Competing with Giants: Survival Strategies for Local Companies in Emerging MarketsGlobal Business Strategy pp Cite as. This chapter examines management strategy theories for global businesses. Should investments be made in regions such as China or Southeast Asia with existing substantial business establishments, or should expansions into new markets such as India, the Middle East, and Africa be considered? Which corporate functions should be transferred overseas? This chapter attempts to understand the theoretical aspects of decision-making in the allocation of management resources within global businesses.
Management Strategies for Global Businesses
One driver of the rapid growth of international business over the past two decades has been the opening up of large economies such as China and Russia, which had been mostly closed off to outside investors and producers. The U. As a result, the overall size of the U. As primarily a trading nation, Canada has also benefited from the rapid growth in international trade and globalization. Given our immense shared border with the United States, it is not surprising that Canada and the U. In fact, it is fair to say that every Canadian business is affected by international markets to some degree, although services are typically affected to a lesser extent. Tiny businesses such as individual convenience stores and clothing boutiques sell products that are largely imported from abroad.
Global strategy as defined in business terms is an organization's strategic guide to globalization. A business can employ a global business strategy  to reap the rewards of trading in a worldwide market. A sound global strategy should address these questions: what must be versus what is the extent of market presence in the world's major markets? How to build the necessary global presence? What must be AND versus what is the optimal locations around the world for the various value chain activities?
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These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many agricultural products of a raw or commodity nature use agents, distributors or involve Government, whereas processed materials, whilst not excluding these, rely more heavily on more sophisticated forms of access. These will be expanded on later.