Strategic Management for the International Business Essay

Strategic Management for the International Business - Essay Example Global strategy can be stated as the way a particular business organisation views the global marketplace. The success or failure of global strategy depends on various interrelated factors. The factors include activities like sourcing, research and development, marketing and manufacturing, etc. All this factors are now incorporated in a global organisation strategy direction. In the present business context, every organisation tries to be responsive to the local market condition. Their strategies are incorporated in such a way which firstly is looking for being successful in local market then venturing in the global market. The Coca Cola’s strategy can be stated as an example in this case. The business organisations at present follow the motto of â€Å"Think global but act local† (Zou & Cavusgil, 1995). Global competition has increased the competitive edge in every strategic decision that a company takes in any organisation. Global competition is a phenomenon which occurs when various companies’ cross-subsidies market share on a national level and then it battles for being successful as a global brand and also acquiring global distribution positions. Global business looks towards acquiring economies of scale and cost efficiency in their business by venturing outside of their homeland. As a global company, an organisation tries to acquire international retaliation, world scale volume and also enabling cross-subsidisation. Global companies try to establish their strategies by fixing their locus of responsibilities mainly away from the country organisation (Hamel & Prahlad, 1985). Global market and corresponding strategic decisions are the main focus areas of any business organisation in the present scenario. This has brought in a new phenomenon called global markets which is made especially for standardised consumer