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STRATEGIC MANAGEMENT REQUIREMENTS

16 November, 2015 - 12:43

The strategic management requirements of an MNC call for a global information system that allows managers to chart the company's long-range plans. Again, as discussed in Chapter 3, the basic task is to relate the firm's strengths and weaknesses (X) to the environment's constraints, threats, and opportunities (Y) and set the organization's objectives and goals (Z). These goals fall into four categories:

(1) Rationalization/restructuring of existing activities

(2) Internal growth options

(3) External growth options

(4) Strategic alliances

To summarize: Designing a global information system involves identifying the informational needs of the MNC and then devising an appropriate system for creating, organizing, and disseminating this information. An effective global information system brings together all the information required for both strategic and tactical management. After the firm's external business environment has been assessed via the EXGLOBIS, the output of the EXGLOBIS becomes the input to the INGLOBIS. The INGLOBIS focuses on the MNC's internal requirements, continuously monitoring and evaluating the MNC's progress toward its goals.