Post on 17-Jan-2016
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Copyright: Prof. J. G. Frynas (2015)
Introduction to Global Strategic Management
© Prof. Jedrzej George Frynas
www.frynas.com
Copyright: Prof. J. G. Frynas (2015)
Global Strategic Management
These Powerpoint slides are based on Chapter 1 in:Frynas, J.G. and Mellahi, K. Global Strategic Management, Oxford
University Press (3rd edition), 2014.
Copyright: Prof. J. G. Frynas (2015)
Learning Outcomes
After this lecture you should be able to:• Understand the characteristics of the strategic
management process• List and describe the key phases of global strategy• Understand the differences between international
strategy and global strategy• Examine different dimensions of global strategy
Copyright: Prof. J. G. Frynas (2015)
Strategic Management
• Strategic management is “the process of strategic decision-making that sets the long-term direction for the organisation”.
• The central thrust of strategic management is achieving a sustainable competitive advantage.
• Strategy-making process involves ‘key decisions’ made for and on behalf of the entire organization.
Copyright: Prof. J. G. Frynas (2015)
Strategic management steps
Copyright: Prof. J. G. Frynas (2015)
Phases of Global Strategy
• Single-Country Strategy
• Export Strategy
• International Strategy
• Global Strategy
Copyright: Prof. J. G. Frynas (2015)
Single-country and export strategy
Copyright: Prof. J. G. Frynas (2015)
International strategy
Copyright: Prof. J. G. Frynas (2015)
Global strategy
Copyright: Prof. J. G. Frynas (2015)
Defining Global Strategy
• A global strategy involves the carefully crafted single strategy for the entire network of subsidiaries and partners, encompassing many countries simultaneously and leveraging synergies across many countries.
• An international strategy involves a large variety of business strategies across countries, and a high level of adaptation to the local business environment.
Copyright: Prof. J. G. Frynas (2015)
Three dimensions of corporate globality
Copyright: Prof. J. G. Frynas (2015)
Defining Global Strategic Management
• A definition of Global Strategic Management integrates the three dimensions of corporate globality:
Global strategic management is the process of designing a coherent, coordinated, integrated
and unified strategy that sets the degree to which a firm globalises its strategic behaviours in different countries through standardisation of offerings, configuration and coordination of activities in different countries, and integration
of competitive moves across countries.
Copyright: Prof. J. G. Frynas (2015)
Drivers for a global strategic perspective
The extent to which a multinational firm adopts a global strategy is determined by three broad factors:
• macro globalizing drivers, namely globalization and information and communication technology;
• industry globalizing drivers, namely market drivers, cost drivers, government drivers, and competitive drivers;
• internal globalizing drivers, namely global orientation and global experience.
Copyright: Prof. J. G. Frynas (2015)
Drivers for a global strategic perspective
Copyright: Prof. J. G. Frynas (2015)
Differences in the age of globalization
• The combination of these drivers is unique for each sector and for each multinational firm.
• The degree of global integration also varies from one national economy to another.
• For instance, in terms of global economic integration, Singapore is much more global than Japan – if measured by FDI inflows as percentage of a country’s capital formation or employment in multinational firms as a percentage of total employment.
Copyright: Prof. J. G. Frynas (2015)
KOF globalization index