Globalfocusing: corporate strategies under pressure

Abstract

᭹On the global stage, competitive advantages are gained by creating, transferring, and exploiting competences across operations and locations internationally. ᭹ In consequence, conglomerates are redesigning their strategies to focus on core businesses, yet with a global scope. De-diversifi cation and internationalization thus complement each other in a process of 'globalfocusing.' ᭹ This paper outlines the shifts in the relative barriers to entry to countries and industries that have been driving these processes of change in corporate strategies on the global stage. ᭹ On this basis, implications of the change in global strategy are derived for decisionmakers in both business and politics who are operating in the volatile global economy.

Firm Value Effects of Global, Regional, and Local Brand Divestments in Core and Non‐Core Businesses

“…The divestment of global, core brands is least likely to occur because, according to the widely advocated global focus strategy, firms should aim for brand portfolios located in the upper‐right quadrant of Figure (e.g., Meyer, ). Nowadays, the marketplace has been witnessing a proliferation of brands, growing retailer power, and increasing competition of private labels.…”

“…We integrate the effects of the two focus‐increasing strategies, i.e., to refocus on core businesses (‘the P&G approach’) and the global branding strategy (‘the Unilever approach’), into a single common framework. Meyer (2006, 2009) argues that both forces are simultaneously redesigning conglomerates' business activities and discusses the potential benefits of switching to a so‐called ‘global‐focusing’ strategy. However, no empirical evidence yet exists on the potential positive effects of this strategy on the firm value.…”