As Von Clausewitz stated that strategy in the organization could not be single unique idea, rather it is diverse process as to respond to the changing nature of the internal as well as external environment of the organization, global business strategy of organization thus can be defined as the decision over the scope of the organization’s activities (Ajami& Goddard, 2006). Organizational strategy means how an organization strives to pursue its goals through competing with the specific market. The scope of the strategic management within organization has changed because it is mainly influenced by essence of global strategy where organizations have vision to gain competitive advantage as an integral or sole part of the global strategy (Harrison& John, 2009). The scope of the strategy has expanded therefore it cannot be reduced to a formula because globally operating organization has to face diversity in dealing with organization planning and its implementation (John& Gillies, 1996). Considering the significance of the changing nature of the strategy within the organization, this paper aims to identify how the strategy is formulated in the global business to create competitive advantage, what its forces and variables that contribute in making the strategy in global business environment. Looking for dissertation writing help in your academic writing? Order us now!
Strategy Formulation in Global Business
According to statement of Von Clausewitz, strategy formulation in the 21st century is referred as a craft rather than an arranged and planned process as it was stated that‘Strategy could not be reduced to a formula’. The same could be illustrated from the view point of Braagaard& Kirkegård ( 2010), who illustrated that in order to be more competitive and effective, the business has to make strong management in keeping their strategies more focused and concentrated by crafting them and then implementing them. It was also stated that in today’s global business, organizations cannot operate in isolation as more effectively they are interconnected with their stakeholders, the well they would be prosper. This is so because today’s business world demands the strategies to be more flexible and creative enough to take into account the challenges and uncertainty of business industry environment (Braagaard& Kirkegård, 2010).
In addition to this, Mintzberg (1987) upon analysing the strategy formulation stated that crafting is more preferable than planning as formulating a business strategy through crafting includes use of traditional business competencies, commitment, and excellence through the mastery of detail specification. Furthermore, it could also be analysed from the statement that the purpose of strategy of a business is the transmission of the vision of a business into the actions, and these actions in turn results in creating the value for its customers, suppliers, and business partners (Mintzberg, 1987). If you’re looking for an outstanding and flawless work and other paper writing services, then you must buy assignment online from us.
Moreover, the business corporations today work on international basis, requiring an effective competitive strategy for taking the edge over. It has been observed that the most popular organizations all around the world now focus on crafting new strategies form time to time by thoroughly analysing the internal and external environment of the business together with the strengths, weaknesses and opportunities rather than just by simply planning these strategies through a formal process periodically (Misra, 2009). The same could be depicted from the food retailing sector of the United Kingdom like Sainsbury’s, Asda, and Tesco, that now the companies are much more focused towards recognizing the formulation of strategy as a continuous process of learning for the perfect and correct implementation of actions.
On the other hand, the example of Nike and Adidas could also not be overlooked as the organizations are following the idea of continuous change as they understand the need to implement or renew their strategies according to the requirement of their business environment in order to be competitive and withhold a large market share (Sharan, 2011). Hence, it could be illustrated that in order to be competitive in today’s working environment an organization is required to be more flexible in planning their business strategies as illustrated by the military strategist Von Clausewitz. Place your order to get best out of our professional skills of thesis writing service.
It could be concluded that the global business environment should focus on the process of formulation of their business strategy as a continuous process rather than as a deliberate process in order to be competitive. Furthermore, it was also highlighted that only those organizations could adapt the changes of the rapidly changing business environment that critically examine the factors and variables responsible for the formulation of strategy. Moreover, these highlighted factors have a great significant on the operations of the global business, that in turn help them in deciding to select between the deliberate strategy option or emergent strategy option.
Ajami, R.A.& Goddard, G.J., 2006. International business: theory and practice. M.E. Sharpe
Harrison, J.S.& John, C.H.S., 2009. Foundations in Strategic Management. Cengage Learning
John, R.& Gillies, G.L., 1996. Global Business Strategy. Cengage Learning EMEA
Mintzberg, H., 1987. Crafting Strategy. Harvard Business Review
Misra, M., 2009. International Business: Text And Cases. PHI Learning Pvt. Ltd
Sharan, V., 2011. International Business: Concepts, Environment and Strategy Third Edition. Pearson Education India