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

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 strategic planning to determine where they are going over the next year or more, how their going to get there and how will they know if they are there.

There are three steps that an organisation must consider and go through to carry out an effective strategic plan, these are:

• Strategic formulation
• Strategic implementation
• Strategic control and evaluation

Strategy Formulation

For a multinational organisation, strategy formulation identifies environmental and internal strengths to establish its goals and the strategic plan that will lead to the achievement of those goals.

In strategy formulation managers develop, refine and agree on which markets to enter (or exit) and how best to compete in each. The diagram below shows us the stages managers go through to develop new strategic plans for their firms.

Steps in Strategy formulation

Strategic Formulation – Mission Statement

A mission statement defines an organisation by answering the following questions:

1. WHO are we?
2. WHAT do we do?
3. WHERE are we headed?

Mission statements may change depending on length and content. They might explain company philosophy, promote ethical policy, celebrate successes and most importantly discuss strategic goals. They project the corporate image to a...