Strategic planning, is the process of setting goals and designing a path toward a competitive position., Strategy, includes the actions that leaders take to move their organizations toward the goals set in strategic planning and to create value for all stakeholders, Strategic management, a plan of action for accomplishing an organization’s long-range goals to create value, Strategic alliance, Companies agree to share assets, such as technology or sales capabilities, to accomplish a goal. The relationship may have varying degrees of tightness and formality. Some alliances involve customers, partners, or competitors., Joint venture, Two or more companies invest together in forming a new company that is jointly owned., Equity partnership, One firm acquires partial ownership through purchase of shares. The relationship may be general (sharing proportionally in control, profits, and liabilities) or limited (no managerial authority, liability limited to investment). Partnership agreements define such issues as leadership and division of profits and losses., Merger/acquisition, A firm purchases the assets of a local firm outright, resulting in expanding the acquiring company’s employee base and facilities. Integration of acquired companies often involves significant cultural, systems, and management challenges. Data privacy can be a big issue., Contract manufacturing, A firm arranges for a local manufacturer to produce components or products as a means of lowering labor costs., Management contract, Another company is brought in to manage and run the daily operations of the local business. Decisions about financing and ownership reside with the host-country owners..

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