Author Question: Discuss the characteristics of international, multidomestic, global, and transnational strategies. ... (Read 61 times)

amal

  • Hero Member
  • *****
  • Posts: 572
Discuss the characteristics of international, multidomestic, global, and transnational strategies. Include situations and a specific example in which each strategy would be most appropriate.
 
  What will be an ideal response?

Question 2

Which of the following factors is typically most important to firms considering FDI entry?
 
  A) skilled labor and managerial talent
  B) economic freedom
  C) market intensity
  D) average income


Cnarkel

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

a. International strategy: Companies adopt the international strategy when they aim to leverage their core competencies by expanding opportunistically into foreign markets. The international model relies on local subsidiaries in each country to administer business as instructed by headquarters. Some subsidiaries may have latitude to adapt products to local conditions as well as set up some light assembly operations or promotion programs. Still, ultimate and absolute control resides with managers at headquarters who reason they know best the basis and potential extension of the company's core competencies.
b. Multidomestic strategy: A strategy in which the company allows each of its foreign country operations to act fairly independently, such as designing and producing a product or service in France for the French market and in Japan for the Japanese market. The main reason for adopting a multidomestic strategy is that in some cases, cultural, legal-political, and economic conditions may dictate very different optimum operating practices from one country to another.
c. Global strategy: A strategy in which a company integrates its operations located in different countries. For example, it might design a product or service with a global market segment in mind. Or it might depend on its operations in different countries to produce the components used in the products and services. In this type of company, managers in the company's home country essentially develop capabilities and make decisions to diffuse them globally.
d. Transnational strategy: A strategy in which a company develops different capabilities and contributions from different countries and shares them in integrated worldwide operations. In essence, this is a hybrid of multidomestic and global strategies in that the company attempts to gain the advantages of both. This strategy is ideal for companies that gain a great deal from global integration and need a great deal of adaptation to local markets. Such industries as pharmaceuticals and automobiles fall into this category.

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

For a complete list of videos, visit our video library