Question

What strategic management challenges are faced by international businesses that have business units scattered around the world? How can a business strategy help improve a firm's ability to compete?

Answer 1

Different countries have different markets and consumers are habituated to their own social rules and requirements. An international business needs to operate in this environment and adjust to various market conditions. They need to change their strategies in various countries and one strategy might not work in other country. Some countries might raise problems on the ways they implement strategies while some countries might accept them. These challenges must be faced by these companies and they must be prepared to alter their strategies according to the country . Business strategies have much importance in the operation of a firm because they decide on the success or failure of the firm. They help a firm have it's own mark on the product or service and also helps in effective utilisation of resources. Hence these strategies help in improving a firm's ability to compete with other firms and succeed in establishing themselves.