By: Pankaj Ghemawat
The economic health of the world became worse after the global recession of 2008. The general impact of this catastrophe crashed not only the manufacturing sector but also the service sector as well globally. Most of the times it limited the various activities of the cross border commerce. The FDI has plunged down by 40% dramatically within the span of one year. Such trends in the economy can invite weak global growth; volatility in the financial markets, costlier capital and May even increased the protectionism. The markets of the developed economies are shrinking whereas the developing economies are in the way of prosperity. Further during the recession most international companies has been concentrating much more on home markets and has been toning down their global ambitions, as evidenced by a significant drop in the number of companies emphasizing globalization in their communications to shareholders. Therefore the days ahead are seems to be more challenging to transnational companies. Therefore to successfully negotiate the rockier path before them, they must change their strategic approach in several dimensions. The case will basically deals with the how the crisis affects a company’s basic strategic environment and then explore how to translate in to changes in product and market focus, organizational and supply chain structure, talent management structure etc. Strategic Issues:
Post recession period is akin to chew the flakes of iron for the international business dealing manager. The global recession has been narrowing the way of prosperity. After this recession the most of the nation’s economies especially the developed nations are characterized by the unemployment, volatility in the financial market, costlier capital etc. This recession brought so many hues and cries along with it. Due to this recession it is becoming very hard to the companies to envisage the...