Task $1$: Define the Features of Each Strategy and Map the Companies

Features of Each Strategy

International Strategy:

Definition: Focuses on leveraging home$-$based core competencies in foreign markets. Products and services are developed in the home country and then exported to other countries with minimal local customization.

Characteristics: Centralized decision$-$making, limited local responsiveness, and strong control over operations from the home country.

Multi$-$Domestic Strategy:

Definition: Emphasizes high local responsiveness. Products and services are tailored to fit local markets. Each country operates independently.

Characteristics: Decentralized decision$-$making, high local customization, and autonomy for local subsidiaries.

Global Strategy:

Definition: Focuses on achieving cost advantages through economies of scale. Products and services are standardized across global markets.

Characteristics: Centralized decision$-$making, low local responsiveness, and high efficiency.

Transnational Strategy:

Definition: Combines global efficiency with local responsiveness. Aims to leverage global integration while being responsive to local needs.

Characteristics: Balanced decision$-$making, both centralized and decentralized, high local customization, and global coordination.

Mapping Companies to Each Quadrant

International Strategy:

Texas Instruments: Leverages its technological expertise developed in the home country and exports products with minimal customization.

Multi$-$Domestic Strategy:

Nestl$$: Customizes its products to fit local tastes and preferences, operating with a high degree of local autonomy.

Global Strategy:

Coca$-$Cola: Standardizes its product globally to achieve economies of scale, with centralized control over operations.

Transnational Strategy:

McDonald's: Balances global efficiency with local responsiveness by standardizing core products while allowing local adaptations.

Multi$-$Domestic Strategy:

Heinz: Adapts its products to meet local tastes and preferences, operating with significant local autonomy.

Task $2$: Need to Shift Strategies for Long$-$Term Sustainability

As markets and consumer preferences evolve, companies may need to shift their strategies to maintain competitiveness and sustainability. Here are some reasons and examples:

Changing Consumer Preferences:

Companies like McDonald's may need to shift from a global to a transnational strategy to cater to local tastes and dietary preferences, such as offering vegetarian options in India.

Technological Advancements:

Texas Instruments might need to move from an international to a transnational strategy to leverage local technological advancements and innovations.

Competitive Pressures:

Coca$-$Cola may need to adopt more local responsiveness to compete with local beverage brands, shifting towards a transnational strategy.

Regulatory Changes:

Nestl$$ might need to adjust its multi$-$domestic strategy to comply with new local regulations, ensuring products meet local standards.

Economic Conditions:

Heinz may need to shift from a multi$-$domestic to a global strategy to reduce costs during economic downturns by standardizing products and achieving economies of scale.

In conclusion, the ability to adapt and shift strategies in response to changing market conditions, consumer preferences, and competitive landscapes is crucial for the long$-$term sustainability of multinational companies.