Running Head: GLOBAL STRATEGIC PLANNING
Global Strategic Planning for Lottafizz Corporation
Amanda Baker
Bellevue University
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GLOBAL STRATEGIC PLANNING
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Abstract
As Lottafizz Coporation considers becoming a global organization, there are many
factors that require deep deliberation. From determining which globalization strategy –
international, multinational, or global – best serves the company to determining how it
will balance management of international geographies, Lottafizz will need to deploy a
strategy that ensures it operations are fully effective and compliant with geographical
culture and regulations. As a strategic planning consultant helping Lottafizz determine
the feasibility of globalization, it will be imperative to first help the company understand
globalization and the complexities involved. The following report will provide an in-depth
overview of globalization and the steps required to ensure an effective global strategy
implementation.
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Global Strategic Planning for Lottafizz Corporation
As Lottafizz Corp. explores the feasibility of an expansion, it is necessary to
provide them with an in-depth look at the facets of a global strategy to help them better
understand each facet – global, multinational, and international. Equipped with this
understanding, they would then be introduced to the importance of a global strategy as
it relative to the company. As a strategic planning consultant, I would begin by
explaining global, multinational, and international strategy sharing the following:

Global strategy focuses on a full-scale globalization strategy where the strategy
focuses on one market meaning the marketing message is the same regardless
of the geography.

A multinational focuses on multiple markets in addition to the home market and
each market has a strategy that is focused specifically on that geography.

In an international market, the company focuses primarily on its domestic
market but an international strategy is required to meet the objectives of the
international market that the domestic company also operates.
In either facet of global marketing, the key component is competitive advantage where
global strategies focus on the broader, global basis; multinational strategies focus on a
country by country competitive advantage; and an international strategy focuses on
competitive advantage related to the domestic country (Lynch, n.d.).
A global strategy is important to Lottafizz Corp because they will need to
determine what type of expansion makes the most sense strategically for the company
and is dependent on the objectives of Lottafizz. Are they expanding primarily to increase
sales and profit? Are they considering a better experience for the customer such as
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lowered prices or better service? Perhaps the company would like to help improve world
trade relations as a means of improving international negotiations. Lottafizz needs to
consider the motive for expansion – what is driving the expansion: cost, customers,
competition, or government (QuickMBA.com). By identifying the motive, the company
can then begin determining the best globalization option.
Once they have determined the reasons for globalization and the ideal
globalization strategy, they will need to begin building the global strategy. There are key
steps that need to be taken in order to ensure that the globalization plan is effectively
rolled out. Like the business planning process, the globalization plan follows a
methodical approach, as outlined in Richard Lynch’s Global Strategy, including analysis
of the market, identifying competitive and other resources, identifying the company’s
resources for international expansion, defining global objectives determining method of
entry and selection of country and geographical region, developing specific
service/product offering, and managing the business internationally. These steps are
explored in detail below:

Analysis of the market – this critical step identifies markets where Lottafizz has a
presence but lacks a global strategy.

Identifying competitive and other resources - Lottafizz will want to determine what
resources they have that will offer a competitive advantage in their global
expansion

Defining global objectives – this step should be taken after identifying competitive
resources as the defining of global objective need to be built around the previous
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step. The company needs to be able to tie in resources and existing opportunities
into the global objectives.

Determining method of entry and selection of country and geographical region –
after performing due diligence, the company can then begin determining
geographies that offer the greatest opportunity to meet the company’s objectives.

Developing specific service/product offering – It is here that the company will
determine product, pricing, and distribution as it relates to the global objectives.
For instance, Lottafizz will not want to sell fruit-flavored alcoholic beverages if it is
aware that the expansion area does not fare well in the mixed alcoholic
beverages market.

Managing the business internationally – focus is placed on ensuring that the
business operates smoothly and in compliance with the practices and techniques
unique to managing a global location.
Lottafizz Corp needs to be aware of the cost and benefits as well as
disadvantages that are associated with a globalization strategy. Being able to weigh the
pros and cons of globalization will also help the company determine if an expansion is
viable.
Costs and benefits of globalization are great and include a significant contribution
to a global economy meaning there is an opportunity for efficiency. Goods can be
produced in a country where it is most efficient to produce that product. For example, it
may be easier for Lottafizz to produce cans for its drinks in China, while syrup can be
produced more efficiently in the United States. Globalization drives pricing and
competition often resulting in lower pricing for consumers. Also, globalization can offer a
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larger customer base, and of direct importance to Lottafizz, enables the company to
increase profits while, again, contributing to the global economy by producing jobs
positively impacting employment rates.
Some of the disadvantages include greater competition for underdeveloped
companies further deceasing their already stifled competitive advantage. Another
disadvantage is that domestic employees may be at risk of losing jobs if the company
relocates operations to another country which impacts the domestic economy
(Economicsonline).
With regard to companies balancing local and global strategies, Lottafizz Corp
should understand that the local and global strategies need to be managed in a way
that will not be disrupting to the business, therefore, there needs to be a balance
between the two in order to offset disruptions. As Richard Lynch shares in Global
Strategy, balance can be dependent on product category and the ability to adapt
company specifications to local markets. An example of this would be adapting a
company policy within a geography while ensuring that the policy is in compliance with
local laws and regulations.
A value proposition is important for any organization and Lottafizz is no different.
As they consider globalization, they will need to determine whether they will need to
adapt their value proposition to fit their global strategy. The research and analysis
required for globalization should yield the answer to this question as the company will
have determined if the same processes used domestically will work globally. Because of
culture and laws, what works in one geography will likely not work in another, therefore,
the value proposition does need to be adapted to fit the cultural and legal differences.
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Examples for why it is important to adapt the value proposition include buyer
preferences, amount of purchasing power the market has, and even product size as
cited in Globalizing the Value Proposition (2010).
After careful consideration, I would recommend adapting a multinational strategy.
In thinking competitively, Lottafizz Corp, should realize the success of its competitors in
multinational markets. With proper research of its competitors, Lottafizz Corp’s decision
to expand multinationally will allow them to gain a larger market share.
A company’s decision to globalize is very complex and requires much
consideration and planning. From analyzing its market and identifying resources to
building a solid strategy and managing each geography with the right balance, if done
correctly, Lottafizz has the opportunity to increase market share while contributing
directly to global economic growth.
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References
Economicsonline.co.uk. (n.d.). Globalisation. Retrieved from
http://www.economicsonline.co.uk/global_economics/globalisation_introduction.html
English-online.at. (n.d). Globalization | Advantages and Disadvantages of Globalization |
G8 countries. Retrieved 31 March 2015, from http://www.englishonline.at/economy/globalization/advantages-and-disadvantages-of-globalization.htm
Globalizing the value proposition. (2010). In Strategic management: Fundamentals of
global strategy: A business model approach. New York, NY: Business Expert Press.
Retrieved from
http://search.credoreference.com.ezproxy.bellevue.edu/content/entry/bepsmfund/glo
balizing_the_value_proposition/0
Lynch, R. (n.d.). What is global strategy? and why is it important? Retrieved from
http://www.global-strategy.net/what-is-global-strategy/
Quickmba.com,. (2015). Global strategy. Retrieved from
http://www.quickmba.com/strategy/global/