Strategy - Alliance Perspectives
Relational and Alliance Perspectives
1. Introduction
This summary provides a review of the strategic management. . It will first develop an understanding of relational and alliance perspectives, secondly it will demonstrate an awareness of the literature covered and finally highlight the implications.
2. Context
a) Understanding of relational and alliance perspectives
Ghoshal (1987), in an attempt to define “global strategy” finds that the concept of global strategy has been linked with how a firm structures the flow of tasks within its worldwide value adding system which led to a better understanding; different tasks offered different degrees of advantages from global integration and national differentiation. Competitive advantage is about means and ends. In the multinational or global setting, competitive advantage is gained from three sources (means) that is exploiting national differences, benefiting from economies of scale and exploiting synergies from economies of scope, created by the diversification of its activities (product and market diversification). However the strategic task of managing globally is to use also has three sources to achieve three strategic objectives (goals/ends) which includes efficiency in current operations, risk management and innovation, learning and adaptation. The message from Ghoshal indicates that the key to a successful global strategy is to manage the interactions between the different ends and means, which in essence is the organising framework. The organizing framework presents managers in international business with a “checklist” to analyze their strategies. This helps them view their actions and tactics as part of a greater framework and understand their strategic position in it. This makes possible for interconnectedness of actions in which influences could be better understood and catered for. Following from the development of the organizing framework, the relational perspective focuses on
1. Introduction
This summary provides a review of the strategic management. . It will first develop an understanding of relational and alliance perspectives, secondly it will demonstrate an awareness of the literature covered and finally highlight the implications.
2. Context
a) Understanding of relational and alliance perspectives
Ghoshal (1987), in an attempt to define “global strategy” finds that the concept of global strategy has been linked with how a firm structures the flow of tasks within its worldwide value adding system which led to a better understanding; different tasks offered different degrees of advantages from global integration and national differentiation. Competitive advantage is about means and ends. In the multinational or global setting, competitive advantage is gained from three sources (means) that is exploiting national differences, benefiting from economies of scale and exploiting synergies from economies of scope, created by the diversification of its activities (product and market diversification). However the strategic task of managing globally is to use also has three sources to achieve three strategic objectives (goals/ends) which includes efficiency in current operations, risk management and innovation, learning and adaptation. The message from Ghoshal indicates that the key to a successful global strategy is to manage the interactions between the different ends and means, which in essence is the organising framework. The organizing framework presents managers in international business with a “checklist” to analyze their strategies. This helps them view their actions and tactics as part of a greater framework and understand their strategic position in it. This makes possible for interconnectedness of actions in which influences could be better understood and catered for. Following from the development of the organizing framework, the relational perspective focuses on