International Strategy

00:05:48
https://www.youtube.com/watch?v=z7M1vQTvkx4

Resumo

TLDRThe content explores the basics of international strategy, highlighting the importance of how managers pursue company objectives amid global competition. It outlines three distinct international strategies: multi-domestic, which focuses on local customization; meganational, which emphasizes cost efficiency through integration; and transnational, which aims to balance local adaptation with global efficiency. The examples of Groupe Danone and Starbucks illustrate how these strategies operate in practice. Understanding these strategies helps companies manage cultural and operational differences across borders.

Conclusões

  • 🗺️ Strategy involves managers' actions to achieve goals.
  • 🌍 Multi-domestic strategy customizes for local needs.
  • 💸 Meganational strategy focuses on cost efficiency.
  • 🔗 Transnational strategy combines global and local approaches.
  • 🏭 Groupe Danone exemplifies multi-domestic success.
  • 🚗 Major auto manufacturers utilize meganational strategies.
  • ☕ Starbucks adapts offerings while maintaining a global brand.
  • 🌱 Managing international differences is crucial for growth.
  • ⚖️ Choices between strategies depend on company objectives.
  • 📊 Understanding these strategies aids in effective global management.

Linha do tempo

  • 00:00:00 - 00:05:48

    Strategy involves the actions of managers to achieve company objectives, requiring clarity on how strategies relate to competitors. When operating internationally, managers can choose among multi-domestic, meganational, or transnational strategies, each aimed at profitable growth in global markets. Multi-domestic strategy focuses on local adaptation, allowing subsidiaries to operate independently like domestic companies to meet local needs, exemplified by Groupe Danone's tailored yogurt products in Russia. In contrast, a meganational strategy emphasizes cost efficiency through global integration, where companies produce standardized products using low-cost locations, as seen with major automakers. The transnational strategy seeks to balance global integration with local responsiveness, allowing subsidiaries some autonomy while maintaining coordination from headquarters, like Starbucks adapting its offerings to regional tastes. Choosing the right strategy depends on a company's objectives and the necessity for standardization or adaptation, all three strategies facilitating the management of international differences.

Mapa mental

Vídeo de perguntas e respostas

  • What are the three distinct international strategies?

    The three strategies are multi-domestic, meganational, and transnational.

  • What is the purpose of a multi-domestic strategy?

    Multi-domestic strategy customizes products and operations to meet local market needs.

  • How does a meganational strategy work?

    Meganational strategy focuses on cost reductions through global efficiency and standardization.

  • What is a transnational strategy?

    Transnational strategy aims to integrate global and local operations, balancing standardization and customization.

  • Can you provide an example of a company using a multi-domestic strategy?

    Groupe Danone exemplifies a multi-domestic strategy by customizing its products for local markets.

  • What does the transnational strategy require from companies?

    It requires companies to manage complex organizational structures to balance local adaptation and global integration.

  • Why do companies choose a meganational strategy?

    Companies choose this strategy to exploit economies of scale and reduce costs on a global scale.

  • How does Starbucks implement a transnational strategy?

    Starbucks standardizes store ambience while adapting product offerings to local tastes.

