Strategic Formulation Of International Management

‘Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through it’

Chandler (1977) believes strategy is about using the necessary recourses so the organizations are able to carry out their long-term goals and aims. Which relates to Johnson (1987, pp. 4-5) who states, “Strategic decisions occur at many levels of managerial activity and will be concerned with the long-term direction”.

Founded in 1975, Microsoft is a “global competitor”, that is, a global corporation following a unified strategy to coordinate many national operations (Porter, 2011); is the oldest major producer of software for personal computers (PCs) and the world 's largest software company with a strong, leading market share for its core products that make up over 80% of its revenue (Moody 's, 2013).

Strategy formulation is the first part of an organization’s strategic planning process. It involves multiple steps from environmental analysis, to measuring performance, to deciding on the best course of action for an organization. Strategy formulation also takes up most of the time in the strategic planning process since it’s crucial to get the plan right before actually implementing the plan. If you fail to plan, then you plan to fail.

Strategic management is an ongoing process that develop future-oriented strategies to allow an organization to achieve company objectives, considering the capabilities and the environment in which it operates. Strategy formulation is a part of a strategic management process that comprises diagnosis, formulation and implementation. Diagnosis stage including the identification and analyzing the organization external environment, including major opportunities and threat like porter five forces analysis, SWOT, TOW MATRIK and IFE/EFE. Based on this diagnosis, Maybank Holding will involves as a team to affirm the strategic analysis, understand the implication of the future and know the necessary action to meet the objective goal of company. The strategies formulation will consists of the intellectual capacity of strategic leaders and the organization to ascertain the best strategies in the context of both the theoretical and practical realities in environment of the market.

A company will be centralized and global while information is used for advantage and power.

All top-level executives are good decision-makers; they would not be at the top if they were not.  But not all executives will make decisions in the same way.  Mr Lively’s background and culture have produced someone who makes decisions by verbalising, questioning, listening to his own ideas, and bouncing ideas off his colleagues.  Mrs Quiet comes from a culture where decision-making is internalised and the spoken word is used sparingly and chosen carefully.

Almost all business today is conducted in a global environment. Whether the business has offices throughout the world or if they order their products/supplies from other parts of the world, almost all businesses will be affected on some level by global finances and changes.

Wal-Mart’s worldwide employments presently consist of 4,263 stores and 660,000 employees in fifteen nations externally the United States. There are completely controlled stores in Argentina, Brazil, Canada, and the UK. With two.one million workers globally, the business is the gigantic independent entrepreneur in the US and Mexico, and 1 of the gigantic in Canada. In the monetary span in 2010, Wal-Mart’s worldwide departmentalizing commerce were $one hundred billion, or 24.7% of overall marketing.

Strategy can be defined as a guide through whom organizations progress from the current state of affairs to a future desired state. Strategy is most importantly an effective tool used to forecast the future of a good organization rooted in long range plans. It makes a strong argument for an organization to effectively position itself within its constrain and environments, thereby maximizing its potential for flowing with the environmental changes. This makes it possible to adjust accordingly as circumstances in the environment change. Swayne, Duncan and Ginter (2008) simply affirm that it is a road map that defines an organization’s direction and how to get where it is intended

Strategy can be defined in various way by different experts in several field of studies. As stated by Grant and Jordan (2003), strategy is an instrument that allow person or operations to achieve their goals. Moreover, Mintzberg (1978, p. 935) defined that as “a pattern in a stream of decision”. Although it has a several meaning, the key concept of strategy which define by several experts shared the same point of view as tools whereby the firm or person used to fulfill their purposes.

With a fast economic development and an increasingly competitive marketing, it has demonstrated that a successful company has to performance effective strategies through the whole operation for its survival and development. As known to all, a strategy is a overall view, referring to the plans and actions a enterprise selects to achieve its goals, including “some planned and systematic consideration of how to remain or become successful in that business”, some “internal factors” and “external factors” (textbook, ). Additionally, Strategic management regards as how to formulate, implement and evaluate strategies through a series of managerial activities, strengthening an organisation’s core competences, (MGM foundation). In a company, it is usually considered as the key engine of how and where it should invest its resources.

The term ‘strategy’ is widely used in the business environment. A strategy is used to decide and achieve business objectives. The rapport between a firm’s strategy and its overall performance is the key focus in strategic management. Kay (2000) believes that nowadays it is impossible to plan and predict the future, he argues that strategy has become the influencing of a firms market positioning. A myriad of models to analyse strategic choices have been described by scholars (Hambrick & Fredrickson, 1996).In the early 1980s, Michael Porter’s presented his model of generic strategies. Since then, it has been one of the most used methods due to its high efficiency (Obasi, et al., 2006) and thus it is seen as the dominant paradigm of strategic implementation (Hendry, 1990).

The three major segments which are operated by the Walmart primarily are Sam 's Club, Walmart U.S and a distinct division for Internationalisation that is Walmart International. There is also a great expansion of the company business through e-commerce (Walmart, n.d. B). Today the Company is operating with three extensive product categories units internationally: Wholesale stores, Retail centres and others. These categories are composed of numerous format including discount stores, retail websites, supermarkets, hypermarkets, apparel stores and restaurants (Walmart, n.d. C).

Fonterra is a global leader in the dairy industry that supplies ingredients to the world’s leading food company. It consists of three business segments. Firstly, ingredients business segment that collects and processes New Zealand milk and deliver high-quality ingredients. Next, the consumer and foodservice segment which focuses on branded dairy products and supply to bakeries and restaurants. Lastly, international farming segment that represents farming operations in China (Fonterra, 2014).