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Global Strategic Planning - Coggle Diagram
Global Strategic Planning
Understand the definition and importance of the global strategic planning process (GSPP).
Strategic planning must take into consideration the nature of its industry worldwide, the policies of its national government on international issues, its overall regional environment, and even global trade and financial issues among others.
External environmental considerations (e.g., national trade balance) and internal environment (e.g., labor–management relations in the firm) must be factored into the process of planning.
The degree to which an individual, an enterprise, a nation, or a region can produce goods and services that meet the tests of global marketplace while maintaining or increasing real income
Global Political Economy
Foreign Direct Investment, Trade, Financial Flow, and Technology Transfer.
We need more globalization that reaches the poor countries, and more successful globalization, not less. The kind of globalization that the poorest countries are feeling is brain drain. They’re not seeing the inflow of foreign investment.
The significance of foreign markets in relation to the GSPP.
Who will benefit from FDI
Lower labor cost countries will benefit most from FDI, in activities such as production, logistics and support, and sales and marketing. Infrastructure and skill-dependent investments will also expand in certain countries.
FDI risk factors
Positive trends may be counterbalanced by a number of risk factors, including oil price volatility, the rise of new protectionism impeding trade and outward FDI, regional conflicts, and increased threats from terrorism.
The largest recipients of FDI flows in each region are expected to be the most likely destinations of FDI in the future too
FDI
A foreign direct investment is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.
Transnational corporations
Are envisioned as engines of growth partly because of their role in providing capital and training, stimulating trade, and generating and transmitting technology and innovation.
Understand the strategic formulation process.
Management skills, job training and retraining, and employment enhancement, as opposed to simple employment creation, are factors to be considered in the strategic planning process.
An understanding of the human and material resource base of the recipient of FDI will add to the understanding of technology transfer and its impact on host country economic development.
Linkages between government, industry, and education in this process are vital.
Strategic planners must be able to monitor the impact of the corporation crossing borders on the host country in all aspects of human resource development
Draft objectives and strategies within a global framework.
Managers Duty
Create cultural synergy whenever and wherever feasible.
Envision transnational opportunities and enterprises.
Welcome and facilitate transitional experiences.
Prepare for new mind shifts while eliminating old mindsets.
Adapt readily to new and unusual circumstances and lifestyles.
Think beyond local perceptions, and transform stereotypes into positive views of people.
Re-create cultural assumptions, norms, and practices based on new insights and experiences.
Acquire multicultural competencies and skills, including foreign languages.
Create optimistic and doable scenarios for future.
Operate effectively in multinational/multicultural environments.
Reprogram their mental maps and constructs.
Manager Requirements
Comfortable with those from different disciplines, fields, backgrounds,
races, and genders.
Facilitators of newcomers, strangers, minorities, and immigrants to the
workplace.
Open and flexible in dealing with diversity in people.
Collaborators in joint ventures, consortia, or coalitions.
Students of worldwide human relations and values.
Planned change agents and futurists.
For global competitiveness and success, organizations of today need the multicultural manager who must possess the necessary cultural sensitivity and skills to enable their organizations to adapt to the foreign countries’ overall environment.