Transnational Strategies
Art Gonzalez
Weekly Assignment 4: Developing Transnational Strategies
1
Compare and contrast international, multinational, global and transnational strategies which are used by today 's MNEs.
In dealing with the environmental forces, global efficiency, flexibility and learning, to achieve success, worldwide operational managerial methods led to four management strategies known as international, multinational, global, and transnational (Bartlett & Beamish, 2014, p. 215). The following discussion compares and contrast how each strategy handles these forces.
International Strategy
An international strategy initially focuses on exporting products to foreign overseas markets with the product’s life-cycle as the time-based driving force and is very innovation driven (Bartlett &
Beamish, 2014, p. 113). It is less efficient like a multinational but unlike a global strategy which has very well developed scale operations (Bartlett & Beamish, 2014, p. 216). Furthermore, because it’s not flexible to forces, it leaves the strategic responses to its local units; on the contrary, the multinational relies on its worldwide enterprise to respond to competition by responding in other areas while a global strategy uses an all-is-one approach by using all of its resources when responding to competition (Twarowska & Kąko, 2013, p. 1005). Finally, its learning is very challenging because flows from headquarters to subunits like globals but unlike multinational subunits which have localized learning with resource support from headquarters.
Multinational Strategy
This strategy builds up local units and very resource rich national subsidiaries that can respond to local market needs or opportunities with localized products and strategies (Bartlett & Beamish,
2014, p. 113). For this reason, it is not very efficient like internationals and very far behind the curve when compared to global strategy. In addition, its inflexibility like an international to
Weekly Assignment 4: Developing Transnational Strategies
1
Compare and contrast international, multinational, global and transnational strategies which are used by today 's MNEs.
In dealing with the environmental forces, global efficiency, flexibility and learning, to achieve success, worldwide operational managerial methods led to four management strategies known as international, multinational, global, and transnational (Bartlett & Beamish, 2014, p. 215). The following discussion compares and contrast how each strategy handles these forces.
International Strategy
An international strategy initially focuses on exporting products to foreign overseas markets with the product’s life-cycle as the time-based driving force and is very innovation driven (Bartlett &
Beamish, 2014, p. 113). It is less efficient like a multinational but unlike a global strategy which has very well developed scale operations (Bartlett & Beamish, 2014, p. 216). Furthermore, because it’s not flexible to forces, it leaves the strategic responses to its local units; on the contrary, the multinational relies on its worldwide enterprise to respond to competition by responding in other areas while a global strategy uses an all-is-one approach by using all of its resources when responding to competition (Twarowska & Kąko, 2013, p. 1005). Finally, its learning is very challenging because flows from headquarters to subunits like globals but unlike multinational subunits which have localized learning with resource support from headquarters.
Multinational Strategy
This strategy builds up local units and very resource rich national subsidiaries that can respond to local market needs or opportunities with localized products and strategies (Bartlett & Beamish,
2014, p. 113). For this reason, it is not very efficient like internationals and very far behind the curve when compared to global strategy. In addition, its inflexibility like an international to
References: Bartlett, C. A., & Beamish, P. W. (2014). Developing Transnational Strategies: Building Layers of Competitive Advantage. In Transnational Management Texas, Cases, and Readings in CrossBorder Management (7th ed., pp. 208-222). New York, NY: McGraw-Hill. Bartlett, C. A., & Beamish, P. W. (2014). Managing Differences: The Central Challenge of Global Strategy. In Transnational Management Texas, Cases, and Readings in Cross-Border Management (7th ed., pp. 267-278). New York, NY: McGraw-Hill.