The paper "Global Strategy: An Organising Framework by Ghoshal" is an outstanding example of a business article. Global strategy: An organising framework by Ghoshal (1987), proposes a conceptual framework that comprises different issues relevant to global strategies. The article targets the managers of multinational corporations (MNCs). The main aim of the article was to give managers in MNC perspectives and prescriptions that are available in global strategic management. This helps the managers in MNC to analyse strategies for their organisations. The proposed framework acts as a road to review its strategies (Ghoshal, 1987).
The paper gives a scheme for review that serves as a tool for carrying out strategic control. This review critically assesses the ideas and arguments presented by the author and gives a summary of the principal arguments. AnalysisThe paper was written in 1987 with the onset of globalisation, and the concept of global strategy was emerging. Despite this, the idea was popular among the managers in MNCs. The primary aim of an organisation is to achieve a competitive advantage in a business environment. To gain a competitive advantage, going global was one of the ways.
There was hype on global management. The author asserts that globalisation was the new bandwagon with a lot of publications (Ghoshal, 1987). Looking critically, a global strategy should cover three areas; global, multinational and international strategies. This helps an organisation to attain its objective of international growth. Through global strategy, a firm is supposed to determine the required variation for their products to fit a given market. As the company expands into different markets, each market may require a different strategy. All strategies in different markets form a multinational strategy.
When the activities of MNCs develop such that they consider the world as a single market, they come up with a global strategy. An example of a company with a global strategy is Coca-Cola (Gammeltoft, Pradhan & Goldstein, 2010). The paper claims that the term global strategy had a lot of conceptual ambiguities. The literature did not have a precise distinction between, global industry, global firm and a global strategy.
Gammeltoft, P., Pradhan, J. P., & Goldstein, A. 2010, “Emerging multinationals: home and host country determinants and outcomes,” International Journal of Emerging Markets, Vol.5, no.3, p. 254-265.
Ghoshal, S. 1987, “Global strategy: An organizing framework,” Strategic management journal, Vol.8, no.5, p. 425-440.
Peng, M. 2013, Global strategy, Cengage learning.