The multinational or multidomestic enterprise, as exemplified by Unilever or Philips. It is a decentralised federation of local firms. Its strength lies in a high degree of local responsiveness. The global enterprise, (Ford, Matsushita).
Strengths are scale efficiencies and cost advantages. Global scale facilities at home produce standardised products. Overseas operations are delivery pipelines.There is tight control of strategic decisions, resources and information by the global hub.
The international enterprise, (Microsoft). Strength is its ability to transfer knowledge and expertise to less-advanced overseas environments. Comprises coordinated federation of local firms, controlled by sophisticated management systems and corporate staff.Attitude of parent company tends to be parochial.
The transnational (ABB) combines local responsiveness with global efficiency.“A company that is big and small, global and local, decentralised but with central control.”Attention paid to managing integrative linkages between local firms and the centre. Subsidiary is a distinctive asset of parent.
