Stonehouse et al. (2004)
Management
> Global Strategic Management >
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> Stonehouse et al. >
The Drivers >
Resource-based approach >
The Resources >
The macro-environment >
global/transnational strategy >
Global strategies >
Strategies - generic/competitive >
Generic strategies >
Combination >
Value system > Total global
Total global
A global strategy must be flexible. Yip (1992) argues that a global
strategy must have three parts:
- Development of the core competence (main global
competitive advantage)
- Internalising core strategies (expansion of value-adding
activities globally)
- Globalising the internal strategies (integration across
national boundaries)
According to Bartlett and Ghoshal (1987), a transnational strategy
should have:
- Strong geographical management to allow local
responsiveness
- Strong business management of products to gain efficiency
and integration through product standards, manufacturing
rationalisation and low-cost sourcing
- Strong worldwide functional management to develop and
transfer core competences and enhance organisational learning
A true transnational strategy encompasses global and local needs all
in one, where parts of the business will be global and other parts,
local.
Globalised elements of a transnational company (TNC) include:
- Knowledge-based core competences
- A generic strategy
- Good co-ordination
- Differentiated architecture (some activities are concentrated,
some are dispersed)
- Participation in key markets - viewing the world as a whole
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