global level strategy will help to identify the need of

this is regarding strategy management its importance

1. Global Level Strategies Chapter 5

2. Globalization Meaning Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. Anto Juliet Mary- Global Level Strategies

3. Definition “Globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.” -WHO Walmart History: Walmart’s company story - YouTube

4. Global Strategy Definition Global strategy as defined in business terms is an organization's strategic guide to globalization . Such a connected world, allows a business’s revenue to not be to be confined by borders. A business can employ a global business strategy to reap the rewards of trading in a worldwide market.

5. Global Strategy What is the extent of presence in the world market? How to build global presence? What locations in the world and the various value chain activities ? How to run global presence with global competitive advantage? https://corporate.walmart.com/our-story Walmart History: Walmart’s company story - YouTube

6. Walmart History: Walmart’s company story (youtube.com)

7. Global Level strategy : When is global strategy used ? Strong pressures for cost reduction but with weak pressures for local responsiveness. firms to sell a standardized product worldwide. fixed costs ( capital equipment) are substantial. to take advantage of scale economies and experience curve effects , able to mass-produce a standard product, which can be exported (providing that demand is greater than the costs involved).

8. Global strategy A global strategy involves thinking in an integrated way about all aspects of business Its suppliers Production sites, Markets, Competition. It involves Assessing every product or service from the perspective of both domestic and international market standards. Embedding international perspectives in product formulations at the point of design, not as afterthoughts. Meeting world standards even before seeking world markets and being world class even in local markets. Deepening the company's understanding of local and cultural differences in order to become truly global

9. Implications of Global Level Strategy International strategy : the organization's objectives relate primarily to the home market.. Importantly, the competitive advantage – important in strategy development – is developed mainly for the home market. Multinational strategy : the organization is involved in a number of markets beyond its home country. But it needs distinctive strategies for each of these markets because customer demand and, perhaps competition, are different in each country. Importantly, competitive advantage is determined separately for each country . Global strategy : the organization treats the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis .

10. Examples Anto Juliet Mary- Global Level Strategies

11. Discuss the global level strategy followed by ..

12. Four Stages of Globalization Domestic stage: market potential is limited to the home country. production and marketing facilities located at home. International stage: exports increase. company usually adopts a multi-domestic approach. Multinational stage : marketing and production facilities located in many countries. more than 1/3 of its sales outside the home country. Global (or stateless) stage : making sales and acquiring resources in whatever country offers the best deal. ownership, control, and top management tend to be dispersed. Transnational Organizations

13. Strategies For Going Global

14. What is Global Environment ?

15. Causes of Globalization More Financial Benefits Reduced Cost of Production Shrinking of Time and Distance Growth Potential of Foreign Markets Demand Constraints in Domestic Markets Nationality of the Companies Effects of Liberalization Spin off Benefits of Globalization Hi-Tech Industries Business Policy and Strategic Management

16. Nature of Globalization Liberalisation Free trade Globalisation of Economic Activity Liberalisation of Import-Export System Privatisation Increased Collaborations Economic Reforms

17. Manifestations of Globalization

18. Challenges of Globalization International Recruiting Managing Employee Immigration Incurring Tariffs and Export Fees Payroll and Compliance Challenges Loss of Cultural Identity Foreign Worker Exploitation Global Expansion Difficulties Immigration Challenges and Local Job Loss

19. Operational Challenges of Globalization on Businesses

20. Advantages & Dis -Advantages of Direct Exporting Advantages Dis -Advantages Better knowledge of the Market Full control over the product Effective after sale service Intensive market cultivation Attractive returns on exports Short channel Greater expertise in international marketing Good reputation Heavy Investments More Risks Lack of Specialization Heavy Overheads Not Suitable to Small Manufacturers Difficulty in Negotiations More Difficult

21. Advantages & Dis -Advantages of In-Direct Exporting Advantages Dis -Advantages Less Risk Less Investment Specialization Suitable for Small Firms Availability of Imported Inputs Ignorance of Export Markets No Brand Name In-appropriate for Customized Products No Control Over Prices Less Markets

22. Licensing A licensing agreement gives a licensee rights to use a product that the licensor already owns. Numerous items can be part of a licensing agreement, including a trademark, a patent, or even branding. The rights of the licensee are fully outlined in the agreement for the license, which may allow them to sell items, use a trademark, or take advantage of a specific brand message. Some examples of things that may be licensed include songs, sports team logos, intellectual property, software, and technology.

23. Licensing Advantages Dis -Advantages Low Investment for Licensor Low Financial Risk for Licensor Low Cost of R & D Escapes Risk of Product Failure Reduces Market Opportunities Dependence of Both Parties Costly Scope for Misunderstanding Loss of Trade Secrets Misconduct of Licensee

24. Franchising A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).

25. Franchising Advantages Dis -Advantages Risk of business failure is reduced Established market share Recognized brand name Low Cost of R & D Financing the business Costs may be higher Includes restrictions Franchisor monitoring Difficult to sell the franchise Profits are usually shared Inflexible nature of a franchise 

26. Mergers and acquisitions (M&A) are defined as a combination of companies. When two companies combine together to form one company, it is termed as Merger of companies . While acquisitions are where one company is taken over by the company . Mergers and Acquisition

27. Joint Ventures & Strategic Alliance The joint venture is an arrangement between two or more parties. This occurs when two or more parties agree to enter into a contractual arrangement to carry out some specific business undertaking. The strategic alliance is an agreement where two or more independent parties come together for an objective and does not lose their independence.

