Critical Review 1 – Strategizing Around the Globe
Two issues particularly stood out in the first chapter: the development of strategy and the tradeoffs of globalization.
Defining strategy as a theory, the first chapter topic of strategy highlighted the balance between
planning and action. Additionally, it offered strategy as a way to both explain and predict how a
firm is able to compete successfully. This framework then presents the question of how to best
develop a strategy and what role it should play within a firm. Eisenhower said, “plans are useless,
but planning is indispensable”, perfectly capturing the importance of maintaining a forward
looking but agile approach. This implies that a strategy should not be developed in such a way that
it does not require the firm to strictly adhere to a fixed plan. Instead, strategy should be developed
in such a way that allows the firm to adapt to changing conditions the fastest to avoid disruptions.
A second, and equally important factor, is the ability to measure or quantify the effectiveness a
strategy has on performance and the willingness to iterate.
Second, the chapter frames globalization as both an opportunity and a risk. On one hand,
globalization opens doors to new markets and products while also creating opportunities in
emerging economies. On the other hand, it can lead to the overreliance on foreign supply chains
and the concentration of market power. The trade-offs experienced with globalization help explain
the everchanging economic dynamics and policies which ultimately impact a firm’s global
strategy. The challenge presented to firms is how to navigate these conditions and position
themselves in a way that reduces exposure and impacts that can come as a result of broader
economic policies.