Table of ContentsStrategic Management - Comprehensive ApproachIntroductionBasic Concepts of Strategic ManagementBusiness StrategyEnvironmental Scanning and SustainabilityEvaluation and MonitoringFunctional StrategyStrategy HierarchyInstitutional TheoryLearning OrganizationMissionPoliticsStrategic DecisionDecision Making Process strategicStrategic managementStrategy formulation and strategy implementationSWOT analysisTriggering eventCorporate governanceImportance of corporate governanceBenefit from Corporate Governance crisesGlobal goals, mission and strategiesAnalysis and analysis of the global competitive environmentNature of the global business environmentThe five forces and drivers of globalizationTransnational and global strategyTransnational strategiesKnowledge and skills-based strategyCompetitive positioningConclusionStrategic management-Global approachIntroductionStrategic management involves activities aimed at identifying and describing strategies that enable managers to achieve improved performance. These strategies also aim to improve the competitive advantage of the organization. Competitive advantage is achieved when the profitability recorded by an organization is higher than the average profitability recorded by its competitors. On a global scale, strategic management could also refer to the set of all activities and decisions made by management that result in the performance of the organization on a global scale (Frynas & Mellahi, 2015). Overall strategy is an important component of strategic management which must follow the basic principles of strategic management. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayThesis Statement: Overall strategy development includes the basic principles of strategic management such as analysis based on resources, competitive advantage and customer focus. among other factors.Basic Concepts of Strategic ManagementBusiness StrategyThis concept focuses on improving the competitive advantages of the organization over other global competitors (Deresky, 2017). Competitive position may relate to its services or products in a particular market segmentation or sector. In this concept, two categories are involved; cooperative and competitive strategies. Environmental scanning and sustainability Environmental scanning deals with monitoring, evaluating and disseminating information from the internal and external environment to influential people in the organization (Frynas and Mellahi, 2015 ). Environmental sustainability deals with the application of business practices aimed at reducing the organization's impact on the physical and natural environment. Evaluation and Monitoring All processes and performance of organizations are monitored to ensure that the organization achieves the desired performance. The assessment exercise enables an organization to establish any deviation from its desired performance, thereby adopting necessary measures to correct the situation. Functional Strategy This strategy focuses on the functional area of ​​the organization. It aims to ensure that an organization achieves its objectives through the adoption of strategies that maximize resource productivity. Strategy ensures that an organization's strategies and objectives are aligned to achieve maximum productivity from available resources. Hierarchy of Strategy An organization should group its strategy according to its importance to theglobal growth of the organization (Deresky, 2017). Strategies are grouped into levels and each level must complement the next level. In this regard, the functional strategy must support the business strategy which, in turn, must support the business strategy. Institutional Theory This theory predicts that organizations are engaged in imitating other successful organizations in their specific sector. Imitation aims to help organizations adapt to the changing business environment and conditions, from local to global scale. This theory supports evidence-based practices that grant organizations sufficient information and opportunities to overcome obstacles in their business environment. Learning organization It is an organization competent in creating, acquiring and transferring knowledge and modifying its organization. behavior to reflect newly acquired knowledge and ideas. An organization must have the ability to apply new knowledge to improve its competitive position in the industry. Mission The organization's mission describes the reason and purpose of organizational operations. It also describes the goods and services provided by the organization, the customer base and the technologies adopted by the organization (Frynas & Mellahi, 2015). The mission describes the organization's current position and the position it hopes to be in the future.PolicyThis is the comprehensive guideline for all decision-making mechanisms of the organization. Policy links strategy formulation and implementation. Policy is crucial to ensuring that workers at all levels of the organization make decisions and actions that further the organization's internalization strategies, goals, and mission. Strategic Decision The strategic decision aspect focuses on the long-term future of an organization. A strategic decision has three characteristics, namely: Consequential, rare and directive (Deresky, 2017). Decisions are consequential because they require a high degree of commitment from everyone involved at every level. Strategic decisions are directive in nature, meaning they determine the future decisions of the organization. They are rare and have no role model. Strategic Decision Making Process The decision making process in every organization should follow a proper procedure. The decision-making process has eight main stages (Frynas and Mellahi, 2015); 1) assessment of current organizational performance, 2) review of corporate governance, 3) analysis and assessment of the external environment, 4) analysis and assessment of the company's internal environment, 5) factor analysis (SWOT), 6) generation, evaluation and selection of the alternative strategy, 7) implementation of the selected strategy through budgets, procedures and programs, 8) evaluation of the strategies implemented through control activities and feedback systems to reduce deviations from desired performance. management activities and decisions that determine the overall performance of an organization. This set of decisions and actions includes strategy implementation, strategy development, environmental scanning, evaluation and monitoring. Strategic management is also called corporate policy. Strategy Formulation and Strategy Implementation Strategy formulation involves the development of long-term plans for the effective management of organizational opportunities and threats. Effective management of opportunities and threats isevaluated based on the