Home replication
Advantage- leverages home-country-based advantages. Relatively easy to implement
Disadvantage- lack of local responsiveness. May alienate foreign customers.
Localization
Advantage- maximizes local responsiveness.
Disadvantage- high costs due to duplication of efforts in multiple countries. Too much local autonomy.
Global standardization
Advantage- leverages low cost advantages
Disadvantage- Lack of local responsiveness. Too much centralized control
Transnational
Advantages- cost-efficient while being locally responsive. Engages in global learning and diffusion of innovations
Disadvantage- organizationally complex. Difficult to implement
Four organizational structures
· International division
· Geographic area
· Global product division
· Global matrix
Tom and jerry Example article
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