The topic I want to write about is based on an article which is titled the determinants and benefits of global strategic marketing planning formality. Global strategic marketing planning formality is a process by which businesses and their subsidiaries derive the best decisions and methods so as to compete in the market it serves in. According to Herter (1995) he proclaimed that in the global world regardless of the size, every business needs a comprehensive plan which is the first step in order to achieve success therefore a business without proper management style and planning processes will result to out dated management. In the global world planning and strategic marketing has become very important which has initiated competition and environmental changes in international marketing. This research article is important due to the fusion and clarification of strategic management and planning processes which has helped in aiding global strategic marketing and planning formality. With the response gotten from 90 multinational corporations it has been stated that the determinants which affect planning formality are categorized into two which are the internal and external factors. The internal factors are comprised of organizational climate, CEO’s involvement and the firm size while the external factors are comprised of environmental uncertainty and environmental complexity. Companies which have indulged in global activities face a lot of global obstacles, companies faced obstacles during the 1960s to 1980s (McDonald, 1990, 1992; and Jessup and Kukalis, 1990). Organizations which were interested in international planning were faced with the problem of formulating not only clear planning procedures but also have to carefully examine and take records of foreign or distant market environments so as to acquire the commitment and involvement of the major stakeholders which will be affected by the planning process (Pearce et al., 1987, p. 658). Although there is an increase in global competition, the formulation of the planning processes has been seen to be under attack due to managers which are confused by the planning procedures there by generating aimless strategies (Campbell & Alexander, 1997). Managers sometimes tend to make mistakes in estimating environmental uncertainty and have been criticized that their planning methods are not strategic enough and do not convey any information of being democratic in their usefulness and creativeness to the organization (Hamel, 1996; Mintzberg, 1994; Wall and Wall, 1995). The model of how strategic marketing planning formality can be seen below
The determinants and benefits of global strategic marketing planning formality were written by Myung-Su Chae and John S. Hill in the year 2000. This article explains the internal and external factors which influence the global strategic marketing planning formality and also the benefits of global planning formality (organizational and competition benefit). The internal factors are made up of CEO’s involvement, organizational climate and lastly firm size while the external factors are made up of environmental complexities and environmental uncertainty. This article talks about how it has inspired top managers to be more advanced in global planning systems. This study talks about the factors which can boost the reinforcement of global strategic marketing planning systems, such as cooperation and positive administration which is one of the major factors in supporting a global strategic marketing planning process. This study also confirms the importance of industry competition, suppliers and also the government in terms of regulating corporate planning schemes (environmental complexity). The other factors talk about the association between planning formality and organizational climate and competition which is a crucial element in order to derive positive benefits for the organization be it internally or...
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