International Strategic Management: Strategies and Implementation

This report provides an in-depth analysis of international strategic management (ISM), examining its evolution and stages, including strategy formulation and implementation. It highlights the impact of environmental and organizational factors on multinational enterprises (MNEs) and their ability to outperform competitors. The study explores how strategic management principles vary across countries, requiring a comparative analysis of environmental differences, aptitude, and strategic planning. It discusses strategy formulation at the corporate level, particularly in state-owned businesses in Russia and China, which often pursue mergers and acquisitions for diversification. The report also addresses international strategy implementation, noting differences in corporate governance models across BRICs (Brazil, Russia, India, and China) and the role of small and medium-sized enterprises (SMEs) in economic development. It concludes by emphasizing the importance of marketing learning and internationalization for firms facing global competition, with a focus on knowledge acquisition and cooperative strategies.

1
IDENTIFICATION AND IMPLEMENTATION OF INTERNATIONAL
STRATEGIC MANAGEMENT

2
Contents
Introduction....................................................................................................................3
1.1 Stages of Strategic Management..............................................................................3
1.2 International Strategy Formulation..........................................................................4
1.3 International Strategy Implementation....................................................................4
2 Literature Review........................................................................................................6
1 goal settings.................................................................................................................6
2 analyses.......................................................................................................................6
3 strategy formation.......................................................................................................6
4 strategy implementation..............................................................................................6
5 strategy monitoring.....................................................................................................6
Procedure 1.................................................................................................................7
Procedure 2.................................................................................................................7
Procedure 3.................................................................................................................7
Procedure 4.................................................................................................................7
Procedure 5.................................................................................................................7
Procedure 7.................................................................................................................8
Procedure 8.................................................................................................................8
Procedure 9.................................................................................................................8
Conclusion and prospects..............................................................................................9
References....................................................................................................................12

3
IDENTIFICATION AND IMPLEMENTATION OF INTERNATIONAL
STRATEGIC MANAGEMENT
Introduction
This study gives an in-depth analysis of international strategic management.
This study puts light on how strategic management has progressed over time. It
develops a better understanding of the number of stages involved in strategy
formulation and how are these strategies implemented.
This research paper involves theoretical models that are applicable in each stage. Also
the benefits of it is to an organization operating in an international market.

4
ISM also known as International Strategic Management is an innovative and
vastly expanded research field according to (Lu 2003; Peng and Zhou 2006; Werner
2002), which explains how multiple environmental and organizational factors have a
direct impact on the Multinational Enterprise along with their ability to outperform
with the competitor's overtime as per (Bruton et al. 2004). This majorly involves the
strategies implementations for attaining purposes in the global business environment
(Luthans and Doh 2009).
1.1 Stages of Strategic Management
The fundamentals of strategic management policies, principles, and
implementations differ from country to country and their implications vary from one
another depending on the country. This requires a simultaneous study and a
comparison of several factors involved in two or more two countries. The basics of
international management involve:
 Environment differences
 Differences in Aptitude
 Strategic or Planning Difference
 Environment Strategies and aptitude planning with performance consequences
Environmental differences distinguish the opportunities and threats that are
being faced by the countries on the contrary the capability differences come up with
the strengths and weaknesses of any firm operating in various countries. Altogether
they built strategy variation across nations. The groups mostly located in India
encouraged unrelated diversification prior 1990s when they changed and adapted free
market policy. Since then they are more focused and oriented on consolidating
through mergers and acquisitions and are very active in international diversification as
per (Kedia et al., 2006).
1.2 International Strategy Formulation
Modifications in strategy formulation at the corporate level, state-owned
businesses namely in Russia and China are more likely towards acquisition and
mergers as a resource for diversification strategies. This provides access towards
diversification planning also giving flexibility of astonishing cash reserves providing
ease to the approach of financial support. According to (Carrera et al., 2003;
Hoskisson et al., 2000) the firms located in India regularly adopt the strategy which

