Managing Internationalisation
Business Management: IB Diploma, topic 1.6.8
Managing International Business
The management and leadership of an international business are quite different from the management and leadership of a domestic, or local, business.
Cultural differences
- Cultural differences often influence the management of international businesses as trading may involve dealing with different cultures.
Legal differences
- Legal differences often influence the management of international businesses as trading may involve dealing with the laws of different countries.
Markets and customer demands
- Markets and customer demands often influence the management of international businesses as trading may involve dealing with customers and markets which demand different products and services, or adapted products and services.
Bartlett and Ghoshal’s Model
Bartlett and Ghoshal’s model proposes four strategies to support international businesses.
Bartlett and Ghoshal's measures
- Bartlett and Ghoshal use pressure for local responsiveness (the requirement to adapt a product according to location) and pressure for reducing costs to decide the most appropriate strategy for a business to pursue.
Model
Global strategy
- Global organisations, or global strategy, is for businesses who have high pressure to reduce costs but low pressure for local responsiveness.
International strategy
- International organisations, or international strategy, is for businesses who have low pressure to reduce costs and low pressure for local responsiveness.
Transnational strategy
- Transnational organisations, or transnational strategy, is for businesses who have high pressure to reduce costs and high pressure for local responsiveness.
Multidomestic strategy
- Multidomestic organisations, or multidomestic strategy, are for businesses who have low pressure to reduce costs but high pressure for local responsiveness.
Test yourself on Managing Internationalisation
In India, nodding your head up and down means "no" and shaking your head left to right means "yes". What type of difference is this?
According to Bartlett and Ghoshal's model, which strategy is most applicable for businesses who have a high pressure to reduce costs and low pressure for local responsiveness?
According to Bartlett and Ghoshal's model, which strategy is most applicable for businesses who have a low pressure to reduce costs and low pressure for local responsiveness?