Definition:

International Strategic Management or strategic management is defined as

The set of decisions and actions resulting in formulation and implementation of

strategies designed to achieve the objectives of an organization

Nature of Strategic Management :

A) Determining the mission of the company including the broad statements about
its purpose philosophy and goals

B) Strategic choice of a particular set of long term objectives and grand strategies
Needed to achieve the desired option

C) Development of a Company profile that reflects company’s capabilities

D) Keep a balance on long term and short term objectives

E) Implementing a strategic choice decisions based on budgeted resource

allocations

F) Emphasizing the matching of tasks, people, structures, technologies and

reward system

Concept;
International Strategic Management is to deal effectively with all the ability of a
company to grow profitability

Executives design strategic management process to facilitate the optimal

positioning of their company ;

International Strategies include

Product adaptability

Long range plans ( Internal, External)

New Venture Management

Managerial forecasting

International Strategies can be designed on these

categories
Financial Strategies :

Currency trading, Contractual hedging

Marketing Strategies :

Like ( Product promotion)

Human resource Strategies :

Staffing, Positioning

Levels of International Strategic Management

Corporate Level

Business Level

Functional Level

Corprorate Level

3 to 5 year plan
Financial impetus
Non Financial performance, example social image

Business Level

Managers at all levels have to perform effectively

Working towards larger market share through various means

Functional level
 Team leaders
Geographic and cultural area analysis
Short term strategies on all functional levels

Cite Example :

Structures of Alternative management Structures :

1. Single business firms

CORPORATE HEAD STRATEGY Corporate Level

A Research and development strategies

B Financial Accounting strategies
C Marketing Strategies Functional Lev
D Human Relations Strategies

2. Multiple Business Firms:

CORPORATE STRATEGY Corporate lev

Business1, Business2, Business3 Business Lev

Research and Dev strategies

Financial strategies

Marketing Strategies

Human Relations Strategies

EXAMPLES OF STRATEGY IN ACTION

Example 1

WENDY SUPER MARKET HAS A PURCHASING POLICY TO GIVE LOCAL

STORE MANAGERS THE AUTHORITY TO BUY FRESH MEAT PRODUCED
LOCALLY RATHER THAN FROM REGIONALLY DESIGNATED AREAS

WHAT IS THEIR BUSINESS STRATEGY ?

Wendy supports a functional strategy of having fresh unfrozen food

HOLIDAY INNS HAS A PERSONNEL POLICY THAT EVERY NEW

INNKEEPER WILL ATTEND A UNIVERSITY WORK SHOP FOR 3 WEEKS ,
WITHIN ONE YEAR OF BEING HIRED

BUSINESS STRATEGY?

Holiday inn supports a high level of human resource strategy of strict compliance
with specific standards by ensuring standardized training

FIRST NATIONAL BANK OF SOUTH CAROLINA HAS AN OPERATING

POLICY THAT REQUIRES ANNUAL RENEWAL OF FINANCIAL
STATEMENTS OF ALL PERSONAL BORROWERS

STRATEGY?

This policy supports banks financial strategy which seeks to maintain a loan loss ratio
below the industry norm