7.3.5 Transnational strategy
The firm seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness. Interchange still occurs between the home base and foreign subsidiary and between foreign subsidiaries - a process known as global learning.
Advantages: |
Core competencies exchangeable. |
Disadvantages: |
Difficult to implement. |
Examples: |
Shell, Unilever, Caterpillar. |
No strategy of the four mentioned is likely to provide the perfect response to the many variables which confront an MNE. However, the firm must search for the best compromise. Turn now to your textbook and then take some time to work through the placement of each strategy in Figure 12.6 on page 428. An application of international strategy decisions for the global automotive industry is also included in the readings.
In your text
Hill 2005, Chapter 12, pp. 427-433.
Reading 7.5
Zaleski, J. E. 2004, 'A lesson to learn: How automakers survive globalisation', Bangkok Post , 18 May, p. 2.
Activity 7.3
For revision purposes, develop your own list of strategies and activities for success in international markets.
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