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8e Daft Chapter 08
8e Daft Chapter 08
8e Daft Chapter 08
Learning Objectives
Strategic Management
Strategic Management
Grand Strategy
1. Growth
2. Stability
3. Retrenchment
A separate grand
strategy can be
defined for global
operations
• Standardizes global
• Combines standardization
products/advertising
and customization for
strategies
product/advertising
strategies
Export
Strategy Multi-domestic Strategy
•Domestically focused • Handles markets
independently for each
•Exports a few country
domestically produced • Adapts product/advertising
products to selected
countries to local tastes and needs
Low
Low Need for National Responsiveness High
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Global Strategy
Purpose of Strategy
The plan of action that prescribes resource
allocation and other activities for dealing with
the environment, achieving a competitive
advantage, that help the organization attain
its goals
Exhibit 8.2
Portfolio Strategy
Mix of business
units and product BCG Matrix
Exhibit 8.5
Source: Based on Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980).
Mergers
Degree of Collaboration
Joint Ventures
Strategic
Alliances
Strategic Business Partnering
Low High
Degree of Collaboration