What is global strategic planning?
Global strategic planning is the processes of exploring the internal and external environment of the organization of a multinational organization to develop their strategic plan. Looking at the internal environment, business is able to use its strengths and overcome your weaknesses. When evaluating their external environment, business examines political, environmental, social and technological events that can offer IT opportunities or become potential threats. Multinational organizations that do not go through the processes of global strategic planning will be more likely to face unexpected challenges and will not be prepared to compete with competitors in new international markets.
One of the main aspects of the global strategic planning process is to perform an internal audit to find out the strengths and weaknesses of the company. Although this may seem unnecessary, the company can find that it does not have a structure or technology to support its efforts to competition in the international market. Can create another oddLife, hire more human resources or invest in new technologies. By analyzing its current business processes, external organizations can get a new perspective of its situation. This internal audit includes a view of human capital, technology, structure, structure and politics.
external audits are another major aspect of the process of global strategic planning and are particularly important for competition in international markets. Multinational companies may find that new markets include political, environmental, social and technological challenges that it has not previously met. For example, political instability can lead to a loss of currency, environmental policy may require product design change, social standards can cause locals to reject and technological support may not be easily accessible to within country. Any of these situations can lead to a failure of business,If the right strategic plan is not introduced.
Avoiding the process of global strategic planning may be disastrous for multinational organizations, as they will most likely be unprepared to master any obstacles or challenges that arise. For business, it is important to examine international markets before joining so that it can compete effectively to local competitors and be aware of social customs and regulations. For example, locals do not have to buy from international society because they believe that it has taken their neighbors and takes money from the country. The company can prepare for this reaction in advance by hiring local residents and the release of marketing campaigns on how to invest part of its profits in the local community.