Problems in International Planning

8/3/2019 Problems in International Planning

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Efforts by-:Natasha SinghMohd Rizwan

Atif HusainRavi Sharma


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Currency exchange rates Currency fluctuations can be critical in

international business. Changes in currency canmean changes in your costs and expenses, yoursales, and even the value of your assets andliabilities.

The problem with currency fluctuations, however,is a classic problem of guessing the future. Likeprices in the stock market, currency exchange ratesare a guessing game. Guess right, and you makemoney. Guess wrong, and you lose


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Taxation and accounting environment some international business plans must also deal with

different tax and accounting practices. Still, thebusiness plan for a U.S. company has to remain in

dollars, and taxes paid outside the U.S. serve as a creditagainst U.S. taxes. For example, the value-added tax(VAT) is a major factor in most European markets, aswell as Mexico and Japan. It is very significant for

accounting and calculating tax burdens.


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Translation factors and timing of

translation the timing of your transactions can change your

business. For example, if you are importing goods fromMexico, at what point do you translate their foreign-

currency costs into dollars? Your accountant should beable to help you decide when and at what exchangerate to transfer your values to and from dollars. Thetiming can make a difference to profitability.


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Market factorsWhen doing business in multiple countries, you

also have to deal with multiple markets and

market trends. This makes your business planpreparation harder, even if it doesnt change themechanics of business planning. If you are sellingin Europe, you need to know about your European

customers. If you are buying in Central America,you need to know about market factors that couldbe affecting your costs.


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Planning studies International Planning Studies (IPS) addresses these issues by

publishing quality research in a variety of specific fields and from arange of theoretical and normative perspectives, which helps improveunderstanding of the actual and potential role of planning andplanners in this context.

Specific policy areas covered include: urban design economic development environmental policy spatial planning housing transport social inclusion.


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Phases in the planning The major phases of planning for a multinational

firm operating in several countries are: The first step in the planning process is the market

opportunity analysis. This may represent a majoractivity for a company that is entering a foreignmarket for the first time. Because of the risks anduncertainties in international markets, the marketassessment is very important for both new marketentrants and experienced firms. Phase 1determines which targets to pursue andestablishes relative priorities for resourceallocation.


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Cont Phase 2 fits the positioning strategy 10 each target

market. The objective is to match the "mix

requirements to the needs identified and thepositioning concept management selects.

Phase 3 consists of the preparation of. Themarketing plan. Included are the situation

assessment, objectives, strategy and tactics,budgets and forecasts, and action programs.


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Cont Finally in Phase 4, the plan is implemented and

managed. Results are evaluated and strategies adjustedwhen necessary to improve results. Although theplanning process is similar to planning domesticmarketing strategies, the environment is far morecomplex and uncertain in international markets!


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Documents

Problems in International Planning