UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN

FACULTAD DE CONTADURÍA PÚBLICA Y ADMINISTRACIÓN

Negocios Internacionales

Subject: Operations & Supply Chain Management

“Global Strategies”

Professor: Arturo Iván Lara Blancas

Group: 6Ei

Team Members: González Billy Joe #1925535

Mendoza Martínez Cynthia Lizeth #1900444
Villarreal Duque Cristoffer Eduardo #1921674
 Introduction

Before this essay starts off we wanted to talk about what do we think global strategies
are in our own opinion, what we thought global strategies were about is that they are the
strategies that companies use to make their brand or their product go global like the name
of the strategy mentions, they didn’t know that they were various global strategies like
international, transnational, multinational and the last one being global.

To create a global strategy, you need to examine how your company’s goods will perform
in global marketplaces, global strategy development also includes examining your
competition, global clients, manufacturing sites and other aspects of your business to
guarantee that your company succeeds in the global market, we didn’t know how
important these strategies were until we got started with this essay because these
strategies are used by big companies like Apple, McDonald’s, etc.

And these strategies have been implemented and used since the 1980’s because they
are very useful for every company that wants to go international or transnational but you
will see and understand all these concepts in this essay.
 Type of global strategies

The first global strategy that we are going to talk about is the international strategy that
“is a business plan or strategy created by a company to do its business in international
markets” according to the MBA Skool Team, but what we think the international strategy
is, is that the company plans and studies the market of where they want to go to get good
knowledge about their culture and to see if their product will be successful in an
international setting, most companies begin their international strategy by importing or
exporting goods and services while keeping a head office or offices in their native nation.
(Mba Skool Team, 2021)

International companies use this strategy to function through a main or head office, an
international company rather than using subsidiaries or local offices, retains its
headquarters in one place, generally its home market because of this management
structure there is just one center of operations and brand with little to no infrastructure
investment in other nations.

Importing and exporting items are part of an international strategy this strategy allows you
to collaborate with overseas suppliers and sell to clients all over the world while remaining
physically located in your native country, typically international strategies continue to
prioritize the company's local market while conducting some business elsewhere.

One case of an international strategy is the company Porsche because cars rely on
thousands of components made all around the globe, however the majority of today's
current automobile companies including foreign ones like Toyota, GM, and BMW have
manufacturing sites in the United States, Mexico and Canada to service North American
customers, Porsche for example may employ parts from around the globe but the vehicles
are still manufactured in its flagship plants in Zuffenhausen and Leipzig, Germany.

The second global strategy that we saw was the transnational strategy according to the
author Darpan Saxena “A transnational strategy is simply a plan of action whereby a
business decides to conduct its activities across international borders. This strategy is
invested in overseas operations and assets, connecting them to every nation in which the
company operates”, this strategy demonstrates the advantages of centralization provided
by a global strategy, nevertheless transnational business strategy differs from
multinational, international, and global business strategies. (Saxena, 2020)
Transnational strategy may appear to be a complicated idea but we think that it is actually
quite simple, in a transnational businesses, companies work both locally and globally in
order to serve local customers and comprehend the market while also working to
incorporate that with the company's global strategies so in our point of view of the strategy
we think that this strategy is very useful for companies to connect with other cultures and
mold to their specific needs and to exclude things that the culture does not accept making
this a vital point for the company to have growth and success in other countries.

A transnational business strategy is a form of international company plan that meets two
basic characteristics, these two characteristics are that the company has a high level of
local response and increasing globalization, this means that a transnational business has
subsidiaries or headquarters in all of the nations it serves but these local branches are
incorporated into the company's bigger global aims and ambitions.

Transnational businesses evaluate the cultures of the nations in which they operate and
how to effectively attract to any of those people, instead of thinking that everybody desires
the same thing.

Some transnational businesses, like a cafeteria or shop that uses the same design and
feel in every country may provide a fairly comparable experience in every country they
operate in, however these companies frequently tailor the experience to the area of each
store either by deleting elements that may be objectionable to local culture or by
introducing alternatives that are expected in that society.

The transnational strategy seeks to score well in both local adaptation and global
integration this approach seeks to capitalize on the advantages of working in various
nations.

Transnational corporations as we know strive to increase sales, cut manufacturing costs,

and achieve economies of scale these corporations have dispersed offices and
organizational structures in the countries where they operate.

The scale and complexity of how the different locations interact are determined by the
business model chosen by the organization, the amount of influence exercised by the
central office is also variable in transnational companies.
One case of the transnational strategy can be Large fast-food franchises like McDonald's,
because it relay’s on the same brand name and basic menu items all over the world and
this business also caters to local tastes like wine, for example, this item can be purchased
in McDonald's in France and also McDonald's provides a McArabia Chicken sandwich in
Saudi Arabia, and their breakfast menu excludes pig products such as ham, bacon, and
sausage.

The third strategy is the multinational strategy that according to the author Zach Lazzari
it is “A multinational company operates in multiple countries, and the company adapts
marketing messaging to fit each culture group, driving sales is always top of mind, the
major difference in a multinational business model is the adaptation of product offerings
and manufacturing processes” (Lazzari , 2019).

The multinational strategy is a method where a corporation works as separate units of

operation in many countries to improve products or services depending on local consumer
preferences and competitiveness in order to acquire a competitive edge.

