How does strategic planning differ between small businesses and multinational corporations?
Strategic planning is the act of creating short- and long-term plans to take a company from where it is today to where its owners would like it to be. [ Strategic plans include growth strategies, human resource development strategies, marketing tactics and internal goal-setting. There are a number of differences in strategic planning for domestic and international companies, usually as a result of international businesses' larger scale and wider range of uncontrollable market variables. Understanding these differences can guide your strategic planning efforts as your small business grows to an international scale.
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Growth strategies in strategic plans are likely to look much different between domestic and international businesses. Domestic companies' growth plans are more likely focused on creating new markets or increasing market share in domestic markets. Small domestic companies can only grow their geographic reach to the edge of their home country's borders, then they must focus on finding new business in areas they already serve. International companies' growth strategies, on the other hand, are more likely focused on penetrating new markets in previously untapped countries and regions of the world.
Strategic HR Management
International HR development strategies must consider foreign outsourcing, the organizational structure of management between countries, the ethnic makeup of regional management and creating international work teams. Domestic companies in certain regions, meanwhile, may find it challenging to recruit culturally diverse employees, for example, which can cause legal issues and put companies at a disadvantage.
Comprehensive strategic plans begin with a situational analysis - a detailed look at current market conditions as well as a company's strengths and weaknesses. International businesses usually face multiple market conditions at once, adding depth to the equation. ] Auto answered|Score 1|bubblespatrick1216|Points 190|
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