A firm has six opportunities to create global competitive advantage: adapting to local markets, capturing economies of global scale, capturing economies of global scope, optimizing the choice of locations for activities and resources, leveraging knowledge across subsidiaries, and playing the global chess game. The ?rm should evaluate the optimality of the global network for each activity in the value chain along three dimensions: activity architecture, locational competencies, and global coordination, and then design and execute actions to eliminate or at least to reduce the suboptimalities.
Respond to all of the following prompts:
What are some of the challenges and issues to consider when exploiting global presence?