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Implementation of the operational strategy of international trade
Miriam Aide León
Created on November 13, 2024
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Transcript
Implementation of the operational strategy of international trade
Begin
Index
Operational Strategy in International Trade
Introduction
Operational Strategy
Macroestructure; Translating into Action
Superstructure Overwiew in International trade
Microstructure: Execution of Daily Operations
Why We Should Be Familiar with International Trade Operational Strategy
Integration of Superstructure, Macrostructure, and Microstructure
Production Process
Key Takeaways
Introduction
In an increasingly globalized world, companies seek to expand their horizons and access international markets to ensure their growth and competitiveness. Implementing an operational strategy in international trade is a complex process that requires meticulous planning and effective execution. This strategy must address everything from the superstructure, which defines the general organizational framework, to the macrostructure and microstructure, which coordinate and execute daily activities. A well-designed and implemented strategy allows companies to not only establish an international presence, but also adapt and thrive in diverse and dynamic environments.
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Operational Strategy in International Trade
Elements of Strategy
The operational strategy in international trade focuses on aligning a company’s strategic objectives with its day-to-day operations to ensure success in the global market. This must be effectively communicated at all levels of the organization to ensure staff commitment and understanding. It is crucial to have leadership capable of managing change and fostering a culture of strategic alignment and organizational development. Flexibility to adapt to changing circumstances is another essential component in the successful implementation of an operational strategy
- Superstructure: The overall organizational framework.
- Macrostructure: Departmental and cross-functional coordination.
- Microstructure: Operational-level processes and execution.
Importance
- A well-defined operational strategy helps optimize global trade activities, manage risks, and adapt to international regulations, improving competitiveness and profitability.
Operational Strategy
A well structured operational strategy ensures proper management and allocation of resources, process optimization and standardization of procedures. In addition, it promotes continuous improvement and responsiveness to market challenges. It also involves the use of planning and control tools or quality management systems, which allow effective execution of operations and achievement of results. Among its characteristics are clarity, focus and alignment with the company´s global vision. It must be flexible to adapt to changes, measurable to allow monitoring and adjustments, and sustainable int he long term.
Superstructure Overwiew in International trade
Definition: The superstructure represents the higher-level framework and governance systems that guide the company's overall strategic direction in international markets.
Key Aspects
Strategic Vision: Setting the direction for global expansion, market penetration, and international partnerships. Legal & Regulatory Compliance: Adhering to global trade regulations, tariffs, and compliance standards.
Example: In various types of industries, leading companies drives internationalization strategies by setting goals to expand into North American and European markets, ensuring alignment with international trade laws and sustainable practices.
Macroestructure; Translating into Action
Definition:
Key Components:
Balanced Scorecard
Resource Allocation
The macrostructure bridges the gap between the strategic goals set by the superstructure and their execution at the operational level.
As referenced in the document, a tool to link long-term goals with daily actions by setting financial, customer, internal process, and learning objectives.
Ensuring that human resources, materials, and finances are aligned with the company’s global ambitions.
Departmental Coordination: Sales, production, finance, and logistics work together to achieve strategic objectives.
Example: In the textile industry, departments implement a balanced scorecard approach to monitor the effectiveness of international trade activities, ensuring that operational goals are met efficiently.
Microstructure: Execution of Daily Operations
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Microstructure focuses on the processes and daily execution of operations within an organization. This level is crucial to ensure that strategies and plans are implemented effectively on a day-to-day basis
- Production Processes: Day-to-day manufacturing operations to meet global demand.
- Customer Service: Handling international orders, customer inquiries and support.
- Logistics: Managing supply chains, shipping, and delivery timelines across borders.
- Continuous Improvement: Feedback from operational activities informs macrostructure adjustments, ensuring continuous refinement.
Example:
In the textile industry, companies enhance production processes to meet the quality and quantity demanded by international clients, utilizing automation and feedback loops to boost efficiency. The goal is to make production smarter and more effective through the generation of real-time data.
In summary
Optimizing production management generates benefits such as: Quick identification of scenarios and problems; Correct errors quickly and efficiently; Reduction of costs and waste of material and resources; greater product quality and opportunities.
Integration of Superstructure, Macrostructure, and Microstructure
How They Work Together: Superstructure sets the global vision and goals for the company. Macrostructure translates these goals into actionable departmental plans and measures performance. Microstructure ensures the execution of these plans through efficient operations and daily processes.
Key to Success: Effective communication between all three levels is crucial for the success of an international trade strategy.
In general, a company’s leadership (superstructure) sets sustainability goals, the departments (macrostructure) develop implementation plans, and the operational teams (microstructure) carry out sustainable production processes. This layered approach enables the organization to align high-level objectives with practical, on-the-ground actions for sustainable outcomes.
Why We Should Be Familiar with International Trade Operational Strategy
Competitive Advantage: Companies that master these strategic layers gain a significant edge in global markets, positioning themselves as reliable and adaptable partners.
Sustainable Success: A solid understanding of these elements is key to building resilient, adaptable business models in a rapidly evolving international landscape
Key Takeaways
Superstructure: Aligning with global standards like WTO regulations and international trade agreements helps businesses overcome cross-border barriers and fosters trust in foreign markets. Macrostructure: Adapting to regional economic policies and consumer demands allows businesses to increase competitiveness by meeting market expectations and leveraging trade incentives. Microstructure: Optimizing internal operations, from supply chain logistics to customer relations, ensures efficiency and customer satisfaction, essential for building a lasting presence in international markets. Sustainable Growth: These strategic levels provide a comprehensive approach to expanding and maintaining a successful international business. Competitive Advantage: Businesses that effectively apply these strategies can achieve a competitive edge, driving long-term profitability in a globalized economy.