The paper "Global Strategy: an Organizing Framework by Sumantra Ghoshal" is an outstanding example of a business article. The article brings out the concept of global strategy as popular in the field of international management especially to students, researchers and managers of multinational corporations. It then presents a range of issues based on a specific conceptual framework to advance the discourse of global strategy. In the framework, the article provides a foundation to develop literature on creating a map in the field and topical issue. In addition, the article recognizes that the map as being essential in both future types of research in the area of international management and organizing existing literature.
However, the scope of the article is limited to multinational corporation managers and it was specifically written to enable them to relate and synthesize different prescriptions and perspectives available for global strategic management. Critical discussion Sumatra Ghoshal (1987) presents three key issues in this article; arguments for and against global strategy, appropriate organizing strategy, and prescription to multinational corporation managers. To start with, on arguments for and against global strategy, the author mentions that several articles have been written in The Economist, Fortune, Harvard Business Review among others have urged multinationals to ‘ go international ’ in their strategies.
The author further argues that even academia has engendered a large number of papers and presentations in support of international market entry. These papers appear in Strategic Management Society, Academy of International Business and Academy of Management. The article begins by defining the term global strategies from the perspective of Hamel and Prahad (1985) and Hout, Rudden and Porter (1982). The authors provided the difference between global strategy, global firm and global industry and why the former is appropriate for global industries.
A divergent opinion is given by Kogut (1984) and Barlett (1985) who asserted that global strategies are not ‘ given’ in any prior sense. They said that some industries may have large economies of scale to make them go global such as aero-engines while others have globalness thrust on them such as Procter and Gamble of the US or Yoshida Kagyo of Japan.
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