ABSTRACT
Strategic planning process in multinational corporations (MNCs) is the process of determining an organization’s basic mission and long-term objectives of MNCs and then implementing a plan of action for attaining these goals. Many MNCs are convinced that strategic planning is critical to their success, and researchers are finding that these efforts are being conducted both at the home office and in the subsidiaries. Environmental scanning provides management with accurate forecasts of trends related to external changes in geographic areas where the firm is currently doing business and/or is considering setting up operations. Although marketing usually dominates strategy implementation, the production function also plays a role. Financial function strategy is normally developed at the home office and carried out by the overseas affiliate or branch. The organizational designs of many international operations are often similar to those used domestically. Many firms make their initial entry into international markets by setting up a subsidiary by exporting locally produced goods.
