Impacts Of Policy Development On Organizational Strategy

Importance of cordial relationships between partners

Strategic Management can be described as the formulation and implementation of different goals and objectives which are taken by the top management present in an organization. These decisions are based on considerations of the different resources and the analysis of the internal as well as the external environment in which the company tends to operate (Morschett, Schramm-Klein and Zentes 2015). It is crucial for the organization to have a specific set of policies, plans and objectives in place so that it is able to successfully face the different difficulties in the future. The report will be discussing the policy development and the impacts it has on the organizational strategy from different perspectives.

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The report will be divided into five different parts, each of which will be dealing with the different objectives of the requirement.

Relationship between the different partners in the development of policy and its impact on cross border and global organizational strategy

With the advent of technology and the increase in relationship between the different partners cross border has led to an increase in the development of various frameworks and models which assist them in strategic meeting. The business environments have become highly complex and thus for this reason, it is important that the relationships between the different partners are cordial in nature and tend to be cooperative in order to support the different objectives of the organization (Vogel and Güttel 2013).  These different partners may include partners like distributors, managers, suppliers and even customers. As sourcing has become a relevant aspect of the organization, it has important for the organizations to have partners who are in a cordial relationship with one another.  Policies form a crucial part of the organization. Policy helps in laying down of the different practices which the organization shall engage in. A sound policy system is crucial for the organization as it assists in effective functioning in the long run and also assist to achieve the long term objectives of the organization (Deng and Yang 2015).  The policies are often decided as per the convenience of the different partners who are present across the border. This is because, policy making needs to ensure that their consent is well accommodated to ensure long term success. Hence, a harmonious relationships between the partners shall have positive impacts on the organizational strategy whereas if the relationships are not suitable and their lacks sufficient coordination then the organizational strategy may not be so effective in the long run.

For example, the organization Samsung functions in several parts of the world. They have their base in Korea but their manufacturing and other related procedures tend to take place in several countries. Hence, it becomes very crucial for them to ensure that different policies like the Marketing Policy or the Privacy policy is stable throughout the organization and that the different partners in form of the managers tend to ensure that they communicate well throughout in order to bring about stability in operations.

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Evaluating the contribution of economic, political and social factors to the development of cross border and global organizational policy and strategy

Political, Economic and Sociological impact on Organizational Strategy

The political, economic and social factors tend to have a huge impact on the organizational strategy and policy designing. The given states the manner in which the impact lies on the strategy:


The political factors comprise of factors like the way the regulations and policies tend to function in an organization and even the manner in which the different types of government whether the national or the local government tends to function. Pertaining to the retail industry, the export and import tariffs very often tend to make the business difficult (Ahammad et al. 2016). There also needs be made considerations about the different permits while doing business with respect to certain sectors of the economy.

For instance, in the given context, the trade issues between the European nations and the United States have been severely affected by the Trade Tariffs and other relationship barriers. The European Union has imposed tariffs on the United States imports from the month of July. Hence, the imports will decrease considerably thus affecting the trade and even the food industry and multinational organizations.


The strength and the performance of the different national, local, international economy has an impact on the opportunities as well as the threats which are present. The various kinds of taxation and other duties may also impact the purchases and the sales of the business (Wheelen et al. 2017). Hence, a deep understanding of the fiscal environment which is crucial for financial forecasts. For instance, the economic factors like the unemployment prevalent in the United Kingdom after the impact of the Brexit might also have an impact on the business and hence, the organizations may form a policy as to not employing any employees outside Britain to secure their employment position.

Sociological Factors

The sociological attitudes and profiles of the people have been changing constantly. If the different issues related to the gender biasness, ethnic origin, religion and other social reforms tend to have an impact on the organization then it may have an impact the policies of the organization. For example, if the female population of an organization is more than the male, then more female centric policies shall be formed for the organization and in the same manner an organization with more disabled people will have more policies related to them.

Evaluating the role of domestic, national, and multi-national interests in the translation of policy in cross border and global organizational strategy

With globalization, the different policies have changed considerably. It is important that the different organizational policies are well known in all the organizations so as to enable transparency. Hence, when the translation of the policies will take place in cross border and global organizational strategy, there needs to be a tangent of domestic, national and multinational interests. All the policies must be made in regard to the interests of the nation, local as well as multinational dimension (Cullen and Parboteeah 2013). It is very important that the different policies take into consideration the considerations of different interests so that they are relative to all and are able to meet the needs of all the countries. If the translation of the policies does not take place adequately then it may impact the different relationships between different Multinational Corporations and the countries. This is what has happened in the case of Google in China whereby due to the lack of internet freedom in China, Google has been suffering considerably. As China was not willing to provide services to Google and most users were blocked, their relationships soured.

