Bartlett & Ghoshal's

• Bartlett & Ghoshal's International Strategies

  Model about how businesses conduct their international strategy and the different pressures placed on businesses to succeed in international markets.
• Bartlett and Ghoshal's Model uses 2 Pressures:

  1. Pressure to respond to local market needs
  2. Pressure to integrate globally to achieve low unit costs and success
• Bartlett and Ghoshal's Matrix

  There are 4 positions:

  • global
  • transnational
  • international
  • multi-domestic
• Global Characteristics


  Very focused on economies of scale
• Global Characteristics


  Standardized products
• Global Characteristics


  Highly Centralized
• Global Characteristics


  Little sharing of expertise
• Transnational Characteristics


  Complex to complete
• Transnational Characteristics


  Wide Sharing of expertise
• Low Pressure For Global Integration, High Pressure for Local Responsiveness


  Multi-Domestic
• Multi-Domestic


  Low Pressure For Global Integration, High Pressure for Local Responsiveness
• Multi-Domestic Characteristics


  Aims to maximize needs via extensive customisation
• Multi-Domestic Characteristics


  Decentralized decision-making
• Low Pressure For Global Integration, Low Pressure for Local Responsiveness


  International
• International


  Low Pressure For Global Integration, Low Pressure for Local Responsiveness
• International Strategy Characteristics


  Aims to achieve efficiency by focusing on domestic activities
• International Strategy Characteristics


  Operations Managed Centrally
• Pfizer is an example of what strategy?

  Global
• Global Strategy Example


  Pfizer - Focused on economies of scale, standardization of products, low need for local responsiveness
• Nestle is an example of what strategy?

  Multi-Domestic
• Multi-domestic strategy Example


  Nestle - Highly decentralized business units, each adopting a specific strategy for each country to meet local market needs
• Starbucks is an example of what strategy?

  Transnational
• Transnational Strategy Example


  Starbucks - Tries to be close to local market needs while also gaining benefits from global integration
• Mcdonald's is an example of what strategy?

  International
• Local Responsiveness


  Do customers expect the product to be adapted to meet local requirements?
• What is a key consideration for local responsiveness?

  Is there existing local competition with competitive advantage?
• Global Integration


  What is the multinational need to standardize the product or service around the world in different countries in order to operate efficiently?
• To what extent does a multinational business need to localize the product/service in order to be competitive in the market is another way of looking at ....

  Local Responsiveness
• High Pressure For Global Integration, Low Pressure for Local Responsiveness


  Global
• Global


  High Pressure For Global Integration, Low Pressure for Local Responsiveness
• High Pressure For Global Integration, High Pressure for Local Responsiveness



  Transnational
• Transnational


  High Pressure For Global Integration, High Pressure for Local Responsiveness

• Who made the Global, Transnational, Multi-Domestic and international matrix model?

  Bartlett and Ghoshal