Question

Explain in detail one of the following four strategies of business: international, multi-domestic, global, or transnational. Select a specific company not highlighted in the chapters for this week in your text and answer the questions that are attached.

1. Give an overview of the company you chose and identify the strategy you selected.
2. What does the strategy entail?
3. What are the implications to configuring and coordinating value chains?
4. What are the benefits of the strategy as it pertains to your company?
5. What are the limitations of the strategy as it pertains to your company?

The essay should be at least 500 words. Be as specific as possible. Be as specific as possible. Submit your answers in a doc or docx document. Follow full APA compliance guidelines. Use all resources provided this week to support your assignment completion

https://www.youtube.com/watch?v=TYefJIW5sIg

Answer 1

Four strategies of business

1. International Business Strategy

International: Low Integration and Low Responsiveness

An international company has little need for local adaption and global integration. The majority of the value chain activities will be maintained at the headquarter. This strategy is also often referred to as an exporting strategy. Products are produced in the company’s home country and send to customers all over the world. Subsidiaries, if any, are functioning in this case more like local channels through which the products are being sold to the end-consumer. Large wine producers from countries such as France and Italy are great examples of international companies.

2. Multidomestic: Low Integration and High Responsiveness

Companies with a multidomestic strategy have as aim to meet the needs and requirements of the local markets worldwide by customizing and tailoring their products and services extensively. In addition, they have little pressure for global integration. Consequently, multidomestic firms often have a very decentralized and loosely coupled structure where subsidiaries worldwide are operating relatively autonomously and independent from the headquarter.

A great example of a multidomestic company is Nestle uses a unique marketing and sales approach for each of the markets in which it operates. Furthermore, it adapts its products to local tastes by offering different products in different markets.

3. Global: High Integration and Low Responsiveness

Global companies are the opposite of multidomestic companies. They offer a standarized product worldwide and have the goal to maximize efficiencies in order to recude costs as much as possible. Global companies are highly centralized and subsidiaries are often very dependent on the HQ. Their main role is to implement the parent company’s decisions and to act as pipelines of products and strategies. This model is also known as the hub-and-spoke model. Pharmaceutical companies such as Pfizer can be considered global companies.

4. Transnational: High Integration and High Responsiveness

The transnational company has characteristics of both the global and multidomestic firm. Its aim is to maximize local responsiveness but also to gain benefits from global integration. Even though this seems impossible, it is actually perfectly doable when taking the whole value chain into considerations. Transnational companies often try to create economies of scale more upstream in the value chain and be more flexible and locally adaptive in downstream activities such as marketing and sales. In terms of organizational design, a transnational company is characterised by an integrated and interdependent network of subsidiaries all over the world. These subsidiaries have strategic roles and act as centres of excellence. Due to efficient knowledge and expertise exchange between subsidiaries, the company in general is able to meet both strategic objectives. A great example of a transnational company is Unilever.

Strategy entails: specifying the organization ‘s mission, vision, and objectives; developing policies and plans to execute the vision; and allocating resources to implement those policies and plans.

The process of strategic management entails:

• Specifying the organization’s mission, vision, and objectives
• Developing policies and plans that are designed to achieve these objectives
• Allocating resources to implement these policies and plans

The configuration and coordination dimensions are posited as determining alternative international strategy types within global industries. Specifically, configuration ranges from dispersed-with an entire set of the organization's functional activities being replicated within each country, to concentratedwhere activities of the value chain are disaggregated and placed in single country locations. Coordination ranges from low-where each functional activity in different country sites is performed independent of all other sites, to high-where functional activities are tightly linked or integrated across geographical locations. Alternate strategy implementation approaches are thought to be based on the particular combination of emphasis on these two dimensions

The benefits of business strategy

Gives direction – One of the biggest benefits of a business plan is the direction it can give your organisation. Setting out a well-planned business strategy will ensure your entire organisation is working towards the same goals and instills a sense of shared responsibility amongst employees.

Creates a measure for success – Business strategies allow you to measure your organisation’s performance and growth against your desired goals. Are you achieving what you had hoped to achieve within the stipulated timeframe? If not, why? Following a business strategy will allow you to measure success and better identify areas that require improvement in future.

Increases adaptability – In our current innovation-focused society, businesses need to be responsive to change. An effective business strategy will allow your organisation to predict and meet the changing demands of the current market. By analysing and reviewing customer’s expectations and needs, businesses can better identify new market trends and adapt their strategy as required.

Drives decisions – Strategy is what drives decisions in business. By helping organisations identify their strengths and weaknesses, an effective strategy will help you decide where your efforts and resources are best spent. These decisions are crucial in ensuring your business has a profitable and sustainable future.

Limitations of the strategy as it pertains to your company

1. A Complex Process

2.Time Consuming

3.Difficult to Implement

4.Requires Skillful Planning