strengths and weaknesses of the organization (Deresky, 2017). Strategy implementation deals with all the processes by which the organization implements its policies and strategies by following predetermined procedures, budgets and programs. SWOT Analysis SWOT analysis focuses on establishing and evaluating an organization's internal factors, such as weaknesses and strengths. , and external factors such as threats and opportunities. Analytics allows an organization to perform a detailed analysis of its internal and external environments. Triggering Event Triggering event refers to actions that stimulate the need for change in an organization's strategy. Some of these events include the introduction of a new CEO. The new CEO could focus on growing the company globally, unlike his predecessors. Interventions from external institutions could also stimulate changes in the organization's strategy (Frynas & Mellahi, 2015). Threats to an organization's ownership and performance gaps are serious events that could lead to a change in the strategies adopted by an organization. Smooth corporate transitions could be achieved through good corporate governance strategies. Corporate Governance Importance of Corporate Governance Corporate governance ensures fairness and transparency in the business environment. Good corporate governance ensures that organizations are accountable for all their activities (Deresky, 2017). Poor corporate governance creates opportunities for corruption, mismanagement and waste. Corporate governance is mainly associated with the management of joint stock organizations, but it is equally important in the management of family, cooperatives and public organizations. Sustainable business performance is only possible with good governance, whatever the company. Benefits of Corporate Governance Organizations that fully comply with corporate governance principles have a better chance of increasing the transparency of their operations and disclosure through improved access to financial and capital markets . . It also helps organizations improve their competitive advantage through risk reduction, partnerships, acquisitions and mergers. The organization has an exit policy in case conditions become unfavorable. In addition to ensuring smooth transfer of wealth to avoid conflicts of interest between family organizations (Frynas & Mellahi, 2015). Good corporate governance also allows organizations to improve their internal control systems aimed at strengthening accountability and generating higher profit margins. This would also pave the way for future organizational growth and improve the attractiveness of the organization to potential investors. By ensuring transparency, corporate governance allows the organization to find balance in its economic development. Balance ensures that the interests of all shareholders are taken into account (Deresky, 2017). The interests of minority and majority shareholders are protected by good corporate governance. Shareholders also benefit from good corporate governance because it ensures that they fully exercise their rights and that the organization recognizes these rights. Good corporate governance also ensures that an organization develops and maintains clear objectives, strategies and mission in its overall business approach.Overall Objectives, Mission and Strategies Every organization has its objectives which clearly state what needs to be done to move the organization from its current position to the desired position. position. In a global strategy, an organization must have clear objectives for how it hopes to move from its local culture to its global vision. The organization's mission should state the role the organization wishes to play globally. The strategies adopted by the organization must integrate the principles of globalization. Managers must learn and understand the reasons for the industrialization of the industry and the market (Deresky, 2017). The organization's strategies and mission must take into account issues related to environmental turbulence and globalization. Hofstede's cultural dimensions play a crucial role in strategies and goal formulation. The organization must invest time and resources in understanding the culture of the foreign countries in which it wishes to operate. Failing to understand people's culture could be the death knell for an organization. An example of an organization that failed due to its inability to take into account people's cultures is Wal-Mart in Germany. The organization set up shop in Germany with the same business practices it did in the United States. It failed to recognize and respect the cultural differences between German and American cultures (Frynas and Mellahi, 2015). Other researchers such as Trompenaar and Tayeb have also argued that cultural dimensions are important in the overall strategic management approach. Therefore, cultural analysis must be part of global business environment analysis. Competitive Global Environment Analysis and Analysis Nature of Global Business Environment Global business is described as the environment of different foreign countries having connection with the environment of the organization's home country. . These environments influence the decision-making process within the organization, particularly regarding the use of its capabilities and resources. The international business environment is also viewed in terms of an organization's internal and external environment. The external environment includes, among others, economic, political, regulatory, social, legal and cultural factors. Effective operation requires an organization to understand these factors before engaging in international business. The Five Forces and Drivers of Globalization Porter's Five Forces tool allows organizations to analyze competition in the industry. The framework derives its five strengths from the economics of industrial organization (Deresky, 2017). Through this analysis, an organization would establish the competitive intensity on a global level and thus determine the attractiveness of doing business on a global level. Porter's five forces include threat of new entrants, threats of substitutes, bargaining power of consumers, bargaining power of suppliers, and industry rivalry. The drivers of globalization are factors that indicate the potential viability of a global approach in organizational strategy. They are divided into market factors, cost globalization factors, competition factors and government factors. Market drivers are concerned about the gradual increase in demand for different products and services in various parts of the world. This constant growth in customer demands opens up more and more opportunities for organizations to engage in global business activities. The cost of globalization focuses on manufacturing costs,.