Global & Transnational Management Looking at companies that do business in multi

Question

Global & Transnational Management

Looking at companies that do business in multiple countries, a classification of company strategies can be conceptualized that divides companies into four types (international, global, multi-domestic, and multinational) based upon whether their emphasis on local responsiveness and global integration is low or high. For example, a multinational strategy would be one that seeks to simultaneously sustain high local responsiveness and high global integration.

Initial Post Instructions Select one of the four strategies and explain how its strategy fits (or does not fit) with the classification scheme. Then either give an example of a company that illustrates the use of such a strategy or use your own company and explain the extent to which it would fit the classification you chose.

400 Word Minimum, no copy and paste. Orginial words only. APA format, list in text citations and references

Explanation / Answer

The criteria for the classification scheme in the 2X2 matrix is as per the local responsiveness and global integration. This means that the two metrics should be baanced to obtain the optimal strategy. Choosing the multinational strategy, which is high on local responsiveness and global integration.

A company like Unilever fits well into the multinational quadrant of the matrix. For achieving a high level of local responsiveness; a very strong local presence with a strong local strategy is very effective. For Ex: Unilever in India is registered as Hindustan Unilever, starting right from the name it has ingrained indianness in its culture. The product lines meet the needs of the Indian consumer requirement and also have certain products to meet the indian behaviour and psycology. In addition , HUL ( Hindustan Unilever ) has introduced products to meet specific ayurvedic product line to tackle competition like Patanjali in India.

To maintain the global integration, HUL also maintains the global quality standards and also the sales and distribution operations strategies are as per the global processes. HUL is a truly global brand with products like Dove that are sold across geographies. This helps maintain the complete optimal balance betwen the local and global aspects and hence define the organisation as a multinational company.

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