In the international competitive environment, the ability of an organization to develop a transnational organizational capability is the key factor that can help the firm adapt to the changes in the dynamic environment. As the fast rate of globalization renders the traditional ways of doing business irrelevant, it is vital for managers to have a global mindset to be effective. Globalization of business has led to the emergence of global strategic management. A combination of strategic management and international business will result in strategies for global cooperation.
Strategic management is a relatively young subject. It has its roots in the economic and social …show more content…
Generally speaking, the stages of the cycle of continuous improvement relate to:
• Plan: a stage of definition of necessary objectives and processes to achieve certain results.
• Do: a stage of implementation, where the specific processes and procedures are documented.
• Check: verification stage, which compares the results with those expected, and the findings are documented.
• Act: improvement stage, where the results are analyzed and the necessary improvements are applied to realign the organization toward the desired objectives.
Choosing the country or geographic region
Some basic considerations involved in the choice of countries include the following:
1. Population size, density and distribution 2. Political issues: 'dictatorship versus democracy' and 'left wing versus right wing' are simplistic but a start. The degree of change and the stability of politics are probably just as important as the political stance of the country. 3. Trading issues: country membership of trade groups, the barriers to entry into the nation and the ability to export not just good from the nation but profits back to the home country 4. Financial and tax issues: Taxes imposed, the banking and financial structures, insurance, legal ownership of assets like factories, ownership of