Outline the characteristics of Global and Transnational Strategy. Identify situations in which Multi-National Enterprise (MNEs) should...

Outline the characteristics of Global and Transnational Strategy. Identify situations in which Multi-National Enterprise (MNEs) should deploy each of these strategies?

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The advent of internet has made goods and services easily available around the corners of globe. Companies are expanding rapidly in new countries , new products are easily available every corner, world has become small .Transnational strategy takes the advantages of this new small world , by allowing companies to expand their territory in global aspect while taking into account cultural and social differences that shape the consumer in their naive environment.A firm using transnational strategy is mainly known as middle ground as such a firm tries to balance their desire for efficiency with the need to adjust to the local preferences within various countries. Large food chains like KFC or McDonald's changes their menu according to the local taste along with their special dishes like in France one can find wine in McDonald's

Global strategy is a process of expanding of a firm from international to global market and compete in global market . Firm will strategize how to change their products and pricing to determine how they can satisfy global audience with few variation in product and brand.Unlike transnational strategy is mainly sacrifices the local responsiveness within each country . Some minor modifications can be made according to the market situation but its main objective is to gain economics of scale by offering same products in each market

When a MNC wants to keep its standarized product worldwide with the goal to achieve maximum effectiveness and reduce cost as much as possible it will go for global strategy.They are highly centralized and mainly follow the orders from head quarters.They act like pipeline of product s ans strategies they are known as Hub and Spoke model

when a MNC aims to maximize its efficiency by responding to local taste and also gain from global market it will go for transnational strategy , to fulfill both the objective it should have integrated and interdependent network all over the world.It should try to earn economics of scale in upstream value chain and be more flexible in downstream activities like marketing or sales

Rahul Sunny answered 4 months ago

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