Register to read the introduction…
SWOT identifies the ‘’Strengths, Weaknesses, Opportunities, and Threats.’’ Multinationals often perform environemtal scans to help them conduct a SWOT analysis.
Environmental scan is a systematic collection of data about all elements of the multinational external and internal environments, including:
• Markets
• Regulatory issues
• Competitors actions
• Production costs
• Labour productivity
GRIFFIN W. and PUSTAY W. 2003 ‘International Business: a managerial …show more content…
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 that they possess which gives them and advantage over their competitors. These may include:
• Managerial talent
• Cutting edge …show more content…
Functional Strategy Strategic Roles
Marketing
Price: What is included in the initial price, price level, discounts, terms
Product: Quality, features and options, styling, brand name, product line and related products, warranties and guarantees, service and after-sale items
Promotion: Advertising, personal selling, promotion, publicity
Place: Distribution channels, distribution coverage, inventory levels and locations, transportation methods
Finance
Capital structure Medium-term planning methods Budget systems and approaches Emphasis between leasing and buying How owners are rewarded Capital investment methods and systems Credit strategies Liquidity strategies
Control and Evaluation
MNE’s use strategic control to monitor how well they formulate strategy and how well it goes after implementing that strategy. Strategic control focuses on how well the firm defines and maintains its desired strategic alignment with the firm’s environment and how effectively the firm is setting and achieving its strategic
Environmental scan is a systematic collection of data about all elements of the multinational external and internal environments, including:
• Markets
• Regulatory issues
• Competitors actions
• Production costs
• Labour productivity
GRIFFIN W. and PUSTAY W. 2003 ‘International Business: a managerial …show more content…
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 that they possess which gives them and advantage over their competitors. These may include:
• Managerial talent
• Cutting edge …show more content…
Functional Strategy Strategic Roles
Marketing
Price: What is included in the initial price, price level, discounts, terms
Product: Quality, features and options, styling, brand name, product line and related products, warranties and guarantees, service and after-sale items
Promotion: Advertising, personal selling, promotion, publicity
Place: Distribution channels, distribution coverage, inventory levels and locations, transportation methods
Finance
Capital structure Medium-term planning methods Budget systems and approaches Emphasis between leasing and buying How owners are rewarded Capital investment methods and systems Credit strategies Liquidity strategies
Control and Evaluation
MNE’s use strategic control to monitor how well they formulate strategy and how well it goes after implementing that strategy. Strategic control focuses on how well the firm defines and maintains its desired strategic alignment with the firm’s environment and how effectively the firm is setting and achieving its strategic