Anonymous
Jan 2
Use The exploring strategy model to analyze issues included in understanding strategies of the organization in international and local business environment ?
Use The exploring strategy model to analyze issues included in understanding strategies of the organization in international and local business environment
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Jan 2
The exploring strategy model can be used to analyze the issues related to understanding strategies of an organization in both international and local business environments. This model consists of three main components: environmental analysis, internal analysis, and strategic choice.
1. Environmental Analysis:
In the international business environment, organizations need to consider various factors such as political, economic, social, technological, legal, and environmental (PESTLE analysis). This analysis helps in understanding the external factors that may impact the organization's strategies. For example, political instability in a foreign country may affect the organization's expansion plans.
In the local business environment, organizations need to analyze the specific factors that are relevant to the local market. This may include understanding the local culture, consumer preferences, competition, and regulatory environment. For instance, a local business may need to adapt its marketing strategies to cater to the cultural preferences of the target market.
2. Internal Analysis:
Organizations need to assess their internal capabilities and resources to determine their strengths and weaknesses. This analysis can be done using tools like SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). In the international business environment, organizations need to evaluate their ability to adapt to different cultures, manage global supply chains, and comply with international regulations.
In the local business environment, organizations need to assess their competitive advantage, operational efficiency, and customer satisfaction levels. This analysis helps in identifying areas of improvement and developing strategies to leverage strengths and overcome weaknesses.
3. Strategic Choice:
Based on the findings from the environmental and internal analysis, organizations need to make strategic choices. In the international business environment, this may involve deciding on the entry mode (e.g., exporting, licensing, joint venture, etc.), selecting target markets, and developing global marketing strategies. Organizations also need to consider the level of standardization or adaptation of their products/services in different markets.
In the local business environment, strategic choices may include market segmentation, product positioning, pricing strategies, and distribution channels. Organizations need to align their strategies with the specific needs and preferences of the local market.
Overall, the exploring strategy model helps organizations in understanding the complexities of both international and local business environments and making informed strategic choices. It enables organizations to adapt their strategies to the unique characteristics of each market and maximize their chances of success.
1. Environmental Analysis:
In the international business environment, organizations need to consider various factors such as political, economic, social, technological, legal, and environmental (PESTLE analysis). This analysis helps in understanding the external factors that may impact the organization's strategies. For example, political instability in a foreign country may affect the organization's expansion plans.
In the local business environment, organizations need to analyze the specific factors that are relevant to the local market. This may include understanding the local culture, consumer preferences, competition, and regulatory environment. For instance, a local business may need to adapt its marketing strategies to cater to the cultural preferences of the target market.
2. Internal Analysis:
Organizations need to assess their internal capabilities and resources to determine their strengths and weaknesses. This analysis can be done using tools like SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). In the international business environment, organizations need to evaluate their ability to adapt to different cultures, manage global supply chains, and comply with international regulations.
In the local business environment, organizations need to assess their competitive advantage, operational efficiency, and customer satisfaction levels. This analysis helps in identifying areas of improvement and developing strategies to leverage strengths and overcome weaknesses.
3. Strategic Choice:
Based on the findings from the environmental and internal analysis, organizations need to make strategic choices. In the international business environment, this may involve deciding on the entry mode (e.g., exporting, licensing, joint venture, etc.), selecting target markets, and developing global marketing strategies. Organizations also need to consider the level of standardization or adaptation of their products/services in different markets.
In the local business environment, strategic choices may include market segmentation, product positioning, pricing strategies, and distribution channels. Organizations need to align their strategies with the specific needs and preferences of the local market.
Overall, the exploring strategy model helps organizations in understanding the complexities of both international and local business environments and making informed strategic choices. It enables organizations to adapt their strategies to the unique characteristics of each market and maximize their chances of success.
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