Strategic Planning In Sme's
...7
2.1 Why companies go global 7
2.1.1 Clustering 8
2.2 SME Approaches to Internationalisation 9
2.2.1 Imports/Exports: 10
2.2.2 Foreign Direct Investment: 10
2.2.3 Strategic Alliances/Joint Ventures: 10
2.3 Market Entry 11
2.4 Exporting 11
2.5 Licensing 12
3.0 Background Theory 12
3.1 What is Planning and why is it important 12
3.2 Long Term Planning 13
3.3 5 P’s of strategy (Mintzberg and Quinn, 1996) 14
3.4 Internationalisation Theory 15
3.5 Stages of Internationalisation and SMEs 15
4.0 Internationalisation Risks and Challenges 16
4.1 Barriers to exporting 18
5.0 Managerial significance of Strategic Planning 19
5.1 Recommendations 20
References: 21
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1.0 Introduction:
Many organisations attempt to diversify when their flagship product has reached the maturity point in its current market life cycle (Levitt, 1965). In order to ensure the long run sustainability of the firm, they must try to diversify or develop new products. According to Ansoff (1957), a firm has four options; market penetration, new product development, market development or diversification. For the purpose of this study we will be focusing on market development in relation to small to medium sized enterprises.
This study will analyse the importance of strategic planning in the success of the process of internationalization. Internationalisation can play a very important role in determining firm’s long-term success, and the scale of...
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