Some business firms with a modest and humble beginning make it to the top in a very short span of time. How do you think this is possible? Success does not come that easy. You have to have real focus backed up by solid strategies for such resounding success. Some people formulate strategies and follow suit, some flow along with the stream of situations and react accordingly, rather than merely plotting strategies. Mere strategizing is not enough, you have to look into the actual situation and how it would affect your operations. A strategy is a comprehensive plan of action that sets critical direction and guides the allocation of resources to achieve long-term organizational objectives.
Let us have a clear understanding on the reasons for formulating a strategy:
Business has gone global for many reasons, including reactive ones like, international competition, customer demands and trade barriers, and proactive ones like seeking economies of scale, new international markets, resource access and cost savings. After the liberalization, globalization and privatization processes activated in full swing, many firms have come to the limelight in the international market scenario, which has provided them with a solid head start.
Companies have to respond to both changes in the external environment and emerging opportunities. An opportunity not well utilized is an opportunity lost. Rational planning is called for to meet international expansion through workable strategies.
International corporate strategy is purely based on the intentions of your firm, the objectives that stem out from your vision and can be materialized by scanning the environment for threats and opportunities, assessing the internal strengths and weaknesses of the firm, considering alternative international entry strategies and firming up on the workable ones.
List down the answers to the following questions and you may arrive at a reasonable conclusion on your company’s market standing.
Your own viewpoint and that of the people you deal with is necessary. It is important to be honest and realistic. This exercise helps you and your team to understand the mission and purpose.
To identify the unpleasant truths as quick as possible is the notion of this exercise.
Ascertain Your Priorities:
After ascertaining the priorities, the strategic management process is carried out with well laid plans, executed by professional strategists followed by implementation of control and evaluation procedures.
Many corporate firms go for strategic alliances, that may include, acquisitions, mergers, joint ventures, strategic partnerships, cartel agreements and so on to survive in the international market as well as to exploit the opportunities available in the global market with the available potential resources put to optimal use.