In the initial stage of internationalization, the allocation decision is made using the framework of domestic market, then base on the current market potential in the next stage, meanwhile the companies have to notice the cross-nation resource deployment to avoid duplication of effort. The need of efficiency in the last phase of globalization urges firms to deploy their resources rationally and in a balanced way to seize the opportunities and ensure the growth as well as the maturation of the company. Challenges of strategic planning When a company operate a subsidiary in a foreign country, the conflict between economic imperative - which determines where the elements of the business should locate, and political imperative - which is create by the demand of the host country, could emerges. Economic imperative Base on the economic factors, companies have two distinct strategic options when operating in an industry: Global strategy or country-centered strategy. The choice can be made by determining the proportion of product value added in upstream or downstream of the value chain, as well as the company's competitive segment in the value
Introduction Can selling be globalized?, if we ask manager of any organization , he would probably reply in a highly convinced manner saying that the global account management is both inevitable and desirable for any company. However, companies should have a clear understanding of the term, and should think intensely before jumping on the global customer bandwagon as building such relationship can bring hassles and troubles for the company. In many cases, it has been found that companies opting for globalized sales found them trapped as unanticipated costs outweigh the benefits, with major threat coming from downward pressure on price level as consolidated sales triggered request for greater volume discounts, and also increased sales commissions,
The third strategy, the transnational strategy, benefits from sides of both multidomestic and globalization strategy. The organization tries to achieve both global efficiency and local responsiveness. The last strategy is not relavent in the Imtech case. This strategy is based on domestic focus
1 INTRODUCTION 1.1 WHAT IS TRANSNATIONAL STRATEGY 1.1.1 By Definition An international business structure where a company's global business activities are coordinated via cooperation and interdependence between its head office, operational divisions and internationally located subsidiaries or retail outlets. A transnational strategy offers the centralization benefits provided by a global strategy along with the local responsiveness characteristic of domestic strategies. (Business Dictionary) 1.1.2 Explanation The Transnational strategy is shortened term for global strategy, the international strategy and the multinational strategy. Essentially each of the mentioned strategies allow organization to do business at oversea locations. The transnational
In addition, according to this model a company is able to choose how it wants to compete based on the match between its competitive advantage and the target market. However, there is an assumption made by the model that an organisation is successfully operating in their competitive environment. The generic strategies of the model do not provide management with the additional
Normally the team performs better on complex tasks as the team members are more creativity and diverse thinking. However, heterogeneous team tends to have more conflict among team members and have great difficulty building interpersonal relationship. They normally takes longer time to agree on norms and goals. For instance, a temporary cross-functional teams comprising of finance, IT and SAP consultant was being formed to discuss and implement the accounting system migration. All department require to meet up regularly for discussion and communicate the issue and concerns over the system migration to consultant.
1.0 Introduction Most firms are eyeing on the global marketplace to improve their competitiveness. There are however many controversies on the most effective marketing strategy in the international market. There is growing importance of international marketing and various issues must be considered in order to successfully compete globally. A global marketing strategy encompasses countries from several regions in the world and coordinates a firm's marketing effort in markets in these countries. There is therefore need for companies to adopt more coordinated global marketing strategies once they have a significant presence in several countries and regions.
Localization can be defined as the process of adapting a certain product or service and modifying it to the taste of a certain target market. This may entail changing it to suit the customers in terms of their cultural or linguistic standards. 2) The two main reactive responses as to why firms get involved in globalization include; the need to engage in international competition, which is aimed at increasing the company’s operations and maximizing its profits. A firm may also face difficulties resulting from harsh restrictions by the local government, thereby forcing it to relocate its operations in other countries that have less-harsh restrictions. Two major proactive reasons include; the need to seek economies of scale, and the need to seek more expansion opportunities in case the home market becomes congested.
Preferable internationalization approach is determined by combination of two factors: company’s internationalization level and network’s (market’s) internationalization level. The former refers to the total company experience at the certain market while the latter means the total activity of international organizations (including competitors, suppliers and etc.) at the market. Those factors matching combine four different types of firms: the early starter, the lonely international, the late starter and the international among others. The next table is drawing the relationships between factors and types of