Identifies strength/weakness/opportunity/threat//take benefit out of it
It helps in coping with highly complex environment.
It offers a way of thinking /way of discipline/technique to manage.
Give dual approach to problem solving.
(a) Most effective way to deal with problem.
(b) Deployment of recourse.
It combine domestic operation with international operation.
Provide right direction.
Give broad frame work.
Focus on change in organization set up.
Focus on administration.
Helps in development of effective leadership.
Helps in structure formulation.
Helps in motivation/control/relation ship making.
SIGNIFICANCE OF INTERNATIONAL STRATEGIC PLANING
Helps in decision making.
Helps in giving direction to organization.
Provide channel for information flow.
Gives guidelines about implementation.
Helps in resource planning.
Helps in co-ordination.
Helps in foreign exchange management.
Helps in creating good atmosphere.
Helps in perceiving global opportunity.
Monitoring growth opportunity.
Helps in expansion/exploitation of resource/
Helps in choosing product line.
Helps in choosing technology. Helps in latest technology/manpower selection. Helps in finding market trends. Helps in re-examination of product / market competition. Makes outward looking. Helps in optimum use of resource. Helps in handling environmental forces. Helps in survival/growth/adaptation of new technology. Helps in innovation. Helps in exploitation of new product market. Helps in objective setting. Help in co-ordination.
PROBLEMS IN INTERNATIONAL STRATEGIC PLANING SUYSTEM
More complex environment / highly volatile
Highly uncertain environment
Whole planning is done on future basis but if future doe’s not happen than whole planning oils
Frequent currency exchange rate change
Turbulent political environment
Uncertainty in supply of raw MTRL.
Non availability of information
More complicated problem in medium term plan:- Finance/ Hr / operation / Marketing Purchase.
Exchange rate risk
Profit repatriation problem High competition Product life cycle Limited time period of contract / joint venture Logistics problem Inventory kept high Pressure of union Pressure of govt Pressure of consumer Restriction on business Protectionism of home country.