Analysis of Management Theories

Running head: ANALYSIS OF MANAGEMENT THEORIES
ANALYSIS OF MANAGEMENT THEORIES
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ANALYSIS OF MANAGEMENT THEORIES1
Introduction
According to Dabrowski (2017), global strategy can be defined as the approach that is
implemented by an organization in order to compete and expand in a global market. The strategy
of business organizations are able to pursue the strategy in order to conduct the operations on an
international basis. The global strategy mainly refers to plans that are developed by organizations
in order to target the consumers beyond the borders. Global strategy is considered to be a
shortened term that is able to cover three major strategies or approaches that include
multinational, global and international. The companies need to pursue the strategies in the three
areas if they aim at expanding the operations on an international basis. The detailed plans that are
developed for the purpose of conducting successful business processes in different parts of the
world are also considered to be a key part of the global strategy (Cordella and Ospino Rojas
2017).
International organizations are the firms which operate with the help of imports and
exports and they sell to the customers in different countries and also have foreign suppliers.
Multinational companies on the other hand have made investments in various countries and the
staff and premises are developed in the areas as well. The international firms have investments
and are present in different countries and the services or goods are offered to the customers with
the application of coordinated brands in different markets (Filatotchev, Bell and Rasheed 2016).
The essay will be based on the critical study of the global strategy that has been developed and
explained by Theodore Levitt. The study will be based on details related to the ways by which
global strategy is used by the modern that operate in various parts of the world.
Analysis of the literature related to global strategy

ANALYSIS OF MANAGEMENT THEORIES2
As discussed by Fırat (2016), globalization is mainly based on different forces that
include political, social, economic and technological aspects as well. The flow of information in
various parts of the world is able to play a major role in influencing the lifestyles of the citizens
in various countries. The individuals in different countries have started becoming global citizens
due to the flow information that has taken place in different countries of the world. Globalization
has thereby been considered to be a threat to ways of life and identity of people as well. The
factors related to globalization can have an impact on the advantages that are provided to the
consumers and individuals in diverse parts of the world (Gabrielsson, Seppälä and Gabrielsson
2016).
The advantages provided by global economy are based on the operations of various
international organizations that include Toyota, BMW, Zara, Nike, Coca Cola, McDonald’s and
IBM. The argument that had been developed by Levitt was mainly based on the implementation
of new technologies that have been able to influence transport, communication and travel related
activities. The demands and needs related to global products are considered to be quite high
among the consumers in various countries of the world. Levitt has also argued about the
differences that exist between the global corporation and the multinational corporation
(Gooderham, Grøgaard and Foss 2019). The multinational corporations have knowledge related
to different countries and they are able to adapt to the differences as well. The critical evaluation
has been able to depict that the strategies applied by firms are mainly based on the
transformation that takes place from the multinational to the global corporation. The global
corporations are provided with major levels of opportunities to enhance their growth in the
industry in an effective manner (Grigorescu and Zaif 2017).

ANALYSIS OF MANAGEMENT THEORIES3
The organizations can thereby adapt to the superficial differences by proper
standardization of the products that are offered to the customers. Another major concept that has
been suggested by Levitt is mainly based on the high quality based products that are provided to
the customers that are standardized in nature and are based on low prices as well. The consumers
prefer the standardized products so that the best deals can be made in order to gain effective
levels of profitability in the industry. Price had been considered to be the most important aspect
related to the strategy that has been proposed by Levitt (Gooderham, Grøgaard and Foss 2019).
The prices of commodities that are offered to the consumers can be low and the products can
also be standardized based on various demands and needs. The concept of standardization that
has been suggested by Levitt states that if the organizations force the reduction of prices and
costs and the quality of products are enhanced suitably, the consumers will prefer to purchase the
standardized products (Grigorescu and Zaif 2017).
The marketing based concepts that have been suggested by Levitt are mainly based on the
needs and wants of the customers and the knowledge that they have related to the market or
industry. The successful global organizations are not able to adhere to the differentiation and
customization for various requirements of the markets which are considered to be quite different
with respect to the spending based patterns, product related preferences and shopping
preferences The global corporations or firms are able to accept and adjust to the differences that
exist between the countries in which they operate (Guilloux-Nefussi 2020). The global strategies
and organizations have started becoming quite strong in the last few decades and this has an
impact on the consumers and their choice as well. Different perspectives have also been
proposed for the purpose of examining a particular issue that organizations can face due to global
competition. The diversity of different perspectives have been able to develop huge levels of