PC05: Integration/Adaption Framework

Question 1

What is the main idea of the Integration/adaptation Framework?

Answer 1

Core idea: MNCs are subject to conflicting pressure for
1. Cross-border integration
2. Local responsiveness
with industry characteristics defining where strategy is leaning to.

Question 2

When does strong pressure for global integration exist?

Answer 2

• seek cost reduction through economies of scale
• Capitalize on converging consumer trends
• Provide uniform service
• Conduct global sourcing
• Monitor and respond to global competitors
• Take advantage of media with cross-nation reach

Question 3

When does strong pressure for local responsiveness exist?

Answer 3

• leverage national endowments (local talent)
• cater to local customer needs
• accommodate differences in distribution channels
• respond to local competition
• adjust to cultural differences
• meet host government requirements and regulations

Question 4

Intergration/Adaption Framework

Answer 4

see slides