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Global Strategy Assignment (Doc)

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Added on  2019-10-16

Global Strategy Assignment (Doc)

   Added on 2019-10-16

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BLOG: GLOBAL STRATEGYWHAT IS GLOBAL STRATEGY?
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GLOBAL STRATEGY6th August 2019In business, global strategy refers to a strategic guide to a business organisation to globalisation.At the present scenario, the world becomes more connected which allows a company to generaterevenue by utilising the resources prevailing in countries that are located outside the nationalborder. Global strategy of a business is something that a business uses to apply to reap therewards of conducting business in the worldwide market. During the end of the twentiethcentury, a number of barriers related to international trade walls due to this, a large wave ofcompanies started pursuing global strategies with the aim of gaining competitive advantages.Academic research on global strategy came around 1980s by literary works presented byMichael Porter, Christopher Bartlett, and Sumantra Ghoshal. Global strategy is associated witheconomic systems, and technological change more especially changes in information technologywhich facilitated the coordination of a multinational company's strategy on the worldwide scale.In developing a global strategy for a business, it is quite useful to differentiate between the threeforms of a company's business expansion in the international market which arise from itsresources, capabilities as well as current position in the international arena. Here, if a companyuses to focus mainly on its domestic markets, then the strategies it applies outside its domesticmarkets are treated as international strategies. For instance, a chocolate manufacturing companymight sell its excess produce i.e. chocolate outside its domestic country, but its core strategicfocus still directed to the domestic market. One of the main decisions in relation to set globalstrategy starts by considering how much substitutions or local variation are available for aparticular in a domestic market. Business leaders nowadays tend to make strong focus on theway to capture as much share in foreign market as possible and in doing so they begins with bysetting global strategy, adding new culture, launching new offices, supporting foreign currencies,and more. In today's globalised world, almost every growth seeking company focuses on settingglobal strategy to expand its business in international market and to extract the benefits ofglobalisation.
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Definition and Discussion on Global StrategyA global strategy is one that a company takes when it wants to compete and expand in the globalmarket. In some other words, a company pursues global strategy when it wishes to expand itsbusiness internationally. A global strategy stands as the plans a business organisation uses todevelop in order to target and ensure its corporate growth beyond its national borders. Morespecifically, global strategy is something by which a company aims to enter into foreign marketsto increase the volume of its goods' sale abroad. Global strategy is a shortened term which coversthree different strategies such as global, international, and multinational. Essentially, all thesethree different areas in relation to business refer to the strategies that are designed in order toenable a company to achieve or meet its corporate objective of business expansion in theinternational market.In support of the definition provided by the Cambridge Dictionary, a global strategy is a detailedplan showing how a company or product or service could become successful in every countryacross the world and the planning process on how a company or product or service could gainsuccess from the worldwide market. A global strategy involves integrated thinking about everyaspect of the business such as its production sites, suppliers, markets, investors, and competition.It also involves the assessment of every single product and service from national andinternational market standards' perspective. It means a company needs to embed internationalperspectives while designing a product or service for placing it in the global market by applyingglobal strategies. It also means meeting the world standards before seeking the world markets aswell as being a world-class company also in the domestic market. An efficiently formulatedglobal strategy helps a company to address the way to enter and build the required globalpresence, the optimal location or locations across the world for conducting value chain activities,and the way to continue global presence for gaining competitive advantage from the globalmarket. Global strategy requires companies to coordinate their strategies related to product and pricingacross international locations and markets tightly; therefore, companies that pursue globalstrategy become highly centralised. As opposed to a multi-domestic strategy, a global strategyoften become appropriate for the industries which include companies that face strong pressures
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