Setting your company’s agenda for strategic planning.

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Write a 5-7 page paper setting your company’s agenda for strategic planning. Each of the following instructions includes steps to guide your work:

Explain whether your strategic planning will take an economic focus, a quality focus, an administrative focus, or some combination; clarify the types of tasks that go with the focus you select.
Select a focus for your strategic planning and identify the types of tasks that go with the focus you select. Note: You can use Chapter 8 in the textbook to provide information on strategic planning.
Justify your choice based on the needs of the company and the context of the destination country.
Develop a recommendation for entry strategy and organizational structure that balances business needs and host-country conditions.
Decide on an entry strategy for your company based on its business needs and any barriers to entry. Note: Chapter 9 in the textbook provides information about entry strategy and organizational structure.
Conduct research to discover the business needs of companies similar to yours and barriers that are particular to the destination country or similar countries.
Identify an organizational structure best suited to meet the goals of your company’s global expansion. Research the destination country or similar examples to identify organizational structures and/or cultural concerns, so that you can propose an organizational structure to suit both company and host-country priorities.
Define at least three priorities for managing political risks in the company’s global expansion that account for host-country government and/or political conditions.
Research specific political risks relevant to your destination country (or similar countries) and risks faced by other companies in the industry. This research will help you identify types of risks that are relevant to the country and the company. Note: Chapter 10 in the textbook provides information about the nature of risk, risk analysis, and risk management.

 

Sample Solution

Strategic Planning Agenda for Global Expansion

Executive Summary:

This paper outlines the strategic planning agenda for [Company Name]’s global expansion, focusing on an economic focus combined with elements of administrative focus. This hybrid approach aims to maximize business gains while ensuring efficient operations and compliance with host-country regulations.

The agenda details the chosen entry strategy, organizational structure, and key priorities for managing political risks. It also provides justifications for these decisions based on the company’s needs, the destination country’s context, and industry best practices.

  1. Strategic Planning Focus:

Economic Focus:

The primary focus of this strategic plan will be on achieving economic success in the chosen target market. This involves tasks such as:

  • Market research and analysis to identify potential opportunities and risks.
  • Developing a competitive pricing strategy.
  • Establishing efficient supply chains and logistics networks.
  • Identifying and maximizing cost-saving opportunities.
  • Implementing effective marketing and sales strategies.
  • Monitoring and evaluating performance against financial metrics.

Administrative Focus:

Additional focus will be given to ensuring efficient and compliant operations in the host country. This includes:

  • Establishing a legal and regulatory framework for the business.
  • Complying with tax and labor laws.
  • Building relationships with local authorities and stakeholders.
  • Implementing effective risk management strategies.
  • Establishing internal controls and procedures.

Justification for Hybrid Approach:

While economic success is paramount, achieving this goal requires a strong administrative foundation. By combining the two focuses, the company can ensure both efficiency and compliance, leading to sustainable growth in the target market.

  1. Entry Strategy and Organizational Structure:

Entry Strategy:

Based on the company’s needs and potential barriers to entry in the target market, we recommend the following entry strategy:

  • Joint venture: Partnering with a local company provides access to existing networks, market knowledge, and regulatory expertise. This can overcome potential barriers related to market access, cultural understanding, and legal compliance.

Organizational Structure:

To meet the company’s goals and adapt to the host-country environment, we recommend the following organizational structure:

  • Regional headquarters: Located in the target market, this office will oversee all operations in the region. It will be responsible for strategy, planning, resource allocation, and performance management.
  • Local subsidiaries: Each subsidiary will be responsible for managing its own day-to-day operations, including sales, marketing, and customer service. This ensures local responsiveness and flexibility.
  • Global support functions: These functions, such as finance, accounting, and IT, will be centralized to ensure efficiency and cost-effectiveness.

Justification for Entry Strategy and Organizational Structure:

The joint venture strategy minimizes risks and facilitates market entry. The regional headquarters structure enables centralized control and oversight while allowing local subsidiaries to adapt to specific market conditions.

  1. Political Risk Management Priorities:
  2. Monitor political and economic conditions: Regularly track political developments and economic indicators to identify potential risks and opportunities. 2. Build relationships with key stakeholders: Develop strong relationships with government officials, business leaders, and other influential individuals to gain support and navigate political challenges. 3. Develop contingency plans: Prepare for potential political risks by developing contingency plans to mitigate their impact on the business.
  3. Conclusion:

By implementing this strategic planning agenda, [Company Name] can achieve sustainable growth and success in its global expansion. The combination of economic focus, administrative focus, a joint venture entry strategy, a regional headquarters structure, and a focus on political risk management will enable the company to overcome challenges, capitalize on opportunities, and build a profitable and compliant business in the target market.

Additional Notes:

This paper provides a general framework for strategic planning. To fully develop this plan, additional information and research are needed. This includes:

  • Conducting a detailed market analysis of the target market.
  • Identifying specific financial objectives and targets.
  • Developing a comprehensive marketing and sales plan.
  • Selecting a specific joint venture partner.
  • Defining the roles and responsibilities of the regional headquarters and local subsidiaries.
  • Conducting a thorough political risk assessment of the target country.

By systematically addressing these details, the company can create a robust strategic plan that guides its global expansion efforts and ensures long-term success.

 

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