bartlett and ghosal

• bartlett & ghosal's international business strategies

  *strategies that show how to manage international business

  *measured on two levels: pressure for local responsiveness and pressure of global integration

  
• local responsiveness


  necessity to adapt products for different locations to meet specific needs of the customers in that country
• global integration


  reducing costs by selling products that remain the same across different countries (standardised products)
• global strategy


  *high GI, low LR

  *demands of different markets are similar and costs can be reduce significantly

  *increase profits via reducing costs

  *economies of scale used + experience curve (experience in making product)

  *centralised structure

  *standardised products

  *innovation and development take place at central location - knowledge and resources passed onto different branches

  *cost leadership focus
• transnational strategy


  *high GI, high LR

  *pressure to reduce costs and meet local needs are both high

  *mixture/balance of both centralised and decentralised structure

  *most businesses would move towards this in long term
• international strategy


  *low GI, low LR

  *demands of markets in other countries are similar to domestic market and pressure to reduce costs via GI are low

  *very centralised structure - most decisions (especially key ones) are made at head office, then implemented in parts of business that are located abroad
• multidomestic strategy


  *demands of different markets are very different and there's little pressure to reduce costs

  *requires lots of adapting due to variations in markets

  *decentralised structure - business operates as if it were lots of 'independent' companies running themselves

  *most decisions made locally to meet local needs (decentralised)

  *different branches will look and work differently

  *products adapted and promoted to suit local markets, knowledge not shared between separate branches