STRATEGIC MANAGEMENT IN MULTINATIONAL COMPANY

The business environment becomes increasingly global each day. Consequently, even the managers of domestic firms need a good understanding of multinational business strategy, this research paper provided with a foundation to basic terminology to understand the strategic to facing the multinational manager. The primary ingredients of multinational strategic management are based on general strategic management processes. Like domestic firms, multinational companies employ the generic strategies of low cost differentiation. To compete with rival firms, multinational companies also use offensive and defensive competitive strategies. Diversified multinational firms can have both unrelated and related business portfolios. To formulate strategies, multinational managers use many of the same tools available to domestic managers. After reading this research you should be able to define the generic strategies of differentiation and low cost; Understand how low-cost and differentiation strategists make money; Understand competitive advantage and the value chain and how it applies to multinational operations; Understand distinctive competencies and how they lead to competitive advantage; Understand how offensive and defensive strategies are used by multinational firms; Understand how the traditional strategy formulation techniques, industry and competitive analysis, and company situation analysis are applied to the multinational company; Understand the basics of multinational diversification; Realize that the national context affects both the convergence and divergence in strategies used by multinational companies. _______________________