Chapter Seven
A Practical Framework for SME International Business Strategy Success

In preparing for battle, I’ve always found that plans are useless, but planning is indispensable.

General Dwight D. Eisenhower (1890-1969).
Army general, statesman, 34th President of the United States.

Business Context

The practical framework I present in this chapter is a logical, structured, and systematic approach to designing and implementing successful domestic and international business strategies. It outlines the information requirements required to maximise the framework’s inherent value in translating the strategic requirements of the ‘intelligent company’ into operational strategic ‘go-to-market’ plans.

The framework provides the knowledge fulcrum between, on the one hand, the insights gained regarding the harshness of the twin forces of competition and strategy (see Chapters One through Six) and, on the other hand, a realistic assessment of the organisational challenges that face companies when executing domestic and international business strategies alongside ways of addressing them (see Chapter Eight).

Most textbooks on global business strategy identify four broad categories of strategic management decision-making for international markets:

      1. Why enter international markets, and when? These decisions will be based on market opportunity assessment, company motivations, and company capabilities.
      2. Where to compete? Related decisions in this category are as follows: Which geographical markets, how many, and which segments within the selected geographical market(s)?
      3. How to serve the selected geographic markets market(s), also known as market entry mode?
      4. Which action plans? This chapter’s principal focus, as reflected in the ‘Indicative Content’ section that follows, relates to the Operational Go-to-Market Plan, i.e. it is focused on specific actions and activities designed to lead to the success its title indicates is achievable.

The Practical Framework for Business Strategy Success has been derived from many models available in the literature and refined over time through usage within organisations from multiple sectors and of all sizes. The overriding theme of this chapter relates to the intricate relationship between management theory and business practice.

Indicative Content

    • Analyse market contexts: mature and emerging (aligns with Chapter Two).
    • Select high-potential market opportunities using the following iterative process:
      1. Undertake preliminary country research: reject the country at this time or progress to the next step.
      2. Undertake detailed market(s) research: reject the country at this time or progress to the next step.
      3. Undertake detailed company capabilities assessment (aligns with Chapter Eight): reject the country at this time or progress to the next step.
      4. Make market entry decisions based on the ranked shortlist: use management judgement and experience.
      5. Do it again!
    • Determine the market entry mode, and select from:
      #  Simple exporting.
      #  Exporting using foreign intermediaries.
      #  Establishing a local market presence, e.g. in-country sales and marketing office; local assembly; local
      manufacturing.
      #  Identifying ‘network solutions’: licensing; franchising; strategic alliances; international joint ventures.
      #  Identify suitable acquisitions.
    • Determine the required financial resources.
    • Identify the necessary value proposition and communications adaptations.

The following chapter elements provide the background to its principal focus: creating the ‘Go-to-Market’ operational plan.

      1. Assess and determine strategic objectives.
      2. Determine strategic focus: insights for profitable growth.
      3. Profile customer targets.
      4. Profile competitor targets.
      5. Produce differential advantage profiles.
      6. Create a strategic marketing mix per target market segment.
      7. Boring but important! Scheduling, planning and task allocation.
      8. Organisational imperatives for the operational Go-to-Market plan.
      9. Evaluation of performance against objectives: variance analysis and action plans.

Learning Outcomes

After studying this chapter, readers will:

    • Understand that the complexity of global & domestic business strategy can be modelled in a relatively simple and extremely practical framework to compartmentalise its various elements.
    • Have the capability to apply standard processes to multiple and diverse country markets (aligns with Chapter Two).
    • Have the confidence to propose internal marketing plans (aligns with Chapter Eight).
    • Apply strategic planning principles using proven practical frameworks, methodologies, processes and tools.

 

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All content © Colin Edward Egan, 2024