Good Essay On Global and International Regional Strategies

Global and International Regional Strategies

Define ‘global’ and ‘international regional’ strategies:
A global strategy is a comprehensive roadmap that is devised by an organization to compete and succeed in a global market. On the other hand, an international regional strategy is the one that is designed to target a specific ‘region’ and not the entire global market. There can be more than one international regional strategy for an organization.

What features, issues and challenges distinguish global strategies from domestic strategies?

A global strategy is the one which features a concept of a unified service or a product which remains the same for the entire market. On the other hand, the domestic strategies can use different service and product features, if necessary, in a domestic market. In case of global strategy, there is an issue of standardization that can cause some problem in certain regional markets. A domestic strategy is better off for an organization that wants to dominate specific local markets. The biggest challenge for following a global strategy is to remain competitive in all the markets simultaneously.

Are there generic global strategies? For example, applications of Porter’s low cost, differentiation and focus strategies?

Yes, there are indeed some generic global strategies that organizations utilize to gain a competitive advantage. The differentiation strategy is one of the most common generic global strategies. The differentiation strategy consists of creating a product or a service that is more attractive from its competitors (Porter’s Generic Studies). Apple Inc. is the company that uses this generic strategy for selling its iPhones, iPads and iPods in the global markets.
Discuss the implications of global and international regional strategies for different departments and functions. For example, finance & budgeting; human resources; legal counsel; operations & production; marketing.
A global strategy is more convenient when we talk about the functioning and maintaining the synergies of different intercompany departments. Where there is more than one strategy, it becomes a challenge for the different functional departments to work in sync with each other. In such a scenario, it is advisable to have an effective control on the interdepartmental co-ordination.

References

Porter’s Generic Studies (1996). Retrieved February 3, 2015 from http://www.mindtools.com/pages/article/newSTR_82.htm