8/14/2019 Evolution of Company
1/13
Presented By:Amit Lalani (201)Debasish Chakrbarty (211)Lawi Anupam (221)Rakesh Ippli (231)Sheelu (241)Sudershan Sharma (251)Y.V.K. Prasad (261)
GITAM INSTITUTE OF INTERNATIONAL BUSINESSVISAKHAPATNAM
8/14/2019 Evolution of Company
2/13
DOMESTICStage and Company Domestic
Strategy Domestic
Model NA
View of the world Home country
Orientation Ethnocentric
Key Assets Located in the homecountry
Role of Country units Single Country
Knowledge Home Country
8/14/2019 Evolution of Company
3/13
INTERNATIONALStage and Company International
Strategy International
Model Coordinated federation
View of the world Extension Markets
Orientation Ethnocentric
Key Assets Core centralized and othersdispersed
Role of Country units Adapting and Leveraging
competenciesKnowledge Created at centre and
transfered
8/14/2019 Evolution of Company
4/13
MULTINATIONALStage and Company Multinational
Strategy Multi Domestic
Model Decentralized federation
View of the world National Markets
Orientation Polycentric
Key Assets Decentralized and Self Sufficient
Role of Country units Exploiting localopportunities
Knowledge Retained within operatingunits
8/14/2019 Evolution of Company
5/13
GLOBALStage and Company Global
Strategy Global
Model Centralized Hub
View of the world Global Markets Or resources
Orientation Mixed Orientation
Key Assets All in home country exceptmarketing and sourcing
Role of Country units Marketing and SourcesKnowledge Marketing and sourcing
developed jointly andshared
8/14/2019 Evolution of Company
6/13
TransnationalStage and Company Transnational
Strategy Global
Model Integrated Network
View of the world Global markets and resources
Orientation GeocentricKey Assets Dispersed, Interdependent and
Specialized
Role of Country units Contributions to companies worldwide
Knowledge All functions developed jointly and
shared
Stage and Company Transnational
Strategy Global
Model Integrated Network
View of the world Global Markets and Resources
Orientation Geocentric
Key Assets Dispersed Interdependent andSpecialized
Role of Country units Contributions to companyworldwide
Knowledge All functions developed jointlyand shared
Key Job Best person selectedregardless of nationality
8/14/2019 Evolution of Company
7/13
ttributes of a TransnationalCompany
Looking forward to Global markets & resources
Special labs located different location but will work on thesame project.
Role of each country is to contribute company world-wide.
Best Person is selected regardless of nationality.
R&D is part of integrated worldwide R&D plan and isdecentralized.
8/14/2019 Evolution of Company
8/13
TRANSNATIONALITY
INDEX It is calculated as the arithmetic mean of thefollowing three ratios :
1. The ratio of foreign assets to total assets,
2. The ratio of foreign sales to total sales,
3. Ratio of foreign employment to totalemployment.
8/14/2019 Evolution of Company
9/13
Is Company A Transnational?
Stage and Company Transnational
Strategy Global
Model Integrated Network
View of the world Global markets and resources
Orientation GeocentricKey Assets Dispersed, Interdependent and
Specialized
Role of Country units Contributions to companies worldwide
Knowledge All functions developed jointly and
shared
Stage and Company Transnational Company A
Strategy Global Overseas subsidiaries managetheir own business
Model Integrated Network YES
View of the world Global Markets andResources
Sales in 80 Countries, andmanufacturing in 14 Countries
Orientation Geocentric Adapting to unique marketpreferences
Key Assets Dispersed Interdependentand Specialized
Assets across the Globe
Role of Country units Contributions to companyworldwide
Manufacturing in US, UK,Australia, Europe.
Knowledge All functions developed jointly and shared
YES
Key Job Best person selected
regardless of nationality
Often rely on home country
persons for CEO and (CFO)positions
8/14/2019 Evolution of Company
10/13
Company BStage and Company Multinational
Strategy Multi Domestic
Model Decentralized federation
View of the world National MarketsOrientation Polycentric
Key Assets Decentralized and Self Sufficient
Role of Country units Exploiting localopportunitiesKnowledge Retained within operating
units
8/14/2019 Evolution of Company
11/13
Company CStage and Company International Company C
Strategy International Worldwide federationsModel Coordinated federation YES
View of the world Extension Markets YES
Orientation Ethnocentric All Engineering andManufacturing in home
countryKey Assets Core centralized and
others dispersedYES
Role of Country units Adapting and Leveragingcompetencies
YES
Knowledge Created at centre andtransferred
YES
Key Jobs Key Jobs to Homecountry nationals
Key jobs to home countrynationals- Speak theirlanguage, understand
history.
8/14/2019 Evolution of Company
12/13
Company DStage and Company Company D
Strategy Multi Domestic
Model Decentralizedfederation
View of the world National Markets Evaluating 3 rd Worldcountries
Orientation Polycentric Taking opportunities
and ExpandingKey Assets Decentralized and Self
Sufficient
Role of Country units Exploiting localopportunities
Knowledge Retained withinoperating units
Job Positions Key Jobs in Hostcountry- Host CountrynationalsHQ Mgmt Jobs toHome countrynationals
European CEO
8/14/2019 Evolution of Company
13/13
THANK YOU