5
re-focused and re-structured the business strategies for the adjustment of the
diversification strategy for its dynamic economy.
To quote an example in India the Tata Group of Companies restructured to
recapture the maximum percentage of businesses in the recent 10 years of period.
In comparison at a corporate level to those firms located in Brazil and Russia, mostly
the percentage of firms in China and India is more focused on the low-cost
competitive strategy due to the vast population of these countries being poor capturing
the larger percentage below the wealth pyramid.
According to the studies by (Kotabe et at., 2007) globally, the firms located in
Brazil are more likely to make investments in the neighboring markets, bringing an
expansion to the local markets and making sure that the regional markets are
accessible by Mercosur.
Another study by (Luo and Tung, 2007) suggested that the firms located in the
sovereignty of Chinese and Indians make use of an International expansion
springboard for the attainment of strategic resources and to lessen the market and
institutional constraints.
1.3 International Strategy Implementation
In Brazil, 60 percent or even more companies possess a single shareholder
who is governing 50% of the voting shareholders ( Borodina and Shvyrkov, 2010).
According to (Black et al., 2000; McCarthy and Puffer, 2002) in Russia, the firms
consider relation based to market-based corporate governance.
A study by (Buck, 2003) suggested, that as a consequence of underdeveloped
financial institutions, and low protected private property rights there are high-level
risks and low levels of trust between the businesses and the investors. In India, the
family-centered business governance model is proven in the Hindu culture
predominantly. Deutsche Bank research has studied and come up with the details that
54 percent of the large Indian companies are run by single families.
Research by Standard and Poor’s preliminary in the year 2008 suggested this,
most Chinese firms are more reluctant to go public but a maximum of 70 percent is
controlled by the state. The government having a powerful market influence and a
high power distance in society is the reflection of Government ownership.
The organizational control plus structure differs in BRICs (Brazil, Russia,
India, and China). In Brazil, the presence of a pyramid structure supports the

6
nonvoting system which is directly linked to the government's weaknesses including
poor functionality of boards, and no special attention towards the minority
shareholders. Russian firms signify the bureaucratic structure widely across the
industries with the wide participation of government towards the direct ownership of
firms.
Considering India, it is closest to the common law in reflection to the US and
UK contro9lling shareholders with their rights and responsibilities. Considering
China's powerful isomorphism government support has supported the growth of state-
owned businesses, whereas the country is deprived of accounting transparency.
Considerable differences in small management amongst BRICs are providing
those small businesses is a significant action for economic development through
employment, uniqueness, and income influences (Baumol, 2002; Schumpeter, 1934).
Businesses in the territory of Brazil are running profitably due to the
sophistication in their business process and being more consumer-oriented enables a
population of 4.5 million to operate businesses profitably, in the wide range of
industries throughout Latin America
According to (Raj and Kumar, 2007), India including small and medium-sized
businesses has 95 percent of industry establishment, 40 percent of domestic exports,
and approximately 35 percent of the industry sector in the year 2003. Research
conducted by (Volpe and Schenck, 2008) suggested about one million Small and
Medium enterprises in Russia have an informative network comprising of domestic
and international partners.
In China, the Small Medium Enterprises realized the entrepreneurial
opportunities have generated many planning for seeking the purpose of political
protection and has encouraged the connectivity between business associations and
encouraged various forms of planning for personal businesses, township and village
enterprises, privately owned enterprises and joint ventured enterprises.
2 Literature Review
Strategic management is a combination of 5 key factors:
1 goal settings
2 analyses
3 strategy formation

7
4 strategy implementation
5 strategy monitoring
These are the elements when they are combined they altogether come up with
interactive and long-term planning.
Figure 1 Strategic Management
Strategic management is not to be applied once and then neglected it is a
framework. But what do strategic management looks like? The answer is provided as,
1) Agreement to start a Strategic Management Process
2) Highlighting the organization's mission and recently applied planning
3) Identifying the organization's internal strengths and weaknesses
4) Analysis of the threats and opportunities from the external environment
5) Identifying the key stakeholders and their expectations.
6) Getting to know the key factors planning issues being faced by the organization
7) Strategies to fix those issues identified in step 6
8) Implementation of the strategy
9) Reviewing and monitoring the performance of the strategy implemented
Procedure 1
The initial steps need an agreement not only for the procedures to be carried
out but also to get familiarized with how, when, and with whom will these procedures
will; be carried out. Three individuals are considered as top tier responsible for
decision making. These are also responsible for strategy formulation and
implementation.

