Global Strategy

Global
Strateg
y
Strategy Implementation
DEFINITION
Global Strategy is the sum total of

the activities that an organization
takes in order to compete in markets
outside its home country.
Some of the most popular options for international entry are as
follows:
● EXPORTING  shipping goods produced in the company’s home country to other countries for marketing
● LICENSING  the licensing firm grants rights to another firm in the host country to produce and/or sell a product.
The licensee pays com- pensation to the licensing firm in return for technical and sometimes marketing expertise.
● FRANCHISING  the franchiser grants rights to another company to open a retail store using the franchiser’s
name and operating system. In exchange, the franchisee pays the franchiser a percentage of its sales as a royalty.
● JOINT VENTURE  Forming a joint venture between a foreign corporation and a domestic company has been
one of the most popular strategies used to enter a new country.7
● ACQUISITIONS  A relatively quick way to move into an international area is through acquisitions—purchasing
another company already operating in that area.
● GREEN-FIELD DEVELOPMENT  If a company doesn’t want to purchase another company’s problems
along with its assets, it may choose green-field development and build its own manufacturing plant and distribution
system.
● PRODUCTION SHARING  Coined by Peter Drucker, the term production sharing
gen- erally refers to the process of combining the higher labor skills and technology
available in developed countries with the lower-cost labor available in developing
countries
● TRUNKEY OPERATIONS  are typically contracts for the construc- tion of operating
facilities in exchange for a fee. The facilities are transferred to the host country or firm
when they are complete. T
● BOT CONCEPT  The BOT (Build, Operate, Transfer) concept is a variation of the
turnkey operation. Instead of turning the facility (usually a power plant or toll road) over
to the host country when completed, the company operates the facility for a fixed period
of time during which it earns back its investment, plus a profit.
● MANAGEMENT CONTRACT  A large corporation operating throughout the world

is likely to have a large amount of management talent at its disposal.
stages of international development
Stage 1 Domestic Company
Stage 2 Domestic Company with Export Div.
Stage 3
Primarily Company with International Div.
Stage 4 MNC Corporation with Multidomestic Emphasis
Stage 5 MNC With Global Emphasis

International Employement
Nearly 80% of midsize and larger

companies send some of their
employees abroad – known as
expatriation and the employees are
known as expats.
Research tells us that between 20% and 45% of expatriate assignments are failures
with managers sent abroad returning early because of job dissatisfaction or difficulties
in adjusting to a foreign country. Of those who stayed for the duration of their
assignment, nearly one-third did not perform as well as expected. within one year of
returning home—often leaving to join a competitor
WHY ?
Only 11% of human

resource managers have A lack of knowledge of
One common mistake is
ever worked abroad, most national and ethnic
failing to educate the person
have little understanding of differences can make
about the customs and
a global assignment’s managing an international
values in other countries
unique personal and operation extremely
professional challenges difficult.
and thus fail to develop the
training necessary for such
an assignment.2
How to Improve This
Gapa compelling
 Have ? reason for sending a current
employee to a new country.
 Choose individuals who are open to the
assignment and committed to adapt to the new
environment.
 Assign sponsors/mentors in both the home country
and the new country.
 Develop a means of maintaining very open,
frequent communication throughout the
assignment.
 Design a plan for repatriation.
 Craft an approach for sharing the experiences and
lessons learned within the company.
Measuring Performance
Product and
Financial Non Financial
Services
market share,
ROI, budget analysis, safety/ environmental, productivity, public
and historical energy efficiency, and image, employee
comparisons testing procedures. morale, and relations
with the host country
government.
THANK YOU

Global Strategy

Uploaded by

Copyright:

Available Formats

Global Strategy

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Global Strategy

Uploaded by

Copyright:

Available Formats

Global

Global Strategy is the sum total of

● MANAGEMENT CONTRACT  A large corporation operating throughout the world

Stage 2 Domestic Company with Export Div.

Stage 4 MNC Corporation with Multidomestic Emphasis

Stage 5 MNC With Global Emphasis

Nearly 80% of midsize and larger

Only 11% of human

You might also like