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Test 2 Review

Test 2 Review - Chapter 8 Benefits of Strategic Planning...

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Chapter 8 Benefits of Strategic Planning Strategic Management- The process of determining an organizations basic mission and long term objectives, then implementing a plan of action for attaining these goals. -Used to keep track of their increasingly diversifies operations in a continuously changing international environment. Strategic Imperatives -Economic (Global) Imperative- worldwide strategy based on cost leadership, differentiation and segmentation. Not a lot of alteration needed, Management uses the same strategy for most countries. -Used for products not sold based on name brand or support service. -Political (geographical) Imperative- strategic formulation and implementation utilizing strategies that are country responsive and designed to protect local market niches -Success usually depends on heavy marketing, sales and service; typically these companies have a multidomestic strategy -Value added in the downstream -Quality Imperative- strategic formulation and implementation utilizing strategies of total quality management to meet or exceed customer’s expectations and continuously improve products or services. -A change in attitudes and rising of expectation of service quality -Implementation of management practices that are deigned to make quality improvement an ongoing process -Quality is the best way to earn a market share and profitability -Administrative (Multidomestic) coordination- strategic formulation and implementation in which the MNC makes strategic decisions based on the merits of the individual situation rather than using a predetermined economically or politically driven strategy. Global Vs. National Responsiveness -Global integration- the production and distribution of products and services of a homogenous type and quality on a worldwide bases -National Responsiveness- the need to understand the different consumer tastes in segmented regional markets and respond to different national standards and regulations imposed by autonomous governments and agencies -Global strategy- integrated strategy based primarily on price competition. -Multidomestic strategy- differentiated strategy emphasizing local adaptation -International Strategy- mixed strategy combining low demand for economies of scale and low demand for differentiation. Leads to centralized quality control and decision-making -Transnational Strategy- integrated strategy emphasizing both global economies of scale and local responsiveness. Environmental Scanning – the process of providing management with accurate forecasts of trends related to external changes in geographic areas were the firm is currently doing business.
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Emerging Market Strategies- -First Mover strategies -Being one of the first to move into a market is very important given the transitional nature of these markets. -First movers allow entrants to preempt competition establish beach head
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Test 2 Review - Chapter 8 Benefits of Strategic Planning...

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