8
Procedure 2
Once the strategies have been determined then the goals are set to what are the
needs that need to be identified or what purpose the company is serving. For the
fulfillment of the purpose, it is essential to clarify the mission, policies, and demands
which are to be implemented.
Procedure 3
The most important aspect of a business is to analyze the business resources
which mainly include skill base, capital-monetary, and financial resources.
Furthermore, the knowledge of what are the internal resources of an organization,
what tasks are being performed, what is being performed well, and what needs
improvements.
Procedure 4
Since the management focuses on internal matters then they should also
explore the external prospects that will impact the organization's performance.
External factors include political, social, economic, and technological factors that
have an intense impact on businesses.
Procedure 5
In this step, the organization decides what is it going to do and how is it going
to carry out its daily operations. Stakeholders play a significant role in the outcomes
of the organizations.
Procedure 6
The purpose the organization is trying to meet should be identified with the
significant question related to the key issues which the organization is trying to meet.
Planning and management hurdles are key objectives that need to deal with as they
can have severe impacts on the outcomes of the organization. In case, serious
attention is not paid then this can severely affect the condition and productivity of an
organization.
Procedure 7
The managers here analyze the identified issues to be resolved. They come up
with more than one option and finally select the options that are most compatible,

9
feasible, and easily implemented. Also, can the solution work for both practical and
theoretical both?
Procedure 8
Implementation of the strategy is not an easy job to be carried out its initial
plan includes the development of the action plan and the second part includes the
execution of that plan. It must be kept into consideration that the manager is not only
responsible for the internal matters of an organization but should be very careful in
dealing with the external matters executions and their implications.
Procedure 9
The planning and implementation are not always constant but readily require
changes. For instance, the flow of resources might become scarce hence it might
impact the performance of the organization. The process of monitoring should be
regular and should be able to meet the decision-making process. So it can be said that
the monitoring process is timely and should be recurring.
Goal Setting Goal Setting identifies short and long-term goals
Analysis Make your guide and collect information that completely
Understands the problem
Strategy Formation Develops options to make decision
Strategy Implementation Collect the vital resources to be applied
Strategy Monitoring allows the organization to take quick stances
Moreover, the firms have to face international competition in the domestic
markets and have to make efforts for internationalization (Keen and Wu, 2011).
According to Johanson and Vahlne, 2009), marketing learning is knowledge based
whereas extant theory says that it is learned through experimental learning.

10
Though concentrating on multinational businesses Li (2010) made an
argument that the approach related to the learning needs research attention. Freeman,
Hutchings, Lazaris, and Zyngiers (2010) supported the view that small and medium
enterprises should be internationalized to gain knowledge process and expand in
cooperative groups.
On the other hand, there will be differences in exporting firms depending on
the level of internationalization whether they are experimental, active, or committed.
As the firms are internationalized the international markets researches become equally
significant as the domestic research and is more formal.
The emerging economy firms depend on the extent of degree extension rather
than late recognizing firms are not capable to accumulate resources and knowledge,
however, they should learn with association rather than opting for first-hand
experience, according (Keen & Wu, 2011).
Conclusion and prospects
The ultimate aim of this paper has to put light on the industries that are
operating internationally and what the effects of industry dynamics on marketing
strategy are. If internalization marketing is the focus and purpose then following of
the points should be kept into consideration;
1) more purposeful attention should be given to the segmentation and rethink how the
segments that are defined should be required.
2) If the boundaries of the industry are moving from one to another domain then the
prevailing view of the market should also be switched.
3) The marketers will pay more attention to the competitors and to what activities they
are implementing, specifically with the geographic products, any product extension in
range or market, or even both.
4) The Pan European marketing plans will involve the rediscovery of branding. This
will need a broader understanding of how to make the brands go beyond the national
brand. Ultimately to support branding more extended product development must be
provided.
5) Timely performances matter, hence greater attention to time is to be given as time
is an essential element in internalization.
The limited product lifestyle has become commonplace when it is mixed with
the speed an innovative product rolls out in the selected international market.

