chapter 8 - Corporate Strategy In The Era Of Globalization...

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Corporate Strategy In The Era Of Globalization
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Globalization induces fundamental changes in strategic postures, intentions, and approaches of nations and firms alike. At the state level, nations, in general, have witnessed a significant change in their orientations and conduct. Globalization and Change
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At the firm level, companies have developed a wide range of strategies to enhance their competitive advantage. Having access to customers has become the focus of competition.
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G.E.’s Strategies Let It Avoid Taxes Altogether-NY Times, March 25, 2011 GE reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion. The company has been cutting the percentage of its American profits paid to the IRS for years, resulting in a far lower rate than at most multinational companies .
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G.E.’s Strategies Let It Avoid Taxes Altogether Continued Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.
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The origin of Strategy Stratego (a Greek word): A general in Command Stratos= army Ag: To Lead The Skill of utilizing resources to overcome opposition and to create a unified system for governing.
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In the era of globalization, strategy becomes more complex and more important than ever. Its complexity reflects the multiplicity of forces that shape and impact strategy (e.g., governments, competitors, partners, etc.) and the nature and scope of these forces.
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Traditionally, firms navigated familiar terrain. In today’s environment, the emphasis is on navigating unfamiliar terrain (e.g., new markets, new industries, partnerships, etc.) Apple, Honda, Merck, Nestle, Roche, Siemens, and 3M, among others are pioneers in adopting new strategic outlooks characterized by alertness and foresight .
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The focal point of a strategy is to imagine and create the future. A company, therefore, has to shape the structure of the industries and, ultimately, preempt competitors in major global markets. The latter mandate resembles the meaning of
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chapter 8 - Corporate Strategy In The Era Of Globalization...

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