the multinational mission
TRANSCRIPT
The Multinational MissionBalancing Local Demands & Global Vision
Authors: C.K.Prahalad & Yves L.doz
About the Book
• Focus on process by which DMNC achieve goals• Tools for analyzing global competition & translating them into
action• 13 DMNC Companies studied- interview based approach• Unit of Analysis- Discrete Business, Related Business &
Corporation• Key Issues- Strategic Management & assessing the strategic
imperative
Mapping the CharacteristicsOf a Business
• Understanding characteristics of wide range of businesses• Understanding the rules of the gameThe Building Blocks• Global Integration of activities- centralized mgmnt; • Global Strategic Co-ordination- central mgmnt of resource
commitments; build & defend competitive adv• Local Responsiveness- autonomous subsidiary resource
commitment decision responding to local demands
The Integration-Responsiveness Grid
Criteria Electronics TV Products Corningware
Pressures for Global Strategic Co-ordination
Importance of Multinational Customer
High High Low
Presence of Multinational Competitor
High Medium/ High
Low
Investment Intensity High High Low/ Medium
The Integration-Responsiveness Grid
Criteria Electronics TV Products Corningware
Pressures for Global Operational Integration
Technology Intensity Medium Medium Low
Pressure for Cost Reduction High High Low
Universal Needs High Medium Low
Access to raw materials and energy NA NA NA
The Integration-Responsiveness Grid
Criteria Electronics TV Products Corningware
Pressures for Local Responsiveness
Differences in Customer needs Medium Medium Low
Differences in Distribution High High Low
Needs for substitutes & product adoption
High Medium Low
Market Structure NA NA NA
Host Government Demands NA NA NA
The Integration-Responsiveness Grid
Global Businesses
Electronic components,
Medical
Multifocal Businesses
TV, Opthalmic products
Locally Responsiveness
Corningware
Pressures for Local Responsiveness
Pressures for Global
Integration
HighLow
High
The Integration-Responsiveness Grid
Integrated Product Strategy,
worldwide business mgmnt
Product Emphasis,
Multifocal Strategy, Multifocal Org
Area Emphasis
Autonomous National
Subsidiaries
Need for Responsiveness
Need for Integration
HighLow
High
Critique• The companies discussed are specifically European &
American• The companies discussed are LSE and hence it is difficult to
generalize the model• The complexities involved in having a multiple approach are
not dealt with• The focus is specifically on product companies and not on
service industries
THANKS