‘All Multinationals That Conduct Strategic Planning Go Through a Three-Step Process: Formulation, Implementation and Control’
This essay will discuss how Multinational enterprises (MNE) use strategic planning to achieve strategic goals. Its will also discuss and explain each stage of the strategic planning process which allows multinational to carry out a successful and useful plan.
The three main stages, which are formulation, implementation and control, will be discussed in detail on how it is used by multinationals.
‘All multinationals that conduct strategic planning go through a three-step process: formulation, implementation and control’ (Rugman & Collinson 2006:225). Discuss.
Every organisation that plans to expand and grow worldwide would need to carry out …show more content…
External environment scanning also identifies certain threats to the firm, these could be the risk of entering a market which is shrinking, increasing competition, the potential for new government regulations, political instability in key markets.
For example: Disney, a major organisation which is recognised all around the world is currently facing competition from Universal Studios, Six Flags and other theme parks, this is a direct external threat to the business. Threats to BMW include changing U.S automobile fuel efficiency standards, increased competition from Japanese car manufacturers and high German labour costs. These are all threats that managers at Multinational companies must identify and understand.
Internal environment scanning is also crucial as it plays an important role in conducting together an effective SWOT analysis. It includes the strengths and weaknesses of the organisation.
Organisational strengths are skills and resources and any other relevant skills