Global Strategy: An Organising Framework

Journal article review


This review critiques and analyses the article 'Global Strategy: An Organizing Platform', written by Sumantra Ghoshal, which came out in the journal 'Strategic Management Journal' (vol 8, 425-440), published in 1987. This review will start by summarising this article. It'll then quickly analyse the effectiveness of the article established on how it was set up - investigating how the information is set out and if the readers can get access to it effectively and easily. And finally this article will be critiqued centered upon its authority and accuracy, and exactly how current and relevant the information presented is. The review will also analyse any graphs and furniture before finally judging the article's availability and credibility.

The central theme of the newspaper is to present a 'conceptual framework encompassing a range of different issues relevant to global strategies'. The construction provides a foundation for organising the existing and the growing literature on international competition and 'creating a map of the field'. This short article can be used for both teaching and future research, but more importantly this article is most appropriate for manager of multinational firm. Which is targeted at providing then with 'relating and synthesizing different perspectives and prescriptions that are designed for global strategic management'. The writer has analyzed Global Strategy in an neutral way by showing both the positive and negative outcomes and views of every principle within the platform. Overall the article is presented obviously, well written and fluent, as is it relevant to this issue.


The purpose of this newspaper is to provide an organising framework that could possibly help managers of multinational corporations (MNCs) and/or academics in 'formulating the various issues that occur in global proper management'. This short article functions as a basis for organising existing literature on this issue of global strategy. That is due to corporate aims being multidimensional and frequently seen to be mutually contradictory, thus leading to difficulty for both experts and practitioners to deal with the rich books on global strategies. 'Activities to achieve a specific target often impede another equally important aim' (Ghoshal, 1987).

The article begins by presenting the multiple arrays of perspectives and prescription that are manufactured by many other authors in the field. He talks about that the difference between creators and their views on global strategy and how to manage them aren't limited. He gives a brief insight into the views of 4 different creators and how on various situations these views may contradict the other person yet none of the can be truly criticised. Therefore this platform supplies the key strategic aims of MNCs and the tools that one must posses in order to attain them from an selection of different freelance writers. He continues almost all of this informative article referencing back to these other writers to support his views. This article further goes onto detailing how this integrated analysis of different means and ends are definitely more helpful than a simple categorizing system which only distinguishes between global and multi-domestic strategies.

Before elaborating on the several means and ends, the writer presented a straightforward debate on the goals of multinationals and their strategic objectives. He expresses that we now have 3 broad categories which must be looked at when making an inclusive checklist of factors and conditions that are to be considered when researching different proper alternatives. These factors include:

  • Achieving efficiency in its current activities
  • Managing hazards associated with undertaking these activities
  • Developing internal learning capabilities so as to be able to innovate and adapt to future changes.

The writer provides this simply and straightforwardly in a stand that presents the factors that may be considered when carrying out comprehensive statistic audits for MNCs to achieve a competitive advantages. The 3 factors that Ghoshal (1987) aluminates are; the exploitation of countrywide differences in insight and output market segments, the huge benefits from scale economies in different activities and the exploiting of synergies or range economies that are available due to variety. He typically elaborated on opportunity economies in product and market diversification as he believes that aspect is both new and not very well grasped. He defines scope economy based on 'the notion that certain economies come up from the fact that the cost of joint production of several products can be significantly less than the cost of producing them separately. He helps this by comparing product diversification and market diversification in three types of; shared physical assets (diversified firm, versatile developing system, cross-subsidization of market segments and exploitations), shared external relational (with customers, suppliers, marketers) and shared learning. However he does also describe the negative aspect of scope economy to be costly because of its different environmental needs. He advises the audience by declaring that to achieve success the company must distinguish its management system so that its activities can are categorized as external uniformity within its own environment and interior consistencies within the firm and across its various activities. The writer goes on to saying that to generate these synergies it may result in compromises of external persistence in each activity.

Ghoshal states that checklist 'simply will serve as a basis for mapping the overall strategies of the company'. He also continues on to stating that the substance of an arranging framework and the key to an effective global strategy is to 'take care of the connection between the different goals and means' (Ghoshal, 1987). This article also acknowledges the possible benefit for MNCs by explaining how another 'sensible electricity of the platform' is to spotlight the 'contradictions between different goals and different means' thus emphasising the strategic dilemmas that could otherwise be fixed through omission.

The following sections of the construction further make clear the dimensions of its construct - 'the strategic targets of the firm and the source of competitive benefit available to MNC' - he strengthens his quarrels by using other article resources that ultimately plays a part in the literature and usually the overall construction.

