Bartlett & Ghoshal's international strategies

Question 1

What is the matrix?

Answer 1

It identifies 4 international strategies according to the pressure for local responsiveness (high or low) and the pressure for integration (high or low).

Question 2

International strategy

What is the pressure for global integration & pressure for local responsiveness?

Answer 2

Low pressure integration

Low pressure responsiveness

Question 3

Multidomestic strategy

What is the pressure for global integration & pressure for local responsiveness?

Answer 3

Low pressure integration

High pressure responsiveness

Question 4

Transnational strategy

What is the pressure for global integration & pressure for local responsiveness?

Answer 4

High pressure inetgration

High pressure responsiveness

Question 5

Global strategy

What is the pressure for global integration & pressure for local responsiveness?

Answer 5

High pressure integration

Low-pressure responsiveness

Question 6

What are the 4 strategies on the matrix?

Answer 6

International strategy

Multi-domestic strategy

Transnational strategy

Global strategy

Question 7

What are the axis on the matrix?

Answer 7

Horizontal= pressure for local responsiveness

Vertical= Pressure for global integration

Question 8

What is international strategy?

Answer 8

• Strategy is based on the home country’s
• International operations are largely managed centrally.
• expertise with the concentration of activities in the domestic country.
• There is little adaptation of products to meet local needs- only marketing pricing & distribution are decided at a local level.

Question 9

Multi-domestic strategy

What are the features?

Answer 9

• Each market is treated independently, with products adapted to local needs & production, marketing and product development taking place in the overseas market.
• Aims to maximise benefits of meeting local needs through extensive customisation.
• Decision making- decentralised.
• Local businesses are treated as seperate businesses
• Strategies for each country.

Question 10

Transnational strategy

What are the features?

Answer 10

• The strategy aims to maximise both integration & responsiveness, where knowledge & innovation sought, developed & dispersed throughout the organisation.

Wide sharing of expertise.

E.g Starbucks

Question 11

Global strategy

What are the features?

Answer 11

• This involves a highly centralised business- based on economies of scale focus on efficiency & cost reduction.
• Although products are made overseas, there will be little adaption- standardised products.
• Little sharing of expertise locally.