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Basic Strategies & Multinational and Participation Strategies

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Basic Strategies & Multinational and Participation Strategies
Basic Strategies & Multinational and Participation Strategies
K. Praveen Parboteeah

Basic Strategies
Review of strategic decision making and strategic management
Understanding of basic strategies And how to craft strategies
Industry analysis SWOT analysis

Situation with diversified companies

Objectives
The global-local dilemma
Some of the broad multinational strategies Multidomestic Transnational International Regional

Participation strategies – how should one enter a market

Multinational Strategies and the Global Local Dilemma

The local responsiveness solution
Customize organizations and products to country or regional differences

The global integration solution
Reduce costs with worldwide standardized products, uniform promotional strategies and distribution channels Seek lower costs or higher quality anywhere in the value chain and in the world

Four Broad Multinational Strategies
Solutions to the global--local responsiveness dilemma
Multidomestic Transnational International Regional

Multidomestic Strategy
Local markets are linked within a region Gives top priority to local responsiveness issues A form of the differentiation strategy Not limited to large multinationals

Examples of Multidomestic
Even for standardized products, sometimes localization is necessary
Ex: McDonald’s could not sell its famous Big Mac in India – instead sells a mutton sandwich called Maharaja sandwich

Matsushita: A GLOCAL company – “go GLObal and act loCAL”
Has key “go global, act local” strategies and policies
Be good citizen in all countries Give overseas operations your best manufacturing technology Keep expatriate headcount down – groom local managers Let plants set their own rules, fine-tune manufacturing process to match skills of workers Develop local R&D to tailor products to market Encourage competition among overseas outposts and with plants back home

Transnational/Global Strategy
Gives two goals top priority:
seek

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