Global Strategic Management
Global Strategic Management
Executive Summary
In the international competitive environment, the ability of an organization to develop a transnational organizational capability is the key factor that can help the firm adapt to the changes in the dynamic environment. As the fast rate of globalization renders the traditional ways of doing business irrelevant, it is vital for managers to have a global mindset to be effective. Globalization of business has led to the emergence of global strategic management. A combination of strategic management and international business will result in strategies for global cooperation.
Background
Strategic management is a relatively young subject. It has its roots in the economic and social theories of the 1930s and 1940s - perhaps even earlier. But it only really began to emerge as a separate topic in the 1960s and 1970s. Even today, there is only partial agreement on the fundamental principles of strategic management with many views, ideas and concepts. This makes the topic interesting and challenging. But it also means that there is no fully accepted body of knowledge unlike, for example, mechanical engineering or organic chemistry. There are two main streams of thought related to strategic process: prescriptive (or intended) strategic processes and emergent strategic processes. The field of strategic management deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.
Introduction
The rapid globalization of business has resulted in the emergence of a new field, Global Strategic Management which is a blend of Strategic Management and International Business. Strategic Management is identifying and responding to opportunities and threats in the environment (Wortzel, 1991). A global firm is organized and managed to take advantage of the
Executive Summary
In the international competitive environment, the ability of an organization to develop a transnational organizational capability is the key factor that can help the firm adapt to the changes in the dynamic environment. As the fast rate of globalization renders the traditional ways of doing business irrelevant, it is vital for managers to have a global mindset to be effective. Globalization of business has led to the emergence of global strategic management. A combination of strategic management and international business will result in strategies for global cooperation.
Background
Strategic management is a relatively young subject. It has its roots in the economic and social theories of the 1930s and 1940s - perhaps even earlier. But it only really began to emerge as a separate topic in the 1960s and 1970s. Even today, there is only partial agreement on the fundamental principles of strategic management with many views, ideas and concepts. This makes the topic interesting and challenging. But it also means that there is no fully accepted body of knowledge unlike, for example, mechanical engineering or organic chemistry. There are two main streams of thought related to strategic process: prescriptive (or intended) strategic processes and emergent strategic processes. The field of strategic management deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.
Introduction
The rapid globalization of business has resulted in the emergence of a new field, Global Strategic Management which is a blend of Strategic Management and International Business. Strategic Management is identifying and responding to opportunities and threats in the environment (Wortzel, 1991). A global firm is organized and managed to take advantage of the
References: . Kedia, B.L. & Mukherji, A. 1999. Global managers: developing a mindset for global competitiveness. Journal of World Business. 34 (3). 230-251. Pearce II, J. A. & Robinson, Jr., R. B. 1985. Strategic management, Strategy Formulation and Implementation. Second Ed. Richard D. Irwin, Inc. Homewood, Illinois. Wortzel, L.H. 1991. Global strategies standardization versus flexibility in Vernon- Wortzel, H. & Wortzel, L. H. Global strategic management, the essential. Second Ed. John Wiler, & Sons, New York. 1350148.