PDF Download: Global Strategy by Mike W. Peng - A Practical Guide for Global Managers
H1 Global Strategic Management by Mike W. Peng: A Review --- --- H2 Introduction H3 What is global strategic management? H3 Who is Mike W. Peng? H3 What are the main features of his book? H2 The Institution-Based View of Strategy H3 What is the institution-based view of strategy? H3 How does it differ from other perspectives on strategy? H3 What are the benefits and challenges of applying it to global business? H2 The Three Pillars of Institutions H3 What are the three pillars of institutions? H3 How do they affect global strategic management? H3 What are some examples of institutional differences across countries and regions? H2 The Strategic Choices of Global Firms H3 What are the strategic choices of global firms? H3 How do they relate to the institution-based view of strategy? H3 What are some best practices and pitfalls of global strategic management? H2 The Global Strategy Toolkit H3 What is the global strategy toolkit? H3 How does it help global managers make better decisions? H3 What are some tools and frameworks included in the toolkit? H2 Conclusion H4 Summary of the main points H4 Recommendations for further reading H4 FAQs Now I will start writing based on this outline step by step. Please wait for a while. I have written the first part of the article. Here it is: H1 Global Strategic Management by Mike W. Peng: A Review --- --- H2 Introduction H3 What is global strategic management? Global strategic management is the process of designing and implementing strategies that enable a firm to compete effectively in the global market. Global strategic management involves making decisions about the firm's scope, resources, capabilities, and competitive advantage in different countries and regions.
Global Strategic Management Mike W Peng Download Pdf
H3 Who is Mike W. Peng? Mike W. Peng is a professor of global strategy at the University of Texas at Dallas. He is also a fellow of the Academy of International Business and a former editor-in-chief of the Asia Pacific Journal of Management. He is widely regarded as one of the most influential scholars in global strategy, with over 140 articles published in leading journals and over 60,000 citations on Google Scholar. He is also the author of several textbooks on global strategy, including Global Strategy, Global Business, and GLOBAL.
H3 What are the main features of his book? One of the main features of Peng's book Global Strategy is that it adopts an institution-based view of strategy, which emphasizes the role of formal and informal rules and norms in shaping global strategic management. The book also covers the three pillars of institutions (regulatory, normative, and cognitive), the strategic choices of global firms (entry mode, location, ownership, and organization), and the global strategy toolkit (tools and frameworks for analyzing and executing global strategies). The book uses a reader-friendly approach, with evidence-driven explanations, lively examples, and engaging cases. I have written the second part of the article. Here it is: H2 The Institution-Based View of Strategy --- --- H3 What is the institution-based view of strategy? The institution-based view of strategy is a perspective that emphasizes the role of formal and informal rules and norms in shaping global strategic management. According to this view, institutions are the \"humanly devised constraints that structure human interaction\" (North, 1990, p. 3). Institutions can be formal, such as laws, regulations, and contracts, or informal, such as norms, values, and culture. Institutions provide the context and the incentives for firms to make strategic choices and to compete in different markets.
H3 How does it differ from other perspectives on strategy? The institution-based view of strategy differs from other perspectives on strategy in several ways. First, it treats institutions as independent variables, rather than as background conditions or control variables. It focuses on the dynamic interaction between institutions and organizations, and considers strategic choices as the outcome of such an interaction (Peng, 2003; 2006). Second, it recognizes that institutions are not static or homogeneous, but rather vary across countries and regions, and change over time. It also acknowledges that institutions are not always efficient or optimal, but may be influenced by power and politics. Third, it integrates both economic and sociological perspectives on institutions, and examines how both formal and informal institutions affect firm behavior and performance.
H3 What are the benefits and challenges of applying it to global business? The institution-based view of strategy offers several benefits for understanding and practicing global business. It helps managers to identify and analyze the institutional differences and similarities across countries and regions, and to adapt their strategies accordingly. It also helps managers to anticipate and cope with institutional changes and uncertainties, and to leverage institutional opportunities and advantages. It also helps researchers to develop more robust and relevant theories and frameworks for global strategic management (Peng et al., 2009).
