Global Business Strategy Running Header

Running Header: Global Business Strategy
Global Business Strategy
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Global Business Strategy
Contents
Introduction.................................................................................................................... 3
VRIO analysis................................................................................................................ 3
Conclusion..................................................................................................................... 8
References................................................................................................................... 10

Global Business Strategy
Introduction
A business practice that has been developed and formulated for providing guidance to the
corporate dealings and trade and is executed beyond the boundaries of nations, In this trade the
two parties involved are two entities that too of different regions (Armelini & Villanueva, 2011).
And, these agreements and plans are hence developed and are termed as global business
strategies. On the basis of the research executed it has been analyzed that generally these
strategies are majorly adopted by the private firms more as compared to that of the government
governed entities. Moreover, in simpler terms, the global business strategy can be defined as the
business strategies indulged by the business corporations and firms operating the in an
international business environment and offering the services to the consumers all over the globe.
These business strategies are found closely associated with the business development strategies
that are adopted by the business firm for fulfilling the short and long-term organizational
objectives. Multinational, global and international strategies are the terms that are majorly
included in the concept of global strategy (Economywatch 2010). The basic motive of
developing and designing these strategies is to accomplish and attain the pre-determined
organizational objectives and that too on international grounds. It has been recommended for a
business entity to develop a clear difference between the three aspects of global expansion
(Armstrong et al., 2015). The three prime elements of international business expansion the
available resources, capability and a current position of the Business Corporation and adoption of
these components will be proven beneficial for the organization. The below-demonstrated report
has been executed on the global strategies of Puma and the prime objective of the report is to
analyze the resources and capabilities of the firm for strategic leveraging and thus attaining a
competitive advantage.
VRIO analysis
On the basis of the research, it has been concluded that the term VRIO analysis has been
considered as an analytical technique or mechanism that is the best platform for evaluating the
resources and capabilities and thus leading the business firm to attain competitive advantage.
VRIO analysis is the acronym of the evaluation dimensions of Value, Rareness, Imitability, and
Organization (Baker, 2014). This mechanism has been developed by Jay B Barney as a medium
for evaluating the resources from the microenvironment of the business firm. The below
mentioned are the main resources which are evaluated under this approach:
 Financial resources
 Human resources
 Material resources
 Non-material resources (Data and information)
Importance of VRIO analysis

Global Business Strategy
VRIO analysis has been considered as one of the contemporary means that can be used by any of
the business entity for analyzing the resources and capabilities and can also manipulate them for
attaining competitive advantage (Baker, 2014). One of the biggest advantages of this approach
that it releases the real value of the available resources and capabilities of the firm and through
which the business entity will be able in developing further strategies and plans. For instance,
huge diversity has been observed in the workforce of Puma and that can be considered a strength
of the firm. After analyzing the real value of the human resource the entity can plan training and
development sessions for the employees. This will enable the business entity in bringing hike
and advancement in the efficiency and that will lead to higher productivity. Another biggest
advantage of this approach is that the business entity will be getting aware of the available
resources and capabilities of the firm and that will aid them in developing future plans
accordingly. And through this, the business organization will be able to allocate the resources
that are in surplus in other directions and manage the deficit. And this will allow Puma in
managing a smooth and flawless set of business practices and operations. Due to which the
business firm will experience an increase in the effectiveness of the delivery of services and
through which they will have a pool of satisfied customers. That will ensure a high goodwill and
widening of market share. Moreover, the available resources and capabilities that are in surplus
can be utilized appropriately for aiding the workforce and their wellbeing (Baum, Frese & Baron,
2014). Through this step, the employees will feel valued and motivated and an enhancement in
their productivity and efficiency will be observed. Apart from this, one of the biggest advantages
of adopting this approach is that it enables the business firm in attaining a sustainable position of
competitive advantage. The business corporation can make use of resources and capabilities in
the process of development of strategies and plans for tackling with the competitors. Building a
distinct image in the market is also possible if the business entity is appropriately making use of
the mentioned mechanism. Increase in the customer base, brand loyalty and enhanced market
share are the common benefits that will be attained by the adoption of the VRIO analysis
(Thebusinesszoom 2015).
Apart from the number of advantages, there are some disadvantages of this approach such as if
the business entity is failing in managing and maintaining the resources and capabilities in an
appropriate manner then the entity will be exposed to fierce competition (Bhachu, 2017).
The report has been made focused on the VRIO analysis of Puma so as to analyze and evaluate
the resources and capabilities of the business entity. The report further contains a comparison
between Puma and Adidas that is one of the biggest rivals of the business firms. The report has
been segmented into various divisions and from which the first part comprised of the VRIO
framework of Puma.
VRIO framework
A framework is an empirical approach for analyzing the internal environment of a business
corporation. This approach evaluates various characters such as Valuable, Rare, Inimitable and