Evaluating the policy position of different partners involved in the development and implementation of inter-organizational strategy

Stakeholders and conflicts in inter-organizational relationships

The different partners as involved in the development and implementation of the inter- organizational strategy is as follows:

  • The Suppliers- The position of the supplier in the implementation of the inter organizational strategy is a very crucial one.  He is the one who would be providing all the goods and services for which his role is a very crucial one and he needs to make the different decisions in the same context. However, this is not the case for the bigger multinational organizations like that of Walmart who are then the policy setters and tend to determine the conditions between the different their relationships. This is based on the quality of products as being provided by the company or the terms of delivery.
  • The financers- The financiers are also crucial partners in the policy making and their role is quite crucial in development and implementation of the policy (Lasserre 2017). These financers are the companies who tend to provide loans to the multinational companies.
  • The distributors- The distributors also have a crucial role to play in inter organizational context as they are the ones who tend to manage the value chain system successfully.
  • The managers and owners- – In inter organizational context, the different managers have a crucial role to play in the business, it is their duty to see to it that the implementation is monitored crucially.

  For instance, for the company, Walmart the different policies with respect to the organizational context may be delivered by a large variety of sources. As stated earlier, the different parties like managers, owners, suppliers and financers may form policies but there may exist certain clashes with respect to the same. In this context, the manager may be highly concerned about the employee wellbeing and the company profits but the Walmart`s suppliers may be concerned about their individual profits.

Tensions and conflicts of interest in the roles of different partners, and propose innovative solutions to enhance relationships and outcomes in order to achieve a coherent output

The different partners in the organization may face different conflicts amongst themselves. The different conflicts being faced by them are given as follows:

  • Conflicts regarding policy formulation
  • Policies regarding the financial interest of the different
  • Conflicts regarding implementation of strategy (Tjosvold 2017).
  • Conflicts regarding distribution of resources
  • Conflicts regarding project. An organization may have different projects to complete but in relation to this they might face certain problems for the correct selection of the projects. The selection factors might lead to conflicts among the different members.
  • Conflicts regarding employee relationships and other related conflicts
  • Personal benefits

Solutions to the given are as follows:

  • Regular meetings: Regular meetings must be held between different decision makers as present in the firm so as to ensure that proper decision making can take place without any existing conflicts.
  • Team building sessions: The management needs to conduct proper ream building sessions so as to ensure that the different members of the organization are able to get together comfortably
  • Collaborating- The different organizational members need to get into a collaborating relationships with one another.
  • Accommodating- The different partners involved in a firm should also know how to accommodate to different needs (Williamson et al. 2013).
  • Compromising- Furthermore, compromising is the key to success in different cases, however, an organization cannot deviate from its primary objectives.

In this context, an example of the company Walmart can be stated which means that during the expansion plans into the different countries with special respect to the emerging countries, the different stakeholders as present in the organization may be faced by different conflicts with regard to the fact whether the different expansion plan is viable or not. However, the business organization needs to ensure that these conflicts are overcome successfully. When they were planning to expand to India, the company was faced by a dilemma as to the negative reports received and hence the stakeholders sat together to decide upon the issues.

Models which support inter-organizational working and which respect the integrity of partner organizations and their political, moral, social and economic stance and differences

The Model which tends to support inter organizational working and the integrity of partner organizations which respect political, moral, social and the economic stance and differences is the Context model (Ambos and Håkanson 2014).  The context model tends to emphasize on the importance and effect of internal as well as external environment of the different related organizations with respect to the expansion of different organizations and their partnerships. The primary attention of the model is based on the influence of the different factors and differences on the interaction which is inter organizational. The given model as stated by Ambos and Hakanson, tends to highlight the different factors as related to the organization and focuses on highlighting the different aspects of the organization. It states that as the different organizational members belong to different regions and fields they often clash together. However, it further explains that in order to be successful in the long run, a balance between the internal factors like the policies, procedures and plans needs to be well related to the suitability of it in the external environment.

Identification and assessing key economic drivers

Context model to support inter-organizational working

The different key economic drivers which tend to have an impact on the business are as follows:

  • Price
  • Variable costs 
  • Fixed costs 
  • Sales

According to Deng and Yang (2015), price can be descried as a key factor and if the company tends to make any change in the pricing strategy, then the profit margin of the firm gets changed too. Very often certain partners in organizational relationships tend to concentrate on the sales, although the sales volume increases, it increases the variable costs as well.

