Strategy Composition
A strategic framework is an essential pathway for the global expansion of a business, given the complexities associated with cross border investments. In most organizations, the strategic framework encompasses a balanced scorecard maximizes and other strategies. The following essay describes the four aspects of a balanced scorecard and describes what they would mean to John and Deborah’s corporation and describes other strategies that would be used in the organization’s expansion. It also explains the importance of using different approaches to global development.
A balanced scorecard views an organization four aspects, and all have meaning to John and Deborah’s corporation. The four elements include the learning and growth perspective, the customer perspective, the business process perspective, and the financial perspective (Dinçer, 2017). The learning and growth perspective focuses on the capabilities of incentive purposes by evaluating employee performance, employee retention, employee productivity, and employee satisfaction. This perspective means that our corporation needs to reward its employee for enhancing employee retention, productivity, and comfort. The customer perspective establishes the customer and market segments in which an organization will compete and evaluates performance outcomes in the target market (Quesado, Guzmán & Rodrigues, 2018). Therefore, it implies that our organization needs to determine its: market share in the global market, new customer acquisition, and customer retention. The business process perspective identifies critical internal operations in which the company must excel to ensure organizations’ processes achieve consistent levels of service and product quality. This perspective means that our organization will have to deliver a value proposition that attracts and retains customers in the global market. The finical performance measures return on investment and net income for analysis and comparing companies meaning our company has to track a score of how well it will be doing in creating wealth in the global market.
In addition to the balanced scorecard, other strategies that would be part of the company’s strategic framework towards global expansion would include partnerships and expanded product lines. Before starting the global expansion initiatives, John and Deborah’s corporation will ensure that it prepares itself by partnering with the best companies. The partners are essential in recognizing warning signs and potential risks to avoid pain points during and after the expansion (Strandenaes, 2019). Examples of these partners will include consultants to guide the process of development as well as local attorneys who will protect the expansion. Increasing our product offering will expand our business globally because it will allow our company to penetrate a new market segment globally. For instance, the company can introduce items such as table mats and throw pillows. As a result, customers who have not tried our furniture products might be enticed to buy the pillows and the mats from us if we offer them in their locations. Once they buy the new products, we will then try to convert these new customers into buyers of our core furniture products.
It is vital to combine different strategies when pursuing global expansion because it ensures success. First, combining several strategies generates multiple sources for seizing opportunities for development, given that each approach offers its unique benefits to the mix (Kral, 2016). For example, while partnerships would identify risks, increasing the product lines would establish a new market. As a result, a business can leverage its expansion opportunities because the strategies would be complementing each other. Second, combining several strategies ensures overall success because if one plan fails, then the other would still provide the expansion. If a business has only one method, and it happens that the strategy fails, then the entire expansion process would suffer. With such, having several strategies is more efficient than relying on one approach.
References
Dinçer, H. (2017). Evaluation of brand equity using the balanced scorecard: Evidence from privatized Turkish firms. doi: 10.15405/epsbs.2017.12.02.6
Kral, I. (2016). From the local to the global. Beyond Economic Interests, 61–76. doi: 10.1007/978-94-6300-444-2_4
Quesado, P., Guzmán, B. A., & Rodrigues, L. L. (2018). Advantages and contributions in the balanced scorecard implementation. Intangible Capital, 14(1), 186. doi: 10.3926/ic.1110
Strandenaes, J.-G. (2019). Multi-stakeholder partnerships. Stakeholder Democracy, 164–193. doi: 10.4324/9781351174428-8