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Effectiveness of Strategy at Subsidiary Level - Case Study Example

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The contents of "Effectiveness of Strategy at Subsidiary Level" paper comprises the case study of ACTAVIS BULGARIA EAD Sofia’s strategy development and implementation. It is elaborated in the paper that strategy is not a simple concept; instead, it pertains to various economic, social, legal forces. …
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Effectiveness of Strategy at Subsidiary Level
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Download file to see previous pages Strategic management is the way of finding gaps in the current performance of the organization and to design, formulate and implement new steps in order to fill these gaps and to align the organizational functions with the pre-settled objectives. It is the method of aligning all the activities being undertaken in the organization such as management, marketing, research and development, and Computer information system in a prescribed way to achieve the goals of the organization.

The first step namely the strategy formulation involves the development of the business mission, evaluation of the opportunities and threats faced by the business organization in the business, by using tools such as SWOT analysis, examining the strengths and weaknesses of the business, determining the long term objectives of the business and designing the new strategies to eke in the process of achieving the new targets. It also includes the processes to determine the investment direction, the business markets to be addressed, an extension of the operations of the business, limitations faced by the business in order to undertake the business activities. Strategy formulation also helps the business in deciding the matters to be addressed on a priority basis. There is not any organization in the world that has unlimited resources. Therefore the business organizations need to evaluate which projects are important and need investment. The future of a business organization is very much affected by the strategic decision of the management of the organization. With the globalization of the economy, the concept of Multinational Enterprises is prevailing all over the world.

Firstly, while subsidiaries can benefit from knowledge flows from the rest of the MNE, they can also do so from the local partners in the host country, to enhance their level of competence and hence contribute to the overall competitive advantage of the MNE.  ...Download file to see next pagesRead More
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