Global Issues In Strategy Management
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Developing business strategy on a global basis has become more important as worldwide communications grow. Events in one part of a company's overseas operations can reverberate throughout the entire organization. Also, regional conflicts can erupt into disputes that threaten to undermine business operations in the area. Every strategic manager should keep several global concerns in mind as plans are made and executed.
Government Collapse
An overview of the causes and consequences of the global financial crisis that hit the world in 2008, last updated September 30, 2010. The international strategy is the domestic business strategy that's simply applied to global markets. All decisions are centrally made at a company's headquarters. A typical example of the international strategy is a company that exports its products to foreign countries using host country distributors or other types of middlemen.
Any firm doing business in a foreign country must constantly monitor the stability of the government in that area. Conflict, rebellion and even revolution can cause the government to seize a company's assets and nationalize resources as part of an effort to maintain power. Hostile forces in a country may even come to see your business as part of the problem because you have a relationship with the official government. A strategic manager must monitor local government stability in each country where the business has operations.
Unification Across Country Borders
The unification of Europe has forced many businesses to expand their global concerns to include neighboring countries. Other areas of the world may be subject to a kind of unification as well, with countries with similar interests conducting business in cooperation with each other. The Arab world shows this tendency frequently as of 2011. A global strategic manager must keep abreast of alliances that could help or hinder business operations.
The New Environmental Ethic
Taking care of the environment has become an interest of many countries. Doing business in those countries may require a firm to demonstrate environmental awareness and care. Governmental regulations and restrictions may be more stern than in the United States, and knowing this can help strategic managers navigate the ins and outs of doing business in an environmentally friendly nation.
The Information Revolution
The world is connected electronically, and information flows fast from one part of the world to another. A company must guard its reputation in each country where it has operations, because disputes and conflicts can become global quickly. In addition, marketing that targets nations with prominent ethnic groups will be reported around the world, so a strategic manager must ensure the company's local advertising messages are consistent with its overall positive values.
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About the Author
Kevin Johnston writes for Ameriprise Financial, the Rutgers University MBA Program and Evan Carmichael. He has written about business, marketing, finance, sales and investing for publications such as 'The New York Daily News,' 'Business Age' and 'Nation's Business.' He is an instructional designer with credits for companies such as ADP, Standard and Poor's and Bank of America.
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