Global business is dominated by the 500 largest multinational enterprises (MENs) out of some 30,000 MENs in total. The top 500 MENs account for 80 per cent of all world’s foreign direct investment (FDI) and over half its trade. Most global trade and investment are now intra_firm and occur in business networks or clusters – in motor vehicles, chemicals or electronics. But operating globally means operating regionally. For instance, in the market triad of North America, the EU and Japan production and assembly is regional although competition is now global. Managers of large MNEs often serve as leaders of “flagships” in these business networks. Other firms can have important roles as network partners, that is, as key suppliers and customers, and small- and medium-sized businesses can also participate. Government can also be a partner (as in the case of Japan) but only by acting as a facilitator to help improve competitiveness, not as a regulator. (By Alan Rugman, Templeton College, Oxford 15 Feb 1999).
I think in this century, the importance of strategic alliance will be more increase. But, according to ‘Learning school’ of Mintezberg, strategies appear first as patterns out of the past, only later, perhaps as plans for the future, and ultimately as perspectives to guide overall behaviour. Therefore, to sign any alliance, manager should know about the market, customer, organisation behaviour and political history of the country, and also make sure that business in its introduction stage not in maturity stage. And their alliance will bring the some excellent result and mutual corporation in all the business operations. Otherwise it is always a big strategic challenge for the management. The cognitive and learning schools of strategy are helpful in this case.
Conclusion
I think with the impact of the Globalisation, every organisation has to more concentrated on the chase of best intellectual skill. If organisation have the best skills than they can perform every job in good manners. As I describe in my “Managing across border”, a global strategic challenge and it linked with learning and cognitive school of strategy. But it is only when possible when we have best intellectual skills. Generating the funds is an art of managers and their proper utilisation is also a big art. A manager can get this art by understanding by the learning and designing/planning schools of strategy. The process of Globalisation and everyday new invention and e- commerce has increased the demand and as well as the choice of customer. This element can be control and estimated by the position and culture school of strategy. It is very important for a Global Manager, that he should be well aware from all schools of strategy and others theories and he should also know, either it is proper and well evaluated strategy or not. Every strategy should be well define and divided into small steps. Every strategy should be cover and discuss the planning and designing on the assumptions of fit, stretch and leverage of the every project before implementing.
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