International Strategies
5 important questions on International Strategies
What is an International Strategy?
· The marketplace
· People
· Finances.
The importance of International Strategies:
Potential advantages and drawbacks of being International:
· Way to learn more about a particular market or world region.
· Strategically locate for tax benefits and regulations.
· Potentially lower operational costs.
· Way to supplement or strengthen domestic growth.
· Can lead to achieving benefits of economies of scale.
· Become a stronger competitor, both domestically and internationally.
· Protectionism (especially during continued high unemployment and economic malaise).
· Disruptions in supply times/supply chains.
· Quality issues.
· Differences in language, culture, and value systems.
· Ethnic, religious, and cultural tensions.
· Disruptive changes such as terrorist attacks, natural disasters, disease outbreaks.
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Inflation and Tax Policies:
o The rising cost for products and services.
o This affects interest rates, exchange rates, cost of living, and confidence in a country’s systems.
o Strategic managers must monitor inflation rates to anticipate changes in monetary policy and make good decisions.
· Diverse Tax Policies:
o Can be restrictive or not, will determine tax obligations.
International companies must address implementation issues that concern various aspects of its functional and competitive strategies:
· Marketing
· Human resources
· Information systems and financial-accounting systems.
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