INTERNATIONAL STRATEGIC OPERATIONS

International Strategic Operations

International Strategic Operations

Introduction

In a global market, the challenge for any company, for a profound change in their environment is to become competitive, to which has to adopt a new technological standard. This pattern prevailing technology worldwide consists of two aspects, micro-electronics and computerization, the flexible organization: horizontal, open and interconnected based on the information. Another challenge is the quality business, in its broadest interpretation: quality of work, quality of service, information quality, process quality, quality people, quality of the company, quality of objectives (De Wit,2004,36-37). But especially beneficial integration into the global economy requires the development of national strategies and appropriate business (Glyn, 2006, p. 87-95). This paper focuses on the discussion of the various strategic and operational challenges that arise when a company moves from a domestic strategy to a global strategy.

Discussion

Strategic Challenges

The recent global economic development, also called globalization of markets is generating controversy. For some it is the beginning of a new stage of human development, for others, it is a neoliberal policy to develop the market and capitalist relations with a new international division of labor, with increasing marginalization of poor countries (Barney,William, 2006). What is clear is that the current approach on globalization expels much of the world, leaving only those countries with high purchasing power and high productivity as part of the new global system (Barney,William, 2006). Globalization is a phenomenon between rich and, to be exact, for the most rich in the rich countries. What is happening is the interrelationship of the North's with the exclusion of the South's of this world (Glyn, 2006, p. 87-95). Interrelated, the new economy is an 'island' in a world where for some notes no borders and other these are insurmountable (Glyn, 2006, p. 87-95).

We recognize that the security of social and economic institutions of mankind and not dependent on a superpower deterrence but is in the frame and intellectual economic interdependence of nations (Kohler, Emilio, 2003, p. 51-54). It can be said that the makeup of the triad developed economies (Japan, the U.S. and Europe), in it are the most important markets in the world, in their competitive threats emerge, it originate new technologies.

Company Examples

Wal-Mart

Wal-Mart started off as an independent small grocery store which is now one of the biggest retail chains in the world. The strategic move that the company adopted was that of focusing on the prices and creating a price war (Dragun,Howard,2003,42-54). It targeted the consumers towards the low price strategy without sacrificing the customer value provision. Gradually, the strategy became effective as customer started preferring Wal-Mart over competitors. This allowed the company to expand into the global markets with the same strategic plan.

Caterpillar

Caterpillar has been successful in the global transition and has a major customer of standards. The company is recognized as a business leader where the services and the products to cater the customers. The company has kept the distribution system most competitive in the global markets. With the development of strategy from 2005 and communicating the ...