Is your global strategy on track?

When you make decisions for your business, many things have to be taken into account. Besides, nowadays, strategies have to be based on a global approach, which makes it even more complicated to understand and to elaborate. For this reason, you might not be sure of the decisions you made, although it seemed to be the best option. You can ask yourself this question many times, but the most important is to make sure that your global strategy is good. In The 5-STAR Business Network (http://bit.ly/5-STARBN), a book by Vivek Sood, you will read a lot of things about global business networks and their importance for your business in today’s globalised business world. In fact, today, everything must be based on a global thinking. Any time you have to make a decision for your business, “global” is the key word and the basis for best achievements. Then, you have to be aware of every global trend and act accordingly. Long-term planning must pay attention to key issues of worldwide importance. Because of the increasing importance of this global approach, networks have become important too. In the global scene, you cannot play without a great network. “Networks have become more powerful than they ever were in the past”, Vivek Sood said in his book. Moreover, he added, “Global Business Networks will have an increasingly bigger role to play in the future”, which reveals its increasing importance. Relying on several reports and studies, Vivek Sood exposed many important points about global business networks and clear explanations of its functioning. Many players intervene in the global stage and that is the reason why any strategy must take into account this dimension. Any single strategy must be aligned with the business strategy of the company, which itself must be based on a global approach. Today, your businesses are dealing with global issues in a hyper-globalised world, which means that expertise and influence will determine your position, and your network plays a key role in this story. Whether they are small or large businesses, they must have a global strategy, in order to compete with any competitor in the global market, and to benefit from the best assets, by working in team with global partners. Although it might not be easy to manage relationships with global partners, located all over the world, it is the best option to develop your business on the global stage and to make your place in the global market. You cannot be a leader without having a global approach for your strategy. You will have to deal with global issues anyway, even if you do not focus your strategy on a global approach, so it is better to do it in the first place. Global strategies will give you the best opportunities and the best results in the end. To conclude this article, we have no choice but to accept that is a reality and global approach is no longer an option for your business strategy. Everything in your company must be aligned on this global strategy, if you want to achieve the best.

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  • Natalie says:

    My New Strategic Thought
    Global competitors must have the capacity to think and act in complex ways. In other words, they may slice the company in one way for distribution investments, in another for technology, and in still another for manufacturing. In addition, global competitors will develop varied criteria and analytical tools to justify these investments.

    In our experience, few companies have distinguished between the intermediate tactics and long-run strategic intentions of global competitors. In a world of forward-thinking competitors that change the rules of the game in support of ultimate strategic goals, historical patterns of competition provide little guidance. Executives must anticipate competitive moves by starting from new strategic intentions rather than from precooked generic strategies.

    It is more difficult to respond to the new global competition than we often assume. A company must be sensitive to the potential of global competitive interaction even when its manufacturing is not on a global scale. Executives need to understand the way in which competitors use cross-subsidization to undermine seemingly strong domestic market share positions. To build organizations capable of conceiving and executing complex global strategies, top managers must develop the new analytic approaches and organizational arrangements on which our competitive future rests. (https://bit.ly/2Dzqq8W)

    • Merlina says:

      Natalie your thoughts appreciable. Setting up a corporate global strategy is only half the story. Implementing it successfully involves much skill and is a very challenging task. Lawrence Hrebiniak reviews both the general issues and specific needs of global strategy. Next, he categorizes four stages that companies go through in pursuit of their global destiny. In the last, and most important of these — co-ordinated global strategy — there are routes to success, used separately or together.

  • Merlina says:

    Do you know about your global strategy?

    In developing ‘global strategy’, it is useful to distinguish between three forms of international expansion that arise from a company’s resources, capabilities and current international position. If the company is still mainly focused on its home markets, then its strategies outside its home markets can be seen as international. For example, a dairy company might sell some of its excess milk and cheese supplies outside its home country. But its main strategic focus is still directed to the home market.

    One of the basic decisions in global strategy begins by considering just how much local variation if any, there might be for a brand.

    Another more basic decision might be whether to undertake any branding at all. Branding is expensive. It might be better to manufacture products for other companies that then undertake the expensive branding. Apple iPods are made in China with the Chinese company manufacturing to the Apple specification. The Chinese company then avoids the expense of building a brand. But faces the strategic problem that Apple could fail to renew its contract with the Chinese company, which might then be in serious financial difficulty.

    • John Chaw says:

      Merlina it may be apple could fail to renew it’s contracts but the problem with Made in China- AS A vote of confidence in Vietnam, the decision by Intel early in 2006 to spend $350m building a new factory in the emerging South-East Asian economy was hard to beat. And yet, before the year was out, the American chipmaker went further and raised its investment to $1 billion. In eight months Intel had committed as much money to Vietnam as it had to China in the previous ten years.

  • Mr. Thomson says:

    Global competitors must have the capacity to think and act in complex ways. In other words, they may slice the company in one way for distribution investments, in another for technology, and in still another for manufacturing. In addition, global competitors will develop varied criteria and analytical tools to justify these investments.

    In our experience, few companies have distinguished between the intermediate tactics and long-run strategic intentions of global competitors. In a world of forward-thinking competitors that change the rules of the game in support of ultimate strategic goals, historical patterns of competition provide little guidance. Executives must anticipate competitive moves by starting from new strategic intentions rather than from precooked generic strategies.

  • Sumit Sharma says:

    Many companies have miscalculated both the timing and the workability of their strategies, in part because they don’t understand what global strategy really is. So they continually fall behind and lose market share in most of the leading markets of the future.

    • Natalie says:

      Yes, It is right Mr. Sharma. I think you have good experience in market analysis. Do you have any suggestions “How we can reduce this risk or can avoid it?”

    • Akash Tripathi (SCM) says:

      Very right Mr. Sharma, Global competition, which occurs when companies cross-subsidize national market share battles in pursuit of global brand and distribution positions.

      • Sumit Sharma says:

        Thanks, Akash to agree with me. In my expertise, few corporations have distinguished between the intermediate techniques and long strategic intentions of worldwide competitors. during a world of forward-thinking competitors that modification the foundations of the sport in support of final strategic goals, historical patterns of competition offer very little steerage. Executives should anticipate competitive moves by ranging from new strategic intentions instead of from prepared generic ways.

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