Foreign Direct Investment, Diversification and Firm Performance - Example

The paper "Foreign Direct Investment, Diversification and Firm Performance" is a great example of a report on management. In this chapter, we are going to discuss the contradiction of constancy and the changes that take place in strategic management. On the other hand, we will find out what the core values of a company are, and what it does in enduring its purpose which in turn is going to set up a secure foundation in managing the changes in the business world. If the company manages to achieve this, then it is classified under the constancy. It has been well established that if the company does not have the ability to adapt to the changes that are taking place in the business world, then it is bound for destruction or it will be irrelevant in the market.

Therefore we can conclude that strategy is the bridge that joins the gap that is available for it to change from the present to the future (Doukas and Lang, 160). The company can change its strategy and still remain focused on its mission and values. This will make the company be able to adapt and grow. Nevertheless, we are going to understand the concept behind the strategy that we are discussing. Therefore we are going to discuss the five elements that are found in strategy and also the strategies that are needed by a company to adapt and change so as to remain relevant to the system.

The first element of strategy that we are going to discuss is the “Arena.” In simple terms, the arena is the place or area that the company will venture in (Abbasi and Hollman, 30). this may include the type of products that the company is going to deal with, the type of market they are going to be targeting, and the type of technologies they are going to adapt so as to remain relevant in the market. The second element is the “Vehicles”. The company must consider this element because it plays a major role when it is a question of locomotion (Doukas and Lang, 170). On the other hand, this element simply means the strategy that the company is going to adopt in order to move from one standard to another. That is why the company will always want to know whether it is going to develop internally or go into the business through joint ventures, partnerships, acquisitions, or franchising.

The other element is “Differentiators.” This means that the company should be able to know its competitors and at the same time know how they are going to compete in the market. This might mean that the company should focus on how to differentiate through its pricing, style, image, and also reliability amongst other things. The next element that is very important is “Staging or Timing. This can be said to be the way in which the company schemes on the speed that is going to take while growing. The company should be able to know what sequence it is going to adapt so as to remain relevant and competent in the market (Abbasi and Hollman, 33). Finally, the last element that the company should consider is “Economic logic.” It is always important to know how the company is going to achieve its profits. So that is why the company always will want to have the best business model so as to achieve its goal.

Therefore, we can conclude that is always necessary to encompass all the five elements in the strategy in business. And the elements should always support each other and at the same time be aligned. If the elements support each other, the company will now be able to know whether it is relevant to the market or not. The main idea is for the company to always remain relevant in the market so as to be able to be competitive.