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• To successfully negotiate the uncertain paths that a lot of firms are facing, managers must change their strategic approach in several dimensions.
• There might have to be a shift in strategy from looking at the integration of various countries to an increased focus on adapting to local conditions.
• A recent survey of HBR readers showed that before the crisis; 88% of managers felt that a global strategy was imperative, rather than a set of options that must be carefully evaluated.
• Some companies, due to the resource constraints have responded by offshoring, outsourcing and forging strategic alliances.
• Multinationals face three main changes when it comes to customers and product choices.
• Perspectives on skills and process innovations are changing.
• The rise of protectionism and the increasing worry about the environment is undermining the traditional global trade between the United States and China.
• The focus on integrating constituents’ parts of an enterprise and increasing the bound on these parts is becoming challenged by economic volatility resulting in the need to reduce their exploitation of cross-border differences.
• Language barriers are causing difficulty in comprehensibility between managers and employees causing the need for increased focus in modern communications.
• Increasing roles that governments are now playing post-crisis is becoming an important component of strategy setting.
The changing economic landscape has meant that companies must rethink their strategies and one way to do this is to split up the different components of strategy setting and align them with the best possible solution to cope with the change.
Strategy and Competition
The main adjustment that companies should consider is Strategy and Competition. The article describes the main requirement regarding this component as being an increased focus on shifting from the cross border differences and concentrating more on local differences. There is a strong belief that global strategies are long-term asset accumulation plays with relatively little risk. This is backed up by the fact that in a recent survey done by HBR; 88% of managers felt that concentration on global strategy was imperative. Since the bubble burst in 2008, many firms are being reminded that a significant portion of their global operations subtract, rather than add economic value.
The article also pointed out the need for companies from the developed world to widen their competitive focus. One way they could do this is to focus on the local competitors in areas which they feel they can generate the most growth.
Markets and Products
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"The 2008 Financial Crisis, A List of Strategies." 123HelpMe.com. 15 Jul 2019
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