Question

In: Operations Management

. Discuss the characteristics of a firm that is pursuing an international strategy

. Discuss the characteristics of a firm that is pursuing an international strategy

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Expert Solution

When a company decides to utilize the market potential of a foreign land, then they have to set certain goals and procedures for it. The important characteristics of a firm that pursues an international strategy are given below.

(1) Centralized mode of operation in the parent country with a preference for modular structure. So decision-making authorities can control things more effectively.

(2) No major investment on a foreign land in terms of direct ownership of assets. It reduces the need for legal compliance to do a business in a foreign country.

(3) Fully relies on exporting, importing, and franchising to access the international market.

(4) Utilizes the brand value effectively. So outsourced products across the globe will be assembled in parent country then exports the final product to foreign countries.

(5) Product customization based on geographical locations and market potential. That means different quality and choice of products varies in countries based on the demand and purchasing power of people.


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