In the article on global strategy at Nissan Motor Company, Sorin-George Toma and Paul Marinescu (2013) posit that international firms or corporations consider expansion into new locations with the purpose of increasing efficiency, market share, growth and ultimately growth. Imperatively, they craft a global strategy that denotes to international expansion based on their resources, capabilities and present international position (Toma & Marinescu, 2013). Global strategies include global, multinational and international strategies. For instance, the case study of Nissan Motor Company illustrates that for a company to craft a global strategy, it must treat the world as one large market and one source of supply but with local variations. Such an organization develops its competitive advantages on the global level. On a multinational strategy, a company has operations in several markets beyond its borders (Singh, 2013). However, it develops distinctive strategies for every market since customer demand and competition are different. Further, a different market may provide different competitive opportunities and each company decides its performance based on strategic choices of the geographical location in a more competitive environment. Importantly, competitive advantage is ascertained separately for every nation and company when pursuing global strategies. In using an international strategy, a company’s objectives are crafted in relation to the home market. However, the firm can state objectives based on its overseas activities but develop its competitive advantage in its home market as opposed to the international market (Toma & Marinescu, 2013). This implies that international activities are run by subsidiaries that formulate their strategies based on the parent company or headquarters in the home market. Some of the subsidiaries may have authority in decision making but the ultimate direction is provided by the home market subsidiary. These subsidiaries implement headquarter-developed strategy (Singh, 2013).
References
Singh, S.S. (2013) International Management Strategy: An Empirical Study. Global Journal of
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Management and Business Research: Administration and Management , Vol.14, No.2. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&uact=8&ved=0ahUKEwioxqGApbHXAhWIro8KHbaIBNIQFghOMAY&url=https%3A%2F%2Fjournalofbusiness.org%2Findex.php%2FGJMBR%2Farticle%2Fdownload%2F1237%2F1147&usg=AOvVaw3yOch8GRHISDvtjgus38OU
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