Therefore, the company must first analyze products or services which would work best for different group of people before making the actual deliveries. At the same time, it creates more satisfaction since people get what they need. The disadvantage of this strategy is that it becomes very hard for the companies or the supplies to study various cultures before making deliveries. These processes end up being time consuming because the firm must take time and understand how people survive in their respective areas and come up with things that would work best for them. The process is also costly as opposed global strategy where the company comes up with one product which is distributed in all parts of the world. For successful implementation of multi domestic strategy, it is important for the management to consider the financial security of the organization. This is because the process of analyzing the culture of people and providing goods and services is quite expensive. Therefore, the organization should be in a position to be financially stable in order to facilitate the implementation of this strategy. Another important aspect to consider is organizational structure, which defines the allocation of various duties and the leadership in relation to the specified objectives. With this, it would be possible for the organization to determine how various tasks are going to be distributed in order to ensure that the needs of the consumers are all met.
STRATEGIC MANAGEMENT 3 3. Discuss how the need for control over foreign operations varies with the strategy (e.g., global standardization vs. localization) and distinctive competencies of a company. What are the implications of this relationship for the choice of entry mode? In the global market, cost reduction and differentiation are some of the major pressures most companies face in the global market. For instance, global standardization focuses on achieving cost reduction by sticking to the same products and services in all countries. In this case, there is the assumption that the provided products are in demand, and therefore there is very little spent in the marketing process. On the other hand, localization strategy aims at achieving differentiation. This is by being specific on the kind of products and services that are made available in various countries. This highly relies on factors such as the demand, culture, demographics among many other things. It is one of the approaches that ensures the company remains relevant in the global market for the longest time possible. We also have major choices of control over the global or rather foreign operations. Among them we have exportation, whereby the host countries produce goods which are later on transported to other countries. We also have a choice of franchising, where the foreign countries agree to long term commitment in business with the host country. Joint adventure is also another option where global company partners with the host company and uses its knowledge in making more profits.
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- Spring '20