What is Global Strategic Management and Why Does it Matter in Today’s Business World?
Today, many organisations must consider a global strategy to remain competitive. Global strategic management is key to creating an effective plan to unlock international markets.
From managing cross-border operations to aligning international teams, global strategy management plays an integral role in an organisation.
Let’s explore global strategic management and discover why it is essential in today’s business world.
What is Global Strategic Management?
Global strategic management is the creation and implementation of business strategies that allow organisations to compete effectively in international markets. It involves various stages, including evaluating global markets, aligning available resources with opportunities and managing international operations.
International strategic management can be divided into global, multinational and international strategies. It considers different cultural, political and economic environments. Organisations must adapt to differing regulations, consumer preferences and competitive landscapes to manage their global business strategy.
What is the Global Strategic Management Process?
The global strategic management process consists of multiple stages, from global market analysis to strategy implementation.
Organisations must research the business environment, gaining insights into external and internal factors through global market analysis. After market research, the organisation can begin to formulate its strategy by setting long-term goals.
Once the organisation has identified competitive positioning, it can implement the strategy by aligning resources and international operations. The final stage of the global strategic management process is evaluating and controlling performance. Organisations must be flexible and adjust to market changes as needed.
Why Global Strategic Management Matters in Today’s Business World
In today’s fast-paced, globalised world, global strategy management is more essential than ever. It helps organisations remain competitive by identifying new market opportunities, managing global teams and resources, reacting to market changes and aligning operations with overall objectives.
Organisations that fail to create an effective global strategy risk falling behind competitors and missing opportunities to raise profit and sustainability. Many would argue that global strategic planning is a necessity in today’s business world.
Core Elements of Global Strategic Management
As mentioned, global strategic management consists of multiple elements that organisations creating a global business strategy must consider. Let’s explore some key aspects of global strategic management:
- Global Market Analysis : Successful global strategies are built on detailed global market analysis and research. This involves studying economic indicators, market trends, consumer behaviours and competitive dynamics.
- Competitive Advantage: One of the main objectives of global strategic management is building and maintaining a competitive advantage. This can be from various avenues, including cost management, innovation and creativity.
- Global Value Chain: Managing a global value chain allows companies to optimise international production, sourcing, distribution and customer service. Strategic decisions can reduce costs and increase efficiency.
- Cross-Cultural Management: Operating in diverse cultural contexts requires effective cross-cultural management. Adjusting management styles to cultural and communication norms is key to ensuring successful global strategy implementation.
- Risk Management: Organisations must be aware of the risks involved with international expansion, including economic fluctuation. Effective global strategic planning includes comprehensive risk management strategies.
- Innovation and Technology: Organisations must utilise evolving technology and innovation to aid decision-making and efficiency and to compete in global markets.
- Geopolitical Considerations: Geography and politics are important in shaping global business strategy, with international relationships affecting an organisation’s operations.
- Corporate Social Responsibility (CSR): Integrating CSR into global strategy management enhances brand reputation and aligns business goals with sustainable development.
Benefits of Global Strategic Management
Adopting a global strategy has various advantages, from enhanced brand reputation to improved productivity and efficiency. Here are five key benefits of global strategic management:
- Improved efficiency and flexibility
- Increased market access
- Reduced costs
- Diversified risks
- Enhanced brand awareness
Examples of Global Strategic Management
Let’s look at some real-world examples of global strategic management in practice:
- Multinational Enterprises (MNEs): Siemens operates in over 190 countries, adapting its technologies, from healthcare to energy, to local market needs while maintaining unique innovation.
- Global Brands: Adidas has a strong global brand identity with region-specific marketing and products. For example, Adidas regularly launches limited-edition trainers tailored to local cultures while maintaining a unified brand image.
- Transnational Companies: BMW’s global strategic planning approach optimises costs and market demand worldwide. With manufacturing in Germany, the US and China, its vehicles are tailored to market needs. For example, BMW creates compact models for densely populated European cities and SUV-style models for North America.
Earn a Global Management Degree at BSBI
Now you know the ins and outs of global strategic management, it’s time to find a master’s degree tailored to your professional goals.
The Berlin School of Business and Innovation (BSBI) offers an 18-month MSc Global Logistics and Supply Chain Management programme in partnership with the University of Roehampton.
This exciting programme is delivered 100% on campus and focuses on problem-solving, strategic thinking and operational excellence, with modules including Global Strategic Management and Financial Performance Management.
