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ribution – related industries as suppliers and buyers 12 International BusinessLevel Strategy: Determinants of National Advantage ? Firm strategy, structure, and rivalry: the pattern of strategy, structure, and rivalry among firms – mon technical training – methodological product and process improvement – cooperative and petitive systems 13 International CorporateLevel Strategy Need for Local Responsiveness Need for Global Integration Low High Low High Global strategy Transnational strategy Multidomestic strategy 14 International CorporateLevel Strategy ? Type of corporate strategy selected will have an impact on the selection and implementation of the businesslevel strategies ? Some corporate strategies provide individual country units with flexibility to choose their own strategies ? Others dictate businesslevel strategies from the home office and coordinate resource sharing across units 15 Multidomestic strategy International CorporateLevel Strategy: Multidomestic Strategy ? Strategy and operating decisions are decentralized to strategic business units (SBU) in each country ? Products and services are tailored to local markets ? Business units in one country are independent of each other ? Assumes markets differ by country or regions ? Focus on petition in each market ? Prominent strategy among European firms due to broad variety of cultures and markets in Europe 16 International CorporateLevel Strategy: Global Strategy Global strategy ? Products are standardized across national markets ? Decisions regarding businesslevel strategies are centralized in the home office ? Strategic business units (SBU) are assumed to be interdependent ? Emphasizes economies of scale ? Often lacks responsiveness to local markets ? Requires resource sharing and coordination across borders (which also makes it difficult to manage) 17 Transnational strategy International CorporateLevel Strategy: Transnational Strategy ? Seeks to achieve both global efficiency and local responsiveness ? Difficult to achieve because of simultaneous requirements ? strong central control and coordination to achieve efficiency