Strategic planning for international markets

In effect they were deciding to go into competition with some of their best customers.

Difference Between International & Domestic Business Strategic Planning

However, unlike those in other organizations, those engaged in global strategic planning do have to examine one area in thorough and painstaking detail.

Strictly speaking, corporate strategic planning therefore cannot be carried out in, or done for, a part or unit of an organization.

Regardless of where the global strategic planning process is on this spectrum of possibilities, there is one thing we should make really clear, and that is the locus of ultimate responsibility, and the effect this has on the sequencing of the stages of the global strategic planning process.

However, it is vital to realize that these individual decisions are consequent actions following the larger corporation wide decision to diversify the product range, and to balance the risk profile associated with this move. There is generally one media and one overarching consumer culture.

Some illustrations of the need to have this local knowledge at work follow. This included many kinds of pumps, small compressors, and a range of agricultural machines such as brush cutters, and rotor tillers.

The same goes for weaknesses. It is often the case that strategic plans for global businesses concern the desire to hire a cadre of local professionals to assist the firm in integrating into the local economy. Hence, it is very important to know its culture before conducting international business with a country.

In order to select a set of strategies or design a strategic structure it is seldom necessary to delve into great detail. In addition to getting corporate headquarter to set strategic guidance on matters such as currency, trade regulation, the corporate central staff need to listen very carefully to its people who know the cultural conditions first hand in the local markets.

Top-down, not bottom-up; the tails do not wag the dog.

Strategic Planning Services

The same goes for weaknesses. That would be an unhelpful, unwise or even absurd. A spectrum of global strategic planning In devising an approach to global strategic planning either one has to accept that the corporate centre should decide the role of the parts or one argues that it should not.

This force toward the long term might not exist at the domestic level. All other details may be left to decision by local managements who know the local conditions; what they may not know and what the central management may not know either is the regulations governing trade between the various nations in which the multinational proposes to operate.

Company decision makers engage in a brainstorming session and list strengths, weaknesses, opportunities and threats relating to the business decision that must be made. Translation errors are behind a lot of blunders in global trade. The problem can, to some extent, be addressed by the more extensive use of information and communications technologies in which the great burden of calculating the effect of international financial regulations will become more manageable.

Of course there was much of planning still to be done in each subsidiary, including in the first case, planning for production facilities, human resources, acquisitions and finance, and the second decommissioning plant, selling assets, redeploying or terminating employees.

The approach that is most influential on my thinking on strategic planning is that of John Argenti. The system developed by him comes in a number of versions and there is a version specially designed to suit the group structure we have been looking at.

This was a corporate global strategic planning decision, the kind of decision that could only be made at the corporate headquarters level.

Neither of these results can be satisfactorily achieved from within any subsidiary company - they must be carried at the corporate centre. They decided that they would start in some of the countries where they already operated. References International Business esp ch.

Ch 9. STUDY. PLAY. The goal of international strategy is to achieve and maintain a unique and valuable competitive In the traditional strategic planning approach: A.

Global Strategic Planning

the CEO and the head of planning got together to devise a corporate plan, which would then be competing in international markets confront two opposing forces: reduction of.

International businesses have to make a choice between developing a single, comprehensive strategic plan, different strategic plans for different markets or a combination of both. Mar 04,  · I am the Managing Director of Newport Board Group, a partnership of board directors and senior executive leaders with deep knowledge of business strategy, operations, and capital markets.

Differences in Strategic Planning for Domestic & International Companies

Global strategic planning is a process adopted by organizations that operate internationally in order to formulate an effective global strategy. Global Strategic Planning GSP is different from normal domestic strategic planning, because, in this case, organizations consider internal as well as external environments.

BMBA Strategic Planning for International Markets The integration of strategic business functions and processes by which business leaders prepare their firms for growth, and typical problems faced in planning for business growth.

Using international trade research to help strategic planning When gathered and analyzed correctly, international trade research will increase the chances that a business decision will be the correct one, and thus increase the possibility of successful trading.

Strategic planning for international markets
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Differences in Strategic Planning for Domestic & International Companies |