International firms have found it necessary to institute formal global planning

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In response to increasingly complex environmental forces, many international firms have found it necessary to institute formal global strategic planning so top management can identify opportunities and threats from all over the world, formulate strategies to handle them, and stipulate how to finance and manage the strategies' implementation. Strategic plans help ensure that decision makers have a common understanding of the business, the strategy, the assumptions behind the strategy, the external business environment pressures, and their own direction. They also promote consistency of action among the firm's managers worldwide and encourage them to consider the ramifications of their actions in the firm's other geographic and functional areas. Strategic planning is also intended to increase the likelihood of strategic innovations, promoting the development, capture, and application of the new ideas needed to succeed in a challenging competitive environment.

International Firms Have Found It Necessary to Institute Formal Global