Global Strategic Management Paper
Global Strategic Management Paper
Institute of Affiliation
In a firm going globally, the case highlighted that developing new strategies to fit in the competitive global market is vital for the Firm’s success and survival. In implementing the new strategy, firms must shift their system and processes to adapt to the new organizational structures brought about by the new strategy. It also highlights that in strategizing and structuring systems and processes, continuous researching and developing innovative products is crucial to the growth and success of the Firm. The case, therefore, brings the insight that, for a Firm to take operations internationally, it must revise its strategies to the global concept. It must also structure its operations, workforce, reporting structures, and responsibility and continually research and develop new products to compete in the worldwide market (Bartlett & DeLong 2003) Global Strategic Management Paper.
Global strategic management is developing tools and techniques by companies that analyze the global business environment to make sound decisions to gain a strong competitive advantage over its competitors (Lasserre 2017). The case brings the insight that for a firm to be successful in a global setup, a shift in strategy is paramount, and although it comes with its effects, if well implemented, it can lead to great success. The case has also highlighted how multinational corporations beat the competition by managing their strategies by developing new ones, innovating new products, changing company structures, and integrating business planning processes to ensure competition is eliminated or reduced (Bartlett & DeLong 2003).
The case highlights the success story of multinational corporations and their challenges in diversifying their productions to remain competitive. The biggest surprise is how the leaders of these organizations sacrifice their culture and processes and risk everything to venture into markets or develop new products whose market success is not guaranteed (Bartlett & DeLong 2003).
The case has given me the idea that a Firm’s success depends on how well it understands its customers. Firm develops new products that match their needs in understanding its customers, thereby eliminating the need to market the products aggressively. Understanding customer needs requires vigorous analysis of consumer patterns. It also brought to fore the metamorphosis Multinational Corporations undergo before the success story and its struggles. I would like to know how the Chinese consumer responded to the SK-II product and its performance in the end and whether it was a long-term or short-term success (Bartlett & DeLong 2003) Global Strategic Management Paper.
As a manager, the case has given me an idea that, apart from venturing into new markets, expanding a business is developing and offering new products to the consumers. As a manager, I have also learned that for the company to remain competitive, I should take a risk to develop and implement new strategies, shift to new systems and processes, and keep up with consumers’ needs through research. As an investor, although risky and costly, researching and developing of innovative products can be key to the success of a company and should be encouraged as invested as it is bound to bring in more returns. As a citizen, the global diversification and multinational corporations’ efforts to outdo each other through innovation bring about quality products at reasonable prices for the consumer’s benefit. I would therefore adopt a strategy of analyzing the best product in the market that gives value for money (Bartlett & DeLong 2003).
I have learned that emerging markets are not the only options for a firm to expand and diversify its operations. In the presence of demanding consumers and stiff competition, developing a new product may be the only way to expand and compete in a perfect market. I have also learned that to gain a competitive advantage over its rivals, a Firm must know the consumer’s needs and restructure its processes and strategy to ensure it carters for the consumer needs (Bartlett & DeLong 2003).
Globalization is usually a risky undertaking, and despite the success story that is portrayed in the case, not all firms that venture into international markets succeed. Most firms face restrictions and entry barriers in international markets. Having operations in a different jurisdiction where production is localized may lead to low-quality products, which may harm the global reputation of the corporation as a producer of inferior products. Furthermore, changing strategies comes with changing organizational culture that may lead to employee resistance and conflicts, thereby affecting the company’s performance (Witt 2019).
The main advantage of Strategizing, structuring, and innovating is that it leads to economies of scope where there are savings in costs through sharing of expertise and competencies from one location to another. It also lowers marketing costs and brings out innovative ideas quickly and efficiently. The main disadvantage is that changing strategies and organizational culture may result in low staff morale, adversely affecting their performance. It is also a costly affair and may cost the company in times of inflation that result in losses. Through innovation, the company can develop new products that may not be readily accepted by the consumers result in product failures (Thierry & Lescop 2015).
Bartlett, C. A., & DeLong, T. J. (2003). P & G Japan: The SK-II Globalization Project. Harvard Business School.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher Education.
Thierry, I., & Lescop, D. (2015). Strategizing in platform-based ecosystems: leveraging core processes for continuous innovation. Communications & Strategies, (99), 91.
Witt, M. A. (2019). De-globalization: Theories, predictions, and opportunities for international business research. Journal of International Business Studies, 50(7), 1053-1077 Global Strategic Management Paper.