Keywords: global strategic management advantages
Strategic management is the process where strategies and regulations are put into action through the development of programs, budgets and strategies can be further explained an organization's goals must be recognized in order to develop such policies and plans. THE PRINCIPLE Executive Officer (CEO) and professional team should implement such ideas. Strategic Management provides overall route to the complete enterprise. The organization's strategy must be befitting its resources, circumstances, and objectives. (Wheelen and Being hungry 2006 p. 16. ) Strategy can even be thought as the procedures relating development, drafting, implementation and analysis of multi practical decisions that are employed in an organization or firm so as it attains its short-term and permanent objectives, it's the criteria found in specifying the firm's objective, vision and growing of procedures and plans and how to apply them with the purpose of reaching the stipulated goals. It further assigns resources for implementation of policies, strategies, projects and programs. Traditionally proper management has been hired on an area basis where the objectives and ideas aren't global focused, but lately the original principles have been embraced in a worldwide manner i. e. extending the abilities in a global scale point of view.
Global tactical management offers a insight on the result of globalization in business management and organizations and hence it demands that professionals should respond in the same or more intensity to be able to reap in the high benefits that come with it, Managers and CEO'S have to comprehend that the global happening does not only enter into play by causing your firm global but they are required to develop models that embraces and resists strains from multinational sites of subsidiaries and ensure the models considers the mandatory persistence of profound and momentous combination - national variations with these in play and understanding of the variety that is present across edges and continents politically, culturally and economically Global Strategic management can be achieved and dividends passed on to the buyers.
Global strategic management will involve a set on conceptual tools that assist in navigating through the often contradictory and ambiguous mass of information, market, working staff and to sum everything up this all done and valued on a global platform. There is a series of considerations that have to always be continued the check and always be included in the complex decision making types of procedures that characterizes this degree of business management. Managers and business executives as of this level have to understand the differences between the multi-domestic and global nature of operating business as of this level, traditional tactical management concepts which have proven successful in local setting have faced obstacles on a global arena and returned futile results this in ways have resulted in extensive deficits by the damaged firms. With this in mind firms that are already running on a worldwide environment or have this as a future goal have never only have or plan to have a solid global tactical plan that's purely tailored for the precise firm but have to comprehensive have a set of monitoring and evaluation criteria of exactly what kind of global strategy is theirs and and can it earn them long-term success and value.
Due to the nature and level of jogging global firms many management techniques should be used, this have to easily assimilate all different departments in a synchronized and harmonious manner, this in itself improves the overall management and performance of the firm. Global management requires worker management from the department heads to the cheapest personnel on the command word chains where every single staff of every firm really needs a clear explanation and understanding of the company's aims, mission and perspective. While this is being done employees have to understand that with more powers comes extra obligations and hence area of the strategic management strategies should involve sufficient management accountability, communications and oversight from the very best executives and because of this to be easily achieved and in an effective manner their responsibilities need to be divided in techniques and tasks that can be easily mirrored in production and profitability terms. Also to easily attain these and continuously encourage the employees in achievements of the overall company global objective immediate communication channels should be created and lower put personnel should be encouraged to work with the wide open communication opportinity for the attainment of the target and their role in it should be well appreciated. Furthermore since on a global perspective the employee's bottom is large and stocks extreme cultural and relational ways of lives the global businesses can enhance this in their workers and not battle it this is an important motivational practice specifically for the employees.
Global companies need to also employ a detailed study research and SWOT (Power, weaknesses, opportunities and risks) analysis, and this should be done not on their already existing market segments but on a wider and more challenging global perspective. The effectiveness of the companies in a worldwide arena need to be examined and in them more research should be done in order to maximize on their potential to be able to benefit from the full benefits of being a global firm. The weaknesses on the other hands should not anytime be pushed besides since they specify the loophole if struck well can drain the business back to the ground, hence all the vulnerable links should be investigated and be well covered in a solid strategic defence system. Alternatively the opportunities that openly lay and exist in the proper programs of the firm need to be intelligently harnessed or tapped and full advantage accrued from them. Finally like in the local business management global arenas also exposes the business enterprise to threats that happen to be even more difficult than the local ones, hence when growing the strategic plan for the wider market a deeper check out is mandatory as soon as all are determined means of curbing them in case anything crops up have to be developed, this had to be carefully done though since one might by fear scare away for rucuitive opportunities by not risking.
Some few changes also have to be considered when expanding the global plan, upsurge in the amount of staff in order to complement the comprehensive work fill that comes up with the global market, other mechanisms utilized by businesses is the change of brands and adopting of new and re-branded tags that sell the organization as a global entity and it is more convincing to the market. The marketing of the firm as a worldwide entity also need to be done but extremely strenuous in order to expose the company evidently to the markets especially the global market.
Political distinctions and interference's are also some of the main factors for consideration in the development of a firm's global tactical plans. The management must consider that the companies doesn't perform under similar political backgrounds and in each country they are involved the case is incredibly unique and its own specific conditions need to be considered and considered completely carefully since the differences experienced from one country to the other are important. Some of the most successful global firms even go directly to the magnitude of exchanging favours for business favours this has demonstrated important and successful to prospects firms. In their planning the forms also employ interpersonal procedures which they serve the neighborhood communities with and this increases their popularity.
Competitive Methods are also very important in global tactical management, even although market heightens with size, the players in the market also increase a firm need to build up means of keeping afloat in the market. The tactics have to be modern enough and in a position to make the customers selected it over other rivals on the market. They should be customized to each specific consumer in each country in a terms, tone and tongue they understood.
Advantages of global proper management
- Lower marketing costs
- Economies of size in development and distribution
- Ability to leverage good ideas quickly and efficiently
- Helps to encourage ancillary industries to be set up to provide fo
- Uniformity of marketing practices
- Power and scope
- Consistency in brand image
- Helps to determine relationships outside of the "political area"
From the above mentioned its clear that this and more benefits are obtained from global strategic ideas and this can be easily seen from first the scope of the task the firm does, this brings in more comes back from the economies of range that can be obtained from this. They also urged relationship among other firms global ones which opens up chances and experiences for expansion one firm can learn from another an hence improve on areas the organization was poor before. The prolonged demographic coverage done by this firms also makes them gain firsthand experience on managing large number of clientele, data, resources and hence off their large portfolios they may easily develop even to greater firms by growing their global proper plans.
The advantages gained from management of a firm on a international point of view range all over business management, of course, if the opportunities are carefully used and the potential risks technically mitigated up against the success of any company on a global perspective is very imminent and should be pursued though carefully by any producing firm from any location on the world.
Disadvantages of global strategic management
- Differences in consumer response to marketing blend elements.
- Differences in consumer needs, wants, and usage habits for different products.
- Differences in product position at the market.
- Differences in administrative techniques of the company between different employees and the workplace.
- Differences in the legal environment, some of which may discord with those of the house market specially when interacting with countries in the growing world.
- Differences in brand and product development and the competitive environment.
- Differences in the organizations available, a few of which may call for the creation of completely new ones (e. g. infrastructure).
In a case where the global recession influence the developed worlds like our country, this might greatly affect the tactical management of the firms and this subsequently impact different branches of the same company in different parts of the planet, this is a superb disadvantage.
Different parts of the entire world have different laws governing investment and some of the laws and rules are hard on the foreign investors, therefore creating a major setback to tactical management of different companies.
REFERENCES
http://www. palgrave. com/business/lasserre/
www. wikepedia. com
http://mimm-ltd. com/Documents/WSGEC2009_UK_Program_Book_7-15-09-. pdf
http://www-management. wharton. upenn. edu/mcdermott/data files/MGMT655. pdf
