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.