What Are the Main Components of a Global Business Plan?
A global business plan tends to be longer and more complex than a plan for a domestic or start-up company. It can be used to present to potential investors or to help executives understand how to manage the company. Each audience will require different components and focus.
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Function
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A global business plan allows a company to plan their strategy for growth into other countries, and to understand what challenges they will face and what profits they can expect to make while doing so.
Features
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All business plans should include the sections Executive Summary, Market Opportunity, About the Business, Operational Plan, Business Environment (including subsections for Competitors and Regulations), and Finance. Global business plans should expand on this to include Growth Strategy, Organizational Structure, Markets, Products and Risk. The Finance section should include a subsection on currency hedging and foreign exchange.
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Focus
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Global business plans should focus on how the company will leverage the advantages of having worldwide operations while still differentiating its offerings as necessary for each market.
Types
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A start-up company with ambitions of going global will build a business plan that focuses on market opportunity in order to capture early funding. An established domestic company that wants to go global should expand the financial, operations and strategy portions of the plan in order to guide executives and employees through the transition. A successful multinational might focus on market opportunity, strategy, and products in order plan how to become more effective.
Time Frame
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A global business plan often covers a longer period of time than a regular business plan. The financial, operations, and strategy sections of the plan should cover at least three to five years, and potentially up to 10 to 20 years.
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