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Strategic Management CIA 3 Journal Artic

Course: Strategic management (6112)

102 documents

University: Addis Ababa University

STRATEGIC MANAGEMENT - CIA 3

Journal Article Review: Global Strategy

An organising framework

(S Ghosal)

Submitted By

Rachit Wadhwa

(1727028)

Submitted To

Prof. Ashish Shah

Institute of Management

CHRIST (Deemed to be University)

Bengaluru

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STRATEGIC MANAGEMENT - CIA 3

Journal Article Review: Global Strategy

An organising framework

(S Ghosal)

Submitted By

Rachit Wadhwa

(1727028)

Submitted To

Prof. Ashish Shah

Institute of Management

CHRIST (Deemed to be University)

Bengaluru

Journal article review

Introduction:

This review critiques and analyses the article ‘Global Strategy: An Organizing Framework’, written by
Sumantra Ghoshal, which appeared in the journal ‘Strategic Management Journal’ , published in 1987.
This review will begin by summarising the article. It will then briefly analyse the effectiveness of the
article based on how it was structured – investigating how the information is set out and whether the
readers can access it effectively and with ease. And finally the article will be critiqued based upon its
authority and accuracy, and how current and relevant the information presented is. The review will also
analyse any graphs and tables before finally judging the article’s accessibility and credibility.

The central theme of the paper is to present a ‘conceptual framework encompassing a range of different
issues relevant to global strategies’. The framework provides a foundation for organising the existing
and the growing literature on international competition and ‘creating a map of the field’. This article can
be used for both teaching and future research, but more importantly this article is most beneficial for
manager of multinational corporation. Which is aimed at providing then with ‘relating and synthesizing
the different perspectives and prescriptions that are currently available for global strategic
management’.

The writer has reviewed Global Strategy in an unbiased way by presenting both the positive and
negative consequences and views of each concept within the framework. Overall the article is presented
clearly, well written and fluent, as is it relevant to the topic.

Summary:

The purpose of this paper is to provide an organising framework which could possibly help managers of
multinational corporations (MNCs) and/or academics in ‘formulating the various issues that arise in
global strategic management’. This article serves as a basis for organising existing literature on the topic
of global strategy. This is a result of corporate objectives being multidimensional and quite often seen to
be mutually contradictory, thus causing difficulty for both researchers and practitioners to deal with the
rich literature on global strategies. ‘Actions to achieve a particular objective often impede another
equally important objective’ (Ghoshal, 1987).

The article begins by presenting the multiple arrays of perspectives and prescription that are created by
various other writers in the field. He explains that the difference between authors and their views on
global strategy and how to manage them are not limited. He gives a brief insight into the views of 4
different authors and how on various occasions these views may contradict each other yet none of these
can be truly criticised.
Ghoshal states that this checklist ‘simply serves as a basis for mapping the overall strategies of the
company’. He also goes on to saying that the essence of an organizing framework and the key to a
successful global strategy is to ‘manage the interaction between the different goals and means’
(Ghoshal, 1987). The article also acknowledges the possible benefit for MNCs by explaining how another
‘practical utility of the framework’ is to highlight the ‘contradictions between different goals and
different means’ thus emphasising the strategic dilemmas that would otherwise be resolved through
omission.

The following sections of the framework further explain the dimensions of its construct – ‘the strategic
objectives of the firm and the source of competitive advantage available to MNC’ – he strengthens his
arguments by using other article sources that ultimately contributes to the literature and generally the
overall framework.

 The author concludes the paper by briefly discussing trade-offs that are steadfast in some of the more
recent prescriptions on global strategic management. According to Ghoshal (1987) these trade- offs
imply ‘that to formulate and implement a global strategy, MNC managers must consider all the issues
suggested in Table 1, and must evaluate the implications of different strategic alternatives of each of
these issues’.

Structure:

The article under review was accessed in a clear and well set out form. The article was introduced with
an abstract, which provided the stance or thesis developed by the article, background to the issue as
well as briefly outlining the purpose of the article, its main points, findings, conclusions, implications and
future research directions. The rationales for the article and for the research it describes were also
included. The paragraphs in the body were mostly short and therefore the information in each
paragraph was easy to access, however there were a few longer paragraphs that seemed to be overly
complicated for those who might not have any prior knowledge on the topic. The article is broken into
headings and subheadings and most of the paragraphs were structured in a clear cut way thus allowing
important information to be categorised and spread out for easy access. The Introduction provided
background information and the rationale behind the article. This allowed clear understanding of the
context and importance of the study. The body was logically organised. This allowed the reader to read
the entire article or just the part of interest. As the article described a global strategy for organising
framework, the provided tables and diagrams to clearly display and outline its framework. For example
when the author was describing the relationship between strategic objective and their competitive
advantages thus allowing the reader to clearly see the contradictions. The writer also used a table to
explain scope economies in product and market diversification. The conclusion adequately explained
and summed up the article and provided adequate research directions.

The article had both qualitative and quantitative aspects with excerpts from other articles and sources
related to the topic. There were extensive references cited in-text and set out clearly in the References
section. The article was a PDF document which meant it could easily be printed and read or accessible
online. However as it is a scanned document no information was provided to help to make the
information accessible. This in turn disallowed readers to evaluate the article’s worth more effectively,
however linked headings and subheadings allowed the reader to move through the paper more quickly.
The article’s structure was logically developed overall; with the use of short paragraphs helping the
reader access the main points more easily thus allowing an average person to read most of the article
however in some sections the level of literature was advanced.

Critique:

The journal, the ‘Strategic Management Journal’, is a publication of the highest quality research most
relevant to strategic management. It is one of the highest ranked business and management journals.
The author’s credibility was established in a number of ways. These included the fact that the article was
a peer reviewed article. Also the fact that most of the in-text citings involved papers which he has jointly
written on similar topics thus indicating his broad knowledge of the topic. The article also contained
references from a broad array of different writers who are also seen to be very knowledgeable in the
topic. This information highlights that the article is highly credible. The source of the information in the
article was a current and based on recently emerged popular concepts among MNGs and also
researchers in the field of international management. The information is verified and supported by a
comprehensive, recent reference list with these sources cited in-text to support both the literature
review and the research itself. The information in the article is therefore accurate and reliable. The
article’s accuracy is also confirmed by the careful scrutiny that it was subjected to by two anonymous
referees from the strategic management journal. The fact that the article is peer reviewed also verifies
its precision. The journal, although published in October 1987, is still very prominent in the field of
strategic management.

The research it describes was current (for its time) and the article cites up- to-date references in the
body of the text (ranging from information 1980s). The article is although not current it is supported by a
range of studies over an extensive time frame. This was an academic journal on an academic database,
which has high credibility in an academic context. It was written to inform researchers and students
rather than to entertain or advertise. The subject is covered well and as the topic is based on an
international scale it can be generalised. It would be relevant to both these groups but particularly a
manager of a multinational corporation. It is a simple article to read and understand and therefore can
be relevant to first year students. The article is very detailed with the topics being explored in great
depth. The material is presented in a logical and organised way. The article is accordingly relevant to the
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