11
However, the issue of connectivity and coordination remains unresolved. Particularly,
speedy movements from Research and Development to the marketplace will be
considered a major in competition with competitors.
This requires a different marketing skill, integration, and involvement at much
earlier stages of product development. Marketing shall be well aware of cost on both
the basis first the overall cost base of the company in comparison to their competition.
Secondly, the structure cost is the cost within the marketing function of its
own.
Though this might seem less significant as compared to the other aspects,
mentioned it is essential for gaining the possibilities in internationalization. One of the
important arguments for the market to go globalized is to know whether it is cost-
saving or not? How do these cost efficiencies go together in marketing
The new challenge that might appear in the future is that the judgment of
balance of sources of productivity in innovation is compared to the sources of cost
efficiencies. These can be the new challenges for the upcoming internalization days
for an organization. Hence, international marketing should be recognized as having
small and large companies. The more effective and efficient the huge competition
responds to the mentioned challenges the competitive environment will become
tougher.
The last and the largest category of the study is mainly focused on the
innovation, uniqueness, and new attributes of the analyses at an organizational level.
Internationalization is being majorly made possible with R&D by the mechanism of
the companies that are having exceptional research skills with the technology
available that as well plays the role of contextual variables (Penner Hahn & Shaver,
2005) as well as diversification in Research and Development internationalization
according to (Hsu et al . , 2015).
Most of the research has been made and R&D that is working on
internationalization for the past last two decades which has provided us with a better
understanding. This provides an overview of what efforts have been made in this
research area. Finally, it is hoped that this research data will encourage the business
academic's research papers to encourage the research data and will become support in
this field domain.

12

13
References
Lu, J.W., 2003. The evolving contributions in international strategic management
research. Journal of International Management, 9(2), pp.193-213.
Bruton, G.D., Lohrke, F.T. and Lu, J.W., 2004. The evolving definition of what
comprises international strategic management research. Journal of International
Management, 10(3), pp.413-429.
White, G.O., Guldiken, O., Hemphill, T.A., He, W. and Sharifi Khoobdeh, M., 2016.
Trends in international strategic management research from 2000 to 2013: text
mining and bibliometric analyses. Management International Review, 56(1),
pp.35-65.
Pavitt, K., 1990. What we know about the strategic management of
technology. California management review, 32(3), pp.17-26.
Cavinato, J.L., 1999. A general methodology for determining a fit between supply
chain logistics and five stages of strategic management. International Journal of
Physical Distribution & Logistics Management.
Doh, J.P., 2005. Offshore outsourcing: Implications for international business and
strategic management theory and practice. Journal of Management Studies, 42(3),
pp.695-704.
Buckley, P.J., 1994. International Business Versus International Management?
International Strategic Management from the View of point of Internalisation
Theory. Journal of the Economics of Business, 1(1), pp.95-104.
Verbeke, A. and Hillemann, J., 2013. Internalization theory as the general theory of
international strategic management: Jean-Francois Hennart’s contributions.

14
In Philosophy of Science and Meta-Knowledge in International Business and
Management. Emerald Group Publishing Limited.
Ciobănică, M.L., 2014. Stages of a strategic management model. SEA–Practical
Application of Science, 2(04), pp.35-45.
Fergerson, B., 2012. Key stages of Strategic Information System Planning (SISP)
methods and alignment to strategic management planning concepts.
Luo, Y., Sun, J. and Wang, S.L., 2011. Comparative strategic management: An
emergent field in international management. Journal of international
management, 17(3), pp.190-200.
Karami, A., 2016. Strategy formulation in entrepreneurial firms. Routledge.
Rahimi, F. and Fallah, S., 2015. Study of organizational life cycle and its impact on
strategy formulation. Procedia-Social and Behavioral Sciences, 207, pp.50-58.
Scribner, S., 2000. Introduction to strategic management. Section No. 5 in policy
toolkit for strengthening health sector reform.
Kozlenkova, I.V., Lee, J.Y., Xiang, D. and Palmatier, R.W., 2021. Sharing economy:
International marketing strategies. Journal of International Business
Studies, 52(8), pp.1445-1473.
McGee, J. and Segal‐Horn, S., 1990. Strategic space and industry dynamics: the
implications for international marketing strategy. Journal of marketing
management, 6(3), pp.175-193.

15

16