Create a global strategic plan for an expanding company. Identify a company that needs to expand to continue its growth and create a global strategic plan for the company.
A couple of examples are Tesla Motors and Google’s driverless cars. Tesla Motors is a relatively new corporation specializing in electric cars and energy innovation. Up to 2016, Tesla has been primarily a U.S. corporation but is beginning to expand globally to continue its growth. Google has a worldwide presence but is in the process of developing a driverless car and will need a plan to go global with it.
Your plan will be directed to your selected company’s board of directors. Please follow the outline below:
-Introduction: provide the board of directors with an introduction to your plan
-Environmental elements: Discuss the environmental elements that are important to the company and why they are important. Include, as appropriate, elements such as demographics, economic, political/legal, sociocultural, technological, global, and physical aspects.
-Strategic Business Relationships and the Competitive Environment: Discuss any strategic business relationships and competitive environment elements that could affect and influence your global strategy.
-Mergers and Acquisitions: What mergers or acquisitions should be considered as a part of your proposed global strategy?
-Corporate Governance and Cooperative Relationships: What type of corporate governance must be established in order to facilitate the challenges of cooperative relationships like alliances and trading partners?
-Leadership and Controls: Describe the leadership you will need to provide effective organizational and financial controls.
-Entrepreneurship and Innovation: Explain how you will stimulate entrepreneurship and innovation as a part of your effective global strategic management.
-Summary: Provide a few concluding paragraphs that summarize your global strategic plan.
Global strategic planning is the processes of examining a multinational organization’s internal and external environments to develop its strategic plan. By looking at the internal environment, the business is able to leverage its strengths and overcome its weaknesses. In evaluating its external environment, the business examines the political, environmental, social and technological events that can offer it opportunities or become potential threats.
Multinational organizations that do not go through the global strategic planning processes are more likely to face unexpected challenges and be unprepared to compete with competitors in new international markets.
One major aspect of the global strategic planning process is conducting an internal audit to find out the business’s strengths and weaknesses. While this may seem unnecessary, a business may find that it does not have the structure or technology to support its efforts of competing in the international marketplace. It may have to create additional departments, hire more human resources, or invest in new technologies.
By having an outside organization analyze its current business processes, the business can gain a fresh perspective of its situation. This internal audit includes looking at a company’s human capital, technology, structure, communication methods and policies.
External audits are another major aspect of the global strategic planning process and are especially crucial for competing in international markets. Multinational businesses may find that new markets include political, environmental, social and technological challenges that it has not faced before.
For instance, political instability can result in loss from currency value, environmental policies can require changing a product design, social norms may cause locals to reject the product, and technological support may not be readily available within the country. Any of these situations can result in business failure if a proper strategic plan is not in place.