Chapter 11

Developing Global Strategic Plans

Strategic planning is the process of determining how to move to a desire future state, in other words were do you want your company to go or to be. Strategic Planning forces a business to analyze the whole organization and the environment in which it operates. This is a very important thing for a business to have in mind and normally it requires evaluating the environment, identifying long term objectives, and developing the plans to reach those objectives. While strategic planning is a wide view, tactical planning is more narrowly focused and more short-term, as the book describes it.
Once a company has a well established strategic plan, it allows the business to respond better to problems and change direction in response to a changing environment. International business are more likely to have problems and difficulties due to the different cultures and culture changes that they deal with; Therefore, it is very important for an international business to have a well established strategic plan.
The mission statement defines the purpose of an organization, who they are, how they feel, what they do. It provides direction, commits resources, inspires individuals and focuses activities. The mission statement guides the development of a company strategy.
The SWOT analysis are the strengths, weaknesses, opportunities and threats of an company. The strengths and weaknesses are inside the company, and the opportunities and threats are outside, like the market for example, the competitors etc.



International Mark Strategies

A placid environment is where there is very little change in the market for example. Business operating under this environment can develop a strategic plan for loner time periods. And turbulent environment is when the environment changes often and unpredictable. Businesses operating under this type of environment must develop shorter strategic plans because they never know what might happen or how long is it going to take to their environment to change.

In a joint venture, two or more businesses create anew business to pursue a strategic goal.

A foreign direct investment is the purchase of assets in a foreign country by a business. This could include the purchase of land or property for example.

A wholly owned subsidiary, is an independent company owned by a parent company.



Global Entrepreneurship

An entrepreneur is a person who undertakes a new venture. They are typically seen as individuals who are willing to take on a risk of starting a new business. The book estates that there are a number of facts that affect the development of entrepreneurship: personal property ownership, investment capital, government regulations and entreatingly culture.

A business incubator is a a physical facility set up to offer office or factory space at a reduced price. They also offer staff support and consulting services. I think this is a great tool for new companies, is a good start.