Strategic Management: Formulation and Implementation


An analysis of a company's competitive position against the five dimensions of globalization: major market participation, product standardization, activity specialization, uniform market positioning, integrated competitive strategy, and the ability of the organization to implement the different elements of global strategies - helps define the appropriate approach for a globalization strategy.

Mission, Goals, Objectives

A firm's mission, goals and objectives also require global involvement. For example, for political-legal reason, firm may need to locate manufacturing facilities abroad; or to reduce costs, a firm may seek production sites in foreign countries.

Moreover, global management is complex because it involves the simultaneous management of multiply missions and objectives. Bartlett and Ghoshal point out, that global organization has three functions that must be managed simultaneously:

  1. Its assets and resources are, "widely dispersed, but mutually supportive" to achieve global efficiency.
  2. The roles and responsibility of various units are differentiated, but interdependent to maximize national flexibility.
  3. Its knowledge and initiatives are linked throughout a worldwide learning capability that assures the efficient development and diffusion of innovations.