Strategy and Structure
3 important questions on Strategy and Structure
Four strategic choices
Home-replication strategy: Duplicating home country-based competencies in foreign countries. Low pressure for cost reduction and local responsiveness
Localization Strategy: Low pressure for cost reduction, but high pressure for local responsiveness. Treating each foreign national markets seperately(high costs)
Global Standardizaion strategy: Development and distribution of standardized products(Low costs)
Transnational strategy: Global learning and diffusion of innovations in multiple ways.
Four organizational structures
International Division: 1. Foreign subsidiary managers are not given sufficient voice relative to the heads of domestic divisions. 2. International division actions are not well coordinated with the rest of the firm. HOME REPLICATION
Geographic Area Structure: Organized by different geographic areas. LOCALIZATION
Global Product Division: Global responsibilities for each product division. GLOBAL STANDARDIZATION
Global Matrix: Sharing and coordination between product divisions and geographic divisions. TRANSNATIONAL
Explain how institutions affect strategy and structure
External relationships: Home country and foreign country formal frameworks.
Internal relationships: Formal and Informal management rules
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
