Global strategy and management

Chapter 1: Understanding Global Strategy

What is global strategy?
Traditional global strategy is treating different countries as one worldwide all global market.
Some companies are considering the world as one big country. For example Coke is distributed around the world. But that strategy has backfired repeatedly. For example, the Toyota Camry is the best-selling car in the U.S., but not even top five best-selling cars in Japan. A more balanced view covering both global and local (non global) aspects is necessary.

Keys to a successful total global strategy:
The total global strategy three separate components: 1. Developing the core strategy: developing the fundamental purpose of the organization and getting everybody and everything lined up to support that purpose. 2. Internationalizing the core strategy: it is the international expansion of activities and the adaptation of the core strategy. Companies need to have mastered the basics of international business before they can attempt the global strategy. 3. Globalizing the international strategy: by integrating the strategy across countries.

Developing the core business strategy:
Each separable business in a company needs its own core strategy. The core business strategy includes several key elements: * Type of products or services that the business offers * Types of customers that the business serves * Geographic markets served * Major sources of sustainable competitive advantage * Functional strategy for each of the most important value adding activities * Competitive posture, including the selection of competitors to target * Investment strategy

Developing an internationalization strategy:

Internationalization of things consists in any and all preparatory tasks that will facilitate subsequent localization of said