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Running head: STRATEGIC MANAGEMENT

Strategic Management
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Strategic Management

1. Today's environmental scanning is not limited to domestic industry landscape--instead, it
has already been a global competition. Please provide your definition of the global
economic world. Discuss the strategic reasons for the globalization of business and value
chain activities. And do you agree with the argument, "The World isn't Flat."? Why?
Answer:
According to my view towards the meaning of the worldwide economy of the globe, it
involves the growing reliance between state economy because of the flow of products and
services, capita, automation between frontiers (buy-ins and exports) around the globe. It
indicates the affiliation between states in the commerce and motion of services, commodities,
etc. Further, it offers more fortune to the country through globalization. The planned cause for
the globalization of an enterprise is to grow sales as the revenue rises, which leads to
accomplishing the yearly tactic targets and securing exceptional promotion and broader
accessibility of the label.
It moreover leads in the usage of practical capability and scientific insight of numerous
states having the integration of automation, in turn, constructing rare commodities. The scheme
causes the globalization value chain tasks involving minimal operating charges whereby retailers
depend on supply chains to transfer costly products quickly. To refrain from handling expensive
stocks in warehouses any more expanded than would ordinarily be suitable. Additionally,
producers depend on supply chains to transmit materials along with gathering plants to refrain
from material defects that may lock down manufacture. Therefore, producer and manufacturers
significantly minimize on risks through the use of supply chains since it focuses on what it does

STRATEGIC MANAGEMENT
best thus providing quality. Through the use of supply chains a company is able to gain much
profit since their partners are able to reach to a wider market.
I would concur with the remarks that the globe does not level as every individual on the
planet ponders similarly regarding the demands. People get captivated by smart activities, gain
more sales, and acquire further insight spending it towards the fulfillment of state advantage.
2. There are three types of global competitive strategy: Global, Multi-domestic, and
Transnational approach. Discuss the advantages and disadvantages associated with the
multi-domestic strategy. Provide your suggestions on the managerial considerations (e.g.,
organizational structure, control systems, coordinating mechanisms, etc.) for successful
implementation of the multi-domestic strategy.
On the matter concerning multi-local tactics, the organization becomes reactive towards
the domestic requirements of the clients and tailors their commodities according to the demands
of the local clients in every global market it functions. The merit of this tactic is it constructs the
contributions of the firms reactive directed to the requirements of the clients and assists in
implementing the organization concretely in the market. It aids the organizations to link with
clients in an exceptional means. The choice of every tactic relies on the nature of commodities
and the whole scheme of the corporations. The system gets appropriate where the organizations
try to acquire adequacy as well as economies of scale. The multi-local tactic gets suitable for the
commodities, for instance, meal products in which there exist essential variations in the
preferences of individuals in varying states. The demerit of such a strategy is its restricted
domestic reactivity that causes the possibility of loss in local markets, and the enterprise can
conduct only slight adjustments to the commodity to fit the market. Another demerit is

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commodity standardization, the need for a considerable degree of systematization among the
global functions.
I may suggest a common tactic for the enterprise to enlarge in foreign lands. The benefit
of global scheming is its ability to permit the organization to make a competitive advantage
through conveying the producing functions to minimal charges areas and aids to accomplish
economies of scale. During the production of standardized commodities, there exists the need for
promoting low prices and high value as it assists in creating the right image and cost advantage
in the international market, and the organization could become a ruler in such a market.
3. Discuss how the need for control over foreign operations varies with the strategy (e.g.,
global standardization vs. localization) and distinctive competencies of a company. What
are the implications of this relationship for the choice of entry mode?
The command for restriction over overseas functions certainly differs from organizations'
plans of action and primary abilities. At one part of the range, we contain commodity firms only
needing to exploit foreign markets. Such firms use a hand-off model and build an association
with a domestic partner who regulates all of the functions- the enterprise only offers the
commodities. Such a tactic supposes a degree of complexity of the local market and furthers the
supremacy of the product. The arms-length model debated previously simply puts them away
from their demands of attention and becomes a hindrance to their efficiency. For plans of action
of foreign origin, they need a massive regulation over different functions. The command for
control as an operation of its primary capability gets intricate. There exist economies of scale in
shifting production in foreign lands even if it is mainly a commodity-producing firm.
The inferences of a selection of sound design and mode of entrance include, decides the
prosperity in the market, gives meaning to the primary abilities and tactics, and the charge

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sustained further relies on the design and means of entry. Deciding the prosperity in the market
design and the means of entrance embraced would be necessary for the success the firm may
acquire on the grounds of the model it engages in its functions. Giving meaning to primary...