To adapt to specific culture, a multinational strategy employs subsidiaries in each host

country where the corporation does operations, production, R&D, human resource
management and marketing operations are all necessary for each local subsidiary to
operate in the host country and as a result each multinational company may
autonomously modify its goods and tactics according to local client preferences and
competitiveness.

If a company tailors its products to different regions in a special manner, chances are it
is trying to pursue a multinational or multidomestic strategy, multinational corporations
take the wants and needs of local shops very seriously, working to develop distinct
services and goods for each instead of trying to offer one standardized good for all.
A multinational strategy enables you to tailor your offerings to each specific local market,
you may also have actual business sites and employees based in different areas, your
capacity to customize your company to specific regions is a fundamental benefit of
utilizing a multinational strategy, multinational corporations also may easily obtain their
potential consumers since they produce in the areas where the target markets are located
and they also have easy access to raw supplies and lower labor costs.

The MTV television show is a case of a multinational strategy since it customizes the
broadcast based on nations such as South Korea, India, New Zealand and Portugal,
instead of attempting to leverage American MTV for global audiences.

The last strategy is the global strategy and the authors of the page master class wrote
that “Global strategy allows companies to enter markets in various countries, reaping
rewards previously unthinkable had they not branched out from their country of origin”.
(MasterClass, 2022)

We believe that global strategy is a form of plan that companies develop to operate
outside of their native country.

Many businesses may explore expanding into global markets as they grow, however in
order to function globally a corporation needs to consider developing a global strategy,
understanding how to develop an effective global strategy may help a company succeed
globally.

The goal of creating a global strategy is to grow sales all around the world, standardization
as well as international and multinational strategies are all included in the phrase global
strategy, creating a worldwide strategy may help your firm in a variety of ways, including
expanding sales in new areas and improving global brand recognition.

To create a global strategy, you need to examine how your company's goods will perform
in global marketplaces, worldwide strategy development also includes examining your
competition, global clients, manufacturing sites and other aspects of your business to
guarantee that your company succeeds in the global market.
Minor changes to goods and services may be made in different regions, but a global
strategy emphasizes the need of gaining economies of scale by delivering basically the
same items or services in each area.

One case for the global strategy can be the company Microsoft that for instance provides
the identical software packages all around the world but adapts them to native languages.
 Conclusion

We conclude this essay with the idea that the transnational strategy is obviously the best
strategy that you can implement in your business because it operates locally and globally
like for example the trucking companies that work in the border cities like Reynosa
Tamaulipas are good examples of why transnational strategy is the best strategy you can
apply because they have their own local costumers but they also have their costumers
from the us and they are able to complete the tasks that the costumers from the us give
them because they are able to mold their work to the way they are asking to and to the
culture that the us haves and also this strategy of transnational has been able to help a
lot of companies to go worldwide and not only operate locally and another example that
demonstrates that transnational strategy is the best strategy according to our opinion is
the example of McDonalds that was mentioned above that according to the region that
they are in they are able to supply products that are more popular in the places that they
are in and also how they don’t offer some products that are not accepted in the culture
that they are in and this helps the company grow because people see that the company
that is in their country molds to their culture.

And a transnational strategy can help organizations that desire to operate worldwide join
a local market more efficiently and swiftly build a consumer base and one of the main
reasons for this is that local personnel should understand how to engage with others in
their culture better than an outsider.
 Bibliography

• CFI Team. (2022, 21 enero). Multinational corporation (MNC). CFI. Recuperado 4 de

septiembre de 2022, de

https://corporatefinanceinstitute.com/resources/knowledge/strategy/multinational-corporation/

• Indeed Editorial Team. (2021, 5 abril). Transnational strategy: Definition, benefits and

challenges. indeed. Recuperado 4 de septiembre de 2022, de https://www.indeed.com/career-

advice/career-development/transnational-strategy

• Lazzari , Z. (2019, 11 marzo). Global company vs. A multinational company. CHRON.

Recuperado 4 de septiembre de 2022, de https://smallbusiness.chron.com/global-company-vs-

multinational-company-35107.html

• MasterClass. (2022, 25 abril). Global strategy definition: 5 benefits of doing business globally.

Recuperado 4 de septiembre de 2022, de https://www.masterclass.com/articles/global-strategy

• Mba Skool Team . (2021, 21 agosto). International strategy - meaning, importance, types, steps

& example. mba Skool . Recuperado 4 de septiembre de 2022, de

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7476-international-

strategy.html

• Multinational strategy . (2022, 22 febrero). Feriors . Recuperado 4 de septiembre de 2022, de

https://feriors.com/multinational-strategy-

definition/#:~:text=The%20multinational%20strategy%20is%20a,to%20gain%20a%20competiti

ve%20advantage.

• Reed Kennedy . (2020). Strategic Management . Virginia Tech’s Pamplin College: Virginia
Tech.
• Saxena, D. (2020, 20 abril). What is transnational strategy in international business? Super

Heuristics . Recuperado 4 de septiembre de 2022, de https://www.superheuristics.com/what-is-

transnational-

strategy/#:~:text=A%20transnational%20strategy%20is%20simply,in%20which%20the%20com

pany%20operates.

• Smartling . (2019, 9 mayo). What is an international strategy? smartling. Recuperado 4 de

septiembre de 2022, de https://www.smartling.com/resources/101/what-is-an-international-

strategy-5-examples/