Global Strategic Management | Assignment

GLOBAL STRATEGIC MANAGEMENT 1
Global strategic management
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Institution
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GLOBAL STRATEGIC MANAGEMENT 2
Introduction
Globalization and technology development has enhanced the sharing of concepts among
people from different regions in the world. The impact of these factors is that the universe has
become virtually smaller over the last decade increasing the level of competition among
organizations and people. As such, multinational organization faces global challenges that
constantly threaten their survival. Moreover, with other pressures such as environmental
sustainability and upholding equality, corporations have developed new strategies to deal with
these issues and take advantage of the opportunities they provide. The automobile industry is one
of the industries that has faced not only global business management challenges but also has the
responsibility of dealing with global warming. Most recently, BMW spearheaded the transition
of this industry with two of its competitor, Ford, and Honda in introducing a strategy that
advertised on mobility rather than just cars. This paper will explore the automobile industry,
citing some of the strategies used to deal with global pressures.
Summary
Smith, S. 2013. BMW is turning itself into Zipcar—by selling mobility instead of cars. [online]
Quartz. Available at: https://qz.com/60626/bmw-is-turning-itself-into-zipcar-by-selling-mobility-
instead-of-cars/ [Accessed 15 Sep. 2017].
Following the article by Smith on the Quartz, BMW strategized to offer purchasers of its
newly invented electric i3 vehicle the alternative of a gas-fueled loaner BMW should they have
to make an outing that would surpass the vehicle's roughly a hundred-mile range. The
organization expects that drivers will make nine of out ten trips with the idea model, which it
touts as its megacity auto, inside that a hundred-mile extend. Yet it needs to offer the choice as

GLOBAL STRATEGIC MANAGEMENT 3
an approach to help future proprietors not feel secured to one method of driving as it were. This
is especially basic, as the auto will apparently convey a fifty grand sticker cost when it hits
merchants. Given the current explode between electric auto producer Tesla's Elon Musk and the
New York Times over the genuine scope of the Tesla S, BMW's turn appears a reasonable PR
step. Be that as it may, it shouldn't be viewed as irregular among significant automakers, various
which are dealing with varieties of portability as an administration models that go a long way
past offering an auto and gathering secondary selling administration incomes on support, for
instance (Smith, 2013).
Smith, S. 2013. BMW is turning itself into Zipcar—by selling mobility instead of cars. [online]
Quartz. Available at: https://qz.com/60626/bmw-is-turning-itself-into-zipcar-by-selling-mobility-
instead-of-cars/ [Accessed 15 Sep. 2017].
Additionally, Honda and Ford have been taking a gander at changing the biological
system around electric vehicle possession. The latter reported a partnership with advanced indoor
regulator creator Nest Labs and other companies such as SunPower, Eaton, Infineon and
Whirlpool to enable buyers to shape a general home power administration system that can
decrease the effect of home vehicle charging on control bills. On the other hand, Honda will
offer financing for home sunlight based boards through the Musks' Solar City project to relieve
the burden other electric vehicles may put on the power network and family spending plan.
Indeed, even the Pentagon is taking a gander at various courses for electric vehicles to
conceivably pass power that has been stored back to the grid (Smith, 2013).

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Rumelt, R.P., 2013. How much does industry matter?. Strategic management journal, 12(3),
pp.167-185.
These sorts of organizations-positioning new era vehicles at the focal point of an
arrangement of administrations rather than an irregular item would have been unbelievable even
five years prior. Be that as it may, as the enormous auto organizations gaze at the real progress
before them, and endeavor to enhance returns alone monstrous ventures into elective power
sources, there is a probability that the globe is going to see a greater amount of these sorts of
declarations. They know the following decade will be spent pitching vehicles to a tight-fisted
millennial era, wary of overhauling auto advances. This companion has been usual to
communicating with items as progressively interconnected frameworks of administrations. A
thirty thousand dollars sticker price for an electric vehicle won't look so terrible if it accompanies
a suite of packaged administrations, access to different vehicles and methods of transport, and
lifetime redesigns (Rumelt, 2013).
Strategic significance
Belis-Bergouignan, M.C., Bordenave, G. and Lung, Y., 2012. Global strategies in the automobile
industry. Regional studies, 34(1), pp.41-53.
These strategies demonstrated by at least three global players in the automobile industry
has some significance to these and other companies. The strategies seek to define a world-
driving, propelled residential market concentrating on worldwide difficulties including
ecological and vitality restriction, and also promising worldwide operational nearness. They also
aim to encourage global operational nearness and empower local markets. Besides, advancing
cutting-edge vehicles through the making of interest, quickening of foundation improvement and