Problems in any firm can be prevented beforehand if proper strategy choices are made based on many factors, at the industry and state level. Apparently, this is the foundation of a healthy climate within, which any firm can function effectively. Studies by various researchers have shown that stakeholders, such as the community, the state, and the society should be put into consideration when choosing strategies (Munoz 85).
The strategy tripod
Any business focused on the foreign market has its strategies coordinated and centralized across its targeted market. Such businesses tend to cater to customers with varied needs and tastes using one product or service. Such businesses use two strategies when dealing with foreign market entry; the multi-domestic strategy and transnational strategy. However, it should be noted that there exist cultural differences, state policy differences as well as the demand and market availability (Caroll & Kareem 98).
Multi-domestic strategies tend to gear efforts towards the market and location. On the other hand, the transnational strategy deals with efficiencies that could be likened to public relations. The advantage of making such considerations when choosing strategies is that it encourages a business in navigating external influences where forecasting of problems in the culture, politics, education, and other stakeholder influences can be addressed (Caroll & Kareem 112).
The weakness of such a system is that country operations are quite different even from neighboring countries. Adaptation adjustments may be difficult. For instance, an internet service provider company must adjust its websites as per local terms and regulations. Performance through the cycle may be affected in case of delays. Corporate Social Responsibility (CSR) is a concept that deals with business responsibility to society through activism and giving back to society (Caroll & Kareem 134). Companies and businesses benefit from a positive social environment and this enhances business. The social environment plays a substantial role in the success of the business.
A famous researcher on this subject known as Levitt analyzed this concept from another angle and warned against corporate social responsibility. One argument against this is that social problems can be dealt with by the free market, government, or legislation since managers have the sole role to maximize profits (Caroll & Kareem 148). The second issue is that managers may end up making wrong social decisions because their training is solely on financial issues. The main purpose of any business is to satisfy the customer, corporate social responsibility steers energy available in the wrong direction.
Strategic management guides the general management of any firm to its survival and success both locally and internationally. Such strategies are mandatory especially on a global scale; they help managers in the creation of advantages that help in effective relations with the customer and evading encounters that would benefit the potential and existing competitors (Munoz 124). In most cases, these strategies aim at management unless they differ in the framework.
Dealing with diversified preferences and tastes in the global market demands focus that is defined in terms of a firm’s capability and competency. Internal processes are determined by approaches taken by the company. A competent firm is able to deal with diversities in tastes and preferences. Overall, the approaches taken by a particular company are aimed at achieving customer satisfaction. The utilization of institution-based reviews on the subject can enable a business to put in place strategies in a better way (Munoz 144).
Caroll, Archie & Kareem, M. Shabana. “The Business Case for Corporate Social Responsibility: A Review of Concepts, Research, and Practice”. International Journal of Management Reviews, 3 (2010), 345-430.
Munoz, J. Mark. International Social Entrepreneurship: Pathways to Personal and Corporate Impact. New York: Business Expert Press, 2010. Print.