Effective Strategy Development in Dynamic Businesses Exposed to Global Competition

Table of Contents

1.0 Introduction 1

2.0 Learning from the environment 1

2.1 Sensing needs and finding solutions 2

2.2 Prospecting Capabilities 2

2.3 Accessing External Capabilities 3

2.4 Knowledge through alliances 3

2.5 Diversity & Local Knowledge 4

3.0 Mobilizing dispersed knowledge 5

3.1 The growing importance of knowledge and knowledge transfer 5

3.2 Stickiness, a knowledge hamper 6

3.3 Creating a foundation for knowledge transfer 6

3.4 Combining knowledge in new ways 8

3.5 Determinants of knowledge flows 9

3.0 Conclusion 9

References: 11

Effective Strategy Development in Dynamic Businesses Exposed to Global Competition: how companies can take advantage of regional diversity and development in the global market, and implement this knowledge to build competitive advantage.

1.0 Introduction

Effective Strategy development in Multinational corporations (MNC) is in this paper understood as taking advantage of a company’s strategic capabilities. Strategic capabilities represent the company’s ability to foster continuously learning about its environment, develop proper strategic responses, and mobilize internal knowledge and resources to compete against competitors (Doz, 1987). The essence of this process is to initiate a management structure that can create superior strategic development and implementation based on the available information. Doz (1987) mentions six required dimensions to succeed in a global competition the capability to process complex information, creating a differentiated management system, managing strategic change, run innovation, establishing pivots and the quality of executive process. In this paper we have chosen to focus on information processing capabilities, understood as subsidiaries ability to absorb and take advantage of diverse knowledge sources in different locations, and innovation management, were effective processes for knowledge transfer between internal units are analyzed. We have come up with two...