Global Strategic Management

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
External business environment and dynamic capabilities ..............................................................1
Macro Environment....................................................................................................................1
Micro environment......................................................................................................................3
Internal analysis ......................................................................................................................3
VRIO Analysis............................................................................................................................5
Responses to globalization and technology ...............................................................................6
Comparison of current CSR initiatives............................................................................................6
Key Stakeholders........................................................................................................................7
People/Employees.......................................................................................................................8
Planet/Civil Society.....................................................................................................................8
CSR strategies that enhance organisational success ....................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................11

INTRODUCTION
If any organisation want to expand their business in global market, it is necessary for
them to make proper plan of actions for analysing challenges and prepare themselves for them.
Global strategy Management refers to the process of managing and making new strategies when
any organisation wants to expand their business in global market. In simple words it can be said
that global strategies refers to the plans made or undertaken by the company who is going to
enter in international market. It include the involvement of top level management as it is a long
term decision and it require a large amount of resources. It provides direction or path to the
companies so that they can perform their task in effective way. Below mentioned report is based
on MG Cars and Jaguar which are British multinational car manufacturer organisations. It
include the comparison and contrast of these two companies along with the opportunities for the
development of CSR capability as well as environmental changes that will help the organisation
in securing a good position in future.
External business environment and dynamic capabilities
Combination of all those factors which influence the business is known as business
environment (Tiwari and et. al., 2018). When any organisation is doing business in various
countries, they have to face various challenges like different political rules, difference in
technology etc. Detailed analysis of external business environment of Jaguar and MG cars are
given below:
Macro Environment
PESTEL is a tool which is used by various companies to prepared a detailed report of
analysed macro environment as it analyse political, economical, social, technological,
environmental and legal factors of organisations. PESTEL analysis of MG Cars and Jaguar is
given below:
 Political- These factor goes varies from country to country as the rules and
regulations made by the government of a country are the political factors. Now a
days there are lots of factors such as corruption level, taxation policies, essential
employee benefits, various legal framework for contract formation etc. This
factor work as a threat for both companies because of increase and decrease of
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taxes rates gives a direct response to the prices to the customers (Eschle, C.,
2018).
 Economic- Various factors which are depend on the economy of any country are
economic factors. These factors include inflation rate, income of customers,
saving rate, interest rate, economic cycle. As car is a luxury item so these factors
works as an opportunity for MG Cars and Jaguar because high income of
customer will lead in the high demand or sell of cars.
 Social- The culture of people and the manner of doing things effects the culture
of organisation. Those factors of society comes under Social factors of macro
environment of organisation which include class structure, standard, attitude,
culture etc. these factors work as threat as well as opportunity for both MG cars
and Jaguar (Xiang and et. al., 2017). For instance, if the status of people of a
specific market is high, these will result in the higher demand of car and loss in
status of people will decrease the demand of cars.
 Technological- It means change in the technology. Both MG cars and Jaguar
companies are well known for using various cutting edge innovation. Both
companies are doing various changes in their cars by introducing some new
technology like Artificial intelligence (Kerr, A., 2017). This is working as a
opportunity for them as it is a new concept which is going to attract the customer
towards them.
 Environmental- Now a days customers are shifting to the environmental
friendly products and the above mentioned companies are focusing on the
reduction of use of carbon emissions. They are also working on the
manufacturing a fuel efficient car (Testa and et. al., 2018). This is working as
Threat and opportunity both as these are new inventions and it is not an easy task
to perform. Along with this, it is also an opportunity as it is a new concept and
people will gonna love this.
 Legal- Some legal laws are maid by government of various countries like the
companies have to get the registered for their patents and copyright to remove
the duplication of products. This factor is working as a opportunity for
automobile companies like Jaguar and MG Cars because registration of
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