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Multinational Firm Strategy

Here is a question posed by my teacher that I'm really struggling with. Can you please help me with this?

"The choice of strategy for a multinational firm to pursue must depend upon a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing that strategy (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a multidomestic strategy, others a global or international strategy, and still others a transnational strategy." Discuss.

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Here is a question posed by my teacher that I'm really struggling with. Can you please help me with this?

"The choice of strategy for a multinational firm to pursue must depend upon a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing that strategy (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a multi domestic strategy, others a global or international strategy, and still others a transnational strategy." Discuss.

The topic says that the choice of strategy for a multination firm must depend on the cost/benefit comparison of strategies. However, the this the topic says is defined by the organization architecture necessary for implementation. This assertion is only partially true because the strategy is decided in part by the organization architecture ( the global organizational structure, the core competencies of the organizations and competitive advantages enjoyed by the company) but the choice of strategy is also determined by external factors like the economies the ...

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