28. Comparison Between JV & SA

29. A  wholly owned subsidiary  is a company that is completely owned by another company. The company that owns the subsidiary is called the  parent company  or  holding company .  Wholly Owned Subsidiaries

30. Contract manufacturing is a contract between a company and a manufacturer to make a certain number of components or products for the company in a specified period of time. The goods created will be under the company’s label or brand. This is called private label manufacturing. This is often also called outsourcing if it is done across borders. Examples of Contract Manufacturing Pharmaceutical Industry: Drugs required to prepare medicines can be outsourced to other companies. Automobile Industry: Many automobile companies use parts produced by other companies and focus on assembling those parts to generate the final product. Contract Manufacturing

31.  Turnkey is a product or service that is designed, supplied, built, or installed fully complete and ready to operate; the contractor or provider undertakes the entire responsibility from design through completion and commissioning. The term implies that the end user just has to turn a key and start using the product or service. Examples of turnkey projects The airport will be turn over to the local government for operation after it has been fully construct . A turnkey property in the real estate industry is a fully furnish apartment or home that is available for purchase and rental right away. Turnkey Projects

32. Benefits of Globalization 1. Access to New Cultures 2. The Spread of Technology and Innovation 3. Lower Costs for Products 4. Higher Standards of Living Across the Globe 5. Access to New Markets 6. Access to New Talent

33. Ill Effects of Globalization Job Insecurity Causes Fluctuation of Prices Causes Environmental Damage Cultural Loss Economic Negative Effect

34. Other Strategies BCG Growth share Matrix GE multi Factoral Analysis PESTLE Spider Web Strategy

35. BOSTON CONSULTING GROUP MATRIX 38

36. INTRODUCTION 39 BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s. BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis. According to this technique , Businesses products are classified as low or high performers Depending upon their MARKET GROWTH RATE and RELATIVE MARKET SHARE.

37. Relative Market Share and Market Growth To understand the Boston Matrix you need to understand how market share and market growth interrelate.    40

38. MARKET SHARE Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms. RELATIVE MARKET SHARE The higher your market share, the higher proportion of the market you control. 41

39. MARKET GROWTH RATE Market growth is used as a measure of a market’s attractiveness. Markets experiencing high growth are ones where the total market share available is expanding, and there’s plenty of opportunity for everyone to make money. 42

40. THE BCG GROWTH-SHARE MATRIX Growth-share matrix is a business tool, which uses relative market share and Market /industry growth rate factors to evaluate the potential of business brand portfolio and suggest further investment strategies. It is a portfolio planning model which is based on the observation that a company’s business units can be classified in to four categories: Stars Question marks Cash cows Dogs 43

41. BASIC IDEA

42. BCG Matrix 45 Relative Market Share Market growth rate High High Low Low

43. ASSUMPTIONS OF THE THEORY

44. Market Growth

45. LOW MARKET GROWTH

46. NEGATIVE GROWTH

47. MARKET SHARE

48. 51

49. STARS High growth, High market share Stars are leaders in business. They also require heavy investment, to maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW. 52

50. EXAMPLES

51. CASH COWS Low growth , High market share They are foundation of the company and often the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining. 54

52. EXAMPLES

53. DOGS Low growth, Low market share Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage. 56

54. QUESTION MARKS High growth , Low market share Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks. 57

55. THE BCG MATRIX

56. Market Growth rate Relative Market share Low High High Low 59

57. CONCLUSION Though BCG MATRIX has its limitations it is one of the most FAMOUS AND SIMPLE portfolio planning matrix ,used by large companies having multi-products. 62

58. BENEFITS BCG MATRIX is simple and easy to understand. It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them. It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability. 63

59. LIMITATIONS BCG MATRIX uses only two dimensions, Relative market share and market growth rate. Problems of getting data on market share and market growth. High market share does not mean profits all the time. Business with low market share can be profitable too. 64

60. Business Portfolio Analysis

61. GE-McKinsey is a framework that evaluates business portfolio, provides further strategic implications and helps to prioritize the investment needed for each business unit GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi business corporation to prioritize its investments among its business units

62. introduction GE matrix decides what products to add to the portfolio ,and which market opportunities are worthy to invest Best portfolio is one that fits the company’s strengths and helps exploit most attractive oppurtunities

63. GE(General Electric)/McKinsey Multi-Factor Matrix Originally developed by GE’s planners drawing on McKinsey’s approaches Market attractiveness is based on as many relevant factors as are appropriate in a given context Business-position assessment also made on a many factors SBU needs to be rated on each factor

64. Factors influencing Business strength Market share Customer and market knowledge Customer satisfaction Cost efficiency Technology Product quality Financial strength Brand strength Distribution channels Market attractiveness Market size Market growth Market profitability Competitive pressure Govt regulations Environmental factors Price levels Social factors Overall returns Material supplies

65. GE Multifactor Portfolio Matrix Industry Attractiveness Business Strengths High High Medium Medium Low Low Invest/Grow Selectivity /earnings Harvest /Divest Protect position Invest to Build Build selectively Build selectively Selectively manage for earnings Limited expansion or harvest Protect & refocus Divest Manage for earnings

66. PESTLE Analysis