BARTLETT & GHOSHAL - INTERNATIONAL STRATEGY Flashcards
What is international strategy
A model outlining the strategies for operating a multinational company based on the pressure for local responsiveness and the pressure for managing costs.
What is pressure for local responsiveness
Pressure for local responsiveness: To what extent does the product need to be customised to adapt to local tastes? (can it be one size fits all for all markets, or does the product have to be specialised to different markets)
What is pressure to reduce costs (global integration)
Pressure to reduce costs (global integration): To what extent does the MNC need to exploit their economies of scale in order to gain a competitive advantage?
When are pressures for local responsiveness high
When products are not differentiated, and price is the USP
Where competitors can produce similar products more cheaply
In highly competitive markets
What is the international strategy
Low cost pressure (global integrations) and low pressure for local responsiveness.
What is demand for products similar to
Demand for products is similar to MNC’s home market, while there is little pressure for lowering average production costs - Don’t really need to centralise products
Which decisions are centralised
Product development and R&D decisions are centralised, other decisions may be decentralised (i.e. HR or marketing) - Developing a single product. But you can also decentralise other decision making like HR
What decisions do local branches implement
Local branches implement centrally made decisions
