Global Corporate Strategy

RUNNING HEAD: GLOBAL CORPORATE STRTATEGY
0
Global Corporate
Strategy
Student’s Details-
9/5/2019

GLOBAL CORPORATE STRTATEGY 1
Executive Summary
Global corporate strategy has been adopted by MNC to enhance their brand value and reach at a
reputed place. This has given due importance to open innovation and internalization where
companies are highly globalizing their operations for the purpose of attaining competitive
advantage and highly globalizing their products to reach the global trends and be ahead of the
competitors. The purpose of the report is to have an understanding of internationalization and
giving due to importance to open innovation where the companies attempt to use external
knowledge and resources for the purpose of carrying out operations abroad. For the research,
journal articles, academic books and website sources are used in order to acquire knowledge
about the concepts. The results of the report gives a clear understanding of why MNC must focus
on internationalization and also gives an opportunity to learn about the importance of open
innovation into the company.

GLOBAL CORPORATE STRTATEGY 2
Contents
Introduction......................................................................................................................................3
Open Innovation and Internationalization.......................................................................................3
Open and Closed Innovation........................................................................................................3
Factor Endowment.......................................................................................................................4
Related and Supporting Industries...............................................................................................4
Demand Conditions......................................................................................................................5
Strategy Structure and Rivalry.....................................................................................................5
Government..................................................................................................................................5
Chance..........................................................................................................................................6
Internationalization, Localization and Competitiveness..................................................................6
Demand for Internationalization..................................................................................................6
Demand for Localization.............................................................................................................7
Recommendation.........................................................................................................................8
Organizational Purpose, Profitability and Social Responsibility....................................................9
Role of Leadership in Profitability and Corporate Social Responsibility....................................9
Personal Reflection........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

GLOBAL CORPORATE STRTATEGY 3
Introduction
Global corporate strategy is the strategy adopted to expand the operations internationally which
is usually undertaken to achieve long term and short-term goals of the company (Rugman &
Verbeke, 2017). In other words, global corporate strategies are engaged in carrying out the
operations globally and serving large number of customers throughout the world. A global
strategy is made by undertaking a detailed plan consisting of the activities or operations that are
needed to be undertaken in various parts of the world. Also, the strategy is made to ensure that
the required plan has the capacity to be successful in the desired country in future (Yamazaki,
2019). It ensures scanning of the environment of the global markets and formulation of desired
strategy for getting the desired benefit from international operations. Here, the report discusses
the concept of open innovation and internationalization wherein differences between open and
closed innovation is evaluated along with the factors that could impact chosen MNC’s
innovation and competitive strategy. The chosen MNC is Tesco which is a grocery and
merchandise retailing company of United Kingdom. The company has global operations by
serving 11 countries all around the globe. The company has diversified their products by selling
products such as books, furniture, toys, software and other financial services. Further, the report
identifies merits and demerits of demand for internationalization and demand for localization and
one demand is chosen that could be profitable for Tesco along with two reasons. Further,
organizational purpose, profitability and social responsibility are discussed along with the
application of leadership principles and personal reflection of learnings is also made.
Open Innovation and Internationalization
Internationalization is the process of undertaking global operations by expanding the selling
capacity and reaching new market segments into the foreign market. This not only helps in the
financial sustainability but also helps in serving large number customers within the entire globe
(Battisti, et al., 2015).
Open and Closed Innovation
Open Innovation is concerned with utilization of internal and external knowledge or ideas.
Within the open innovation, there is significant importance of external knowledge that the