However, applying the institution-based view of strategy also poses some challenges. One challenge is to develop stronger measures of institutions that can capture their complexity and diversity. Another challenge is to balance the institution-based view with other perspectives on strategy, such as the industry- and resource-based views, and to integrate them into a coherent framework. A third challenge is to avoid overemphasizing or underestimating the role of institutions in global business, and to recognize that institutions are not deterministic or constraining, but rather enabling and empowering for firms (Peng et al., 2008). I have written the third part of the article. Here it is: H2 The Three Pillars of Institutions --- --- H3 What are the three pillars of institutions? The three pillars of institutions are the regulative, normative, and cultural-cognitive elements that provide stability and meaning to social life (Scott, 2001). The regulative pillar refers to the rules, laws, and sanctions that regulate behavior and ensure conformity and compliance. The normative pillar refers to the values, norms, and expectations that define the goals and standards of appropriate behavior. The cultural-cognitive pillar refers to the shared beliefs, assumptions, and logics that shape the perception and interpretation of reality.
H3 How do they affect global strategic management? The three pillars of institutions affect global strategic management in different ways. The regulative pillar influences the formal constraints and incentives that shape the costs and benefits of various strategic choices. For example, trade policies, tax regimes, and antitrust laws affect the entry mode, location, ownership, and organization of global firms. The normative pillar influences the social obligations and expectations that shape the legitimacy and reputation of various strategic choices. For example, ethical codes, professional standards, and social norms affect the corporate social responsibility, stakeholder management, and corporate governance of global firms. The cultural-cognitive pillar influences the cognitive frames and schemas that shape the interpretation and evaluation of various strategic choices. For example, cultural values, national identities, and mental models affect the innovation, adaptation, and learning of global firms.
H3 What are some examples of institutional differences across countries and regions? Some examples of institutional differences across countries and regions are: - The degree of political stability and democracy - The level of economic development and market integration - The extent of legal protection and enforcement - The nature of regulatory intervention and competition policy - The prevalence of corruption and informal practices - The orientation of individualism versus collectivism - The strength of uncertainty avoidance versus risk taking - The balance of masculinity versus femininity - The dimension of long-term versus short-term orientation - The expression of indulgence versus restraint I have written the fourth part of the article. Here it is: H2 The Strategic Choices of Global Firms --- --- H3 What are the strategic choices of global firms? The strategic choices of global firms are the decisions that they make regarding how to enter, compete, and grow in international markets. These choices include: - The mode of entry, such as exporting, licensing, franchising, joint venture, or wholly owned subsidiary - The location of value chain activities, such as sourcing, production, marketing, and research and development - The level of ownership and control, such as minority or majority stake, equity or non-equity alliance, or full integration - The degree of coordination and integration, such as centralized or decentralized decision making, standardized or localized products and services, and global or regional strategy
H3 How do they relate to the institution-based view of strategy? The strategic choices of global firms are influenced by the institution-based view of strategy in several ways. First, the institution-based view helps global firms to identify and analyze the institutional differences and similarities across countries and regions, and to adapt their strategies accordingly. For example, global firms may choose different modes of entry depending on the legal protection, political risk, and cultural distance of the host country. Second, the institution-based view helps global firms to anticipate and cope with institutional changes and uncertainties, and to leverage institutional opportunities and advantages. For example, global firms may relocate their value chain activities to take advantage of lower costs, higher quality, or greater innovation potential in different locations. Third, the institution-based view helps global firms to balance the pressures for global integration and local responsiveness, and to achieve optimal fit between their strategies and the institutional environment. For example, global firms may adopt different levels of ownership and control depending on the degree of trust and cooperation with their local partners. They may also adopt different degrees of coordination and integration depending on the need for efficiency and flexibility in their operations.
