Global Integration And Local Responsiveness Essay

704 Words Nov 30th, 2015 3 Pages
According to Bartlett and Ghoshal (1998), global integration and local responsiveness can be achieved simultaneously, and they develop a typology based on a matrix of four strategies: multinational, global, international and transnational. This typology has become a standard analytical tool in international business strategy textbooks. A multinational strategy focuses on local responsiveness, for example, by offering locally adapted products in each market. Multinational companies have developed a strategic posture and organizational capability that allows them to be very sensitive and responsive to differences in national environments around the world (Bartlett and Ghoshal, 1998). The subsidiaries of multinational companies are allowed to make decisions and implement strategy autonomously. In contrast, a global strategy focuses on global integration. To companies which apply global strategy, decision-making and implementation strategy are organized in headquarter. This type of companies treat the global market as an integrated whole. International operations within these companies are driven by the need for global efficiency and their strategic and operational decisions are centralized (Bartlett and Ghoshal, 1998). When these companies analyse their business, the global operating environment and consumer demand around the world are the dominant units, rather than the nation-state or the local market (Bartlett and Ghoshal, 1998). An international strategy is low on both…

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