Differences Between Internation Strategy and Global Strategy

1.0 INTRODUCTION

1.1 INTERNATIONAL STRATEGY AND GLOBAL STRATEGY - WHAT IS THE DIFFERENCE?

An international strategy means that internationally scattered subsidiaries act independently and operate as if they were local companies, with minimum coordination from the parent company. Global strategy leads to a wide variety of business strategies, and a high level of adaptation to the local business environment. The challenge here is to develop one single strategy that can be applied throughout the world while at the same time maintaining the flexibility to adapt that strategy to the local business environment when necessary (Yip G. 2002). A global strategy involves a carefully crafted single strategy for the entire network of subsidiaries and partners, encompassing many countries simultaneously and leveraging synergies across many countries.

What differences are there between the global strategy and international strategy? There are three key differences. The first relates to the degree of involvement and coordination from the centre. Coordination of strategic activities is the extent to which a firm’s strategic activities in different country locations are planned and executed interdependently on a global scale to exploit the synergies that exist across different countries. An international strategy does not require strong coordination from the centre. A global strategy, on the other hand, requires significant coordination between the activities of the centre and those of subsidiaries.

INTRODUCTION

The word "outsourcing" were introduced in the mid 80s. However, the hiring idea someone else that to do specific jobs or dividing labour has existed for hundreds of years. In the business era, outsourcing can be found in every place or...

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...son are can be as follows, which are to reduce cost and delivery time, to improve the quality and the reliability, and to increase the exposure to materials only available that abroad, and establish presence in the foreign market, and also to maintain the sufficient flexibility to respond the market conditions, to reduce the overall amount of the specialized skill and the knowledge need, make the capital funds available for the more profitable operation, and lastly to combat the introduction for competition to the domestic supply.

Beside, global outsourcing are the best way to develop global market. By using global outsourcing, companies can own multilingual workforce, and potential 24/7 global benefits, and faster time to market, and also lower duties and tariff are the other benefits that provided by the global outsourcing, to help companies to develop the market.