• 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. Coastal management.

    * Navy beans, from which baked beans are produced, could be grown in England if the global temperature rises as predicted in the next century, according to a study. Researchers at Coventry University and Horticultural Research International have found that navy beans could be grown in Hampshire, East and West

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

    also zone 4 has 81% of the building frontages being over 10 metres long whereas zone 3 only has 65% of the buildings over 10 metres long between zone 3 and zone 4 there is a 16% decrease in buildings under 10 metres long.

  1. Free essay

    Exploitation and management of resources

    "According to the WWDR 2003, in developing countries, 70 per cent of industrial wastes are dumped without treatment, thereby polluting the usable water supply". The pie charts below show the use of water in high, low, and middle income countries.

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

    as to whether shoppers were purchasing high or low order goods, how long it took them to get there, where they came from and by what means of transport, and lastly how often they came. We also used a source of secondary data- bus maps.

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

    Japan for example lies on 4 major plates causing it to have more than 7500 earthquakes annually, more than any other country, the plates are the only reason why they occur and its unfortunate that not just is it two plates are meeting but four, it is just pure coincidence and bad luck that they occur in that country.

  2. "In one way or another, these texts account for a turning from the world, ...

    It can be argued that the relatively recent phenomenon of a shift towards the global has been balanced out by a move back to embracing the local. Various texts, over these thirty years, have been created with the purpose of enlightening the public about the continuing issue of global/local and

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