Global Strategy - Annotated Bibliography Example

Sumantra Ghoshal, Global Strategy: an Organizing Framework. Strategy, Chapter 16. In the article “Global Strategy: an Organizing Framework”, writtenby Sumantra Ghoshal, discusses the mythologies behind “global strategy” by highlighting the “means” and the results involved with globalization. The author identifies the strategies to be used by management to gain a competitive edge when taking the company to an international level. Ghoshal identifies the three main sources in achieving global advantage as: exploitation of “national differences” from the area in which the organization is involved with, benefiting from “scale economies” and exploiting “scope economies” by the merging of agents.

The author describes that these three combinations are needed in order to reach the “end” result needed to gain the leverage on the international level. The use of this strategy will help to reduce the risks involved with global expansion and help the company to achieve their overall goals. W. Brian Arthur. Increaing Returns & the New World of Business. Strategy-Chapter 17 In this article Arthur discusses the potential of turning “dimishing returns” into “increasing return”. He does this by using “Marshall’s world” as an example of how the mass production used by companies in the 1800’s would eventually lead to loss of sales.

Arthur argues that with the advancements of today’s technology high risk investments does not necessarily mean high risk loss. By staying ahead of innovation and remaining in front of the market, companies will continue to see capital growth rather than loss. Simply by changing the focus from bulk production, he suggests companies should become creative with ideas in producing items that cater to customer needs even before they know they want it. George S. Yip. Global Strategy in the Twenty-First Century.

Strategy-Chapter 18 This article focuses on the global strategy needed for companies to survive in the twenty first Century. Yip divides the market into three groups: “internationalist, federalist or global maximizer”. Yip continues to describe a theory that these global companies need to implement in order to stay on top of the international platform. The author strategizes that the best way to earn proper globalization is in unification of all companies operations. This is done by ensuring that every level of the organization is working in unison with each other to achieve their overall goals.

Yip concludes that by pulling together all resources, only then will the company be able to fully compete internationally. In turn leaving the organization with global capabilities to be everywhere, producing anywhere and take advantage of worldwide profits.