Strategic Planning and Management for Global Business Challenge

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Strategic Planning and Management for Global
Business Challenge

• By Dr. Andrew C Chu

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Contents

• Strategic Planning process
• Formulating global business strategies
• Developing global business strategies
• Implementing
• Managing

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Strategic Planning Process

• It is a business process. Iterative process.
• Cross functional. Main management activity.
• Top down as well as bottom up process.
• Anchored in company culture and strategic intent.
• Starts with critical analysis of relevant
  business environment factors.

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Strategic Planning Process

• Followed by internal strength and weakness
  analysis.
• Analyze external threats and opportunities
• Formulating strategy.
• Implementing and managing.
• Review, check, and update. Reiterate. Every step.

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Strategic Planning Management(An iterative
business process)
Internal Strengths Weaknesses Analysis
Corporate Strategic Intent
External Threats and Opportunities
Develop Strategies
On-going Management
Execute Strategies
Dr.Andrew C Chu
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Formulating Global (International) Strategy

• A part of overall corporate business strategy.
  Can not stand alone.
• Top down Strategic intent. Success criteria.
• Requires the participation of relevant
  departments. Cross functional commitment.
• Conduct staff training in strategic planning.
• Set up achievable goals and check- points at
  major steps.

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Developing Global Strategy

• Select target market/region.
• Conduct staff training in international business
  development process.
• Conduct business environment investigations.

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Developing Global Strategy

• Participate in on-the-ground activities. Trade
  shows. OEM customer presence. Competitor
  presence. Host country government sponsored
  promotions.
• Determine means of initial entry. Export.
  Import. Establishing local marketing network.
  Joint ventures. Wholly owned subsidiaries.
  Acquisitions. Mergers. Contract manufacturing.

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Developing global Strategy

• Select business sites and strategic alliance
  partners.
• Business negotiation and signing of contracts.

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Implementing Global Strategy

• Organize cross functional implementation team
• Conduct joint planning
• Develop implementation plan with strategic
  alliance partners.

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Implementing Global Strategy

• Implementation plan, as a function of time,
  includes
• Sources of capital
• Establish product and service capacity
• Recruit talents
• Develop markets
• Equity ownership does not equal to management
  control.
• Management control must be established.

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Managing

• Establish management systems
• Strategic outsourcing
• Implement financial management software
• Strategic alliance
• Merger and Acquisition

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Managing

• Corporate diagnostic. Financial, quality
  assurance system, productivity, customer
  satisfaction. Report.
• Develop turn around strategy.
• Plan-do-check-review.

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Business Environment
Customer Needs
Product/Service Technology
Marketing Sales
Human Resources
Manufacturing Capability
Quality Assurance System
Financial Management
Strategic Intent
Company Culture
Dr.Andrew C Chu
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Critical Factors in Business Management

• Capital
• Time
• Marketing Opportunity
• Human Talent
• Product