Four Strategies for Global Expansion

1
Four Strategies for Global Expansion
Forces for National Responsiveness
Low
High
Both Globalization Multidomestic Strategy
Global Matrix Structure
High
Globalization Strategy Global Product
Structure
Forces for Global Integration
Export Strategy International Division
Multidomestic Strategy Global Geographic
Structure
Low
2
Stages of International Development
I. Domestic
II. International
III. Multinational
IV. Global
Strategic Orientation Stage of Development Struc
ture Resource Flow Market
Potential Facilities Location
Domestically oriented Initial foreign
involvement Domestic structure, plus export
dept. Volume expansion Moderate,
mostly domestic Domestic
Export oriented multidomestic Competitive
positioning Domestic structure, plus
international division Volume expansion,
resource acquisition Large, multidomestic Domes
tic, subsidiaries in primary markets
Global
Multinational Explosion Worldwide
geographic, product, functional Reciprocity
Very large, multinational Least cost,
multinational
Global
Full integration
Matrix, heterarchy
Whole world
Least cost, global
3
Organizational Characteristics of Multinational,
Global, International, and Transnational Firms
4
Domestic Hybrid with International Division
CEO
Corporate Finance
Research Development
Human Resources
Electrical Products Division
Scientific Products Division
Medical Products Division
International Division
Europe (Sales)
Brazil (Subsidiary)
Mideast (Sales)
Staff(Legal, Licensing)
5
GLOBAL GEOGRAPHICAL STRUCTURE
CEO
Pacific Division
European Division
Latin American Division
Canadian Division
Corporate Staff
Long-term planning
Product coordinators
6
Global Product Structure
Chairman
President
Engineering
Law Corporate Relations
Finance Administration
International
Regional Coordinators
Global Instruments Product Group
Global Materials Handling Group
Global Truck Components Group
Global Industrial Group
Global Automotive Components Group
7
Global Matrix Structure
International Executive Committee
Country Managers
Germany
Norway
Argentina/Brazil
Spain/Portugal
Business Areas
Power Transformers
Transportation
Industry
Local Companies