Globalization of business that began in the 1970s and matured in the 1990s, has replaced the concept of national exchanges with global transactions. Technology is the prime mover of globalization and globalization is a major mover of competition. This book is set out to examine the effect global competition has on the process of strategic management.
Table of Contents
1 Introduction
2 Fundamentals of Strategic Management
2.1 The Concept of Strategy in Business Life
2.2 Strategic Planning and Strategy Formulation
2.3 Strategic Analysis, Strategic Choice and Strategy Implementation
2.4 Managing by Strategy
3 Analyzing the Environment
3.1 The Internal Environment
3.2 The Analysis of Industry and Competition
3.3 The Macroenvironment
4 International Management Strategy
4.1 Corporate Strategies for Multinational Corporations
4.2 Market Share Goals
4.3 Global Competitive Advantage
5 Concluding Remarks
6 Acknowledgements
Research Objectives and Key Topics
This paper aims to examine the impact of global competition on the strategic management process. It explores how globalization and technological advancements necessitate new approaches to competitive positioning and the creation of global competitive advantage for modern corporations.
- Fundamentals and definitions of strategic management processes
- Methods for analyzing internal and external corporate environments
- Strategies for multinational and global business operations
- The role of international market share and competitive advantage
- Challenges posed by global economic, political, and social macroenvironmental forces
Excerpt from the Book
2.1 The Concept of Strategy in Business Life
The point of implementing strategy is to fulfill stakeholder expectations in the long term, that means to handle the uncertain future. To accomplish this purpose, the strategy has to give consistency and direction to the individual decisions of an organization and should continually be adapted according to environmental change. However, there are no concrete rules to perform this assignment, formulating and implementing strategies base on special techniques, frameworks, concepts and, more or less, on intuition and experience.
In business life strategy is about achieving competitive advantage by responding to external opportunities and risks and internal conditions (see figure 2-1). It can be seen as the harmonizing of the actions of an organization to its environment.
A strategy facilitates to allocate an organization’s resources in order to reach the organization’s objectives. Strategic decisions are based on predictable, unpredictable, and unknowable environmental changes. Thus, strategy has to be integrated in all managerial decisions and activities of a business corporation to anticipate environmental changes and actions of competitors.
Summary of Chapters
1 Introduction: This chapter introduces the theoretical background of global competition and outlines the paper's objective to analyze its effect on strategic management.
2 Fundamentals of Strategic Management: It defines strategic management as a process of aligning organizational decisions with the environment and explores strategy formulation and implementation.
3 Analyzing the Environment: This section details the necessity of scanning both the internal organization and the external industry and macro-environmental forces.
4 International Management Strategy: This chapter discusses strategies specific to multinational corporations, including market share goals and the development of global competitive advantage.
5 Concluding Remarks: It summarizes the findings, emphasizing that globalization makes strategic management more complex and necessitates new management skills.
6 Acknowledgements: The author expresses gratitude to those who provided feedback on the work.
Keywords
Strategic Management, Globalization, Competitive Advantage, Multinational Corporations, Strategy Formulation, Macroenvironment, Internal Analysis, Industry Competition, Market Share, Resource-based View, Strategic Planning, Hypercompetition, Corporate Strategy, Business Strategy, International Trade.
Frequently Asked Questions
What is the primary purpose of this paper?
The paper aims to examine how global competition influences strategic management and to provide a foundational understanding of strategic processes in a globalized business environment.
What are the core themes explored?
The research focuses on strategic planning, environmental analysis, multinational management strategies, and the attainment of competitive advantage.
How does the author define the objective of a corporate strategy?
The objective is defined as achieving competitive advantage by responding to external opportunities and risks while harmonizing organizational actions with the environment.
Which scientific methods are applied?
The work employs a literature-based analysis of established strategic management frameworks, such as Porter’s Five Forces and the resource-based view of the firm.
What does the main body cover?
The main body covers the fundamentals of strategy, techniques for environmental scanning, strategies for international operations, and the management of subsidiary-specific advantages.
Which keywords best characterize this work?
Key terms include Strategic Management, Globalization, Competitive Advantage, Multinational Corporations, and Macroenvironment.
What role does the "Macroenvironment" play in a corporation's strategy?
The macroenvironment comprises forces—political, economic, social, and technological—that are generally uncontrollable but essential for managers to evaluate to ensure organizational effectiveness.
How does the author explain the difference between internal and external growth for multinationals?
Internal growth is achieved by establishing new physical facilities and operations in foreign countries, while external growth occurs through mergers with or acquisitions of existing foreign companies.
- Quote paper
- Erik Wintzer (Author), 2001, Global Competition and Strategic Management, Munich, GRIN Verlag, https://www.grin.com/document/1708
