Bartlett and Ghoshal's International Business Strategies Flashcards
What is on the Y-axis?
Pressure to reduce costs
What is on the X-axis?
Pressure for local response
What does pressure to reduce costs mean?
Pressure to coordinate globally in order to reduce costs
What does pressure for local response mean?
Pressure because demands of markets in other countries are different to home market.
What Strategy to take when Pressure for costs and response is low?
International strategy
What is the international strategy?
Low, Low Pressure
Very centralised structure, Decisions then implemented in parts of biz which are abroad.
What strategy is taken when pressure for costs is LOW but pressure for local responsiveness is HIGH
Multidomestic Strategy
What is the Multidomestic strategy?
Low, High pressure
Decentralised and biz operates as if it were lots of independent biz. Most decisions made locally.
Products adapted for local market
What strategy is taken when pressure for costs is HIGH but pressure for local responsiveness is LOW?
Global Strategy
What is the Global Strategy?
High, Low pressure
Centralised, coordinated across regions for economies of scale.
Standardised products, R&D at one location
What strategy is taken when pressure for costs is HIGH and pressure for local responsiveness is HIGH?
Transnational Strategy
What is a Transnational Strategy?
High, High Pressure
Focus on developing knowledge locally and then sharing globally.
Balanced between centralised and decentralised
