Four Main Global Strategies Free Essay

Types of Business Strategies

 

Strategy is an integrated model of actions designed to achieve the goals of the enterprise. The content of the strategy is a set of decision rules used to determine the main activities. Obviously, in each particular case, one or another strategy of the four main ones will be appropriate.

A domestic exporter (multi-local) strategy implies the existence of a set of relatively independent subsidiaries, each of which serves a national market. In this case, the company has good opportunities to adapt its products, as well as the marketing campaign and methods of production of goods (services) to maximize the needs of consumers who differ in their preferences. A typical example of such a company is the Swiss Nestle, which has a decentralized structure and a widely diversified product line, adapted to the specific needs of consumers in different countries of the world.

Global (multinational) strategy is typical for companies that perceive the whole many-sided world as a single market. In this case, the focus is on the production and sale of standardized goods (services) that meet the requirements of most consumers around the world. Global companies are characterized by the centralization of management and control, as well as taking advantage of economies of scale (there is an expansion of production and sales of products, there are highly efficient structural units, united by a common marketing and advertising campaign, as well as the unity of production processes). A good illustration of multinational companies are Boeing (one model of the aircraft, say, the most popular Boeing-737, for airlines representing different countries and continents) or mobile device manufacturers, such as Apple, Samsung, Nokia (one basic phone model and software for different national markets).

Franchising is the strategy of duplication of the business model (international strategy) implies the use by the company in foreign markets of the strategy that it usually uses in its own country. A franchiser is a company that uses the franchise system to grow its business and popularize its brand. World practice shows that in the first years of the development of franchise relations in the country, the main share of franchises by origin is foreign. Thus, the franchise system provides for the transfer of management, production and sales technologies accumulated by foreign companies. The reason for this choice may be the success of the results of operations in the domestic market, as well as the initial stage of international business, when the company does not have enough experience to take other strategies as a basis. An example of this kind is Domino’s, which initially focused on the consumer who loves pizza and an excellent reputation in its domestic market (Laudon).

The transnational strategy combines the benefits of increased efficiency through globalization of operations (as in global companies) and the benefits of delegation of authority to the management of local subsidiaries (as in multi-local companies). This task is solved by an informal approach to centralizing or decentralizing authority and sharing responsibility between the most efficient and flexible units. An example of a company using a transnational strategy is Microsoft. Although the development of new software products is carried out in the USA, responsibility for their sales is transferred to the field, to the relevant foreign divisions that are better acquainted with the national characteristics of various markets (for example, along with the basic English version of the Windows program, its versions are released in the main languages ​​of the world, adapted for language features of different countries).

Reference

Laudon, Kenneth C., Jane Laudon. Management Information Systems: Managing the Digital Firm, 14th Edition. Pearson, 20150108. VitalBook file.

 

 

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 29, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
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[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]
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