The fixed cost is also a crucial economic driver as it has a minor impact on the profit. It can be stated that all the economic drivers are very crucial in the business as each of them is dependent on the other. If the performance of one driver changes, another changes as well (Bird and Mendenhall 2016).

The economic drivers are the primary indicators of growth and profitability and thus for this reason, different organizations in inter organizational relationships dealing with policies and strategies must know how to interpret these drivers (Wood, Wrigley and Coe 2016). The companies are required to be aware of the fact that if they want to achieve long term success, then they will be required to ensure that they take adequate steps to keep these indicators in mind and to ensure that the business achieves a boost. For instance, Chinese organizations like the Sinopec list themselves under the USA tech exchange NASDAQ as a strategy to boost capitalization and investment.  This is because, earning a good profit is very crucial to the growth of the business organization. After the analysis is conducted, any shortcomings can be analyzed and fixed.

Evaluating the impact on existing policy and strategy commitments of the finance and funding of operational activities arising from new cross border or global strategic and policy imperatives

The cross border strategic and policy imperatives tends to have a huge impact on the existing policy and strategy commitments of finance and funding’s of the operations activities. When decisions are taken across the globe, it tends to have a huge impact on the funding of daily activities because, of the allocated budget and the allocated resources for each company trading globally. The impacts are given as follows:

Increased investment

The investment of the different companies have increased considerably due to the increased trade and cross border activities. This has had a stress upon the finances of the company.

Larger figures on cash flows

The figures of the cash flows have increased considerably. This is because of the increased activities and the increased profits as well as the revenues of the organization.

Increased expenses on operational activities

The operations have to be made as per the international standards and hence, due to this, the operational activities have increased considerably and thus investment in the operational expenses are more than earlier (Thomas and Peterson 2017).

Larger investment on production to bring about economies of scale

In order to bring about the economies of scale, more companies have increased their production activities which has bought about an increase in the investment in the production activities.

Tax optimization

Lastly, to oblige by all external environment requirements, the taxation systems and optimization methods have also changed considerably.

With respect to the given analysis it can be stated that the Marks and Spencer’s organization was faced by these consequences when they were planning to expand internationally. This means that, when they wanted to expand their operations outside of their home country, the budgetary allocations of the home country were effected severely, however, due to the larger quantities of production being made by the firm, their cost for each product went down considerably.

Assessing ways of funding unexpected operational activities which will need to meet cross border or global organizational policy and strategic commitments

Reserves and Surplus- The reserves and surplus ca be considered to be a reliable source when the companies need to meet up with the funding’s of the different operational activities. When the requirements of the cross border policies and strategic commitments have increased, there might be chances of different issues relating to unexpected expenses arising (Reiche et al. 2016). Although there is a designated funding available for each of the expenses, anything extra can be met up with the reserves and surplus account.

Contingency Funds- Very often certain organizations tend to invest in contingency funds as well for unforeseen situations, which can be used.

Dividends pay out- Lastly, very often in extreme cases, due to the sudden extra expenses, the dividends to be paid out may be cancelled and it can be used accordingly.

Theories of cross border and global organizational strategic planning and implementation

Strategic Planning and Implementation tends to become increasingly important in cross border context when the different companies are needed to deal with different companies at one time. The most popular models available for the given are as follows:

Ansoff Matrix Theory

The Ansoff Matrix can be defined as a strategic planning tool which serves as a framework and can be used to assist the different executives, senior management and the different marketers to achieve future growth. The model and theory was designed by Russian American Igor Ansoff who created the concept of Ansoff Matrix largely (Zott and Amit 2013).  The Ansoff Matrix suggested four basic strategies which comprise of Market penetration strategy where the organization can provide existing offerings in the existing markets.  The next strategy is the market development strategy which tends to assist the firm in moving into new markets like new countries, geographies and other related domains (Binder 2016). The third growth strategic planning option is the Product Development strategy where the organization creates newer products for the existing market to increase the market share.  The last strategy is the diversification strategy where the firm plans to grow its market share by making new offerings in the new markets. However, the Ansoff Matrix Theory is not always suitable for all the organizations as it fails to reflect that the market penetration as well as the diversification strategies, require to be changed for the everyday running of the business organization.  For instance when the Apple organization, applied the product development strategy for iphone 8 which was very similar to the 7 model, the model failed.

