Question

1. EXPLAIN THE STEPS TO THE GLOBAL STRATEGIC PLANNING PROCESS WITH EXAMPLES.

2. IDENTIFY THREE MAIN LEGAL SYSTEMS OF IMPORTANCE TO INTERNATIONAL BUSINESS. COMPARE AND CONTRAST THE THREE MAIN LEGAL SYSTEMS IN DETAIL.

3. IDENTIFY AND EXPLAIN FULLY ANY 3 COMPONENTS OF CULTURE AND THEIR IMPORTANCE TO INTERNATIONAL BUSINESS PROFESSIONALS.

4. EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF EMPLOYING HOME COUNTRY, HOST COUNTRY, AND THIRD COUNTRY MANAGERS.

Answer 1

A1. Global strategic planning helps a company operating in a foreign country to plans its goals and objectives for the business and informing strategies that would help it in achieving success in the industry.

To plans global strategies, a company must:-

• Understand the location it is based on and the varying factors which affect the sales such as demographics of the people as well as their lifestyles and habits. Example - If most consumers are belonging to the middle class, a company selling luxury products may find it difficult to survive. Therefore, understanding the demographics helps in planning operational activities.
• Performing analyses such as SWOT and PESTLE may help the company in understanding the strengths/weaknesses as well as the future challenges and opportunities in the market. This goes a long way in helping the company in forming future strategies. For example - A market might provide a great opportunity for online retailers. The company can use this analysis to its advantage and develop its e-commerce website.
• Based on the understanding of the market and analysis of the future, a company can form an outline of its strategic plan to be adopted by it in the location. It should include its long term objectives as well as short term goals like increasing sales, expanding the product line, etc.
• After forming and executing the plan, the company must make sure to evaluate the performance periodically and compare it to ensure there are not deviations from the original plan. Any deviations must be resolved to ensure that the plan is implemented effectively.