EAN: 9783836689458

GLOBAL GOVERNANCE AS BUSINESS STRATEGY - DIANA ...

Business is Global: Interrelations in global bargaining power frameworks became shifted by the
impact of global governance nowadays. The whole world is linked through internet based
operations  financial markets  global problems  governmental alliances and business relations.
Understanding this complexity is essential for multinational companies to succeed in the
competitive environment: The Global Business. But also for the other player within the dynamic
framework of global bargaining power it is important to understand the mechanism of
interrelations and dependencies. This literature deals with the four main groups that build up
together the Global Governance framework: National Governments  Trans-National Companies  Civil
Society and International Organizations. Indeed  it takes the Trans-National Companies (TNC)
into focus and explains the mechanisms that have impact on their bargaining power. As
theoretical basis the Porters five forces model was taken in order to reconstruct the
competitive environment. Later this model becomes modified and added by a sixth source  based
on the studies of Aidan R. Vining. In the end the Hirschmann s Voice and Exit Theory is used to
indicate the possible strategies to react on given global constellations. Each source and its
impact on the bargaining power framework are analyzed explicit. In a second step the
interrelations and mutual reactions are taken into focus. Last but not least this literature
shows up options for TNC to conquer the mechanism  gain competitive advantage and increase
bargaining power that leads to higher revenue in a business related sense.

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