5 Generic Global Business Strategy

5 Generic Global Business Strategy - Generic Global...

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Unformatted text preview: Generic Global Strategies 1 MOR 492: Global Strategy Generic Global u Multidomestic strategy u Global strategy u Choice -- Global versus Multidomestic u Transition -- Multidomestic to Global u Transnational strategy Generic Global Strategies 2 MOR 492: Global Strategy FOUR BASIC STRATEGIES Benefits from national responsiveness Efficiency benefits from global integration GLOB AL INTER NA-TIONA L TRAN S-NATIO NAL MULTI-DOME STIC Generic Global Strategies 3 MOR 492: Global Strategy Location and Coordination LOCATION COORDINATION u Production facilities u Product line, market selection u Location of service organization u Number and location of R&D centers u Location of purchasing function ■ Networking of international plants ■ Commonality of brand name, similarity of channels etc. ■ Similarity of service standards ■ Coordination of pricing ■ Coordination of suppliers Generic Global Strategies 4 MOR 492: Global Strategy PRESSURES: NATIONAL RESPONSIVENESS u Differences in consumer preferences u Infra-structural differences u Government demands u New manufacturing technology u Organizational limitations u Managerial resistance Generic Global Strategies 5 MOR 492: Global Strategy MULTIDOMESTIC STRATEGY u Customized product u Countries -- selected on their stand-alone potential u Units independent u Low coordination; high dispersion u Few inter-subsidiary transfers Generic Global Strategies 6 MOR 492: Global Strategy MULTIDOMESTIC STRATEGY Unit 3 Unit 1 Unit 2 HQ Generic Global Strategies 7 MOR 492: Global Strategy MULTIDOMESTIC STRATEGY Competitive advantage from u Local responsiveness u Goodwill -- local government, customers...
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This note was uploaded on 02/25/2009 for the course MOR 492 taught by Professor Voigt during the Spring '07 term at USC.

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5 Generic Global Business Strategy - Generic Global...

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