MAN 4602 Lecture 1: Chapter 1 - MAN 4602
Document Summary
Traditional views on global strategy ignore: local needs of host country or region, how domestic companies compete with each other, domestic vs foreign competition, only appropriate for large companies, usually ignores developing countries. China is coming up on second and may be first soon. Why study global environment: job and career aspirations, what is going on in the world, downside risks for globalization. Cheaper products and services due to cheaper labor and goods. Hurting domestic country from loss of jobs. What is global strategy: traditional view. Provide standardized products and or services on a worldwide basis. The scope of a firm: acquisitions, opening new stores and locations, entering new markets, laying off workers, closing stores / plants. What determines international success or failure of firms: industry based view. Degree of competitiveness in the industry: resource based view. Firm specific differences in capabilities: institution based view. Institutional forces, such as economic reforms, and government policy.
