Strategic Management and Global Business

Topics: Strategic management, Fast food restaurant, Fast food Pages: 14 (4527 words) Published: May 23, 2013
Global Business Management
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Global business management program is a significant field since it prepares individuals to be flexible since they can work as managers of large business firms either in domestic and international organizations. The field covers all the necessary issues in any business that a manager requires. The main areas covered in global business management include; problem solving, strategic planning, teamwork, leadership, teamwork, communications, numeracy, and analytic ability. Individuals who pass through this program learn skills, gain knowledge and experience required to manage human, physical, and financial resources, practical management and complex strategic matters of international and domestic businesses. Global business management is a rich field which offers a wide range of career fields. The first year of the program covers broad fundamental business knowledge and skills field second year deals with advanced strategic and global and international courses that are applied in both domestic and international businesses thus making it global business management program (Tallman, 2009). Fast food industry is a vast organization that has experienced a continuous growth over the years. Fast foods are food that is prepared and served swiftly. Fast foods are sold in stores or restaurants with precooked ingredients and served to clients in packaged form as take –away.  Fast foods are distributed in franchise operations, which are part of restaurant chains, which deliver standardized foodstuffs to every restaurant from central locations.  In 2006, the National Restaurant Association estimates that food restaurants in U.S. would reach US $142 billion, a 5% increase from 2005. According to U.S. Bureau of Labor statistics, the industry employs an estimate of 4.1 million U.S. workers are employed either in serving or GLOBAL BUSINESS MANAGEMENT3

food preparation. In 2006, the global fast food market grew by an approximate of 4.8%, a volume of 80.3 million billion transactions thus attaining a value of 102.4 billion Euros. In other countries like India alone, the food industry growth of 41% a year (Talwar, 2002). Yips drivers of globalization

The increase in trend to market globalization is due to various reasons. In several markets, customer preferences and needs come in the front line. The drivers include; (Retrieved April 17, 2013, from Porter’s5forcesframework

Developed to access the attractiveness of various ndustries. It is vital since it helps industries to identify the origin of competition in an industry. It is used for strategic business units, and not in the whole organization. Economies of scale

The capital cost requirement will vary depending to scale and technology. Cost efficiency
It is a significant strategic capability in every firm since they are bound to ensure continued and achievable cost efficiency.  It may be achieved through having appropriate resources and capability to manage costs.  Management of cost related issues is a fundamental thing in achieving competitive advantage. Sustainable competitive advantage

For an organization to survive, its capabilities must meet client’s specifications at least to the threshold level. It must continue to manage its costs in an effective manner and advance in its capabilities. To attain competitive advantage firms should consider the resources and competencies that may deliver competitive advantage for a long time. Rarity of strategic capabilities

To achieve competitive advantage, the strategic capacity of an organization should be different from those of other institutions.  Competitive advantage can be based on the rare competencies; for example, years of experience. Rarity may be on how an individual possess the competence GLOBAL BUSINESS MANAGEMENT4...
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