Section Twoprovide an example of a successful application of this strategy.
A disadvantage with this approach is that standardization does
not address all customers’ preferences. Likewise, greater
coordination is required, and marketing may be less effective. A
human resource implication of the global strategy is that there
is concentration of resources and talent on a smaller set of
activities. Thus, with the global strategy, it is important to
locate each of the value-chain activities where there is world-
class labor, in terms of cost or skills. Another human resource
implication is that with a global strategy, a company would
probably be particularly vulnerable to strikes or labor relations
problems at any link in the value chain, since the whole process
is dependent on each link. However, with more than one source
of manufacturing facilities, the company can shift production to
other operating plants.^40