Business Policy And Strategy Instructions For Capstone Proje
Business Policy And Strategyinstructions For Capstone Project Part 3no
Business Policy and Strategy Instructions for Capstone Project Part 3 Now that you have conducted a cultural review along with developing some marketing strategies for entry into the country, it is time to begin the third part of the project, which continues from Project Part 2. Using the same company of choice that is proposing an expansion opportunity oversea, conduct a strategic audit on the following areas: Internal environment External environment Strengths Problem analysis Recommendations and implementation costs Evaluation and Control Processes Submit a two- to-three-page Word document using 12-pt. font and APA format. In your paper include a title sheet and 2-3 references. Only one reference may be found on the internet. Only the body of the paper will count toward the word requirement.
Paper For Above instruction
Introduction
Expanding a business into a foreign country involves numerous strategic considerations. Building upon the cultural review and marketing strategies previously developed, this paper conducts a comprehensive strategic audit of a chosen company's overseas expansion plan. The audit encompasses internal and external environment analyses, identification of strengths, problem analysis, recommendations with an emphasis on implementation costs, and evaluation and control processes. This review aims to provide a structured approach to ensure strategic alignment and effective management during international expansion.
Internal Environment Analysis
An in-depth understanding of a company's internal environment is vital for successful international expansion. This includes assessment of resources, capabilities, organizational structure, leadership, corporate culture, and operational efficiencies. According to David (2017), a firm’s internal environment comprises tangible and intangible resources that provide a competitive advantage. For example, existing brand reputation, technological infrastructure, human capital, financial strength, and management expertise are critical components. Analyzing these factors highlights areas of strength that can be leveraged and weaknesses that require mitigation, such as operational inefficiencies or gaps in market-specific knowledge.
External Environment Analysis
Assessment of the external environment involves examining factors that influence the company's ability to operate successfully abroad. This includes industry dynamics, economic conditions, cultural influences, legal and regulatory frameworks, and technological trends. Tools such as PESTEL analysis (Political, Economic, Social, Technological, Environmental, and Legal factors) are essential for understanding external opportunities and threats (Yüksel, 2012). For instance, political stability and trade policies significantly impact market entry strategies. Recognizing external risks and opportunities enables informed decision-making and strategic agility.
Strengths
Identifying core strengths positioned the company for competitive advantage overseas. These may include proprietary technology, strong brand equity, established distribution channels, or innovative products. For example, a company's global R&D capabilities or sustainable supply chain practices can differentiate it in a new market. Strengths such as financial robustness enable investment in marketing and infrastructure needed for successful entry, while operational flexibility supports adaptation to local market demands.
Problem Analysis
In an international context, common problems include cultural misunderstandings, regulatory barriers, supply chain disruptions, and local competition. These issues can hinder market penetration or operational efficiency. Utilizing SWOT analysis helps pinpoint specific challenges; for example, regulatory compliance costs or local consumer preferences misalignment. Addressing these problems proactively is essential for minimizing risks and ensuring smooth entry.
Recommendations and Implementation Costs
Effective strategies should be tailored to mitigate identified problems and capitalize on opportunities. Recommendations may include forming strategic alliances, local partnerships, customization of products/services, or investment in cultural training. Implementing these strategies involves costs—financial, human resource, and time investments—that need careful planning. For example, establishing a local office or hiring cultural consultants incurs expenses but can facilitate better market adaptation.
Evaluation and Control Processes
To measure the effectiveness of the implemented strategies, establishing evaluation and control mechanisms is crucial. Key performance indicators (KPIs) such as sales growth, market share, customer satisfaction, and return on investment should be regularly monitored. Feedback loops and adaptive strategies enable continuous improvement. Using balanced scorecards and regular review meetings can ensure alignment with overall strategic objectives and timely course corrections.
Conclusion
A strategic audit presents a comprehensive view of a company's readiness and potential challenges in international expansion. By analyzing internal strengths and weaknesses, external opportunities and threats, and developing targeted recommendations with clear implementation costs, companies can optimize their global entry strategies. Continuous evaluation and control enhance the likelihood of sustained competitive advantage and long-term success in foreign markets.
References
David, F. R. (2017). Strategic management: Concepts and cases. Pearson.
Yüksel, I. (2012). Development of a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52-66.
Johnson, G., Scholes, K., & Whittington, R. (2017). Exploring corporate strategy. Pearson Education.
Porter, M. E. (1985). Competitive advantage. Free Press.
Hill, C. W., & Jones, G. R. (2012). Strategic management: An integrated approach. Cengage Learning.
Grant, R. M. (2019). Contemporary strategy analysis. Wiley.
Barney, J. B. (2019). Gaining and sustaining competitive advantage. Pearson.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson.
Rothaermel, F. T. (2019). Strategic management. McGraw-Hill Education.