Global Strategic Planning Process

Global Strategic Planning Process Eestjohn

STEPS IN THE GLOBAL STRATEGIC PLANNING PROCESS

AND REASONS FOR PLANNING GLOBALLY

Following are detailed steps for the global strategic planning process:

Analyze the company's external environments: Examine the political, economic and cultural environments of the proposed country for strategic investment. Ensure these are compatible with the company's proposed international direction (portability and conversion of earnings, conducive to foreign investment).

Analyze the company's internal environment: Make sure that the internal environment supports global expansion through applicable human resources policies (selection, training, relocation and repatriation of expatriates), appropriate legal and financial support and a corporate culture that functions within foreign cultures.

Define the company's business and mission: Company direction must be clearly articulated, to ensure that the desired results for globalization are understood by shareholders, management, employees and relevant host country parties.

Set corporate objectives: Financial performance and strategic performance objectives must be established within the global context in which the company will operate.

Quantify goals: Quantify financial objectives (such as targets for revenue growth, cash flows, returns on invested capital, profit margins, etc.), and temporal objectives stating targets that support the financial objectives (within five years, one year, one quarter, etc.)

Formulate strategies: Strategies to support the achievement of the previous stages in the strategic planning process must be developed. These strategies must be framed within a global context, to ensure successful achievement of the proposed global directions.

Make tactical plans: These plans are targeted to support globalization and must include sufficient details to guide implementation of the plan. The plans must be specific, concise and contain adequate detail for successful implementation in a foreign country.