INTERNATIONAL BUSINESS STRATEGY
International business strategy
Strategy matches the resources along with capabilities of a firm. It finds out the nature of the enterprise along with the setting, modifying, and applying efforts for the realisation of the goals of the enterprise. It is the direction as well as the scope of organisations over a long-term that achieves benefit for organisations through the process in which resources are configured in challenging environments for the purpose of meeting the market needs and fulfilling the expectations of the industry. (Ann & Joe, 2010).
Strategy analysis through an application of creativity aims at creating several options with opportunities which can be applied for the implementation of a concrete strategic plan essential for novel or else existing markets. An analysis that is objective conjoined with an understanding of costs and markets as well as capabilities shapes the basis for the process of strategic development. Successful setting of strategy requires an understanding of the customers, competencies and competition. This is only attained through successful strategic management which controls all processes of analysing and planning as well as implementing strategy (Hoe, 2005).
Strategic management is the process that involves an assessment of the corporation with its environment so as to fulfil the objectives of the firm. These objectives include adapting along with adjusting to the environment through manipulating opportunities and reducing threats. The corporate mission of strategic management is to make use of, along with coordinating all the resources plus the venues presented to the management in the process, attentively progressing any given strategic agenda by enforcing a sort of an alignment that is Omni-directional among them (Hoe, 2005).
Processes of forming integrative strategy combined with equal consistency and materialization facilitates highly effective work management especially complex types of work. When an organisation allows high degrees of participation by its members it facilitates improvements in the results of the organisation. This mostly applies to administrative works, engineering as well as professional works (Lavarda, Giner, & Bonet, 2011).
A firm classifies its goals as its mission and the definition is done in terms of its customers who together with suppliers and competitors make up an industry. It evaluates the impact of the existing customers as well as the potential customers by understanding their needs and identifying those that are exceedingly beneficial to the markets. Knowledge and skills are very crucial in determining the scope and budgetary control. Additionally, one should consider the surrounding of his competitive environment for effective identification of threats in organisational institutions (Lavarda, Canet-Giner, & Peris-Bonet, 2010).
Institutions are establishments that seek to promote a particular program or course. Organizations are thus classified as institutions comprising different groups in different levels all with a common goal. Therefore, strategy formation in an organisation is triggered by the increasing change and dynamism of environments. Thus, strategy formation requires contribution from all levels of hierarchy in the organization (Lavarda, Canet-Giner, & Peris-Bonet, 2010).
Strategic planning in business institutions is used to identify the corporate mission of a company. It clearly defines where a company or an organisation is going and the threats involved. Strategic planning deals with the process of formulating strategy through laid down concepts, tools and processes. It is aimed at putting to an endorsement of strategic thinking, operations as well as progressive learning. It thus ensures the vitality of an organization, its effectiveness and the capacity to add on to public value (Poister, 2010).
Nevertheless, the modern strategic management practitioners have generally been criticised for their focal point on maximizing profits while other researchers have criticised its lack of relevance. This, to the modern society, is portrayed as a major problem mounting tension for this field to re-evaluate its system of belief, assumptions and practices putting into consideration the greater social impact (Poister, 2010).
Moreover, some major forces that cause change at this moment in time are exerting more pressure towards the fulfilment of a more incorporated strategic approach that will see every one of the national environment being associated with the international system. In larger firms different branches in the corporate hierarchy specialize on diverse strategic planning levels. It is the duty of the managers in particular environments of operations to develop sub strategies and integrate them with broader strategy (Marc, J, G, & Dawley, 1999).
Therefore a clear strategy on business unit will drive greater financial performance as well as seek to bring into line the corporate strategies, business unit and functional strategies. This strategy is exclusively placed to append value due to the realistic emphasis laid on the business results. This strategy also reveals corporate imperatives and is seen in functional strategy. This type of strategy has its heart in attaining competitive advantage on the basis of the business decisions made on the time, location, and the mode in which to compete thus, it ensures that corporation needs and needs of the customers and those of the shoppers or consumers are met. In addition, a business leader is placed in a position to achieve his objectives on the business performance (InDeed Holdings Jersey Limited, 2011).
Operational strategy executes strategies and brings out the capabilities of each member in the organisation concerned. Thus operational strategy through the process of strategy analysis helps identify the list of priorities in several programs required to deliver the required strategy. On the other hand strategy execution which involves an implementation of programs follows as the business follows up to improve the ways of identifying the programs that have been undertaken. A successful execution of strategies is caused by relating several business benefits with capabilities through portfolio configuration (Franken, Edwards, & Lambert, 2009).
In addition, operational strategies seek to identify risks and evaluate them. The strategies determine how risks can be of significance to businesses as well as come up with measures to prevent or stop them. It is done by stating the intensity of the probability or consequences of every risk ranging them from high to low. Scaling comes in handy otherwise called risk maps to plot the significance of occurrences of risk (Cranfield University, n.d).
Strategic management that is effective focuses on keeping an eye on external forces and trends along with internal performance, refreshing intelligence and revision of strategy when needed and in the required format. There is also a greater need to move emphasis from the measurement of performance to its management. This is due to the ubiquitous nature of the systems for performance measurement. In addition, real performance management improves performance while maximizing the public services benefits (Franken, Edwards, & Lambert, 2009).
