BARLETT AND GHOSHAL - GLOBAL STRATEGY

Question 1

What is Barlett and Ghoshal

Answer 1

Barlett and ghoshal: A model outlining the strategies for operating a multinational company based on the pressure for local responsiveness and the pressure for managing costs

Question 2

What is a global strategy

Answer 2

When pressure for local responsiveness is low but cost pressure (global integrations) are high.

Need for economies of scale to be exploited on a global scale, but products can be standardised. Typically used for commodities, industrial goods, and low price commercial goods.

Centralised decision making and coordination of branches from HQ in order to integrate production and fully exploit EoS (economies of scale) producing the lowest possible costs

Lacks responsiveness to local needs