‘Finding Your Strategy in the New Landscape’ by Pankaj Ghemawat free essay sample

Therefore, this article has tried to explain on how the changing of the strategic approach can help the Multinational Company gets benefited from it. The main issues of this article are to address on how the Multinational Companies should review their strategy in the hostile of post recession operating business environment. The authors first highlighted how the crisis affects company basic strategic environment where he later on explore on how it implemented into changes in the product and markets, operation and innovation, organization and people structure also identity and reputation of business in general. In this article, the authors emphasize that most of the company’s global strategies have been based on the visions of the world’s that is steadily and rapidly integrated. However the crash in 2008 and 2009 has changed this vision, where it makes more sense to adopt a vision where the national differences are remain pronounced. The authors suggested that, those companies who are strategically based on the differences and achieving economics scale across national boundaries need to shift toward adapting to local conditions. We will write a custom essay sample on ‘Finding Your Strategy in the New Landscape’ by Pankaj Ghemawat or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It is also highlighted that the resource allocation process needs to be change as in the post recession environment the cost and the availability of capital are issues. The companies need to become more selective in pursuing new opportunities. There are also companies that try to allocate their resources according to their articulated strategic priorities where it can be seen based on the large numbers of company which turned to the investment in China. The authors also have pointed out that the multinational companies need to watch out for the emerging of new market competition by China and India. As stated in this article, the firms need to focus on three main points under markets and products. First, the multinational companies need to re-think about their customer targeting. The companies need to shift customer targeting away from the urban elite only where the firms need to include more geographies, channels and income levels. China has been given as an example by the authors indicates that, there are many multinational companies has already developed this strategy and now working in clusters of cities. The multinational should also look for a ways to seize the opportunity in the underserved segments such as Wal-Mart where it penetrates the geographies which cover most of the cities by adopting the urban strategy involve smaller store formats. Secondly, repositioning of the products will be required due to the increase of the pricing pressures that are forecasted only to intensify. Finally, the multinationals, will have to develop product and services that are better suited for the different geographic locations where they are being sold. In operations and innovation, the authors indicate that, there is several interrelated shift are taking place. While the companies continue to off shoring, the supply chain will need extensive reconfiguring to become shorter, simpler and robust. Additionally, the flow of innovations in operation has begun to reverse. Instead of sending older technology to the less developed companies, organization found that the plants are able to handle higher automated processes. Product development and innovation based on the emerging markets is also becoming popular with high-tech companies like Intel. They are leading the way by utilizing the strong talent in India which is focused on research and development. The authors emphasize that the changing in the organization and people will begin to reflect the new opportunities and constrains around organizational structure and talent. Based on the article, before the crisis many companies were moving towards globally integrated structures, therefore, rather than continuing towards fully integrated international approach, some companies may want to give power to the managers in separate countries in order to take better advantage of foreign opportunities and achieve clearer understanding of the country’s conditions. This will cause the needs of diversifications in management in all ranks. It is also suggested that the companies should take the advantage on the modern communication technology not only to close the geographical gaps but also cultural and demographic distance. In the last component which is identity and reputation strategy, the authors has stress out on the importance of building a strong corporate identity. As international business becomes more complex and localized, it’s important to maintain a firm identity that reaches all nations through the open communication of values and leadership development. Corporate diplomacy will become vital for the organization in maintain their identity and reputation after the post crisis world. It’s also a key to continue improving and to restore the overall business reputations considering the low morale in the economy since the crisis. Hence, by rebuilding the reputation of business, it may help to contain the challenge of protectionisms when the trust in economic institutions is low. The authors conclude that the multinational companies must increase diversity and build cohesive corporate cultures and tighten their talent management practices. Nevertheless, the companies of the new developed era should become more cosmopolitan in their worldview and more discriminating their investment choice. Summarization of article; ‘Finding Your Strategy in the New Landscape’ by Pankaj Ghemawat [Type the document subtitle]