‘All Multinationals That Conduct Strategic Planning Go Through a Three-Step Process: Formulation, Implementation and Control’

2298 WordsNov 11, 200810 Pages
Introduction This essay will discuss how Multinational enterprises (MNE) use strategic planning to achieve strategic goals. Its will also discuss and explain each stage of the strategic planning process which allows multinational to carry out a successful and useful plan. The three main stages, which are formulation, implementation and control, will be discussed in detail on how it is used by multinationals. ‘All multinationals that conduct strategic planning go through a three-step process: formulation, implementation and control’ (Rugman & Collinson 2006:225). Discuss. Every organisation that plans to expand and grow worldwide would need to carry out…show more content…
These weaknesses can be: • Poor labour relations • Lack of skilled international managers • Poor distribution networks The Value Chain A useful technique that most multinational organisations use to asses their strengths and weaknesses is the Value Chain, which was developed by Harvard Business School Professor Michael Porter. The value chain is a breakdown of activities within a MNE’s important activities – production, marketing, human resources management. PORTER’S GENERIC VALUE CHAIN M A R G I N The primary chain activities are: • Inbound logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. • Operations: the processes of transforming inputs into finished products and services. • Outbound Logistics: the warehousing and distributing of finished goods. • Marketing & sales: the identification of customer needs and the generation of sales. • Service: the support of customers after the products and services are sold to them. These primary activities are supported by:

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