International strategy : is it meeting the challenge?

International strategy (IS) is the approach by which an organisation's capabilities and resources are directed to generate value utilising the global market's opportunities (and risks). Many of the largest multinationals invest significant resources in their IS, however, the literature does not offer any substantive model for the process. This paper presents a model of the IS process which comprises two parts, the first part is made up of inputs, development and outputs and the second comprises a feedback loop based on organisational performance measurement and its interpretation which impacts on the first part stages of inputs and development. The content of the model is explained and justified using examples of practice. Inputs are comprised of market information, human resources, diversity and value creation and host country environmental factors. Development is comprised of preparation and learning, planning and scrutinising partnerships, anticipating impacts of globalisation, anticipating impacts of technology, location, experience effects, planning competencies, planning for cost effectiveness, scenario planning, planning structures and operations, leadership and ethics. Outputs are comprised of structure, scope of operations, target countries, facility location and positioning. Performance interpretation explains rapid and major changes in IS outputs, such as structure<br />and business unit portfolios, whilst process complexity explains observed output similarities for organisations reacting to similar inputs and suggests an evolutionary approach in their determination.<br />