Strategy making and international business- Structure of global organizations

When it comes to strategy-making and international business, the structure of global

organizations is a crucial factor to consider. The structure of a global organization refers to
the way in which the organization is organized, how it is managed, and how it operates in
different regions of the world.
There are different types of structures that global organizations can adopt, depending on
their goals, resources, and the nature of their operations. Some of the common structures
used by global organizations include:
Centralized structure: This is a structure in which decision-making is concentrated at the top
level of the organization. The headquarters of the organization makes decisions for all
regions and subsidiaries around the world. This structure is often used by companies that
want to maintain tight control over their operations, standardize processes, and reduce
costs.

Decentralized structure: This structure delegates decision-making power to regional or local

managers. Each region or subsidiary is given autonomy to make decisions that are relevant
to their particular market or region. This structure is often used by companies that want to
be more responsive to local market needs and want to be able to adapt to regional
differences.
Matrix structure: This structure is a combination of both centralized and decentralized
structures. It involves multiple reporting lines, with employees reporting to both functional
managers and regional or product managers. This structure is often used by companies that
have a diverse range of products or services and operate in different regions around the
world.
Network structure: This structure is a loose and flexible arrangement in which the
organization works with a variety of partners, suppliers, and customers around the world.
This structure is often used by companies that rely on collaboration and partnerships to
achieve their goals.
In conclusion, the structure of a global organization can have a significant impact on its
success in international business. Organizations need to carefully consider their goals,
resources, and the nature of their operations before choosing a structure that is best suited
to their needs.

Types of strategies used in strategic planning for achieving global competitive advantage
There are several types of strategies that can be used in strategic planning to achieve global
competitive advantage. These strategies are often focused on leveraging a company's
strengths, identifying and addressing weaknesses, and capitalizing on market opportunities.
Some of the common types of strategies used in strategic planning for achieving global
competitive advantage are:
Cost leadership strategy: This strategy focuses on reducing costs in order to offer products
or services at a lower price than competitors. This can be achieved through economies of
scale, efficient supply chain management, and cost-effective production methods.
Differentiation strategy: This strategy focuses on creating unique and valuable products or
services that stand out in the market. This can be achieved through innovation, branding,
and customer service.
Focus strategy: This strategy focuses on targeting a specific market niche or segment and
tailoring products or services to meet their needs. This can be achieved through market
research and customization.
Internationalization strategy: This strategy focuses on expanding the company's operations
and presence in international markets. This can be achieved through partnerships,
acquisitions, or setting up subsidiaries in different regions.
Diversification strategy: This strategy focuses on expanding the company's product or
service offerings into new and unrelated markets. This can be achieved through mergers
and acquisitions or internal development.

Alliance strategy: This strategy focuses on forming strategic alliances or partnerships with
other companies in order to gain access to new markets, technologies, or resources.
In conclusion, these are some of the common types of strategies used in strategic planning
for achieving global competitive advantage. Companies need to carefully analyze their
strengths, weaknesses, and market opportunities in order to choose the most effective
strategy for their business. Additionally, it's important to regularly review and adjust
strategies in response to changing market conditions and competitive pressures.

Meaning, Concept and scope of distinctive competitive advantage

Distinctive competitive advantage refers to a set of unique and sustainable characteristics or
capabilities that sets a company apart from its competitors and enables it to achieve
superior performance in the marketplace. It is the key factor that allows a company to gain
and maintain a dominant position in the market and outperform its competitors.

The concept of distinctive competitive advantage is based on the idea that not all companies
are equal, and some have unique strengths or advantages that are difficult for competitors
to replicate. These advantages can come from a variety of sources, including:

Proprietary technology or intellectual property

A well-known and respected brand
Efficient supply chain management or production processes
Access to exclusive distribution channels or strategic partnerships
Strong customer relationships or a loyal customer base
Superior quality or customer service
The scope of distinctive competitive advantage includes both internal and external factors.
Internally, a company's distinctive competitive advantage comes from its resources and
capabilities, such as its technology, talent, and organizational culture. Externally, it comes
from the company's ability to create value for customers and stakeholders through its
products, services, and operations.
The key to achieving distinctive competitive advantage is to identify and leverage the
company's unique strengths and capabilities. This requires a deep understanding of the
market and customer needs, as well as a willingness to invest in research, development, and
innovation. Companies must also be willing to continuously adapt and evolve their
strategies in response to changing market conditions and competitive pressures.

In conclusion, distinctive competitive advantage is an essential concept for companies

seeking to achieve and maintain success in the marketplace. By identifying and leveraging
their unique strengths and capabilities, companies can differentiate themselves from their
competitors and achieve superior performance.

Financial Integration, Cross border merger and acquisitions.

Financial integration refers to the process of linking financial markets and institutions across
different countries or regions. It allows for the free flow of capital, goods, and services
across borders, creating opportunities for investment, trade, and economic growth.

Cross-border merger and acquisitions (M&A) are one of the ways in which financial
integration is facilitated. They involve the acquisition of a company or a significant part of its
business by another company located in a different country. Cross-border M&A can bring
several benefits, including:
Access to new markets: Cross-border M&A allows companies to expand their operations
and gain access to new markets and customers.

Diversification of business: Cross-border M&A can help companies diversify their business
and reduce their exposure to risks in a single market.

Access to new technologies: Cross-border M&A can also provide access to new technologies
and know-how, allowing companies to improve their products or services and increase their
competitiveness.

Economies of scale: Cross-border M&A can also bring economies of scale, allowing
companies to reduce costs and improve efficiency.

However, cross-border M&A also poses several challenges, including:

Cultural and language barriers: Differences in culture and language can create
communication and integration challenges for companies involved in cross-border M&A.
Regulatory and legal differences: Different countries have different legal and regulatory
frameworks, which can create challenges for companies involved in cross-border M&A.
Political risk: Cross-border M&A can also be affected by political risk, such as changes in
government policies or instability in the host country.
In conclusion, financial integration and cross-border M&A are important drivers of economic
growth and development. While they offer several benefits, they also pose several
challenges that companies need to be aware of and manage effectively in order to achieve
success.