The concept of global strategic management emerges from a combination of globalization and its implications on the corporate world. The business landscape changed drastically due to the rise of globalization. The talent equations shifted, the business operating models changed and organizations started realizing what a truly boundary-less world could mean. Strategic management courses do cover this in detail.
For now, let us get an overview of what global strategic management involves and how it unfolds.
- The mixed set of economies – Global strategic management requires companies operating in a mixed set of economies to design a business strategy that encompasses all of them. That means the business goals will need to reflect the growth rates and market potential that these economies have, but at the same time be aligned to the overall corporate vision.
- Diverse talent pool – A global strategy needs to incorporate a varied and diverse pool of talent. All markets are showing the influx of new talent in the form of returnee mothers, re-employment of older workers, millennials and so on. The management of such talent is what will need to be defined the global strategy so that it comprises of approaches which harness the potential as well as leverage the strengths that arise from such different sets of people working together.
- Bigger and better competitors – With globalization and open markets comes the threat of competition from across the global. That is one of the biggest challenges facing firms that are defining their global strategies and how to implement them. Earlier competitors were usually those who are in the same phase of growth within your own countries or economic regions. Today the competitors could be anyone who has a strong or growing market presence in their own economies but with a potential to scale up. Understanding the nuances of such a complex range of competition and working a strategy that deals with all of them is part of global strategic management.
- Technology and digitization wave – A huge wave of technological disruption and digitization has impacted our world. It has shattered our traditional beliefs of what technology can do and give us a glimpse of where we are moving. Global strategies need to utilize this wave and ensure that they are updated. All processes are undergoing a change and new tools are entering the corporate space. Our global strategy management rests on this core trend as it gets into the next decade. 2020 global business goals are being defined as those which are linked to rapid digitization. Working on combining it into our traditional global strategy from a future perspective, is important.
- Integrating management styles – Different countries and leaders have different management styles. This is personality as well as culture linked. To achieve overall business goals, there is a need to combine the styles or provide a conducive environment where each can be fostered so that leaders can perform well. That will also result in positive teams and high performing individuals. The management of employees is the biggest concern and therefore providing enabling tools, developmental interventions and even feedback sessions to leaders across the globe should be part of the strategy.
- Process efficiencies –A lot of core processes are usually centralized without clarity on whether those will work at the local levels or not. A global strategy cannot be managed if it fails to recognize the country or regional level requirements and applicability of processes and practices. Maintaining global standards of excellence, quality levels and efficiencies are absolutely important. But alongside that, understanding which aspects need to be reassessed and decentralized for it to yield better results is also a part of global strategic management. Balancing between the actual delegation of process implementation and maintaining control to ensure quality is what the strategy comprises of.
- Cost-effectiveness – With a shift in overall business strategy, many organizations have used the opportunity to increase the cost-effectiveness of their businesses. Their strategies have worked on allowing for better opportunities of talent mobility, office relocations, factory or manufacturing set-ups and back-office operations, to locations that are more affordable. There has also been a reverse shift into the developed markets, for talent, because many equal opportunity global entities are now recognizing the diverse talent that can be groomed for bigger corporate roles. The concept of cost-effectiveness, through global strategy management, has therefore now turned into a larger reality than ever before.
Free international trade has led to the growth of global economies. Nations and industries have explored and defined their global strategies to ensure that they can create and sustain a competitive advantage that works for them. The horizons have broadened and the challenges have also increased multi-fold. That is how the concept of global strategic management has actually emerged in a much stronger and more relevant manner in recent times. All objectives from a business perspective have been revisited and while there has been a dip for some industries due to globalization, most others have benefited from it.