International Business Strategies

International Strategy consist of the action managers take in pursuit of company objectives managers they are explicit they are following and how it relates to industry competitors

This type of positioning helps employees know how to focus their day-to-day efforts

purpose of following international strategies is to manage the differences arise when operating across multiple geographic and cultural borders

Global Managers are likely to adopt one of three distinct international strategies Multi-domestic, Mega-national, trans-national

These all help companies achieve profitable growth in a global market

Multi-domestic - customize products services and operations so it can respond to customers and employees in each of the countries where it operates

in effect become any becomes a group of locally focus

here is that act independently like domestic companies deciding how the product is design, made, distribution, and marketed in their local markets

taking the opposite stance from the multi domestic strategy

a mega national strategy focuses on reading cost reductions from economies of scale and other efficiencies of global integration

managers headquarters create products for a world market

and then you factor them on a global scale and a few highly efficient plants and market them through a few key distribution channels

this strategy requires that companies exploit location economies

the cost advantage of perform the each stage in the value chain had the lowest cost for that activity

for instance aluminum production might occur in the united states where electricity costs are low

manufacturing in indonesia were labor costs are low and

to support in india where service labor costs are low

in this way a mega national strategy is really about seeing the world as one huge national market

toyota volkswagen gm and forward all engage in a mega national strategy

these from source ideo components from locations

around the world bring them together in global factories and then export the

this products all over the world do nothing

[SMACK] are made to meet local customer needs other than changing the steering wheel from the left to the right side depending on each countries local traffic was

of course many companies need to be both locally response of and globally integrated



transnational strategy is a hybrid strategy by which a company games to be simultaneously global and local

however

because it's often impossible to both adapted

standardized products at the same time companies adopting

the transnational strategy must make trade offs

for example they must implement organizational structures that are complex to encourage ideas to come from

the local operations and then to integrate them into global standards like the multi domestic approach

the transnational strategy allows subsidiaries the discretion and autonomy to

adapt and customized locally however the discretion is bounded by global

integration and coordination from headquarters

unlike the case in a mega national strategy that achieves integration through decisions made mostly by headquarters

integration in a transnational organization comes about one a difference

the air his coordinating and exchanging information make more and form decisions

transnational strategies makes top down from headquarters to subsidiaries as in a meg national stress

energy and bottom up from foreign subsidy into headquarters as in a multi domestic strategy

this strategy foster's coordination from all over

the organization in an effort to take what is best

Extracted from The International Business: Competing in the Global Marketplace 12th Edition book By Charles W. L. Hill and G. Tomas M. Hult Four Basic Strategies, strategies that Firms uses to be able to compete globally.