Global Strategy
Global Strategy
Global Strategy
International Business
Strategy, Management & the New Realities
by
Cavusgil, Knight and Riesenberger
International Business: Strategy, Management, and the New Realities 1
Learning Objectives
Global
Local
RD SA BA CE RE
RA E
SD CA
D RB
BD A SB
B
CD
SF BF RC BB
H
CF F SC CB
RF
BC C A : Home plant
H: Headquarters
CC B … F: Subsidiaries
Organizational Structure Provides for
Unambiguous Relationships
Advantages
• It centralizes management and coordination of international
operations.
• It is staffed with international experts who focus on developing
new business opportunities abroad and offering assistance
and training for foreign
Disadvantages
• A domestic vs. international power struggle often occurs over
the control of financial and human resources.
• There is likely to be little sharing of knowledge among the
foreign units or between the foreign units and headquarters.
• R&D and future-oriented planning activities tend to remain
domestically focused. Products continue to be developed for
the domestic marketplace, with international needs
considered only after domestic needs have been addressed.