Question

Question 1: What are the critical ways strategy adaptation strategy are different from each other when preparing of international business strategy, and which linked to company's performance? Give examples to support your answer. Part two Answer question 2 OR 3 (10 marks x 1) Question 2: Explain the different international staffing strategies. And suggest appropriate staffing strategy will be better to apply for foreign international companies working UAE, and explain why, support your answer with suitable examples. OR Question 3: The strategic planning process for international business requires different types of market and competitive analysis, discuss why the assessment of the market and competitive are critical as early as possible in developing an international strategic plan.

Answer 1

Ans to Q 1. There are many approaches or strategies for strategy adaptation:

1) Risk based policy adoption

2) Delay and buying time

3) Monitoring

4) Research

5) Increasing awareness level through information dissemination and education

6) Diversification

7) Contingency Planning

8) Insurance

9) Defend and manage

Critical ways in which strategy adaptation strategies are different when adapting for international business strategy and specifically when linked to company's performance are :

1) When the international business environment is challenging like China, it is better to go for Research, Monitoring and even delay strategy

2) If the international business environment is easier with less complexity companies can go for diversification strategy coupled with research

3) In case of an environment where policy changes are frequent and domestic laws are not really aligned to international conventions, then some contingency planning and insurance needs need to be built into the strategy

Ans to Q 3. It is extremely critical to carry out the market assessment as well as the competitive analysis at the initial stages of developing the international strategic plan for multiple reasons:

1) It will be self-defeating to enter a market / country where the rules don't allow the operations of the companies products for example a liquor company planning to enter a country or a specific state of the country where the liquor is banned or the court of the land is expected to pass a ruling.

2) Similarly it will be unwise to enter a market with luxury cars brand if the terrain/conditions of the roadways of the country don't really allow sophisticated cars to sell. The company would be well placed to actually work on a diversification strategy of manufacturing cars suited for the conditions of the country in which the company is planning to enter.

3) In the same lines, it is critical for the company to assess its competitors in the given country to come out with compelling propositions which will encourage customers to try the new products, The company should thoroughly assess the Strengths, Weakness,  Opportunities and Threats (SWOT) and carry out PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis as a part of their strategic planning.Another example could be a country planning to move to only electrical vehicles then it makes less sense to setup an R&D center in the country for diesel or petrol vehicles.