Global Business Strategy Essay Example | Topics and Well Written Essays - 2000 words

Global Business Strategy - Essay Example Globalization of firms of all sizes and from a variety of industries is a watch word which must be reckoned with in today’s competitive world markets. To be successful a company should have a, a consumer – oriented approach and should understand customer needs worldwide, along with a comprehensive global business strategy As the world becomes smaller and smaller, it is becoming more and more evident that business firms will increasingly face stronger competition. The purpose of utilizing different types of business strategies on a global scale is to increase the firm’s ability to produce a higher quality product at a lower cost on a world scale. A global business strategy usually comprises of a global product and a brand name, presence throughout the world market. The production activities of the business also will be located worldwide so as to gain maximum advantages, co – ordination of strategies and activities.The global business strategy must be based on standardization of product, branding and advertising. Globalization and business From the perspective of business, interest in globalization centers on two major facts; globalization of markets and globalization of supply chain. The globalization of markets suggested that technological change, social, political and economical development have, in recent decades driven the world towards a ‘global village’ or ‘converging commonality’ – a homogenized unified global market in terms of consumer taste and product preferences. While there is strong evidence that many markets are becoming increasingly global in certain aspects, an approach to strategy that concentrates almost exclusively on standardization and costs represent an oversimplification of the situation. The global environment is becoming increasingly complex and requires more sophisticated approach to strategy.† As per (Ali, 2000, pg.8) â€Å"Global corporations should treat globalizati on as a view and outlook that broadens and energizes human mind and perspectives† As the market become global, consumers are becoming more sophisticated, demanding products that are differentiated rather than standardized. A further complexity is that globalization is not confined to simply to consumer markets but also relates to the global scope of all of organizations’ business operations and its ability to compete on a global scale. Global business strategy is an approach to strategy that embraces the worldwide scope of organizations activities, a view that the whole world is a potential market. Globalization has given business the opportunity to configure its activities so as to take account of vocational and other advantages arising from difference in resources, skills and economic conditions in different parts of the world. The Concept of Strategy with Relate to Business Strategy concerns organizational learning about the business and its environment and the devel opment of knowledge that produces core competences which position the organization favorably with regard to the variable in the environment. Strategic management is comparatively young discipline and, in consequences, there is considerable debate over which approach manager should adopt in devising their strategies. Strategic management is the ongoing process companies use to form a vision, analyze their external environment and their internal organization, and select one or more strategies to use the