5. International Strategic control issues18Conclusion19References20IntroductionThe report would discuss the concept of international business management and the various aspects of undertaking business venture abroad. It would deal with the process of creating a comprehensive strategy management process and the components that are essential to be analyzed before formulating such a process. The report would further discuss the various modes or channels through which an organization may enter into the international market. It would discuss the advantages and disadvantages of these modes of entry. Further, the paper would elucidate on the concept of strategic alliance and its importance in conducting business in the international markets.
Communication with the partners and clients is an important component for the success of an international venture. Therefore, the paper would focus on the various elements of effectively communicating with the partners and clients. The concept of strategic control would also be discussed in the paper and recommendations would be provided to address the issues arising from international strategic control. International business strategies1.1. Define international business strategy The ongoing and comprehensive process of management planning that focuses on implementing and formulating strategies which help organizations to efficiently compete in the international market is known as international strategic management (Fisher, Hughes, Griffin, Pustay 2006).
The process involves formulation international strategies in order to achieve a strategic cohesion between the resources and competence of an organization with the international business environment the company envisions to operate in. Such a process is essential for any organization to formulate as it helps it to compete effectively with other leading organizations operating in the global market (Hannagan 2002). 1.2. Issues in developing international strategiesWhile formulating international strategies, an organization needs to consider various parameters which include dealing with various governments, different currencies, various political and legal systems, diverse cultures, language barriers and difference in accounting systems.
Therefore, development of an international strategy is much more complex than formulating domestic strategy. Organizations that are planning to enter or expand in the international market are required to develop a strategic management process so that it is able to align its goals and objectives with the complex global business environment. In order to develop a comprehensive strategic management process, an organization needs to formulate the company’s mission statement, develop strategic objectives, conduct an internal and external analysis, and create a broad implementation strategy.
Each step towards developing international strategies is aimed to achieve a singular goal i. e. gaining competitive advantage in the global marketplace (Johnson, Gerry & Scholes, Kevan 2002). Together with considering the external factors, the organization also needs to conduct a through internal analysis as well. It might have to create customized products and services as per the market requirement. Further, in case the company is intending to manufacture the product in another country, it needs to understand polices and operations of that particular country as well, along with analyzing the market requirement for the product, the target audience, identifying the sourcing requirements as well as conducting a comprehensive competitive analysis.
Internal analysis would also include identifying the competence of the organization and highlighting them to gain edge over the competitors, understanding the process of deploying and allocating resources in an optimal manner and creating business synergies (Fisher, Hughes, Griffin, Pustay 2006).