Institutional Framework - Jitto Paul James

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Technical framework for global strategies

Introduction :
Strategies in a global setting involves competition in industries that extends across national boundaries and firms with different national bases that may tap into strategic resources in more than one location. The frameworks for global strategic analysis at four levels are the geographic scope of the industry , the competitiveness of various locations , the geographic reach of the firm and the global integration vs. local focus of specific activities . The sustainable growth of the country depends mainly on the quality of a country‘s institutions. Without well-functioning institutions, education and training policies are less effective and factor markets cannot function efficiently. Even the Financial systems, which are a central element in funding new investment, do not function effectively in a weak institutional environment .In short, strong institutions are a central determinant of the ability of economies to compete and to grow successfully.

Level of analysis : issues , frameworks and actions

The principal frames of reference required for strategic thinking and action in an international context , these include those required for defining the geographic scope of industries, the competitive advantage of countries and its implications for the locations of activities and tradeoffs between local responsiveness and global integration of different activities in the value chain . While each of these levels is complex, we find it useful to caricature. each of these frameworks graphically , much as Porter has done with the five competitiveness .These caricature are drastic oversimplifications and omit many relevant variable and feedbacks , but they call to mind the various dimensions that should be considered . The goal is not to master the framework , but to use it...