INTERNATIONAL STRATEGIC MANAGEMENT
Frame work for International Strategic Management
International strategic management builds on five phases of planning and analysis that provide a framework for deploying resources and a plan of action.
External and internal analysis Strategic analysis and choice
Leveraging competitive advantage and process
Implementation and integration
International strategic planning
International strategic planning is a process of evaluating the internal and external environment by multinational organizations, through which they set their long-term and short-term goals and then they implement a specific plan of action in order to achieve those objectives.
It means that the companies face the compulsion to be global if they want to gain the global market and more values. But in the modern context strategic management faces many compulsions. The present and future development of the field of strategic management is likely to be driven by compulsions like contemporary developments in social and economic theory and recent changes in the nature of the business and economic context.
International/global strategic management
Strategic management is the process of systematically analyzing various opportunities and threats vis-à-vis organizational strengths and weaknesses, formulating and arriving at strategic choices through critical evaluation of alternatives and implementing them to meet the set objectives of the organization.
Area of strategic compulsions
Orientation for globalization
Emerging E-commerce and Internet culture
Active pressure groups
Motive for corporate social responsibility (CSR) and ethics.
STANDARDIZATION VERSUS DIFFERENTIATION:
According to Levitt, represents local marketing versus global marketing and focus on the central question of whether a standardized (global) or a differentiated (local), country-specific marketing approach.
Perspectives on standardization versus Differentiation:
Marketing process prospective
Marketing components/marketing mix perspective.
Factors Favoring Standardization and Differentiation
Strategic options/choice involves the selection of a strategy or set of strategies that helps in achieving organizational objectives.
Global strategy: It views the world as a single market. Tightly controls global operations from headquarters to preserve focus on standardization.
International strategy: In this strategy company extends marketing, manufacturing and other activities outside the home country.
Multi-domestic strategy: the international company discovers that differences in markets around the world demand an adaptation of its marketing mix in order to succeed.
Transactional strategy: this is company that thinks globally and acts locally. The transactional corporation is much more than a company with sales, investments and operations in many countries.
Factors affecting strategic options:
Intra-organizational forces and managerial power-relations
Values and preferences and managerial attitudes risk
Impact of past strategy
Time constraints in choice of strategy.