abhishreshthaa
Abhijeet S
Management Control Of International Business.
- International Strategy/multidomestic strategy/global strategy/ trans national strt.
- IS is transfer of Know how & or products developed in home country of foreign markets where they are scarce.
- IS may be used when there is not much pressure on cost reduction or local responsiveness.
- MDS is adapting to local requirement by customizing both product & market strategy.
- MDS can be used when the pressure on cost reduction is not high but the focus on local responsiveness is significant.
- In global strategy the focus is on cost reduction by selecting locations for value addition based on the objective of minimizing cost & achieving economies of scale.
- Global strategy can be used when there is lot of pressure on cost reduction without significant pressure on local responsiveness.
- Transnational strategy aims at achieving both cost reduction & local adaptability.
- TS may be required when there is a need for worldwide learning necessitated by high pressure on cost reduction as well as local responsiveness.