Whitley edsThe Multinational Firm. For instance, the availability of a local substitute with a differing price-performance relationship might require adaption to be competi- tive on the local market. The appropriate strategic choice is essential for a company to make the right choices.
Production Traditionally, the production of beer was local, with each town having its own brewery. The International Strategy seems very appealing to me since it allows XBdi to view its subsidiary business units as secondary to its primary domestic business.
Headquarters personnel justify global integration by citing converging demand patterns, spread of global brands, diffusion of uniform technology, availability of pan-regional media, and the need to monitor competitors on a global basis. It has to be noted, however, that at the national level, production integration has been spurred tre- mendously in the last 10 years, due to the many mergers and acquisitions that have taken place in the industry.
Founded Visiting subsidiaries to instill corporate values and priorities. Next, pressures for the global coordination of activities are for instance induced by the need to gather an encompassing intelligence about the moves of competitors.
However, building a truly transnational firm is an evolutionary process and can take a few years and it involves a lot of obstacles and uncertainties. Moreover, studies that have used an enhanced and refined integration responsiveness concept provided inconclusive results Ver- naik et al.
They argued that typically businesses that need significant global integration of ac- tivities also require global strategy coordination. Creating talent and cultivating the culture of innovation are top concerns for the company among other political, economic risks and government regulations.
In addition, the strategic orientations of firms might also vary, leading to different interpretations of environmental pressures and responses Roth and Morisson, ; Luo,