European Business Strategies

To allocate the correct European business strategy; and enterprise, be that European or International, must first highlight the state of the European Business Environment; this, referring to the conditions, in which a business within Europe operates in.

It is important for EIMTNE's to understand what a business strategy is; what does the business intend to achieve, (that is its objectives) why and how it will achieve this, as well as the time frame of completing and implementing the chosen strategy. Business strategies should also look at the environmental factors; it is imperative for both European and MNE's to consider the strategic problems which they may incur; such as how best to use its resources within this changing environment.

Of course though; any enterprise, especially one attempting to develop themselves in the EU must take into account considerations surrounding strategic restrictions and constraints. There are a variety of issues that could present themselves to an enterprise; from the nature of the industry (oligopoly/monopoly), as this may affect the ability to enter the market with relative ease; through pricing, advertising and branding; to the state of the desired country of entry, as many EU countries have a varied prosperity; such as if we to compare Switzerland (strong/wealthy country) to Bulgaria (struggling economically). It is obviously essential for firms to make careful judgements surrounding their individual circumstances, such as the Product Life Cycle, but perhaps more importantly their economic stability. Has the company experienced an economic downturn or diminished sale. Based on this judgment and MNE looking to enter Europe may either adapt their current business strategy by deciding to postpone expansion plans; or contrastingly, they may decide to speed up proceedings, as these diminished sales may be a result of saturation of the domestic market.

It will be imperative foe EIMTNE's to carefully outline what are their key objectives. These objectives will obviously vary depending on a number of factors; such as the nature of the business, the business size as well as the company ownership. To achieve its objectives, any enterprise; be that European or International will also have to set realistic and measurable goals; possibly derived from highlighting the target country of entry and the predicted time frame of which to enter by. For example; if a UK based supermarket wished to position itself in Central Eastern Europe (CEE) then it may set itself the goal of being established in Slovakia & Slovenia by 2015; therefore its main objective would be derived from these goals; and thus work towards implementing and achieving them. Using the previous example, the UK based retailer would need to employ a marketing campaign and establish strong networks within the desired location/s.

Changes in the business environment can mean a number of things; such as rapid improvements in technology. And it is these changes which pose big challenges to any European/international business; as they will need to be either proactive or reactive. To be able to meet the challenge which these changes will undoubtedly bring; all businesses within the EU should undertake a strategic audit. This will not only look at past developments, but also its present position and plans for the future.

To be able to