Introduction
In this article, you can see some of the strategies used in doing business. This article will glance through some of the business strategies.
Multi-Domestic Strategy
Multi-Domestic strategy is an international strategy, which will be effective while entering into a new nation having many differences from the firm’s nation of origin. Implementing this strategy helps in localizing the firm to the people of the new nation. In this strategy, the firm concerns more for local responsiveness than the global product, which means that their product will be customized to the local demands and also the firm is controlled by local managers. This decentralized control reduces the political risks in managing the firm in the new market. This Strategy has less impact on international human resource management.
Global Strategy
Global strategy is good to enter into the new nations which have similar culture to the firm’s nation. In this strategy the control is centralized, which means that firm is less localized. The product of the firm will be same all across the nation. The activities across the nation will be well coordinated and cost effective and faster product development.
Transnational Strategy
Transnational strategy is a combination of multi-domestic and global strategies. This strategy integrates the global competitiveness with local responsiveness. It is not easy to implement. It has huge human resource impact.
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