Global Integration
What feature means keeping products, services, and processes consistent across markets?
Standardization
What feature means tailoring products to local tastes and requirements?
Customization
Which strategy uses home-country products and capabilities in foreign markets?
Export strategy
Does a global strategy emphasize high or low local responsiveness?
Low
Which strategy faces risks of manufacturing inefficiencies and brand dilution?
Multidomestic strategy.
What feature involves streamlining operations to reduce costs?
Efficiency
What feature allows a company to adjust its operations to local conditions?
Flexibility
Which strategy combines efficient operations, local adaptation, and knowledge exchange between country units?
Transnational strategy.
Which strategy fits low pressures for both integration and responsiveness?
Export strategy
A strong brand expands abroad with little pressure for international coordination or local adaptation. Which strategy fits, and what competitive risk does it face?
Export strategy; skilled local rivals may understand their markets better. Geopolitics and tariffs.
A company maintains the same brand image and marketing message worldwide. Which feature is this?
Uniform branding
A company changes its advertising to reflect each country’s culture. Which feature is this?
Localized branding
Which strategy emphasizes streamlining processes and economies of scale, with little tailoring?
Global strategy
What distinguishes global and transnational strategies in their approach to local markets?
Global involves little adaptation; transnational adapts to local conditions.
A firm sells standardized products abroad. What additional evidence would support a global strategy rather than an export strategy?
Centrally coordinated activities across countries and an emphasis on efficiency through economies of scale.
Headquarters makes strategic decisions to ensure consistency across countries. Which feature is this?
Centralized decision-making
A regional subsidiary sets its own prices and promotions. Which feature is this?
Decentralized decision-making
Which strategy treats country operations as relatively independent units offering different products?
Multidomestic strategy
What distinguishes multidomestic and transnational strategies in international coordination?
Multidomestic has low coordination; transnational has high coordination.
Two firms adapt products locally. Only one exchanges knowledge between country units and coordinates operations for efficiency. Identify both strategies and explain the difference.
Multidomestic and transnational. Multidomestic units operate relatively independently; transnational units combine local adaptation with global coordination and learning.
A firm uses identical products, a consistent worldwide image, and headquarters-led decisions. Identify the three integration features.
Standardization, uniform branding, and centralized decision-making.
A firm changes product formulas, adjusts operating practices, and gives local teams decision authority. Identify the three responsiveness features.
Customization, flexibility, and decentralized decision-making.
Two firms adapt products locally. One has little international coordination; the other coordinates globally. Identify each strategy.
First: multidomestic. Second: transnational.
Match all four strategies to their integration and responsiveness levels.
Export: low/low. Global: high/low. Multidomestic: low/high. Transnational: high/high.
A company uses decentralized decision-making. A student concludes that it must follow a multidomestic strategy. Why is that conclusion insufficient, and what additional evidence is needed?
Decentralization alone does not establish the strategy. Examine international coordination and knowledge exchange: relatively independent units support multidomestic; strong global coordination combined with local adaptation supports transnational.