Outline the process of strategic planning in
the context of the global marketplace.
Examine both the external and internal
factors that determine the conditions for
development of strategy and resource
Illustrate how best to utilize the environmental
conditions within the competitive challenges and
resources of the firm to develop effective
Suggest how to achieve a balance between local
and regional/global priorities and concerns in the
implementation of strategy.
Globalization reflects a business
orientation based on the belief that
the world is becoming more
homogeneous and that distinctions
between national markets are not
only fading but, for some products,
will eventually disappear.
Both internal and external factors
will create favorable conditions for
development of strategy and
resource allocation on a global basis.
These factors can be divided into:
The world customer gains new meaning.
Developed infrastructures lead to
attractive markets for other products.
Similarities in demand conditions
facilitates product design.
Channels of distribution are becoming
Technology changes the landscape of
Duplication of effort
Removal of physical, fiscal, and
technical barriers to further facilitate
globalization of markets.
Rapid technological evolution
contributes to globalization efforts.
Smaller bureaucracies of mininationals
facilitates new product development
and allows for opportunities to seize
Companies may have to
be the first to do
something new, or to
Market presence may be
The Strategic Planning Process
Formal strategic planning contributes to:
The Strategic Planning
Adjusting the core strategy.
Formulating global marketing
Developing global programs.
Implementing global programs.
Assessing and Adjusting:
Forces determining business
success are common to
Executives from marketing,
production, finance, logistics
assess their own
Three factors should determine
The stand-alone attractiveness of a market.
Global strategic importance.
The recognition that groups within
markets differ sufficiently to
warrant individual approaches.
Allows global companies to take
advantage of the benefits of
Involves looking at markets on a
global or regional basis.
Developing Global Programs
Decisions involved in developing a
The degree of standardization in the
The marketing program beyond the
Location and extent of value-adding
Competitive moves to be made.
result in significant
Uniformity is sought especially in
elements that are strategic in nature,
whereas care is taken to localize
necessary tactical elements.
Location of Value-Added
Exploit Factor Costs
Global companies may
have to respond to
competitive moves a
variety of markets.
Successful companies strive to
balance local and global
Too much local production may reduce
Too little planning involvement by the
country organization may lead to NIH.
Ensure that local
managers participate in
the development of
strategies and programs.
Encourage local managers
to generate ideas.
Maintain local and global
Allow local managers to
Localizing Global Moves
The role of headquarters staff should be one of
coordination, and leveraging the resources of the
Globalization calls for the centralization of
decision-making authority beyond that of the
Executing global account management programs
builds relationships with customers and allows
for development of internal systems and
Decision-making in global companies supports
the goal of treating the world as a single market.