Theater while focusing more on the idea of incorporating all the workforce talent and external relationships in the process and remaining highly adaptive to rapid change. The field of global competition remains an emerging concept with many aspects of it yet to be completely understood. One aspect, however, remains constant. Global strategies are, by necessity, multi-dimensional. According to Yip (1992), there are at least five strategic dimensions that help determine the organization’ s global direction. These include market participation, products/services, the location of value-adding activities, marketing, and competitive moves. Market participation refers to the organization’ s choice of countries and markets in which it will conduct business and the degree of activity planned in terms of market share.
From the operation manager’ s perspective, this resonates with the various different laws, regulation, and standards that must be addressed. The location of value-adding activities refers to choices made regarding where to locate functions of the business such as research or customer service after sales. This again resonates within the organization as aspects such as layout, supply chain, distribution and storage become concerns. The choices an organization makes regarding these dimensions also determines, to a great extent, whether the company anticipates a multi-local approach or a global approach which affects the types of strategies that will be most appropriate for the firm.
Johansson and Yip (1993) indicate multi-local strategies seek “ to maximize worldwide performance by maximizing local competitive advantage, revenues or profit; while a global strategy seeks to maximize worldwide performance through sharing and integration” (580). This affects priorities of an organization, which can have far-reaching effects on whether a firm should concentrate on product or relationship.
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