Introduction to Global Strategic Management © Prof. Jedrzej George Frynas Copyright: Prof. J. G. Frynas (2015)

Global Strategic Management These Powerpoint slides are based on Chapter 1 in: Frynas, J.G. and Mellahi, K. Global Strategic Management, Oxford University Press (3 rd edition), Copyright: Prof. J. G. Frynas (2015)

Learning Outcomes After this lecture you should be able to: Understand the characteristics of the strategic management process List and describe the key phases of global strategy Understand the differences between international strategy and global strategy Examine different dimensions of global strategy Copyright: Prof. J. G. Frynas (2015)

Strategic Management Strategic management is “the process of strategic decision-making that sets the long- term direction for the organisation”. The central thrust of strategic management is achieving a sustainable competitive advantage. Strategy-making process involves ‘key decisions’ made for and on behalf of the entire organization. Copyright: Prof. J. G. Frynas (2015)

Strategic management steps Copyright: Prof. J. G. Frynas (2015)

Phases of Global Strategy Single-Country Strategy Export Strategy International Strategy Global Strategy Copyright: Prof. J. G. Frynas (2015)

Single-country and export strategy Copyright: Prof. J. G. Frynas (2015)

International strategy Copyright: Prof. J. G. Frynas (2015)

Global strategy Copyright: Prof. J. G. Frynas (2015)

Defining Global Strategy A global strategy involves the carefully crafted single strategy for the entire network of subsidiaries and partners, encompassing many countries simultaneously and leveraging synergies across many countries. An international strategy involves a large variety of business strategies across countries, and a high level of adaptation to the local business environment. Copyright: Prof. J. G. Frynas (2015)

Three dimensions of corporate globality Copyright: Prof. J. G. Frynas (2015)

Defining Global Strategic Management A definition of Global Strategic Management integrates the three dimensions of corporate globality: Global strategic management is the process of designing a coherent, coordinated, integrated and unified strategy that sets the degree to which a firm globalises its strategic behaviours in different countries through standardisation of offerings, configuration and coordination of activities in different countries, and integration of competitive moves across countries. Copyright: Prof. J. G. Frynas (2015)

Drivers for a global strategic perspective The extent to which a multinational firm adopts a global strategy is determined by three broad factors: macro globalizing drivers, namely globalization and information and communication technology; industry globalizing drivers, namely market drivers, cost drivers, government drivers, and competitive drivers; internal globalizing drivers, namely global orientation and global experience. Copyright: Prof. J. G. Frynas (2015)

Drivers for a global strategic perspective Copyright: Prof. J. G. Frynas (2015)

Differences in the age of globalization The combination of these drivers is unique for each sector and for each multinational firm. The degree of global integration also varies from one national economy to another. For instance, in terms of global economic integration, Singapore is much more global than Japan – if measured by FDI inflows as percentage of a country’s capital formation or employment in multinational firms as a percentage of total employment. Copyright: Prof. J. G. Frynas (2015)

KOF globalization index Copyright: Prof. J. G. Frynas (2015)