DEVELOPING A

GLOBAL STRATEGY

Reported by: Abner B. Domingo

Prof. Paul Raymundo

What is Global Strategy? And why is it important?

Global Strategy is a shortened term that covers

three areas: global, multinational and international

strategies. Essentially, these three areas refer to

those strategies designed to enable an organization

to achieve its objective of international expansion.

INTERNATIONAL BUS INESS -Deve l o p i n g A G loba l Strategy

INTERNATIONAL BUSINESS-Developing A Global Strategy

GLOBAL BUSINESS STRATEGY IN PERSPECTIVE

FORMULATION

OF OVERA

LL CORPORATE

OBJECTIVES

GU

ID

ELIN

E

SMEASUREM

ENT OND EVALUATIO

NOF PERFORMA

NCES

GUIDELINES

CREATION OF

OPERATING STRATEGY

USING COMPETITI

VE ADVANTAG

E

GU

IDE

LIN

ES

1

23

INTERNATIONAL BUSINESS-Developing A Global Strategy

International Strategy

T h e o r g a n i z a t i o n ' s

o b j e c t i v e s r e l a t e

p r i m a r i l y t o t h e

h o m e m a r k e t .

H o w e v e r , w e h a v e

s o m e o b j e c t i v e s

w i t h r e g a r d t o

o v e r s e a s a c t i v i t y

a n d t h e r e f o r e n e e d

a n i n t e r n a t i o n a l

s t r a t e g y .

I m p o r t a n t l y , t h e

c o m p e t i t i v e

a d v a n t a g e -

i m p o r t a n t i n

s t r a t e g y

d e v e l o p m e n t - i s

d e v e l o p e d m a i n l y

f o r t h e   h o m e   m a r k e t .

Multinational Strategy

T h e o r g a n i z a t i o n i s i n v o l v e d i n a n u m b e r o f m a r k e t s b e y o n d i t s h o m e c o u n t r y . B u t i t n e e d s d i s t i n c t i v e s t r a t e g i e s f o r e a c h o f t h e s e m a r k e t s b e c a u s e c u s t o m e r d e m a n d a n d , p e r h a p s c o m p e t i t i o n , a r e d i f f e r e n t i n e a c h c o u n t r y. I m p o r t a n t l y , c o m p e t i t i v e a d v a n t a g e i s d e t e r m i n e d   s e p a ra t e l y f o r e a c h c o u n t r y.

Global StrategyThe organization treats the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis.

INTERNATIONAL BUSINESS-Developing A Global Strategy