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Chapter 7 - Organisational Strategy In Global Environment


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Unformatted text preview: network – Establish value creation activities in countries where factor costs are lowest Gaining access to global resources and skills Using global learning to enhance core competences Global Expansion Value Creation Global Four Levels of Strategy Four 1. Functional­level strategy: a plan of action to strengthen an organization’s functional and organizational resources, as well as its coordination abilities, in order to create core competences 2. Business­level strategy: a plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain Four Levels of Strategy Four 3. Corporate­level strategy: a plan to use and develop core competences so that the organization can not only protect and enlarge its existing domain but can also expand into new domains 4. Global expansion strategy: a plan which involves choosing the best strategy to expand into overseas markets to obtain scarce resources and develop core competences Functional-level Strategy Functional-level 1. 2. To lead to competitive advantage, an organiza...
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