On the other hand, even as strategic management provides necessary framework designed in support of successful performance management, in itself, performance management enriches strategic planning through clarifying strategy as well as finding strategy. For example an experience in the systems of performance management that is in continuity, like is the case for AGRANA, informs the planners on the realistic opportunities, expectations and limitations encountered in strengthening program performance in their operating context. The performance reports also help in identifying strategies that tend to be effective in particular areas while identifying those that are not as well (Poister, 2010).
The risk management process anticipates possible triggers or actual threats such as disaster, accidents or losses. It positively gives a timely and budgetary control for the business plan as well as the allocation of resources. It also improves on the planning of the business, the making of decisions and prioritization. Besides, achieving success in an environment of global business calls for proper management of challenges as well as expectations. Therefore stakeholders and socio-political strategies of risk management play a major role in the fulfilment of the strategy vision (Andrew & Jozsef, 2008).
The objectives of any given organisation are established in different levels ranging from the top, the corporate bodies, all the way down to the team and individual objectives that generate operational activities. They are frequently decoded into targets that aid in motivating the organization to reach its short-term goals. Therefore, objectives offer clear structures for all the different activities carried out by an organisation. Managers can thus make changes that are required for progress by measuring the achievements of the objectives (The Times 100, 2011).
On the other hand values define the behaviour of each individual in an organisation. They are worthwhile traits that govern the actions of an organisation towards its internal community, customers, and suppliers. Values together with experiences of the individuals in firms bond to form the corporate values or culture. In this case, business leaders will determine a lot in the setting and establishing a conducive environment for the parties concerned; depending with the kind of values they embrace. It is up to them to select the right individuals in whom they believe to have similar values that fit in the culture of the workplace (Heathfield, 2011).
Identifying as well as developing clear and concise meaning of corporate values instils an understanding into the minds of employees, owners, suppliers and competitors who in return contribute towards a company. Thus, a business leader should nurture and support the impact relayed by the values they implement in order to gain the confidence of their employees, stakeholders, shareholders and suppliers. In addition these parties will model and demonstrate these values in deeds towards their contribution, their decision making and intrapersonal as well as interpersonal interaction. Prioritization will be anchored in the corporate values (Heathfield, 2011).
The modern strategic management calls for focus on the internal attributes of a firm which are an advantage to any firm. Internal peculiarities of a firm are classified as critical components of potential advantage. This approach falls under the umbrella of Resource-Based views (RBV). It is used to give explanations to differences portrayed in the performance of a firm which cannot be given attribute to the conditions of the industry or economy. RBV has its origin from intertwining three main research programmes namely industrial organisation, organisational economics and strategy research (Habbershon & Williams, 2009).
Additionally, RBV emphasizes on the fact that organisations are diverse and their idiosyncratic intangible resources give them the prospect for superior performance as well as competitive advantage. RBV examines the relation between the internal characteristics of a firm and processes with its outcomes in performance. Basically meaning that firms surrounding an industry cannot be termed as identical (Habbershon & Williams, 2009)
Core competencies are crucial in organisations especially with an overview of key competitors. They are unique capabilities that afford some competitive advantage levels that involve knowledge, skills, systems and functions that are underlying. The factor that greatly determines the core competence of an organisation is the unique advantage earned over the competitors. For instance, an organisation that deals with IT, functions together with capabilities and skills are termed competent if they can support business processes directly (Hayes, 2011).
In 2001 the most famous Mariah Carey succumbed to a breakdown of her nervous system out of a flop of her debut movie in 2001. Her album had poor soundtrack and its poor reception by the public led to her loss of a multimillion recording contract by EMI. However, Lyor Cohen the CEO for Island Def Jam records saw this as an opportunity and took advantage of her competitive advantage. He hastily called her and signed her into his station in the month of May in 2002. He saw great potential in her through her magnificent voice and talent in song writing as well as her ballad style (Grant, 2005).
Business managers have the responsibility to manage the policy formulation process for there to be any meaningful accomplishment of policies. They manage inputs in the organisation, collect crucial information and give advice and recommendations. They also manage finances, the organisation and its personnel in order to achieve the set objectives. Thus managers play a key role in operating from both levels of formal which requires legal practices and informal processes which follows in practice (Elliott, 1997 ).
Consultation is a formal practice that involves borrowing inputs from government or the public via publications. For instance, in the U.S. Green Paper requests submissions and is taken into consideration during the process of policy making in the tourism sector. White Paper follows and it holds statements on views as well as policy intentions by the government before proceeding to drafting the legislation. Commitment to this process facilitates a huge input in the organisation for many parties are involved including political as well as public and private sectors (Elliott, 1997 ).
Informal practice is more limited in terms of scope plus participation. It is mundane, bureaucratic and less open. Its main concern is on special interests of managers and negotiations are the heart of the process. The main players are the managers and policy communities excluding those outside the policy community as well as those that do not have power. The process is slow and complex for it requires great communication, cooperation, coordination along with agreed decision making. The process is slowed down by the disintegration in the system and the diversity in the perception and views of participants. Coordination is realized through the aid of advisory, consultative and interdepartmental committees (Elliott, 1997 ).
Nevertheless, formal factors along with informal factors are important for they form close relationships, linking the most influential decision makers through their daily contact and the processes of policy determination (Elliott, 1997 ).
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