Global strategic management involves much than what meets the eye. As a matter of fact, trading in this case involves the application of strategies such as directional, portfolio and parenting strategies. As such, directional strategies in management involve the taking of both long and short positions. The traders in this strategy benefit when the prices of the instruments that take long positions happen to rise and when the prices of the instruments that take short position drop. Just to mention a few, examples of directional strategies incorporate some such as trading strategies, pattern recognition strategies and moving average cross over among others (Root & Visudtibhan, 1992).
Portfolio strategy is on the other hand meant to achieve a deep and lasting change in an organization. It focuses on those factors that act as the driving force to shareholder return. At the same time, it acts for the present and the future by ensuring that the enterprise is positioned to create value. In the same line of thought, there is the parenting strategy that is meant for financial control, strategic planning and strategic control as the main styles. In particular, the parenting strategy refers to the levels of management above that of business units without direct interaction with buyers and competitors (Dobson, Starkey & Richards, 2004). In this sense, financial control is meant to monitor and evaluate the financial performance of the investment portfolio of the respective business units. In line with this, there is strategic planning meant to enhance synergies across the business units. Along with this, strategic control is meant leverage the business resources and competences to build the value of the business.
Parenting strategy from a general point of view is meant to make provision of a clear vision and strategic intent meant for all business units. This makes provision of focus and motivation for a common unit purpose of the business unit managers. From a broader point of view, the directional strategy deals with prices and is applied as it has been highlighted. On the other hand, portfolio strategy is meant to achieve a deep and lasting change in an organization focusing on to create value of the enterprise (Schiller, 1999). Contrary to both directional and portfolio strategies of global strategic management, parenting strategy refers to levels of management above that of business units without direct interaction with buyers and competitors. This provides focus and motivation for a common unit purpose of the business unit managers. From this point, it is evident that the three strategies have clear cut differences based on their purposes and aims. The question of when to use these strategies has been handled along with the definitions as stipulated above.