Steps in Developing International/Global Strategies

Running head: GLOBAL STRATEGIES IN AN ORGANIZATION
GLOBAL STRATEGIES IN AN ORGANIZATION
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1GLOBAL STRATEGIES IN AN ORGANIZATION
The Six Key Steps in Developing International/Global Strategies
The managers need to evaluate the dynamic factors and follow the below steps to
develop the global strategies of an organization.
1. Determine the Objectives- The mission of an organization should be to develop in the
areas of marketing, production, profitability, finance, research and development
internationally. It should focus on the demands of global customers and set the corporate
objectives accordingly.
2. Assess External Environment- In this stage, the firm should carry out a global
environment analysis on multinational, regional and national level to assess whether it is
capable of surviving the competition internationally (Deresky 2000). Environmental scanning
lets the firm decide on the competitive actions, risks and the relevant trends in the operations.
3. Analyse Internal Factors- The firm in the third step should decide the strengths and the
weaknesses of the internal operations and effectively improve them strategically to stand
against the competitors (Anseeuw et al. 2017). Furthermore, the company can conduct audit
and competitive analysis to check their issues and eliminate them for enhancing their growth
worldwide.
4. Evaluate Global Strategic Alternatives- Integration of the operations in a firm are a
necessity to implement worldwide sourcing, global integrated production and marketing
system. The companies should also adapt to e-business to attain global opportunities of
maintaining a business worldwide.
5. Evaluate Entry Strategy Alternatives- The ownership strategies are evaluated in this step
in a firm that includes exporting, licensing, offshoring, franchising, joint ventures and so on.
Exporting of products by a firm allows globalization by making it available to a wider range

2GLOBAL STRATEGIES IN AN ORGANIZATION
of customers (Schotter et al. 2017). Licensing and franchising reduces the risk to a business
and offshoring allows for cost-saving for an organization.
6. Decide the Strategy- Considering all the above steps, a firm needs to develop multiple
strategies to expand a business globally and determine the advantages and disadvantages
associated with each strategy. After weighing out different factors, the company should
implement the optimum strategy to sustain their business in the end.
News about International Business
The oil traders are fighting peer pressure from the governments, activists and
investors to build up a sustainable business model that will incorporate lower carbon usage in
the future and implement eco-friendly projects involving wind-farms, cow manure plants and
so on. Renewable projects are in high demand for the business industries worldwide,
however, the international oil-producing firms are confused about the capital amount to
invest amongst the limited opportunities available. Firms like Vitol and Trafigura have
invested in the wind-farms, solar energy, and biofuels to replace their oil business; however,
they are yet to figure out an environment-friendly business model (The Economic Times,
2020). The businesspersons should focus on eco-friendly projects to adjust with the changes
in the financial services industry. The banks have declared that the ‘green’ projects will be
facilitated with 50% reduction on the capital that will be held by them, whereas the ‘brown’
projects will incorporate an increase by 24%. This will make sure to influence the industries
invest in eco-friendly ventures.

3GLOBAL STRATEGIES IN AN ORGANIZATION
References
Anseeuw, W., Roda, J.M., Ducastel, A. and Kamaruddin, N., 2017. Global strategies of firms
and the financialization of agriculture. In Sustainable Development and Tropical Agri-
chains (pp. 321-337). Springer, Dordrecht.
Deresky, H., 2000. International management: Managing across borders and cultures.
Pearson Education India.
Schotter, A.P., Mudambi, R., Doz, Y.L. and Gaur, A., 2017. Boundary spanning in global
organizations. Journal of Management Studies, 54(4), pp.403-421.
The Economic Times. (2020). From wind power to cow manure: oil traders seek new profit
recipe. [online] Available at:
https://economictimes.indiatimes.com/news/international/business/from-wind-power-to-cow-
manure-oil-traders-seek-new-profit-recipe/articleshow/74095943.cms [Accessed 12 Feb.
2020].