The writer concludes the paper by briefly speaking about trade-offs that are steadfast in some of the newer prescriptions on global strategic management. Matching to Ghoshal (1987) these trade-offs imply 'that to formulate and put into action a worldwide strategy, MNC professionals must consider all the issues suggested in Desk 1, and must evaluate the implications of different strategic alternatives of every of the issues'.


The article under review was seen in a definite and well lay out form. This article was unveiled with an abstract, which provided the stance or thesis produced by the article, qualifications to the problem as well as briefly outlining the purpose of the article, its main points, studies, conclusions, implications and future research guidelines. The rationales for the article and for the study it explains were also included. The paragraphs in the torso were mostly brief and therefore the information in each paragraph was easy to access, however there have been a few longer paragraphs that appeared to be overly complicated for individuals who might not have any prior knowledge on this issue. The article is busted into headings and subheadings and most of the paragraphs were set up in a definite slash way thus allowing important info to be categorised and spread out for easy access. The Intro provided history information and the rationale behind this article. This allowed clear understanding of the framework and importance of the study. The body was logically organised. This allowed the reader to read the entire article or simply the part of interest. As the article described a worldwide technique for organising construction, the provided tables and diagrams to evidently display and format its framework. For instance when the author was describing the relationship between strategic objective and their competitive advantages thus allowing the reader to clearly see the contradictions. The copy writer also used a desk to explain range economies in product and market diversification. The conclusion adequately discussed and summed up the article and provided sufficient research directions. The article got both qualitative and quantitative aspects with excerpts from other articles and options related to this issue. There were extensive recommendations cited in-text and lay out plainly in the Sources section. This article was a PDF document which meant it could easily be imprinted and read or accessible online. However as it is a scanned doc no information was provided to create the information accessible. Therefore disallowed readers to evaluate the article's well worth more effectively, however connected headings and subheadings allowed the audience to go through the paper quicker. The article's framework was logically developed overall; by using short paragraphs assisting the reader gain access to the main items easier thus allowing an average person to learn most of this article however in some sections the level of literature was advanced.


The journal, the 'Strategic Management Journal', is a publication of the best quality research most highly relevant to strategic management. It is one of the highest ranked business and management publications. The author's reliability was established in a number of ways. These included the fact that this article was a peer examined article. Also the fact that the majority of the in-text citings involved documents which he has jointly written on similar issues thus indicating his extensive knowledge of the subject. This article also contained personal references from a wide array of different writers who are also seen to be very educated in the topic. This information features that the article is highly credible. The foundation of the info in this article was a current and predicated on recently emerged popular concepts among MNGs and also analysts in neuro-scientific international management. The information is confirmed and reinforced by a comprehensive, recent research list with these options cited in-text to aid both the books review and the research itself. The info in the article is therefore correct and reliable. The article's exactness is also confirmed by the careful scrutiny that it was put through by two private referees from the tactical management journal. The fact that this article is peer evaluated also verifies its detail. The journal, although printed in October 1987, continues to be very prominent in neuro-scientific strategic management. The research it describes was current (because of its time) and the article cites up-to-date recommendations in the torso of the written text (ranging from information 1980s). This article is however is not current it is supported by a range of studies over an comprehensive time frame. This is an educational journal with an academic database, which has high credibility within an academic context. It had been written to inform experts and students somewhat than to captivate or advertise. The topic is protected well so when the topic is dependant on an international range it can be generalised. It might be relevant to both these groups but especially a manager of any multinational corporation. It really is a straightforward article to learn and understand and for that reason can be highly relevant to first 12 months students. The article is very complete with the subject areas being explored in great depth. The materials is offered in a reasonable and organised way. The article is accordingly relevant to the academics community. The information was objectively developed, well backed with a present-day research basic and with all facts acknowledged and referenced. There was no proof bias. The article recognized the complexity of the problems discussed in several ways. For instance, the literature review provided explanations of how some professionals of MNCs can be contradicting as it pertains to locating a strategic benefit and that globalisation of your company can lead to negative effects if professionals aren't alert to the conceptual ambiguity in what a 'global strategy' really means. This article, using its source an educational journal with an academic data platform and available as both print and electronic forms, is stable as a source.


This review has both summarised and critically assessed Ghoshal's article 'Global Strategy: An Organizing Framework''. The framework, accessibility, content, talents and limitations of the article were analysed and critiqued along with the tables that was included. The creators and journal are credible, exact and current. The article's information is obtainable, well organised, relevant and offered in an objective way. This article is also stable as a source of information. This article has contributed to the books in terms of its valuable critique of current study on existing and the growing literature on international competition and the implications provide opportunities for future research in this field. This article has added to a much better understanding amongst the business community of the advantages and disadvantages, for the globalisation of MNCs.


S. Ghoshal. Proper management journal, volume level 8, No. 4 (Sep. - Oct. , 1987), pg. 425-440

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