Stonehouse et al. (2004)

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Stonehouse et al. (2004) - Global Strategic Management

Managers need to be aware of both the micro (competitors) and macro-environments (global changes), as the latter affects the former, making them interdependent. Managers always need to be aware of the context of the situation when making decisions.

The macro-environment is continually changing, but it is difficult to predict in which direction it is going to shift and how that will affect the micro-environment and the firm itself.

Yip (1992) devised global drivers, which outlines the forces which can lead a firm to become global (Fig.1).

All drivers need to be analysed to determine the degree of globalisation (standardisation) or localisation should be used within a given industry.

For example, cultural convergence and developments in transport technology will increase the strength of market, cost and competitive drivers that push towards globalisation in some industries. This shows how the macro-environment can affect the micro-environment.

The Drivers

Resource-based approach to environmental analysis

The Resources

The Macro-environment

Global and Transnational strategy

Global strategies

Strategies - Generic/Competitive positioning