“Global Strategic Planning: A Model and Recent Developments”
The traditional ways of doing business has been already outshone by today’s business environment due to the globalization. These days, all managers should have the global skills and abilities to go with the current flow of business in the global market. According to Kedia & Mukherji (1999), globalization can be referred to market situation where political borders are irrelevant, economic interdependencies and national differences are optimized; from the traditional societal cultures to the central issues of today’s business. Nowadays, global business employers and managers face the tight storms of competitors, with frontier of technology, unlimited changes in the market, varied types of customers and completely strange cultures. In this event, global strategic planning has the major responsibility to face all these forces of rapid change; as well as the great challenge of leading their business organizations into the new global marketplace. And, in order to succeed in this kind of dynamic business environment, the global manager really needs a global mindset and experience in strategic management. Furthermore, global corporations develop from local to multinational and international corporations. The management system has already changed now along the way to show the changes that take place in the definitions of the strategic business entity. Every multinational firm that runs in one country has the ability to coordinate also with all other countries in the globe. A product for a global corporation goes like this, the design of the products may be designed in United Kingdom, and the spare parts or components are manufactured from Taiwan and they finally assemble in Canada. Look at the trend now, in one product or more, many countries are involved in their manufacturing process. And, it is the result of the global strategic planning. Along with global strategic planning, global mind setting goes with it. Meaning the global managers must have a global thinking about the business perspective. As a matter of fact, there are four kinds of mindsets of a global manager; the explorer, defender, controller and the integrator. The defender mindset is just for local market. While the explorer focuses on international markets in order to increase sales and business expansions. On the other hand, the controller works to control the overseas market setting by the use of developed systems that work in the domestic market. On the other side, integrator has a global point of view with web relationships with all its suppliers, competitors and clients.
(ibacnet.org/bai2007/proceedings/Papers/2007bai7648.doc)
Furthermore, the quick globalization process these days has also caused for the emergence of Global Strategic Management that combines the strategic management and international business. Strategic Management is identifying and responding to opportunities and threats in the environment (Wortzel, 1991). An international firm is structured and managed in order to provide opportunities across countries in the world. The global company has one global strategy that produces products in many countries, offers standardized products in all country markets too. In the same time, it creates at any site, uses any plant sizes that reduces delivery cost of products across its markets. Similarly, it organizes itself in a way that facilitates efficient manufacturing process, marketing and distribution of its goods or products. Moreover, the World Future Society had sponsored the World 2000 in conducting a global strategic management procedure in the business, government, education and other sectors of society to adapt efficiently and effectively the
occur in the global environment. And, there are various ex-factors that serve as driving forces that pushing the business world to new horizons. They are increasing population of the people that is expected to grow higher by mid-twenty first century. In the same manner, industrial results will increase dramatically by 5-10 high tech revolution and information technology systems. This advanced technological system will even wire the world into one network, integrated global economy, as well as the political and universal banking system. This idea is based on Italal, 1993. And, with model and recent global business developments, business decision making becomes so multifaceted and sophisticated these days. Every company has to establish decisions and actions in nine areas of global business. The organization’s mission, philosophy and goals of the company must be determined; as well as the external analysis of business opportunities and threats of the firm. Additionally, the present global situation also identifies the present and desired situations or problems. Then, a chance to identify the alternative strategies through strategic choice of the best alternative strategy must be executed. After that, implementation of the best strategy should be done; as well as review and evaluate the success of the process as foundation of future decision making.
(ibacnet.org/bai2007/proceedings/Papers/2007bai7648.doc)
References:
(ibacnet.org/bai2007/proceedings/Papers/2007bai7648.doc)
(www.allbusiness.com/management/453036-1.html)
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