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Legendas
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Rolagem automática:
  • 00:00:00
    Strategy, in its most basic  form, consists of the actions
  • 00:00:04
    managers take in pursuit of company objectives.
  • 00:00:07
    Managers need to be explicit about  the strategy they are following and
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    how it relates to industry competitors.
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    This type of positioning helps employees  know how to focus their day-to-day efforts.
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    The purpose of following an international  strategy is to manage the differences that
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    arise when operating across multiple geographic  and cultural borders. Global managers are likely
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    to adopt one of three distinct international  strategies: multi-domestic, meganational,
  • 00:00:32
    or transnational. These all help the company  achieve profitable growth in a global market.
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    So how are these strategies different? A company  that pursues a multi-domestic strategy customizes
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    products, services, and operations so it can  respond to customers and employees in each
  • 00:00:48
    of the countries where it operates. In effect,  the company becomes a group of locally focused
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    subsidiaries that act independently like domestic  companies deciding how the product is designed,
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    made, distributed, and marketed in their local markets. Groupe Danone started in Barcelona, Spain in 1919.
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    The company introduced yogurt to Europe. Ten years later, in 1929,
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    the company opened its first retail outlet in  Paris selling yogurt as a dessert.
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    In 1942, the company expanded to the U.S. In 1970, the company expanded its products beyond yogurt with
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    the purchase of Evian, a beverage and baby  formula company. Over the next 20 years the
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    company purchased a number of food companies in  Europe and expanded to over 140 countries.
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    The mission of the company is to bring help through  food to as many people as possible.
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    Today, this mission guides 100,000 Danoners motivated by the  belief that nutrition can and must contribute to
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    bringing health to consumers of all ages, in  all countries, and of all cultures.
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    However, the company doesn't focus on selling the  same thing to each of the markets.
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    Rather the company believes in creating product that  meets the tastes of each country.
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    For instance, as the company entered Russia in 1992, it built a  factory and introduced yogurt brands specifically
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    designed for the Russian market. These include  Danissimo, Activia and Rastishka, Actimel,
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    and Danakor. The company also purchased Unimilk,  a Russian dairy company and is now the country's
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    largest dairy producer. The company even hosts  educational programs for Russian dairy farmers.
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    Danone takes a similar multi-domestic strategy in  each of its global markets to ensure that it is
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    meeting the local needs of customers. Taking the opposite stance from the multi-domestic strategy,
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    a meganational strategy focuses on reaping cost  reductions from economies of scale and other
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    efficiencies of global integration. Managers at  headquarters create products for a world market,
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    manufacture them on a global scale in a few highly  efficient plants, and market them through a few
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    key distribution channels. This strategy requires  that companies exploit location economies.
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    The cost advantage of performing each stage in the  value chain at the lowest cost for that activity.
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    For instance, aluminum production might occur in  the United States where electricity costs are low,
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    manufacturing in Indonesia where labor costs  are low, and IT support in India where service
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    labor costs are low. In this way, a meganational  strategy is really about seeing the world as one huge national market.
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    Toyota, Volkswagen, GM,  and Ford all engage in a meganational strategy.
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    These firms source auto components from locations  around the world, bring them together in global
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    factories, and then export the finished products  all over the world. Few modifications are made to
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    meet local customer needs, other than changing the  steering wheel from the left to the right side,
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    depending on each country's local traffic  laws. Of course, many companies need to be
  • 00:03:46
    both locally responsive and globally integrated.  The transnational strategy is a hybrid strategy by
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    which a company aims to be simultaneously global and local. However, because it's often impossible
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    to both adapt and standardize products at the  same time, companies adopting the transnational
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    strategy must make trade-offs. For example, they  must implement organizational structures that are
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    complex to encourage ideas to come from the local  operations and then to integrate them into global standards.
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    Like the multi-domestic approach, the  transnational strategy allows subsidiaries the
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    discretion and autonomy to adapt and customize  locally. However, that discretion is bounded
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    by global integration and coordination  from headquarters. Unlike the case in a
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    meganational strategy that achieves integration  through decisions made mostly by headquarters,
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    integration in a transnational organization  comes about when the different subsidiaries
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    coordinating and exchanging information make more  informed decisions. Transnational strategies mix
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    top-down from headquarters to subsidiaries  as in a meganational strategy and bottom-up
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    from foreign subsidiary to headquarters as in a  multi-domestic strategy. This strategy fosters
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    coordination from all over the organization in an  effort to take what is best in each global market
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    and utilize this around the globe regardless of  where ideas originate.
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    Starbucks for instance aims to create a global brand but simultaneously adapt offerings to local market tastes.
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    For instance, while the company seeks to standardize the  ambience of the stores across global markets,
  • 00:05:16
    the products offered in the stores changed based  on local preferences. In China, customers can get
  • 00:05:21
    a green tea latte with a red bean scone. Deciding  whether your company should pursue a transnational
  • 00:05:26
    strategy over a meganational or multi-domestic  strategy rests primarily on your objectives and
  • 00:05:31
    on your perceived needs to standardize operations  or adapt them across borders.
  • 00:05:36
    Regardless, all three strategies will help you to more effectively  manage the differences that arise across borders.
Etiquetas
  • international strategy
  • multi-domestic
  • meganational
  • transnational
  • Groupe Danone
  • Starbucks
  • global integration
  • local customization
  • cost efficiency
  • business management