Global strategy planning starts with a multi-functional team led by the executive with the most experience in global or regional markets. Team members should include managers from marketing, production, finance, distribution, and procurement. Their first task involves working to understand the success factors that are common to the company’s various markets. Identify the profitability and competitive drivers by analyzing the structure of the global industry. Add the common features of customer requirements and choice factors. Avoid planning global strategy on a country-by-country basis – it can result in spotty performance. Success tends to come from a portfolio-based planning process that focuses simultaneously across a broad range of markets to help balance risks, resource requirements, competitive economies of scale, and profitability.
Every company gets a reality check when it examines its resources for global expansion. While industrial giants with deep pockets might be able to establish a presence wherever they want, others with shallow pockets will have fewer options. And money is not the only issue – a survey of multinational corporations revealed that people with certain types of knowledge or skills were particularly difficult to find. The shortage is even worse when looking for people with cross-cultural experience to run regional operations.