商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 7 Strategies of Transnational Corporations.ppt

Unit Seven Introduction Most transnational corporations are confronted with an array of strategy options. Like domestic companies, transnational corporations use three basic strategies : generic, competitive and diversification. However, if transnational corporations want to gain advantages internationally, they are supposed to lean toward domestic strategy and global strategy. Text 1 It is in determining how to compete that most TNCs have run into problems. TNCs in the late 1990s are confronted with a bewildering array of strategy options. Most TNCs conceptualize strategy as a hierarchy that includes both corporate-level strategies and business-unit-level strategies. Corporate strategies typically focus on two things: (1) determining the industries in which the TNCs will compete, and (2) determining how the various businesses within the TNCs will coordinate activities. Business-unit strategies focus on market share battles through competitive and international positioning. Business-unit managers rather than corporate executives have become the primary drivers of international strategy. 10 Businesses pursuing multi-domestic strategies first develop products for their home market and then offer them for sale or adaptation by their overseas affiliates. Affiliates are developed with capacity to absorb parent company technology and adapt the resulting products to local conditions and tastes. Traditionally, multi-domestic affiliates manufacture products for their own national markets, adapting the parent company product line as required. If specialization is at the heart of global strategies, duplication and autonomy are at the heart of multi-domestic strategies. In the pure multi-domestic model, it is technology and skills that cross national boundaries, not products. Global Strategy 11 Transnational companies that lean toward a global solution, at least to the largest degree possible, reduce costs by usi