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Data Analysis and Processing Techniques

This document provides an overview of global strategy and globalization. It defines global strategy as strategies of firms around the globe, both international and domestic strategies in developed and emerging economies. Globalization is described as a process since the late 20th century driven by reductions in trade and investment barriers. The document outlines fundamental questions in strategy, such as why firms differ and how they behave. It also discusses how recent events have brought issues of corporate social responsibility, ethics, and governance to the forefront of strategic decisions.

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Ahsan Sheikh
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218 views14 pages

Data Analysis and Processing Techniques

This document provides an overview of global strategy and globalization. It defines global strategy as strategies of firms around the globe, both international and domestic strategies in developed and emerging economies. Globalization is described as a process since the late 20th century driven by reductions in trade and investment barriers. The document outlines fundamental questions in strategy, such as why firms differ and how they behave. It also discusses how recent events have brought issues of corporate social responsibility, ethics, and governance to the forefront of strategic decisions.

Uploaded by

Ahsan Sheikh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

1

chapter

Strategizing Around the Globe

GLOBAL STRATEGY
MIKE W. PENG

OUTLINE
 Why study global strategy?  What is strategy?  Fundamental questions in strategy  What is global strategy?  What is globalization?  Global strategy and globalization at a
crossroads

Why Study Global Strategy?


 Job and career aspiration opportunities  Awareness of what is going on in the world  Avoid downside risks of globalization

What is Strategy?
 Origin-Greek word (strategos)-art of the general
 Sun Tzu, Chinese military strategist in 500 B.C.  Modern-day application to business and competition dates to the 1960s

 Plan versus Action - strategy is explicit, rigorous formal  Strategy as Theory-how to compete successfully
 Firms have both intended and emergent strategies  One firm s strategies may not work in all situations  Past success does not guarantee future success  It is often difficult to change strategy

planning versus a set of flexible, goal-oriented actions

Strategy
STRATEGY AS PLAN
 A set of concrete plans to help the organization accomplish its goal (Oster, 1994)

STRATEGY AS ACTION
 The art of distributing and applying military means to fulfill the ends of policy (Liddel Hart, 1967)  A pattern in a stream of actions or decisions (Mintzberg, 1978)  The creation of a unique and valuable position, involving a different set of activities among a companys activities (Porter, 1996)

Strategy, Contd.
STRATEGY AS INTEGRATION  The determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals (Chandler, 1962)
 An integrated and coordinated set of commitments and

actions designed to exploit core competencies and gain a competitive advantage (Hitt, Ireland, and Hoskisson, 2003)

The Essence of Strategy

Fundamental Questions in Strategy


 Why do firms differ?
 Cultural differences between Western firms and Japanese companies

 How do firms behave?


 Industry-based view - focus on competitive forces within an industry that impact all firms  Resource-based (capabilities) view - focus on internal strengths and weaknesses, firm specific resources and capabilities  Institution-based view - focus on government and societal forces

Fundamental Questions in Strategy contd.


 What determines the scope of the firm?  What determines the international success or
failure of firms?
 Industry-based view - degree of competitiveness in the industry  Resource-based view - firm specific differences in capabilities  Institution-based view - institutional forces, such as economic reforms and government policy

The Strategy Tripod

What Is Global Strategy?


 Provide standardized products and/or services
on a worldwide basis (i.e., traditional view)  Any strategy outside ones home country  Definition of global strategy:
 Strategies of firms around the globe Both international and non-international (domestic) Both developed and emerging economies

What is Globalization?
 A new phenomenon since the late 20th century?  A part of long-run human history?  A pendulum view: Transportation and
communication revolutions + breakdown of artificial barriers in trade and investment
A

process similar to the swing of a pendulum: Postwar history  Semiglobalization?

Global Strategy and Globalization at a Crossroads


 Three Defining Events - have brought corporate
social responsibility, ethics, and governance to the forefront of strategic decisions
 Anti-globalization protests - lost jobs, downward pressure on wages for unskilled labor, environmental destruction  Terrorist attacks  Corporate governance crisis (Enron Scandal, Financial crises)

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