Managing Differences

Abstract

The article focuses on how business enterprises can develop strategies for globalization. The author details three main strategies to respond to globalization. These three strategies are described as adaptation, aggregation, and arbitrage. The types of strategies chosen will affect a company's global operations. According to the article, companies that utilize an adaptation strategy most likely have a country-centered organizational model. Operations that are designed to function across borders are more likely to be employed if aggregation is the strategy. Finally, arbitrage is used if a company focuses on functional organization. The article discusses how companies can pursue one or more of these global organizational strategies.