Globalization and Regional Strategies

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  • Topic: Strategic management, International trade, Globalization
  • Pages : 11 (3891 words )
  • Download(s) : 44
  • Published : January 19, 2013
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Executive Summary
It is clear enough that in today’s era it is extremely critical for firms to adopt global and regional business strategies in order to attain sustainable competitive advantage. But the question arises regarding classification of a MNE (Multinational Enterprise) as a global firm. This essay critically analyses the work on regional strategy as a response to Osegowitsch and Sammartino and attempts to cover the following aspects in detail.

Notion of Globalization and Global Strategy
This section highlights the notion of globalization and way organizations today establish a global presence by adoption of unique business strategies. This part also details the three different kind of global strategies.

Regional Strategy Analysis
This part analyzes the theory and practice of regional strategy concept of Globalization in particular as a response to Osegowitsch and Sammartino (2008). It aims to justify that in today’s era very few global firms exists and secondly that sufficient amount of international business literature and theory is required to draw reflection on regional vs. global MNE’s (Multinational Enterprises) strategy.

The Theory of the Regional Strategy
This section explains the concept of regional strategy analysis and illustrates the various regional theories as explained by Osegowitsch and Sammartino.

Introduction
With the concept of globalization and internationalization gaining more and more momentum everyday, this essay attempts to critically analyse the work of Osegowitsch and Sammartino on regional strategy. It starts with explaining the concept of globalisation and global strategy and tries to justify that in today’s era very few global firms exist. Secondly, it tries to establish that significant amount of international business literature and theory is demanded in order to draw conclusion on regional vs. global MNEs strategy by exploring the theory of regional strategy.

Notion of Globalization and Global Strategy
Globalization can be defined as a complex concept which enables firms to operate in various continents and countries across the globe in order to improve and maximise their profit margins, sustainability, worldwide existence and economies of scale (Blyton et al., 2001). Globalization provides platform not only to consumers but also to organizations to help them satisfy their needs globally. According to Marquardt & Berger (2003), Trade, Travel, Technology and Television are the four major developments that have resulted in Globalization. The four T’s of global development are the outcome of human brain and its creative innovations. These advancements have further encouraged and made possible continuous exchange of ideas, information and knowledge between human resources by breaking the barriers of distance. Moving ahead, Bratton & Gold (2007) state that Globalization is a global process of political convergence, social economies and national sentiments, in which space, time and Government are not given much importance. The paragraph below will now highlight the three different views on “global strategy”. The First view states that the global strategy is one of the particular and specific forms of Multinational Enterprise (MNE) Strategy. Further, it highlights the fact that Globalization considers all the countries of the world alike (Levitt, 1983). The Second view considers global strategy as “International Strategic Management” (Bruton et al., 2004) which is no doubt wider concept than “global strategy” mentioned in the first view. Lastly, the third view describes global strategy in even broader term; The strategy of the firms that exist all over the globe and this can be concluded as the firm’s theory of how to become a successful competitor (Peng, 2006). Having discussed the various forms of global strategies which are adopted by firms today, this essay now moves ahead to analyse the theory and practice of regional strategy concept of Globalization...
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