Home » Blog » Global Strategy » Five key resources for building a global strategy

Five key resources for building a global strategy

  1. Adequate funds

Global strategy requires substantial funds – perhaps US$ 1 billion. Even relatively new companies have needed substantial finance for marketing, business set-up costs and just running a business.

  1. Quality

All the leading world brands offer quality and set up procedures to ensure that this is maintained over time.

  1. Lengthy time horizon

Global strategies have been built over a number of years. Even relatively new companies have taken time to become established. The majority of global companies were originally begun in one country and then extended over time.

  1. Senior management commitment and effort

The Chief Executive Officer and his team need to believe that the benefits of a global strategy are greater than the costs. The team then needs to work to achieve this or the strategy will fail.

  1. Innovation

This may mean investment in R&D. It may involve re-thinking some other aspect of the value chain or some other aspect of business. But some form of innovation will be invaluable in building a global strategy.

Beyond these factors, many companies need to consider whether they need to develop and adapt their resources for national markets: the classic case of a local as well as a global strategy. You can read more about this in Chapter 19 of Lynch Strategic Management.

Here is a video about the global restaurant company McDonalds that has faced this local/global decision and adapted its key resources accordingly.