Case Scenario: Developing a Global Strategy

Break into groups of three to five people and discuss the following scenario. Appoint one group member as a spokesperson who will communicate your findings to the class. You work for a company in the soft drink industry that has developed a line of carbonated fruit-based drinks. You have already established a significant presence in your home market, and now you are planning the global strategy development of the company in the soft drink industry. You need to decide the following:

1. What overall strategy to pursue: a global standardization strategy, a localization strategy, an international strategy, or a transnational strategy

2. Which markets to enter first

3. What entry strategy to pursue (e.g., franchising, joint venture, wholly owned subsidiary)

4. What information do you need to make these kinds of decisions? On the basis of what you do know, what strategy would you recommend?

Article File 8

Find an example of a multinational company that in recent years has switched its strategy from a localization, international, or global standardization strategy to a transnational strategy. Identify why the company made the switch and any problems that the company may be encountering while it tries to change its strategic orientation.

Strategic Management Project: Module 8

This module requires you to identify how your company might profit from global expansion, the strategy that your company should pursue globally, and the entry mode that it might favor. With the information you have at your disposal, answer the questions regarding the following two situations:

1. Is your company creating value or lowering the costs of value creation by realizing location economies, transferring distinctive competencies abroad, or realizing cost economies from the economies of scale? If not, does it have the potential to?

2. How responsive is your company to differences among nations? Does it vary its product and marketing message from country to country? Should it?

3. What are the cost pressures and pressures for local responsiveness in the industry in which your company is based?

4. What strategy is your company pursuing to compete globally? In your opinion, is this the correct strategy, given cost pressures and pressures for local responsiveness?

5. What major foreign market does your company serve, and what mode has it used to enter this market? Why is your company active in these markets and not others? What are the advantages and disadvantages of using this mode? Might another mode be preferable?