Strategic Management: Formulation and Implementation

Industry Drivers Of Globalization

An industry's potential for globalization is driven by market, economic, environmental, and competitive factors. Market forces determine the customers' receptivity to a global product; economic factors determine whether pursuing a global strategy can provide a cost advantage; environmental factors show whether the necessary supporting infrastructure is there; and competitive factors provide a spur to action.

Drivers of globalization

Globalization (globalisation)

describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade.

The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

  1. Technological drivers of globalization
  2. Political drivers of globalization
  3. Market drivers of globalization
  4. Cost Drivers of globalization
  5. Competitive drivers of globalization

Organizational Factors In Globalization

Organizational factors can support or undercut a business's attempt to globalize. Four factors affect the ability of an organization to develop and implement global strategy: organization structure, management processes, people, and culture. Each of these aspects of organization operates powerfully in different ways.