• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Illustrate the characteristics of, and distinguish between a global strategy and a multi-domestic strategy. Use real world examples to illuminate your answer.

Extracts from this document...

Introduction

Illustrate the characteristics of, and distinguish between a global strategy and a multi-domestic strategy. Use real world examples to illuminate your answer. 'A global strategy is a strategy that seeks competitive advantage with strategic moves that are highly interdependent across countries' (REF) Whereas 'a multi-domestic strategy is a strategy that enables individual subsidiaries of a multinational firm to compete independently in different domestic markets' (REF) An important characteristic of a global strategy is a highly centralised management structure with most DM power held in head office, this is done to prevent regional managers from forming their own little empires. A good example of this highly centralised management structure is IBM, they have tight control over the whole company from head office. On the other hand, a multi-domestic strategy has a decentralised management structure where the central office acts as a holding company and local decision making occurs in regional offices. An example of this is Philips whose decent control meant a national buy-in was required before introducing a product therefore the time to market was very slow. ...read more.

Middle

Product functions and other functions with a multi-domestic strategy tend to be localised, each area is likely to have a local sales office. Carlsberg is an example of this with different offices in Denmark and England. (ADD?) Recruitment for a global strategy is overseen by a central office hub of VIP managers and training officers, they will be sent out to run, train and manage new branches to ensure the correct protocol is being followed. Hewlett Packard does this; each time they open a new office it is opened by a fully trained management team who have been trained to the Hewlett Packard way of thinking. On the other hand, with a multi-domestic strategy local recruitment is given priority due to government policies wherever possible. An advantage of employing locals is that they are likely to have a good understanding of the local environment, beliefs and attitudes. PC World uses a multi-domestic strategy and they always put the onus on local recruitment. A global strategy uses transferable marketing like symbols and logos that are recognisable worldwide such as the Windows symbol or the Nike tick. ...read more.

Conclusion

Although there are all these differences between global and multi-domestic strategies, there are some similarities too. Regardless of the strategy, certain rules have to be adhered to; they will have to meet requirements and standards of their central office no matter what country the output centre is in. If they are listed on different stock markets they need to report according to that stock markets particular standard. Any company has to abide by ISO's, no matter what organisation they are or where they are based. (?) In the US, for example, they have a six sigma rule which states that the maximum faults allowed per million is 3.4. Any number of these characteristics can apply to a global strategy or a multi-domestic strategy. However, it must be remembered that not all of these characteristics will will necessarily apply to any one organisation. Neither of these strategies are necessarily the 'best', it is simply a case of the firm adopting the strategy which best suits its current situation. (There are a growing number of global players) 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Physical Geography section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Physical Geography essays

  1. An Investigation Into Kingston Area Shopping Centres and Their Patterns of Use

    This made the data collection even harder. Also some people did not collect data in the same way that we were supposed to and therefore their results were not useful for the investigation. Classification of shops and services (shop count) Alexandra Drive on Thursday 21st September 2006 Before filling out the questionnaire Provided with a 'classification of

  2. To what extent are cities of the developing world governed by the neo-liberal conventions ...

    The countries through globalisation attempt to free themselves of the chains of debt whilst at the same time they become tied into global connections as all their development is aimed this way buy the IMF and World Bank.

  1. Coastal management.

    The higher tide measurements were thought to be a combination of subsidence and rising sea levels. Discovery of the subsidence � from Portsmouth to Newhaven � follows evidence from around the world that global sea levels have risen by four to six inches over the past 100 years.

  2. Free essay

    Exploitation and management of resources

    Power plants that create energy for entire countries rely on water as a cooling agent for over heated engines and turbines. Industrial water use already accounts for as much as 59 per cent of the total fresh water consumption, and this looks to increase as more countries, such as China, continue to develop.

  1. Explain with examples why some regions and countries are zones that experience multiple hazards

    However, much damage caused by earthquakes is indirect. Fire, collapsing buildings and bridges, burst pipes, mains and reservoirs are the main causes of death and damage. In the 1906 San Francisco earthquake (8.2 on the Richter Scale), 450 people were killed and 250 000 homes were destroyed as fire swept through the city for over 12 hours.

  2. To delimit the edge of the Central Business district of Nottingham along a transect ...

    From the graph I can see that the number of pedestrians vary at different time intervals. The time period with the most pedestrians counted was between 1.00 - 1.10pm. The total number of pedestrians at site 8 at this time was 574 but three hours earlier between 10.00-10.10 only 266 pedestrians were recorded.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work