GLOBAL STRATEGY

Global Strategy

[Course Code]

Introduction2

Discussion3

Strategic Management Process3

Competing on a Global Basis4

Business and Its Environment6

Analyses of External Environment of Business7

PESTEL Analysis: Importance, Applications and Limitations7

Porter's Five Forces Model of Competition: Importance, Applications and Limitations9

Rumelt's Strategy Model: Importance, Applications and Limitations12

Conclusion14

Task 2 - Case Study15

Answer No. 115

Influence of External Environment on LEGO15

Answer No. 216

Resources and Competences of LEGO16

Answer No. 317

LEGO's Alternatives Strategies17

Answer No. 418

LEGO as a Strategy Oriented Organization18

Global Strategy

Introduction

Strategy is a well organized flow chart for an organisation. It defines the firm's overall mission, visions and objectives of an organisation. The main concerns for any organisation are the designing of its strategies which can fully satisfy its objectives and goals. Furthermore, these unique set of strategies must provide the maximum strength to the firm in order to compete with its competitors and maximise its profitability and competitive advantage among its rivals. Thus, strategy is serving as a linking bridge between the present and future goals of the corporate structure. Strategy is an activity that managers have to perform in order to attain the organisational long term and short term goals. It is the indicator of direction where an organisation wants to be in the near future. Strategy is the product of strategic planning process.

Strategy is dealing with the integration of important activities of organisation by utilising and assigning the resources within the environment of an organisation in order to accomplish the current objectives and goals. On the other hand, doing planning for strategy it is essential for the firm to consider all the factors before taking any decision. Because the irrelevant decision affect can affect the productivity and performance of an organisation, as well as it produces adverse consequences on its competitors, customers, suppliers and employees. Strategy in business is so important that it can provide the opportunity for an organisation in order to foresee the future and make capable to deal with uncertainties and risks in business environment. Strategy deals with long term developments as it provides roadmap to the firm to innovate new ideas in product line, introduction of new methods for production, explore new market segments and other future objectives. Strategy is essential for determine the customers preferences and behaviours with respect to the goods and services. Through strategy an organization can be able to understand the competitors' tactics as well as expect the behaviour of its workforce.

Discussion

Strategic Management Process

The strategic management process defines the strategies of an organization. It is the sophisticated process through which mangers make strategies in order to achieve the organisational goals and objectives. This process is an ongoing and interactive scheme in a sense that, it involves the key components of business like competitors. It also provides a guideline for meeting the goals of present as well as future concerns in order to compete with the competitors in a particular business sector. The process of strategic management involves four essential steps.

The first step is the scanning of the overall business ...