Global Organizational Strategies

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Strategic management in any organization , whether big or small, whether it is profit- oriented or non-profit oriented, whether government-run or privately managed, whether in manufacturing sector or in services industry, whether a domestic player or an export oriented unit – has got a new strategy today. This dimension is also called as ‘G LOCAL’ vision. G LOCAL is a strategy followed by organization which is a combination of companies own global strategy and new local strategy which is host country dependent. G LOCAL = Global strategy + local elements

This is really interesting and worth analyzing for all managers, leaders and entrepreneurs of today’s progressive, knowledge-based corporations, this ‘G LOCAL’ element is now an important part for all successful organizations. INTRODUCTION:

Christopher A. Bartlett in his book, ‘Managing across Borders’, classify the three types of organizational strategies: (i) a single globally coordinated strategy, (ii) a multinational strategy favouring strong national responsiveness and (iii) a core global standard strategy with some localized elements. This is also known as the ‘G LOCAL’ strategy, and deals with the localization of the global strategy. What are the key elements of this ‘G LOCAL’ strategy? Rather than term them as elements, it is better to call them as the ‘G LOCAL’ mix. This is so, because the resultant effect is a combined synergy of the 3 key constituents of this mix: Mission, Resources and Locus (Geography + Control). Mission refers to the goal. Resources refer to men, material, machine, money and management. Geographical locus specifies region/ location and control. Therefore a ‘G LOCAL’ strategy incorporates the adaptation or customization of the worldwide resources, objective and location of a firm to suit regional requirements in order to attain competitive advantage. Examples of ‘G LOCAL’ strategy abound among the multitudinous knowledge-based corporations today. Now we can see how some of the world’s most successful enterprises are following a ‘G LOCAL’ strategy. (Krishnan) METHODOLOGY:

The methodology followed is a three-step process.
Step 1: In step one the chance of the hypothesis that leading corporations of the world follow a ‘G LOCAL’ strategy, irrespective of their size, sector or country of origin, is tested. World’s greatest organizations which are top ten in the Global Fortune 500 Corporations list. If the Fortune 500 companies are able to demonstrate that they have adopted ‘G LOCAL’ strategies, then it can be assumed that the world’s most successful corporations subscribe to the ‘G LOCAL’ strategy. If however, these global top 10 corporations are seen to have not followed a ‘G LOCAL’ organizational strategy, then it could be attributed to other success factors. Step 2: The second step that is followed relates to a brief examination of other successful corporations which are not featuring among the top 10 largest firms. These include some Indian multinationals (since none of the Indian companies featured in the first list), which are tested for pursuit of a ‘G LOCAL’ organizational strategy. Step 3: The third step would examine the success of the non-governmental, non-profit, as well as government-owned and domestic-oriented organizations. If this category too demonstrates the success of ‘G LOCAL’ strategy, then we could conclude beyond doubt that ‘G LOCAL’ organizational strategy is the ultimate success formula for today’s competitive environment. (Krishnan) ORGANIZATIONAL STRATEGY OF WORLD’S TOP TEN CORPORATIONS:

In order to study the above, the latest list of fortune 500 is being considered. According to the list, the top 10 companies are listed.

1.Wal-Mart Stores
2.Toyota Motor
3.Exxon Mobil
6.Royal Dutch Shell
8.General Motors
9.Conoco Phillips
10.Total (
When the organizational strategy of each of...
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