A Critical Assessment of Whether the Complications of the Impact of Globalization on Global Strategy Is Completely Covered by the Four Debates in the Field of Global Strategy .

UNIVERSITY OF SOUTHWALES

Management Theories and Philosophies (BS4S02-V1)

Master in Business Administration

(MBA)

Task: A critical assessment of whether the complications of the impact of globalization on global strategy is completely covered by the four debates in the field of global strategy .

Student Number: R1509D979627

Tutor: Professor, Dr. Mike NKasu Phd.

TABLE OF CONTENT

Contents

ABSTRACT        3

INTRODUCTION        4

LITERATURE REVIEW        5

CURRENT DEBATES IN THE FIELD OF GLOBAL STRATEGY        5

Domestic verse Overseas Corporate Social Responsibility        5

Culture verse Institutional Distance        6

Convergence verse Divergence in Corporate Governance        7

Global verse Regional Geographic Diversification        9

CRITICAL ANALYSIS OF THE FOUR DEBATES        10

Culture verses Institutional Distance        10

Regional and Global Geographic Diversification        11

Convergence and Divergence of corporate governance        12

Overseas verse Domestic Corporate Social Responsibility        12

Additional Argument        13

RESULT        14

DISCUSSION        14

RECOMMENDATION        14

CONCLUSION        15

REFRENCES        16

ABSTRACT

This paper has critically assessed whether the complications of the impact of globalization on global strategy was completely covered by the debates provided.  A desk review was used for the methodology where various secondary sources where used to collect information. Due to the fact that the complications of the impact of globalization on global strategy was not completely covered by each of the debates by their selves or collectively, it was recommended that they be considered together in addition with debates from the resource base view and industry base view when formulating global strategy. It was concluded that the complications of the impact of globalization on global strategy was not completely covered by these four debates, as each debate only focused on one or two factors of globalization and also focus on one view within the field of global strategy.

INTRODUCTION

Globalization is the interconnectedness and interdependence of the organization, the government and people (Cole and Kelly, 2016).It is a multi-faceted concept with factors such as economic, political-legal, social-cultural and environment (Gichira, 2007). In addition it has resulted in organizations viewing the world as a large single market (Cole and Kelly, 2016). Its concept and its far-reaching implications have a profound impact on the formulation of organization’s global strategy. Global strategy has been comprehended as an intersection of strategic management and international business (Alvesson and Willmott, 1992). It is the organizations’ theory of how to compete successfully and it is seen as the strategy of organization all over the world (Peng, 2003).

Four debates in the field of global strategy, identified by Peng and Pleggenkuhle-Miles, may have an impact on how organizations formulate their global strategies. These debates include: domestic verse overseas corporate social responsibility, convergence verse divergence corporate governance, culture verse institutional distance, global verse regional geographic diversification which are all connect by the institutional base view of global strategy. This view argues that multinational enterprises must be knowledgeable of the formal and informal rules that control countries when operating internationally. These rules of the game differ from country to country and may facilitate or stifle the organization’s strategies (Peng, 2003).

While these debates are complete in their own right while footing the global strategy of a multinational enterprise, by themselves they did not manage to adequately disclose the complication that appears with globalization and its impact on strategies. This paper will therefore critically assess whether the complications of the impact of globalization on global strategy is adequately covered by the four debates in the field of global strategy. The writer will start with a literature review then will have a discussion, provide results, recommendation and conclusion respectively.

LITERATURE REVIEW

This section will provide a summary of the debates in the field of global strategy.

Global strategy is considered to be influenced by four debates which are connected by the institutional base view (Peng and Pleggenkuhle- Miles, 2009). This view is considered to be the third view with the other two being industry base view and resource base view (Peng, 2008).The institutional base view argues that multinational enterprises must be knowledgeable of the formal and informal rules that control countries when operating internationally, hence the articulation of the four debates.

CURRENT DEBATES IN THE FIELD OF GLOBAL STRATEGY

Domestic verse Overseas Corporate Social Responsibility

Corporate social responsibility focuses on “the structure of rights and responsibilities among the parties with a stake in the firm” (Aoki and Jehlik, 2000). This debate focused on corporate social responsibility in the sense of, whose interest is more important, that of domestic or overseas employees and community. It is noted that when resources are short, resources given to the overseas corporate social responsibility meant that there is less for domestic corporate social responsibility (Peng and Pleggenkuhle- Miles, 2009). While it is said that both are important the issue still remains as to how to share the resources fairly.