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Globalization versus Localization

Globalization versus Localization - management decision...

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Globalization versus Localization With regard to Food Republic entering Indonesia, it would be realistic for them to adopt a Regcal approach where there is a high degree of decision-making centralization and low degree of advertising standardization. This implies that the company would tend to adopt more regional approaches with a more centralized process structure that will foster a close relationship and decision matching between the headquarters and its subsidiary with both parties contributing towards the coordination and development of its regional advertising strategy. According to (Tai & Wong 1998) "Regcal" attitude is predominant in Asian markets like China, Taiwan, Hong Kong and Singapore. The reason is that the headquarters maintains a tight control over its subsidiaries and benefits from the shared resources and experience in these Chinese societies. Food Republic being a Singapore owned company and having a very strong local management tends to want to exert more control over the
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Unformatted text preview: management decision, however they are able to adapt their advertising to the local context similar to their other joint ventures in the region. The advantages of adopting a “Regcal” Appraoch is that Both the headquarters ( Food Republic management in Singapore) and subsidiary ( WHOEVER) may be more flexible in using the best available resources and maximizing cross synergy on a regional basis. They may achieve higher efficiency by sharing "intellectual" development costs because of the tendency toward higher decision-making centralization. However, the disadvantage is that the lower tendency of standardization may possibly be costly on account of the confused accountabilities on designing and implementing advertising strategies. **** (need to fit this in somewhere, make it flow, need to rephrase it nicely) Tai, H.C and Wong,Y.H 1998, Advertising decision making in Asia: "Glocal" versus "Regcal" approach. Journal of Managerial Issues , vol 8 Issue 3, pp.318-339...
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