Basic Strategies & Multinational and Participation Strategies

1095 Words May 10th, 2011 5 Pages
Basic Strategies & Multinational and Participation Strategies
K. Praveen Parboteeah

Basic Strategies
Review of strategic decision making and strategic management
Understanding of basic strategies And how to craft strategies
Industry analysis SWOT analysis

Situation with diversified companies

The global-local dilemma
Some of the broad multinational strategies Multidomestic Transnational International Regional

Participation strategies – how should one enter a market

Multinational Strategies and the Global Local Dilemma

The local responsiveness solution
Customize organizations and products to country or regional differences

The global integration solution
Reduce costs with worldwide standardized
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2. 3. 4. Exporting Licensing Strategic alliances Foreign direct investment

1. Exporting
The easiest – low risk, minimal investment, and fast withdrawal Passive exporting – treating and filling overseas orders like domestic orders Active export strategies – indirect through Export Management Companies

Direct Exporting
More aggressive Requires more contact with foreign companies Uses foreign sales representatives, distributors, or retailers May require branch offices in foreign countries

Exporting o o



Often the only available choices for small and new firms wanting to go international Provide an avenue for larger firms that want to begin their international expansion with a minimum of investment Exporting and importing can provide easy access to overseas markets Strategy usually is transitional in nature

2. Licensing
International licensing is a contractual agreement between a domestic licensor and a foreign licensee
International franchising Contract manufacturing Turnkey operations

Licensing distinctions:
Patent – legal protection for new inventions Trademark – legal protection for symbols, picture [Nike swoosh] Copyright Trade secret – Coca Cola formula etc.

Widely used in the fast-food and hotel/motel industries With minor adjustments for the local market, it can result in a highly

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