When we talk about global strategic management we are referring to the manner in which organizations expand their geographic footprint and move into other markets. It also encompasses the typical challenges or roadblocks they face, the steps they need to take and some broad components that need to be a part of any good global strategy. Good business strategy certification covers such aspects like the need for specific resources, the level of existing capability, the extent of competition in the market that an organization is entering and also the kind of strengths it has.
Some key components of the global strategic management process are as follows
- Competition – The global strategy should always incorporate the presence of competition and how to manage around that.
- Pricing – Many organizations underestimate the role of pricing within the overall global strategy. However, this can become the key differentiator in a price-sensitive market.
- Product – The competitive advantages of the product and its strengths or USP have to be discussed when the strategy formulation takes place.
- Market Share – This covers the existing and the one that the organization is aiming for, either in a new year or new market or even in a new product segment.
- Talent – This covers talent that will be needed for the strategy to be actually implemented and the plan to source it as well as retain it.
Challenges of global strategic management pertain to
- Alignment across teams – It is a struggle for most organizations to find out a way to align their functions and ensure that they understand what a global strategy entails. This lack of alignment is usually what causes issues in proper implementation or execution of strategy.
- Market knowledge – While this seems to be the most common thing and natural aspect to cover, many organizations miss out on doing it well. They conduct cursory market research instead of acquiring in-depth market knowledge. The depth of knowledge is critical to the success of the global strategy.
- Readiness of the current leadership –The leadership teams that will spearhead the growth or globalization process has to be in a state of readiness. This is a significant change and many organizations find it difficult to get their current leadership to scale up and also become change-ready immediately.
These are elements that together form the global strategic management framework as well as the roadmap for any organization. Organizations should balance their approach by getting a clear understanding of each and then try to define the way ahead for themselves.