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13%20transnational - Organizing International Operations...

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Organizing International Operations Transnational Model by Barlett and Ghoshal
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Three Traditional Development 1. Multinational Company Polycentric Decentralized Federation Respond to market differences Multi-domestic strategy unique strategy for each market use host country personnel Key assets, responsibilities and decisions are decentralized Informal HQ-Subsidiaries relationships Branded packaged goods
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Advantages Cater to unique local needs Not affected by trade barriers No transportation costs Management may be easier Not affected by nationalism Disadvantages Lack of global efficiency Knowledge does not flow
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2. Global Companies / Ethnocentric Centralized Hub Centralized R&D, Manufacturing, Marketing Decision Making…. Use home country personnel The role of local unites = implement plans and polities developed at HQ. Advantages:
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