This lesson explains the global strategy: an approach that applies relatively similar operations across countries. It explores why companies choose this strategy, how it can create efficiencies, and what its limits are.
A global strategy assumes that the world is highly interconnected and that patterns of consumption and production are sufficiently similar across countries. A company using this approach extends much of its domestic strategy into international markets, managing activities in a fairly consistent way worldwide.
All flashcards
Global strategy
Managing operations and activities in relatively similar ways across the countries where a company operates.
Regional versus local strategy
A regional strategy organizes around significant geographic regions; a local strategy adapts to a specific country or market.
Hybrid strategy
A deliberate combination of global, regional, and/or local approaches across different company activities.
Network organization
An organization that connects people and units across geographic boundaries to support collaboration and knowledge sharing.
Why engage stakeholders during organizational change?
Early engagement helps leaders learn from existing teams, preserve valuable expertise, and build support for change.
Quiz questions
Why might a regional approach to vehicle design suit markets in Europe and the United States?Answer: Fuel prices and vehicle needs can differ between the regions.
What did Ford's use of a shared C-platform illustrate?Answer: A common underlying platform can support different models and electrified vehicle types.
What is one potential cost of adapting operations separately to local markets?Answer: Duplicating resources can raise costs and make cross-market learning harder.
In 2012, what problem affected Bayer Crop Science's country GPGA divisions?Answer: Their independent operation slowed the flow of policy information to headquarters.
How did Lisa Coen help build support for change in Bayer Crop Science's GPGA division?Answer: She met stakeholders, learned from teams, and brought key people together to work on issues.
Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.