1) What is strategy? What is strategic planning? List the seven steps in the str
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Question
1) What is strategy? What is strategic planning? List the seven steps in the strategic management process. Describe the strategies of globalization and regionalization. When can each strategy be used most effectively?
2) Why should a company seek a global alliance over other forms of market entry? What motivates a company to develop a cross-border alliance? How can firms increase the likelihood of forming a successful global alliance?
3) What are the major variables that should be taken into account when designing a firm's organizational structure? List the typical ways in which firms organize their international activities.
4) Why is it difficult for managers to evaluate and compare performance across subsidiaries? How can managers overcome these difficulties?
Explanation / Answer
Answer (1)
Strategy – Strategy states the long term development plan for the organization. Strategy aligns the organizational objectives in such a way that it will develop the organization in meeting the future or long term business goals of the organization.
Strategic Planning – Long term planning for future, may be for 5 years or 10 year, is known as strategic planning of the business. The aim of strategic planning is to plan the objective which can make the survival & growth of the organization for long term point of view. The long term planning i.e. strategic planning is helpful for the long term survival/ growth of the business. This will helps to create a common goal and all resources are aligned to focus on these common goals.
Seven steps of Strategic Planning.
Following are the seven steps of strategic planning in the organization, as below
1. Current position of company – Assess the current position of the organization
2. What is our Vision – We need to have a well defined vision for the organization
3. Obstacles – We need to understand our key obstacles and develop a solution for them
4. Resources – Develop and maintain the resources pool for the upcoming business requirements
5. Strategy – Develop the working strategy for achieving the business objectives
6. Tactics – Develop the working tactics for helping to achieve the business objectives
7. Monitoring & Measurement – keep focus and timely monitor and measure the strategic planning status.
Strategies of globalization and regionalization
Strategies of globalization – Here the world market is set open for all the world organizations for healthy competition. Any organization can plan to set up their business in any location of the world by meeting the countries legal formalities. This helps to develop a common platform among all the similar manufacturers or business and from there they can make a growth for the business and its technologies. Parallelly all the nations can get the benefit of latest available technologies. Strategies for globalization are to make the organizations competent by doing the competitions with world class business players.
Strategies of regionalization – This strategies helps the organization to explore the resources available in the local region so that the organization saves the time, energy and cost. This results in cost competitive for the businesses. The regionalization generally have the world class technologies and set=ups as they are already supporting other multinational organization.
These strategies can be used most based on business requirements like globalization can be used when the business is ready with latest technologies, competent resources team, sufficient funds and would like to explore other key locations in the world, then globalization strategy is useful. However when the company uses the MNC technologies and want to use MNC technologies but would like to develop the vendor in local region for cost and energy benefit point of view, the regionalization strategy works best.
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