Strategic Management ch. 10 Global Strategy: Competing Around the World
The integration-responsiveness framework suggests that companies facing high pressure for both local responsiveness and cost reduction should follow a(n) _____________ strategy.
transnational
What conditions suggest multidomestic strategy might be the appropriate strategy for MNEs?
- high demand for local responsiveness - little need for cost reductions - host countries with idiosyncratic domestic markets
As MNEs compete internationally, a focus on local responsiveness allows them to do what two things
- increase product differentiation - appeal to local consumers more effectively
With a multidomestic strategy, products are manufactured on a local level. This has the potential of __________.
- increasing the risk of intellectual property appropriation
A multinational enterprise would likely be motivated to pursue a global-standardization strategy in order to _________
- take advantage of economies of scale - take advantage of location economies
When an MNE does not face strong pressure for cost reductions or local responsiveness, an international strategy is typically _____________.
advantageous
Since expanding internationally, IKEA has shifted focus, concentrating on effectively managing a global supply chain in order to achieve economies of scale. This is reflective of a(n) _____________ strategy
global-standardization
IKEA offers the same products in every market. This indicates that IKEA has followed a(n) ___________ strategy.
international
Mount Mountain is a manufacturer of outdoor gear and apparel. It uses American sizing and standards for its apparel and gear across all markets. Which strategy is Mount Mountain adhering to?
international
When a company wants to be more responsive to local consumers in multiple countries, it will likely shift to a(n) ____________ strategy
multidomestic
A(n) __________ strategy focuses on integration at the business level by attempting to reconcile product differentiations at low cost
transnational