Porter`s Generic Strategies

The generic strategies have been designed in order to apply them to all services and products present in the industries and is applicable to the organizations of all sizes.  The management guru suggested that the Generic strategies of various kinds like the Cost Leadership strategy, which aims to provide a no frill service (Slack 2015), the Differentiation strategy which aims to provide unique services to the different customers and the Focus strategy which tends to provide specialization service to the different customers in a niche market setting. However, there exists various shortcomings of the strategies like in lieu of the Cost Leadership strategies which are not always rational, this can be stated because it is always not easy to apply a cost cutting strategy. For examples the Silver tails airlines failed to apply this strategy in Singapore due to the human resource and additional costs.

Ways to improve cross border and global organizational communication co-ordination, strategic planning and operational implementation


It is important to inculcate in coordination to bring about harmony between the different activities in an organization to achieve the desired objectives and to ensure that all the tasks can run in parallel and the desired objectives of the organization are achieved properly (Stead and Stead 2013). Coordination tends to build team spirit, gives a clear direction to the staff and assists in making use of electronic resources.


Integration is a crucial context in the sense that it facilitates proper coordination.

Some methods are given as follows:

Shared calendar

The different partners present in cross border and international organizational relationships can share a common calendar so that they will successfully be able to manage the schedules and understand the time frames of one another. This will assist in improving coordination and communication.

Fostering complementarity and collaboration

Sharing of content and deepening the mutual understanding of the relationships between one another will tend to deepen the mutual understanding of the work between the different partners as present in the separate countries (Deresky 2017). This will facilitate openness in the market.

Electronic communication

The mediums of electronic communication and social media interactions tend to make it easier for the different companies to communicate with one another. All the partners can remain connected with one another which makes coordination easier.

Meetings and face-to-face time

Monthly meetings can be conducted effectively in order to ensure that all the operations are quite clear and for this reason the quality of work tends to improve considerably.  

For instance, the company Google has achieved cross border excellence by engaging in virtual meetings continuously. The different companies in various countries tend to engage in regular meetings to solve their problems. The calendars are shared by the organization and it is a made a point that all the interactions take place regularly.

Political, social, economic, technological and moral trends which may affect short, medium and long-term inter-organizational policy and strategy

Political Factors

The legal factors comprise of taxes, CSR, labor laws and other obligations which affect decision making. The political factors tend to have a huge impact on the businesses in order to ensure that the business does not get impacted by the different business cycle (Thomas and Peterson 2017). Hence a favorable relationships with the government tends to go a long way.

Economic Factors

The weak and unstable economies are quite risky and comprise of various inflation rates, interest rates and economic growth indicators which need to be analyzed effectively. The consumer purchasing power tends to impact the enterprise loss or profit.

Social Factors

The social factors comprise of the trends of the population, domestic market conditions and demographics. These help the business areas to assess the market, improve their service accordingly. For this reason these factors assist during marketing research.

Technological Factors

Technology can also be comprised of a crucial component as it helps the company to increase productivity. Hence, according to the technological capabilities of the company and the external environment the decisions can be taken accordingly.

Importance of PEST Analysis in Strategic Planning

  • It helps in assessment of profits
  • It helps in analyzing both internal as well as the external factors having an impact on the business.
  • It helps in assessing the current positioning of the company
  • It helps in analyzing the business environment which will assist in making strategic decisions.
  • It assists in making improvement measures

Likely future events which will affect and be affected by cross border and global policy and strategy

Change in the governmental decision

The different governments led by countries of the United States, Europe, Asia and other related countries might change the dynamics of the environment which may affect the cross border decision making and other related aspects.

Change in the trade polices

The trade policies and the related change may also have an impact on the different cross border and global policy strategy (Bartlett and Beamish 2018).

According to the World Risk report of 2018, the risks of the different business enterprises have increased considerably. Around 59% of survey responses report that risks will increase. The different risks which may occur are risks of conflicts. These conflicts will be taking place culturally and socially which may then have an impact on the business functions. For example, the Trans Pacific Partnership  deals between the United States and other companies with respect to Trump`s decisions might have severe impacts. It has also been stated that due to the environmental factors, billions of dollars will be affected severely ( 2018). The cybercrime has also increased considerably along with systematic risks.


Therefore, from the given analysis it can be sated that cross border, planning, implementation and other activities are influenced by various components. The report discussed the different components of the environment having an impact on the business dimensions. The report was divided into five parts each of which discussed the different requirements.


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