Discuss the global strategic planning process.

INTERNATIONAL BUSINESS

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Institution

INTERNATIONAL BUSINESS

1. Discuss the global strategic planning process.

The global strategic process applies to the ability of an organization to apply replicable and systematic methodology to the unique challenges they are facing. The challenges that an organization are facing need some strategic services to tackle the issues. The issues are identified, formulated, and executed in an actionable road map. The challenges that face an organization can be worked on by use of complete and robust solutions. This requires the use of developed environment mapping, customer and partner needs, industry trending, and a strategic methodology. The value of strategic planning process can be to the organization, suppliers, customers, and partners. The application of a communicable and systematic, strategic plan and focusing on the process can help the organization, to succeed in an increasing global viable environment.

The value of the strategic planning process can be felt in the strategic and tactical levels of an organization. In addition, the process can help the organization to benefit from the implementation of the systematic, strategic process. The organization can, thus, be driven to succeed in the developing and developed countries in the world. The strategic process can include developing a global network and collaboration with other companies (Musso, 2009). This can drive a firm to a level of joint business strategy planning process.

The global strategy should be formulated and implemented successfully for the smooth running of the organization. This will help in the correct interpretation of opinions that revolve around risks, cost, development, and speed of the market. Organizations need to follow the right processes in order to have sufficient forecasts and information on the global strategy. An audit should be taken by an organization so as to leverage on how to add value to the global market. These can include the understanding of customer needs, the intangible and tangible assets in the organization, and what other competitors are doing. Thereafter, a global strategic planning process can be developed. The execution and development of the strategy needs the development of global leaders.

2. What are the types of information that an international company needs to have reported to it by its units around the world and why is each type important for the IC and its control efforts?

An international company needs to have some information so as to report their units across the world. The information of the organization is their central resource. The information makes it possible for companies to function properly. The information can include the strategic assets and business records of operation. In addition, the competitive values, fiscal, economic, and risk management information are significant for operation. This information needs effective procedures and policies for systematic understanding and control of the recorded information. The information on the company should be easily understandable and to retrieve.

The information of the firms should be easily stored, created, retrieved, and used by the business and government. The use of information calls for use of information technologies as the business environment is volatile. The information should be up dated if possible daily for every unit of the organization. The records play a significant role in the operation of the organization. The information is also a resource feature for organizations operation just like employees. This is because most of the businesses focus on information related activities. The records and information management need some systematic application as the information can be used in the business of the organization. The records can include transactions which at times are needed as evidence for business.

3. This chapter discusses building a corporate global mindset. What can you do to build an individual global mindset?

The building of a corporate, global mindset needs effective leadership. This is because of uncertainty and volatility of the business. This calls for responsibility from the managers of organizations. The firms have increased mixture of young and old workers; there is urbanization and population growth. These events have continued to transform the global workforce. In addition, social learning and technology are forces that shape organizations. The global world is interconnected with the economic uncertainties. The transformation calls for global mindset of leaders who are humane, team oriented, performance oriented, participative, self protective, ad autonomous.

The global mind set leaders should have desirable characteristics like; decisive, encouraging, trustworthy, and communicative. These traits are culturally contingent and needs leaders who are risk takers, enthusiastic, micromanagers, and logical. The shifts in the world require new global leaders that can help organizations to navigate the change and complexities. The leaders must be helped in performing their tasks and equipped them with traits that can help them in the future too. Collaboration with other disciplines is needed to create strong leadership models. In addition, training should be done to equip the leaders to cope with the new challenges. The mindset needed is for everyone to step up as a global leader. This needs shifts in becoming proficient at running paradoxes, mounting multicultural success, enlightening the element of human experience, and appreciating personality uniqueness in the perspective of cultural difference.

4. Discuss the use of market indicators.

The performance conversations method is designed to provide feedback, not appraisal. This approach provides real time information that the employee can use to make adjustments to their work so that fewer corrections are necessary

Market indicators can be used to analyze, identify, and process the required public information for most favorable investment decisions (Holt & Seki, 2012). Most of the market participants depend on the macroeconomic indicators like; CPI, GDP growth, non-farm payrolls, and housing start to form a top-down asset allocation strategy. In addition, the market data are also used in developing the investment theses. The market indicators have technical indicators that have data points with a formula. The formula can be applied to the data price of multiple securities that are in the market. The market indicators are charted by use of their own ticker symbols.

The forex market can also be used as a market indicator. Trading in the market is good, but, often risky. The use of charts and indicators can be used to build the trading systems. These are significant elements for businesses across the globe. They can take the advantage of the available tools so as to have better winning trades. The market indicators can include; the direction Financial Bear 3X Shares ETF (FAZ) and Direction Financial Bull 3X Shares ETF (FAS). These models are easy to track. The indictors should be mastered to have broadened trading horizons. In addition, $UVOL/$DVOL action and $TRIN can be used as market indicators. Others are; advance decline line, bullish percent index, and advance decline volume line, McClellan Oscillator, among others.

5. What is the value of government-sponsored trade missions and trade fairs?

The government trade fairs and trade missions help in promoting businesses and industries globally. They help in raising awareness, identifying industries, enhancing technology, coordinating, exploring opportunities, and influencing other governments to invest. The trade fairs are used in representing the international and national organizations. This helps in the promotion of the commercial interests of the organizations internationally. In addition, they provide regulations that need to be implemented with organizations. The fairs create and stimulate positive atmospheres for organizations to do business.

The government missions and fairs help organizations have administrators and regulators at the international and national levels. This provides an opportunity for opinions and an environment for creations of investment and operations of varied cultures. In addition, links are provided through strengthening of membership bodies in the trade blocks. These fairs reduce the cost of doing research and participation in the market for firms. Furthermore, the fairs and missions help in stimulating the technology between countries and industries. This is done by the promotion of products and services of the organizations at the fairs. The result is to break into novel export markets and saving marketing and exhibition costs.

6. Although air freight rates are usually higher than ocean freight rates, air freight may be less costly for a firm. Explain why this statement is correct or incorrect.

The freight rates are significant for a firm as they are used to get products to customers. The order cycle is crucial in completing the business overseas. The documentation involved in the business is expensive as consignments should reach the destination in time. The delay can cause payments to rise disproportionally. This is what makes the air freight less costly for a firm. The ocean freight has the advantage of sending large volumes of merchandise at lower prices compared to air freight. However, the long transit time of the ocean freight is a drawback.

The ocean freight is also used as an alternative of the air freight. This is because they do not need a lot of documentation as the air freights. The payment of the air freight bills are easier compared to the ocean freights. The choice of the freight depends on a firms business experience, financial stability, reputation of the companies, commitment to technology, management strength and depth. In addition, the growth potential, continuous improvement of programs, ethics and security are considered.

References

Holt, K. & Seki, K. (2012, May 7). Global Leadership Begins With Learning Professionals. A standard organization magazine. Retrieved from HYPERLINK “http://www.astd.org/Global-Leadership-” http://www.astd.org/Global-Leadership-Begins-with-Learning-Professionals

Musso, Z. (2009, March 6). How To Use Three market Indicators with Acuity. Daily Darkets. Retrieved from HYPERLINK “http://www.dailymarkets.com/how-to-use-three-market-indicators-with-” http://www.dailymarkets.com/how-to-use-three-market-indicators-with-acuity/