The strategy is organizations long-term goals and actions/ courses of action taken to reach these goals. Strategy influences the behavior of members of organization and stakeholders and it serves the organization to achieve the competitive position amongst the other organizations. The strategy is communication, intentions, and realizations of actions. The strategy formulation is a very complicated issue because of different goals between different departments and structures of the organization. When the strategy is formulated then the next important step is communicating it and choosing the right means. In some organizations, the strategy remains in Headquarters; mainly due to lack of communication understandable to target audience.
In interpreting the strategic directives among subsidiaries, the organizational strategy utilized by company plays a very important role; the strategic directives received by subsidiaries shall be well articulated and presented. It helps in communicating and making decisions through focusing on stakeholder perceptions in the decision-making process.
There are various strategies that can help business in maintaining its operations globally and interacting with subsidiaries. The organizational strategy is defined as the actions taken by the company where the intention is to gain a long-term benefit for the organization.
Strategy
For organizations that operate internationally, these actions would together then define the strategic planning to gain a sustainable market share globally. strategic planning is defined as a systematic course of action.
The 5 P’s helps in understating the strategy and its important elements in international business. The “Plan” defines the strategic planning by the managers, which helps to identify the opportunities in diverse markets.
It includes the PEST analysis (PEST is an acronym for Political, Economic, Social and Technological factors), different brainstorming tools and SWOT (strength, weaknesses, opportunities, and threats) analysis for future business operations in various regions.
The “Ploy” refers to the strategy used by managers to influence competitors. It helps in becoming proactive towards actions taken by competitors.
The techniques used for this purpose include impact analysis, future wheels and scenario analysis, which helps in exploring future occurrence. “Pattern” explains the ways through, which the business can be conducted successfully in the diverse market.
It allows managers to focus on unique selling propositions and the core competency analysis so that business can utilize its assets and resources in an effective manner.
“Position” defines the image of the company in the market. It helps in exploring strategies to fit the organization with the environment. Basing on this, strategic decisions help companies in gaining competitive advantage in the global market.
