In order to do a strategic management plan, management must understand what it is that the surrounding environment needs in order for a company to succeed in another country. This is done by environmental scanning. Environmental scanning is as it sounds, scanning the environment for trends, events, and relationships with an organizations external environment (Choo, 2001). By doing environmental scanning, managers can see the trends that are going on in a particular place. It helps the managers to determine what changes need to be made to a business in order to keep the business successful. Trends and events can be tracked by the local newspapers and magazines in the target area. This allows the managers to see what the area is looking for and how the business needs to adjust to those needs.
Political stability and the economy are important conditions the managers need to look into. Understanding where the local economy is can help determine whether that particular country would be a good place to continue the growth of a company. Political stability is important because if there are wars going on in that particular country, you do not want your business and your employees in the middle of that. Culture and demographic culture are important because management needs to understand who is working in the local work force such as women or men and which minorities are trending in that particular region.
A company’s competitors can sometimes be what makes or breaks a company. Understanding the local competitors is necessary. We need to know why that particular competitor is thriving in that region. We also need to find out what we can give the local communities that our competitors are not giving the community. This can mean success or failing to our competitors.
Germany’s economy is 1.8 points better than last year (Germany, 2013). Even with Europe’s debt crisis, Germany has done better than expected. They hold firm public finance and they...