H3 What are some best practices and pitfalls of global strategic management? Some best practices of global strategic management are: - Conducting thorough due diligence before entering a new market - Developing a clear vision and strategy for each market - Leveraging core competencies and distinctive capabilities across markets - Building strong relationships with local stakeholders - Learning from local customers and competitors - Fostering a global mindset and culture among managers and employees Some pitfalls of global strategic management are: - Underestimating the complexity and diversity of foreign markets - Overestimating the transferability and scalability of home market success - Ignoring or violating the institutional rules and norms of foreign markets - Failing to adapt to changing customer preferences and competitive dynamics - Losing control over quality, costs, or intellectual property rights - Facing ethical dilemmas or social responsibility issues I have written the fifth part of the article. Here it is: H2 The Global Strategy Toolkit --- --- H3 What is the global strategy toolkit? The global strategy toolkit is a set of tools and frameworks that help global managers make better decisions in the complex and dynamic environment of international business. The global strategy toolkit helps managers to: - Analyze the external and internal environment of global business - Formulate and implement effective global strategies - Evaluate and improve global performance
H3 How does it help global managers make better decisions? The global strategy toolkit helps global managers make better decisions by providing them with: - A systematic and comprehensive approach to global strategic management - A common language and terminology for global strategic management - A variety of perspectives and models for global strategic management - A practical and relevant application of global strategic management
H3 What are some tools and frameworks included in the toolkit? Some tools and frameworks included in the toolkit are: - PESTEL analysis: A tool for analyzing the political, economic, social, technological, environmental, and legal factors affecting global business - Porter's five forces analysis: A tool for analyzing the competitive intensity and attractiveness of an industry - SWOT analysis: A tool for analyzing the strengths, weaknesses, opportunities, and threats of a firm - Value chain analysis: A tool for identifying and optimizing the primary and support activities that create value for customers - VRIO analysis: A tool for evaluating the value, rarity, imitability, and organization of a firm's resources and capabilities - Ansoff matrix: A tool for selecting growth strategies based on market penetration, market development, product development, or diversification - BCG matrix: A tool for classifying products or business units based on market share and market growth - GE-McKinsey matrix: A tool for assessing the attractiveness and strength of products or business units based on industry attractiveness and competitive strength - Balanced scorecard: A tool for measuring and managing performance based on financial, customer, internal process, and learning and growth perspectives I have written the sixth and final part of the article. Here it is: H2 Conclusion --- --- H4 Summary of the main points In this article, we have reviewed the book Global Strategy by Mike W. Peng, which adopts an institution-based view of strategy and covers the key topics and issues in global strategic management. We have discussed the following main points: - Global strategic management is the process of designing and implementing strategies that enable a firm to compete effectively in the global market. - The institution-based view of strategy emphasizes the role of formal and informal rules and norms in shaping global strategic management. - The three pillars of institutions are the regulative, normative, and cultural-cognitive elements that provide stability and meaning to social life. - The strategic choices of global firms are the decisions that they make regarding how to enter, compete, and grow in international markets. - The global strategy toolkit is a set of tools and frameworks that help global managers make better decisions in the complex and dynamic environment of international business.
H4 Recommendations for further reading If you are interested in learning more about global strategy and related topics, we recommend the following books and articles: - Peng, M. W. (2016). Global business (4th ed.). Boston, MA: Cengage Learning. - Peng, M. W., & Meyer, K. E. (2016). International business (2nd ed.). London: Cengage Learning. - Peng, M. W., Wang, D. Y., & Jiang, Y. (2008). An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies, 39(5), 920936. - Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press. - Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities (4th ed.). Thousand Oaks, CA: Sage Publications.
H4 FAQs Here are some frequently asked questions about global strategy and their answers: Q: What are the benefits and challenges of globalization for firms? A: Globalization offers firms the benefits of accessing new markets, customers, resources, capabilities, and innovations. It also poses challenges such as increased competition, complexity, uncertainty, and diversity. Q: What are the drivers and barriers of globalization for firms? A: The drivers of globalization for firms include market liberalization, technological advancement, cost reduction, customer demand, and learning opportunities. The barriers of globalization for firms include institutional differences, cultural differences, political risks, ethical issues, and environmental issues. Q: What are the types and modes of entry for global firms? A: The types of entry for global firms include exporting, licensing, franchising, joint venture, strategic alliance, merger and acquisition, and wholly owned subsidiary. The modes of entry for global firms include greenfield investment (building new facilities), brownfield investment (acquiring existing facilities), or hybrid investment (combining greenfield and brownfield). Q: What are the strategies for global integration and local responsiveness for global firms? A: The strategies for global integration and local responsiveness for global firms include international strategy (low integration and low responsiveness), multidomestic strategy (low integration and high responsiveness), global strategy (high integration and low responsiveness), and transnational strategy (high integration and high responsiveness). 71b2f0854b