Planning and preparation of strategies for an organisation become very crucial as those, at times, determine the fate of the organisation.
Globalisation is the modern approach of business. Many organisations operate their business globally providing it with huge market to operate. In the present context, the strategies of an organisation are quite developed which mostly deal with the overall development of the business enterprise, generally focusing on the growth of the organisation, nationally and internationally. Strategies can be referred to the set of plans which are prepared and developed by the higher level of management of the organisation. This paper involves with the reasons behind the preparation and usage of strategies by the organisation. It also includes the means of strategies used by the organisations for their international operations (John & Gillies, 1996).
Reasons behind the International Businesses Usage of Strategies
Strategies are prepared by an organisation with an intention to deal with any unfavoured consequences, if occurred, in future context and so to grow the business in both future and present context. A well planned strategy helps to organise and to allocate the available resources of an organisation into a distinct and feasible position focusing on the internal competencies and drawbacks. Strategies prepared by the organisation are expected to anticipate changes in the environment and the moves taken by intelligent competitors (John & Gillies, 1996).
Strategies are prepared by the organisations with various intentions. Quite a few strategies are prepared by the organisations which operate its business nationally and internationally. Strategies once prepared help an organisation to achieve a clear sense of direction for the business which also helps the organisation to take a forward view and establish a clear set of objectives and goals. Strategies prepared by the management have proved to be helpful for the better functioning of the business as they provide important integrating and co-ordinating function for the companies operating largely in context of economy. Strategies are prepared by the internationally functioning organisation to ascertain the marketing trends and to help the organisation by supporting it with sustainable growth. Strategies help the organisation through this role of co-ordination to minimize intra-organisational conflict including tensions in headquarters and relationships among subsidiaries. The higher level managers of organisation prepare strategies as it serves as a guide to action, providing a framework for the companies functioning and operating their business worldwide to take operational and administrative decisions. The strategies encourage the corporate performance by maximising strengths and opportunities, minimizing weaknesses and treats. Strategies enable an organisation to respond successfully to the uncertainty, complexity and competitiveness of the international business environment encountered by firms of increasing global scope (Mintzberg, 2003). Preparation of the strategies is done by the management with great attention. There are various required fields where