Week 5 Discussion Question (Paul)

Elements of global strategy that differentiates it from domestic strategy

The word strategy is used in business to mean a set of coordinated and combined plan of actions drawn by a business with the sole aim of obtaining a competitive edge above its competitors in the market (White 7

Domestic strategies are plans of actions that are drawn by businesses that operate within a particular country . Such strategies are also known as single country strategies . When such businesses grow and become global and establish their operations outside their home country market

br then they are forced to draw strategies that will push their products in the overseas markets , such strategies are then called global strategies (White 7

Global strategy differs from domestic strategies on a number of elements such as exchange rate risks which is an economic risk that global companies face as a result of dealing in different types of currency which normally fluctuates over time . Global business strategy thus has to address this concern unlike the domestic business strategies since domestic companies only deal in the home currency (White 102

Global business strategies also have some element of diversity in relation to the different cultural backgrounds , race and religions of the world in relation to the markets that the business serves , thus any recruitment has to reflect the diversity , unlike domestic strategies that can be based on a single culture or religion dominant in a country (Mahoney et al , 423

In the same context it 's also imperative to...