Business Strategy in a Global Environment Case Study

Business Strategy in a Global Environment - Case Study Example Case study "Bussiness strategy in a global environment" is kind of work that includes everything that may characterize meaning ''academic appliance". Author overviewed lots of qualified literature in order to make structured and complex answer on next question: "What is actually business strategy and how it interacts with the global environment?". The author thinks that the first step of each successful strategy is a choice, which is based on the foundations that have been laid by the SWOT matrix. This notion postulates that the observations of the SWOT matrix can be explored further through the application of the TOWS matrix whereby the integration of both external and internal factors that are associated with the organization can guide Farstad Shipping towards the achievement of its long-term goals and objectives. The application of this technique of situational analysis with regards to the company under discussion is an acknowledgment of the importance of this tool in strategic planning. This is essentially the point where a global business strategy differs from a national business development strategy as different other factors such as product standardization and adaptation come in. Global business strategies have emerged as a result of globalization and internationalization of established domestic companies which is purpo rted to increase the value of the company in question. This work contains the title, table of contents, a bunch of tables and diagrammes, main part and reference list. ... Therefore, the available options that have come under consideration are presented through the Business-level Matrix and the Product/Market Matrix below: Table 1.1.2 Business-level Matrix (Adapted from: Goldman and Nieuwenhuizen 2006) Table 1.1.3 Product/Market Matrix Products/services Existing New Markets Existing Market penetration New products/services New Market development Diversification (Adapted from: Johnson, Whittington & Scholes 2011) The viable strategies for Farstad Shipping which have been selected through the examination of the TOWS Matrix, the Business-level Matrix and the Product/Market Matrix are: cost leadership, differentiation, new products/services, market development and market penetration. These strategies will be assessed in greater detail in the following sections of the report. 1.2 Strategic Choice As per the company’s long-term objective, Farstad Shipping aims to become the foremost supplier of offshore tonnage to the businesses operating in the oil a nd gas industry (Farstad 2012a). The organization understands that it conducts operations in an industry which is marked by the presence of intense competition which is why it categorizes innovative process and technology as the main tools which can guide the organization towards success. In order to attain its long-term objectives Farstad Shipping faces the selection of a combination of five distinct business-level and corporate level strategies which must be thoroughly examined, analyzed and evaluated by keeping in view the dynamic nature of the industry in which the organization conducts its activities. Consequently, assessments on strategic choice are also pivotal to the attainment of a competitive advantage. 1.2.1 Cost Leadership The