MGNT 4670 CHAPTER 13 Strategy in Intl Bus. 2013

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Unformatted text preview: ns in local country but head office exercises tight control over it ► Limit customization of product offering and market strategy Strategy effective if firm faces weak pressures for local responsive and cost reductions ► Examples: Toys R Us, Microsoft, Yahoo, McDonald’s and Proctor and Gamble (in early stages) The Evolution of Strategy The Evolution of Strategy ► The problem with the international strategy is that over time competitors inevitably emerge An international strategy may not be viable in the long-term so firms An need to shift toward a global standardization strategy or a transnational strategy in advance of competitors transnational ► The problem with localization strategy is that it is costly and a company The can not take full advantage of efficiencies that can be obtained in using a standardized product standardized Over time, the pressures to reduce costs may require a change in Over strategy strategy ► As competition intensifies International and localization strategies tend to become less viable Managers need to orient their companies toward either a global Managers standardization strategy or a transnational strategy standardization The Evolution of Strategy The Evolution of Strategy NAME THAT STRATEGY NAME THAT STRATEGY GENERAL ELECTRIC GENERAL ELECTRIC ► ► ► ► Global technology, service, and finance company HQ fosters change but operational and strategic decisions are decentralized to achieve cost effectiveness...
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