Bartlett and Ghoshal Model Flashcards
What does the Bartlett & Ghoshal model examine?
The Bartlett & Ghoshal model examines international business strategies based on two key pressures:
Local responsiveness – The need to adapt products and services to local market conditions.
Global integration – The potential cost savings from standardizing products and processes globally
What are the four strategies in the Bartlett & Ghoshal model?
Global Strategy
International Strategy
Transnational Strategy
Multidomestic Strategy
What defines a Global Strategy?
Pressures: High global integration, low local responsiveness.
Focus: Standardizing products across markets to achieve economies of scale.
Subsidiaries: Weak with limited autonomy.
Example use case: Businesses with similar market demands worldwide.
What are the characteristics of an International Strategy?
Pressures: Low global integration, low local responsiveness.
Focus: Limited economies of scale, adapting products for local markets.
Subsidiaries: Have some autonomy but operate under central control.
Example use case: Businesses facing diverse but not highly competitive markets.
What defines a Transnational Strategy?
Pressures: High global integration, high local responsiveness.
Focus: Balancing global efficiency with local adaptation.
Subsidiaries: Share tasks and collaborate globally; emphasize knowledge transfer.
Example use case: Businesses seeking to compete in global markets while adapting locally.
What are the characteristics of a Multidomestic Strategy?
Pressures: Low global integration, high local responsiveness.
Focus: Customizing products and services for specific local markets.
Subsidiaries: Operate with high autonomy.
Example use case: Businesses focused on maximizing local market adaptation.
How does the Bartlett & Ghoshal model guide businesses?
The model helps businesses identify the best strategy by balancing the need for global efficiencies with local market adaptations based on market pressures.
Key takeaway: When should a company use a Global Strategy?
When achieving economies of scale is critical, and local market differences are minimal.
When should a company use an International Strategy?
When market demands vary but economies of scale are limited, and some product adaptation is required.
When should a company use a Transnational Strategy?
When a company must balance global cost efficiencies with significant local responsiveness.
When should a company use a Multidomestic Strategy?
When customization for local markets is a priority, and global cost efficiencies are less critical.
